Edgar Filing: BLACKROCK BROAD INVESTMENT GRADE 2009 TERM TRUST INC

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:

811-07250

BlackRock Broad Investment Grade 2009 Term Trust, Inc.

(Exact name of Registrant as specified in charter)

100 Bellevue Parkway, Wilmington, DE	19809
(Address of principal executive offices)	(Zip code)

Robert S. Kapito, President

BlackRock Broad Investment Grade 2009 Term Trust, Inc.

40 East 52nd Street, New York, NY 10022

(Name and address of agent for service)

Registrant's telephone number, including area code:

888-825-2257

Date of fiscal year end:

October 31, 2007

Date of reporting period:

April 30, 2007

Item 1. Reports to Shareholders.

The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:

ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES FIXED INCOME LIQUIDITY REAL ESTATE




	BlackRock Closed-End Funds



	SEMI-ANNUAL REPORT \| APRIL 30, 2007 (UNAUDITED)





BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)

BlackRock Core Bond Trust (BHK)

BlackRock High Yield Trust (BHY)

BlackRock Income Opportunity Trust (BNA)

BlackRock Income Trust Inc. (BKT)

BlackRock Limited Duration Income Trust (BLW)

BlackRock Preferred and Equity Advantage Trust (BTZ)

BlackRock Strategic Bond Trust (BHD)

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE

TABLE OF CONTENTS


Letter to Shareholders	1

Trusts’ Summaries	2

Financial Statements

Portfolios of Investments	10

Statements of Assets and Liabilities	54

Statements of Operations	56

Statements of Cash Flows	58

Statements of Changes in Net Assets	60

Financial Highlights	63

Notes to Financial Statements	71

Dividend Reinvestment Plans	86

Additional Information	87

Section 19 Notices	88

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our website.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

LETTER TO SHAREHOLDERS

April 30, 2007

Dear Shareholder:

We are pleased to report that during the semi-annual period, the Trusts provided the opportunity to invest in various portfolios of fixed income securities. This report contains the Trusts’ unaudited financial statements and a listing of the portfolios’ holdings.

The portfolio management team continuously monitors the fixed income markets and adjusts the Trusts’ investments in order to gain exposure to various issuers and security types. This strategy enables the Trusts to move among different sectors, credit ratings and coupon levels to capitalize on changing market conditions.

The following table shows the Trusts’ yields, closing market prices per share and net asset values (“NAV”) per share as of April 30, 2007.


Trust	Yield¹			Market Price		NAV

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)		5.94	%	$	15.15	$	13.65

BlackRock Core Bond Trust (BHK)		6.21			12.95		13.84

BlackRock High Yield Trust (BHY)		7.36			8.32		8.28

BlackRock Income Opportunity Trust (BNA)		6.17			10.70		11.17

BlackRock Income Trust Inc. (BKT)		5.99			6.21		6.49

BlackRock Limited Duration Income Trust (BLW)		7.66			19.57		19.32

BlackRock Preferred and Equity Advantage Trust (BTZ)		8.00			23.43		23.79

BlackRock Strategic Bond Trust (BHD)		7.01			13.19		14.16


¹	Yield is based on closing market price. These yields may increase/decrease due to an increase/decrease in the monthly distribution per share. Past performance does not guarantee future results.

BlackRock, Inc. (“BlackRock”), a world leader in asset management, has a proven commitment to managing fixed income securities. As of March 31, 2007, BlackRock managed $468 billion in fixed income securities, including 32 open-end and 90 closed-end bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world’s largest institutional investors. BlackRock Advisors, LLC, and its affiliate, BlackRock Financial Management, Inc., which manage the Trusts, are wholly owned subsidiaries of BlackRock.

On behalf of BlackRock, we thank you for your continued confidence and assure you that we remain committed to excellence in managing your assets.


Sincerely,



Laurence D. Fink Chief Executive Officer BlackRock Advisors, LLC	Ralph L. Schlosstein President BlackRock Advisors, LLC

TRUST SUMMARIES (unaudited)
APRIL 30, 2007

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)

Trust Information



Symbol on American Stock Exchange:		BCT

Initial Offering Date:	June 17, 1993

Termination Date (on or about):	December 31, 2009

Closing Market Price as of 4/30/07:		$	15.15

Net Asset Value as of 4/30/07:		$	13.65

Yield on Closing Market Price as of 4/30/07 ($15.15):¹			5.94	%

Current Monthly Distribution per Share:²		$	0.075

Current Annualized Distribution per Share:²		$	0.900


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 is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.

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



	4/30/07		10/31/06		Change		High		Low

Market Price	$	15.15	$	15.08		0.46%	$	15.65	$	14.86

NAV	$	13.65	$	13.79		(1.02)%	$	13.81	$	13.63

The following chart shows the portfolio composition of the Trust’s long-term investments:

Portfolio Composition



Composition	April 30, 2007			October 31, 2006

Agency Multiple Class Mortgage Pass-Through Securities		37	%		28	%

U.S. Government and Agency Securities		19			30

Taxable Municipal Bonds		16			11

Inverse Floating Rate Mortgage Securities		11			8

Corporate Bond		8			14

Interest Only Mortgage-Backed Securities		6			7

Mortgage Pass-Through Securities		3			2

TRUST SUMMARIES (unaudited)
APRIL 30, 2007

BlackRock Core Bond Trust (BHK)

Trust Information



Symbol on New York Stock Exchange:	BHK

Initial Offering Date:	November 27, 2001

Closing Market Price as of 4/30/07:		$	12.95

Net Asset Value as of 4/30/07:		$	13.84

Yield on Closing Market Price as of 4/30/07 ($12.95):¹			6.21	%

Current Monthly Distribution per Share:²		$	0.067

Current Annualized Distribution per Share:²		$	0.804

Leverage as of 4/30/07:³			9	%


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 is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.
³	As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

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



	4/30/07		10/31/06		Change			High		Low

Market Price	$	12.95	$	12.86		0.70	%	$	13.25	$	12.58

NAV	$	13.84	$	13.82		0.14	%	$	14.01	$	13.59

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

Portfolio Composition



Composition	April 30, 2007			October 31, 2006

Corporate Bonds		55	%		58	%

Mortgage Pass-Through Securities		11			10

U.S. Government and Agency Securities		8			5

Agency Multiple Class Mortgage Pass-Through Securities		7			8

Asset-Backed Securities		7			8

Commercial Mortgage-Backed Securities		6			6

Non-Agency Multiple Class Mortgage Pass-Through Securities		3			2

Foreign Government Bonds		2			1

Interest Only Mortgage-Backed Securities		1			1

Interest Only Asset-Backed Securities		—			1

Corporate Credit Quality Allocations⁴



Credit Rating	April 30, 2007			October 31, 2006

AAA/Aaa		6	%		7	%

AA/Aa		27			26

A		11			10

BBB/Baa		20			17

BB/Ba		8			12

B		22			23

CCC/Caa		6			5


⁴	Using the highest of Standard & Poor’s (“S&P’s”), Moody’s Investors Service (“Moody’s”) or Fitch Rating (“Fitch’s”) ratings. Corporate bonds represented approximately 58.2% and 58.3% of net assets on April 30, 2007 and October 31, 2006, respectively.

TRUST SUMMARIES (unaudited)
APRIL 30, 2007

BlackRock High Yield Trust (BHY)

Trust Information



Symbol on New York Stock Exchange:	BHY

Initial Offering Date:	December 23, 1998

Closing Market Price as of 4/30/07:		$	8.32

Net Asset Value as of 4/30/07:		$	8.28

Yield on Closing Market Price as of 4/30/07 ($8.32):¹			7.36	%

Current Monthly Distribution per Share:²		$	0.051

Current Annualized Distribution per Share:²		$	0.612

Leverage as of 4/30/07:³			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 is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.
³	As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

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



	4/30/07		10/31/06		Change			High		Low

Market Price	$	8.32	$	7.77		7.08	%	$	8.60	$	7.66

NAV	$	8.28	$	7.85		5.48	%	$	8.28	$	7.85

The following charts show the portfolio composition and credit quality allocations of the Trust’s corporate bond investments:

Corporate Portfolio Composition⁴



Composition	April 30, 2007			October 31, 2006

Energy		15	%		16	%

Telecommunications		13			13

Media		13			11

Basic Materials		12			11

Financial Institutions		8			14

Consumer Products		7			6

Technology		6			5

Automotive		4			3

Entertainment & Leisure		4			4

Industrials		4			3

Health Care		3			3

Aerospace & Defense		2			3

Transportation		2			2

Containers & Packaging		2			3

Real Estate		2			—

Building & Development		2			3

Ecological Services & Equipment		1			—

Corporate Credit Quality Allocations⁵



Credit Rating	April 30, 2007			October 31, 2006

BBB/Baa		4	%		3	%

BB/Ba		20			26

B		58			55

CCC/Caa		15			12

C		—			2

Not Rated		3			2


⁴	For Trust compliance purposes, the Trust’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.
⁵	Using the highest of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 123.2% and 128.9% of net assets on April 30, 2007 and October 31, 2006, respectively.

TRUST SUMMARIES (unaudited)
APRIL 30, 2007

BlackRock Income Opportunity Trust (BNA)

Trust Information



Symbol on New York Stock Exchange:	BNA

Initial Offering Date:	December 20, 1991

Closing Market Price as of 4/30/07:		$	10.70

Net Asset Value as of 4/30/07:		$	11.17

Yield on Closing Market Price as of 4/30/07 ($10.70):¹			6.17	%

Current Monthly Distribution per Share:²		$	0.055

Current Annualized Distribution per Share:²		$	0.660

Leverage as of 4/30/07:³			14	%


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 is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.
³	As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

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



	4/30/07			10/31/06			Change			High			Low

Market Price		$	10.70		$	10.58		1.13	%		$	10.76		$	10.27

NAV		$	11.17		$	11.17		—	%		$	11.33		$	10.95

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

Portfolio Composition



Composition	April 30, 2007		October 31, 2006

Corporate Bonds	47	%	48	%

Mortgage Pass-Through Securities	12		12

Asset-Backed Securities	11		13

U.S. Government and Agency Securities	10		7

Agency Multiple Class Mortgage Pass-Through Securities	8		7

Commercial Mortgage-Backed Securities	4		4

Non-Agency Multiple Class Mortgage Pass-Through Securities	4		6

Foreign Government Bonds	1		—

Federal Housing Administration Securities	1		1

Interest Only Mortgage-Backed Securities	1		1

Trust Preferred Stocks	1		—

Inverse Floating Rate Mortgage Securities	—		1

Corporate Credit Quality Allocations⁴



Credit Rating	April 30, 2007		October 31, 2006

AAA/Aaa	8	%	9	%

AA/Aa	18		17

A	11		10

BBB/Baa	21		19

BB/Ba	11		13

B	25		25

CCC/Caa	6		6

Not Rated	—		1


⁴	Using the highest of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 54.2% and 52.1% of net assets on April 30, 2007 and October 31, 2006, respectively.

TRUST SUMMARIES (unaudited)
APRIL 30, 2007

BlackRock Income Trust Inc. (BKT)

Trust Information



Symbol on New York Stock Exchange:	BKT

Initial Offering Date:	July 22, 1988

Closing Market Price as of 4/30/07:		$	6.21

Net Asset Value as of 4/30/07:		$	6.49

Yield on Closing Market Price as of 4/30/07 ($6.21):¹			5.99	%

Current Monthly Distribution per Share:²		$	0.031

Current Annualized Distribution per Share:²		$	0.372

Leverage as of 4/30/07:³			8	%


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 is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.
³	As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

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



	4/30/07	10/31/06	Change	High	Low

Market Price	$6.21	$6.07	2.31%	$6.33	$6.03

NAV	$6.49	$6.48	0.15%	$6.52	$6.41

The following chart shows the portfolio composition of the Trust’s long-term investments:

Portfolio Composition



Composition	April 30, 2007		October 31, 2006

Agency Multiple Class Mortgage Pass-Through Securities	27	%	28	%

Mortgage Pass-Through Securities	24		22

U.S. Government and Agency Securities	18		20

Interest Only Mortgage-Backed Securities	12		10

Non-Agency Multiple Class Mortgage Pass-Through Securities	8		9

Principal Only Mortgage-Backed Securities	5		5

Inverse Floating Rate Mortgage Securities	3		3

Federal Housing Administration Securities	2		2

Corporate Bonds	1		1

TRUST SUMMARIES (unaudited)
APRIL 30, 2007

BlackRock Limited Duration Income Trust (BLW)

Trust Information



Symbol on New York Stock Exchange:	BLW

Initial Offering Date:	July 30, 2003

Closing Market Price as of 4/30/07:		$	19.57

Net Asset Value as of 4/30/07:		$	19.32

Yield on Closing Market Price as of 4/30/07 ($19.57):¹			7.66	%

Current Monthly Distribution per Share:²		$	0.125

Current Annualized Distribution per Share:²		$	1.500

Leverage as of 4/30/07:³			20	%


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 is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.
³	As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the Trust’s market price and NAV:



	4/30/07	10/31/06	Change	High	Low

Market Price	$19.57	$18.85	3.82%	$19.89	$18.42

NAV	$19.32	$19.01	1.63%	$19.32	$18.93

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

Portfolio Composition




Composition	April 30, 2007			October 31, 2006

Corporate Bonds		42	%		43	%

Bank Loans		39			36

Mortgage Pass-Through Securities		14			14

U.S. Government and Agency Securities		3			4

Foreign Government Bonds		2			2

Non-Agency Multiple Class Mortgage Pass-Through Securities		—			1

Corporate Credit Quality Allocations⁴



Credit Rating	April 30, 2007			October 31, 2006

AA/Aa		1	%		2	%

A		1			1

BBB/Baa		10			9

BB/Ba		24			24

B		49			51

CCC/Caa		13			11

Not Rated		2			2


⁴	Using the highest of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 59.0% and 64.3% of net assets on April 30, 2007 and October 31, 2006, respectively.

TRUST SUMMARIES (unaudited)
APRIL 30, 2007

BlackRock Preferred and Equity Advantage Trust (BTZ)

Trust Information



Symbol on New York Stock Exchange:	BTZ

Initial Offering Date:	December 27, 2006

Closing Market Price as of 4/30/07:		$	23.43

Net Asset Value as of 4/30/07:		$	23.79

Yield on Closing Market Price as of 4/30/07 ($23.43):¹			8.00	%

Current Monthly Distribution per Share:²		$	0.15625

Current Annualized Distribution per Share:²		$	1.87500

Leverage as of 4/30/07:³			38	%


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 is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.
³	As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

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



	4/30/2007			High			Low

Market Price		$	23.43		$	25.25		$	22.90

NAV		$	23.79		$	24.35		$	23.44

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocations of the Trust’s preferred stock, trust preferred stock and corporate bond investments:

Portfolio Composition⁴



Composition	April 30, 2007

Financial Institutions	64	%

Energy	8

Consumer Products	4

Technology	4

Real Estate	4

Health Care	4

Telecommunications	3

Industrials	3

Media	2

Automotive	1

Basic Materials	1

Building & Development	1

Entertainment & Leisure	1

Credit Quality Allocations⁵



Credit Rating	April 30, 2007

AA/Aa	18	%

A	27

BBB/Baa	31

BB/Ba	2

B	20

CCC/Caa	1

Not Rated	1



⁴	For Trust compliance purposes, the Trust’s sector and industry classification refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classification for reporting ease.

⁵	Using the higher of S&P, Moody’s or Fitch ratings.

TRUST SUMMARIES (unaudited)
APRIL 30, 2007

BlackRock Strategic Bond Trust (BHD)

Trust Information



Symbol on New York Stock Exchange:	BHD

Initial Offering Date:	February 26, 2002

Closing Market Price as of 4/30/07:		$	13.19

Net Asset Value as of 4/30/07:		$	14.16

Yield on Closing Market Price as of 4/30/07 ($13.19):¹			7.01	%

Current Monthly Distribution per Share:²		$	0.077

Current Annualized Distribution per Share:²		$	0.924

Leverage as of 4/30/07:³			9	%


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 is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.
³	As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

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



	4/30/07			10/31/06			Change		High			Low

Market Price		$	13.19		$	12.85		2.65%		$	13.29		$	12.66

NAV		$	14.16		$	13.83		2.39%		$	14.17		$	13.83

The following charts show the portfolio composition and credit quality allocations of the Trust’s corporate bond investments:

Corporate Portfolio Composition⁴



Composition	April 30, 2007			October 31, 2006

Financial Institutions		16	%		18	%

Media		16			14

Telecommunications		13			12

Energy		13			13

Basic Materials		7			6

Aerospace & Defense		7			6

Technology		6			5

Consumer Products		5			7

Automotive		4			2

Health Care		4			4

Ecological Services & Equipment		2			2

Industrials		2			3

Transportation		2			1

Entertainment & Leisure		1			3

Containers & Packaging		1			1

Building & Development		1			2

Real Estate		—			1

Corporate Credit Quality Allocations⁵



Credit Rating	April 30, 2007			October 31, 2006

AAA/Aaa		3	%		3	%

AA/Aa		5			6

A		13			12

BBB/Baa		14			13

BB/Ba		14			16

B		39			40

CCC/Caa		10			9

Not Rated		2			1



⁴	For Trust compliance purposes, the Trust’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

⁵	Using the highest of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 97.7% and 107.6% of net assets on April 30, 2007 and October 31, 2006, respectively.

PORTFOLIO OF INVESTMENTS

APRIL 30, 2007 (unaudited)

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			LONG-TERM INVESTMENTS—32.5%
			Mortgage Pass-Through Securities—0.9%
			Federal National Mortgage Assoc.,
$	345		5.50%, 1/01/17-2/01/17	$	346,937
	15		6.50%, 7/01/29		15,174

			Total Mortgage Pass-Through Securities		362,111

			Agency Multiple Class Mortgage Pass-Through Securities—12.0%
			Federal Home Loan Mortgage Corp.,
	1,945		Ser. 1510, Class G, 7.05%, 5/15/13		1,955,819
	2,000		Ser. 1598, Class J, 6.50%, 10/15/08		1,994,320
	81		Ser. 2564, Class NC, 5.00%, 2/15/33		77,065
	792		Federal National Mortgage Assoc., Ser. 49, Class H, 7.00%, 4/25/13		812,832
	26	¹	Government National Mortgage Assoc., REMIC Trust 2000, Ser. 16, Class FD, 5.97%, 12/16/27		25,698

			Total Agency Multiple Class Mortgage Pass-Through Securities		4,865,734

			Inverse Floating Rate Mortgage Securities—3.6%
	144	¹	Citicorp Mortgage Securities, Inc., Ser. 14, Class A-4, 4.19%, 11/25/23		143,754
			Federal Home Loan Mortgage Corp.,
	45	¹	Ser. 1425, Class SB, 8.155%, 12/15/07		44,518
	11	¹	Ser. 1506, Class S, 9.727%, 5/15/08		11,209
	59	¹	Ser. 1515, Class S, 8.776%, 5/15/08		59,324
	44	¹	Ser. 1600, Class SC, 8.60%, 10/15/08		43,656
	181	¹	Ser. 1618, Class SA, 8.25%, 11/15/08		183,323
	14	¹	Ser. 1661, Class SB, 8.853%, 1/15/09		13,743
	51	¹	Ser. 1688, Class S, 9.549%, 12/15/13		51,769
	123	¹	Ser. 2412, Class SE, 5.016%, 2/15/09		121,941
	310	¹	Ser. 2517, Class SE, 2.95%, 10/15/09		298,543
			Federal National Mortgage Assoc.,
	15	¹	Ser. 13, Class SJ, 8.75%, 2/25/09		15,486
	102	¹	Ser. 179, Class SB, 7.437%, 10/25/07		102,314
	21	¹	Ser. 187, Class SB, 11.814%, 10/25/07		21,322
	183	¹	Ser. 192, Class SC, 6.844%, 10/25/08		183,906
	61	¹	Ser. 214, Class SH, 4.359%, 12/25/08		60,707
	84	¹	Ser. 214, Class SK, 10.00%, 12/25/08		85,909

			Total Inverse Floating Rate Mortgage Securities		1,441,424

			Interest Only Mortgage-Backed Securities—2.1%
			Federal Home Loan Mortgage Corp.,
	1		Ser. 65, Class I, 918.03%, 8/15/20		1,199
	—		Ser. 141, Class H, 1,060.00%, 5/15/21		248
	1,787		Ser. 2523, Class EH, 5.50%, 4/15/20		109,362
	378		Ser. 2633, Class PI, 4.50%, 3/15/12		5,384
	4,909		Ser. 2739, Class PI, 5.00%, 3/15/22		195,428
	587		Ser. 2775, Class UB, 5.00%, 12/15/17		5,669
	1,893		Ser. 2976, Class KI, 5.50%, 11/15/34		228,906
			Federal National Mortgage Assoc.,
	—		Ser. 8, Class HA, 1,199.999%, 1/25/08		1,434
	1,218		Ser. 13, Class IG, 5.00%, 10/25/22		47,200
	66	¹	Ser. 20, Class SL, 10.143%, 9/25/08		3,732
	3		Ser. 49, Class L, 444.917%, 4/25/13		21,828
	7,391		Ser. 70, Class ID, 5.00%, 4/25/22		195,935
	3	¹	Ser. 174, Class S, 97.356%, 9/25/22		11,019
	—		Ser. G-21, Class L, 949.50%, 7/25/21		8,549
	13,546	¹	Vendee Mortgage Trust, Ser. 1, 0.043%, 10/15/31		30,160

			Total Interest Only Mortgage-Backed Securities		866,053


Principal Amount (000)			Description	Value

			Principal Only Mortgage-Backed Security—0.0%
$	17	²	Salomon Brothers Mortgage Securities, Inc. VI, Ser. 3, Class A, 12.50%, 10/23/17	$	16,202

			Asset-Backed Securities—0.0%
	234	^1,3,4,5	Global Rated Eligible Asset Trust, Ser. A, Class 1, 7.33%, 9/15/07		23
	568	^1,3,5	Structured Mortgage Asset Residential Trust, Ser. 2, 8.24%, 12/15/07		57

			Total Asset-Backed Securities		80

			Corporate Bond—2.6%
	1,000		Morgan Stanley Group, Inc., 10.00%, 6/15/08		1,050,311

			U.S. Government and Agency Securities—6.1%
			U.S. Treasury Notes,
	2,000		6.00%, 8/15/09		2,061,172
	385		6.625%, 5/15/07		385,211

			Total U.S. Government and Agency Securities		2,446,383

			Taxable Municipal Bonds—5.2%
	500		Fresno California Pension Oblig., 7.80%, 6/01/14		547,130
	500		Kern County California Pension Oblig., 6.98%, 8/15/09		521,830
	500		Los Angeles County California Pension Oblig., Ser. D, 6.97%, 6/30/08		510,735
	500		Orleans Parish Louisiana School Board, Ser. A, 6.60%, 2/01/08		505,430

			Total Taxable Municipal Bonds		2,085,125

			Total Long-Term Investments (cost $13,313,002)		13,133,423

			SHORT-TERM INVESTMENT—66.7%
			U.S. Government and Agency Discount Notes—66.7%
	26,900	⁶	Federal Home Loan Bank Disc. Notes, 5.061%, 5/01/07 (cost $26,900,000)		26,900,000

			Total Investments—99.2% (cost $40,213,002⁷)	$	40,033,423
			Other assets in excess of liabilities—0.8%		316,243

			Net Assets—100%	$	40,349,666


¹	Variable rate security. Rate shown is interest rate as of April 30, 2007.
²	Rate shown is effective yield of the underlying collateral as of April 30, 2007.
³	Illiquid security. As of April 30, 2007, the Trust held less than 0.1% of its net assets, with a current market value of $80, in these securities.
⁴	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2007, the Trust held less than 0.1% of its net assets, with a current market value of $23, in securities restricted as to resale.
⁵	Security is fair valued.
⁶	Rate shown is the yield to maturity as of the date of purchase.
⁷	Cost for federal income tax purposes is $40,213,002. The net unrealized depreciation on a tax basis is $179,579, consisting of $2,365,325 gross unrealized appreciation and $2,544,904 gross unrealized depreciation.



KEY TO ABBREVIATIONS
REMIC	—	Real Estate Mortgage Investment Conduit

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS
APRIL 30, 2007 (unaudited)

BlackRock Core Bond Trust (BHK)

(Percentages shown are based on Net Assets)



Principal Amount (000)			Description	Value

			LONG-TERM INVESTMENTS—106.3%
			Mortgage Pass-Through Securities—11.2%
			Federal Home Loan Mortgage Corp.,
$	79		5.00%, 8/01/33	$	76,310
	5,544		5.50%, 11/01/18-5/01/36		5,489,162
	1,580	¹	5.50%, 11/01/18		1,585,578
	2,757		6.00%, 2/01/13-12/01/18		2,807,575
	25		7.00%, 9/01/31		25,998
	69	²	7.436%, 5/01/32		70,009
			Federal National Mortgage Assoc.,
	46		4.50%, 2/01/20		44,209
	10,575		5.00%, 11/01/17-5/01/21		10,442,466
	3,910		5.50%, 1/01/18-4/01/36		3,877,511
	2,825		5.97%, 8/01/16		2,977,098
	5,670	¹	6.00%, 2/01/36-11/01/36		5,715,486
	4,786		6.00%, 8/01/29-10/01/36		4,823,571
	329		7.00%, 1/01/31-7/01/32		344,660
	1,200		Federal National Mortgage Assoc. TBA, 5.00%, 5/14/37		1,159,126
	231		Government National Mortgage Assoc.,
			5.50%, 8/15/33		230,117
			Small Business Administration,
	833		Ser. P10B, Class 1, 4.754%, 8/01/14		813,910
	1,505		Ser. P10B, Class 1, 5.136%, 8/01/13		1,509,870

			Total Mortgage Pass-Through Securities		41,992,656

			Federal Housing Administration Security—0.3%
	1,040		FHA Hebre Home Hospital, 6.25%, 9/01/28		1,082,458

			Agency Multiple Class Mortgage Pass-Through Securities—7.9%
			Federal Home Loan Mortgage Corp.,
	2,258		Ser. 82, Class HJ, 5.50%, 9/25/32		2,267,746
	1,200		Ser. 2562, Class PG, 5.00%, 1/15/18		1,185,404
	2,170		Ser. 2775, Class OE, 4.50%, 4/15/19		2,064,232
	3,041		Ser. 2806, Class VC, 6.00%, 12/15/19		3,125,052
	1,374		Ser. 2825, Class VP, 5.50%, 6/15/15		1,388,885
	1,300		Ser. 2883, Class DR, 5.00%, 11/15/19		1,266,923
	3,196		Ser. 2922, Class GA, 5.50%, 5/15/34		3,221,500
	1,713		Ser. 2927, Class BA, 5.50%, 10/15/33		1,727,801
	1,641		Ser. 2933, Class HD, 5.50%, 2/15/35		1,657,248
	1,600		Ser. 2968, Class EG, 6.00%, 10/15/34		1,640,371
			Federal National Mortgage Assoc.,
	1,453		Ser. 3 Class AP, 5.50%, 2/25/35		1,465,862
	2,962		Ser. 5, Class PK, 5.00%, 12/25/34		2,942,087
	1,923		Ser. 27, Class PC, 5.50%, 5/25/34		1,934,803
	1,883		Ser. 70, Class NA, 5.50%, 8/25/35		1,898,632
	1,716	²	Ser. 118, Class FD, 5.72%, 12/25/33		1,728,631

			Total Agency Multiple Class Mortgage Pass-Through Securities		29,515,177

			Asset-Backed Securities—6.9%
	2,800		Chase Manhattan Auto Owner Trust, Ser. B, Class A4, 4.88%, 6/15/12		2,791,693
	2,825		Citibank Credit Card Issuance Trust, Ser. A2, Class A2, 4.85%, 2/10/11		2,816,390
			Countrywide Asset-Backed Certificates,
	181	²	Ser. 15, Class 2AV1, 5.42%, 4/25/36		181,273
	852	²	Ser. 16, Class 4AV1, 5.42%, 1/25/35		852,368


Principal Amount (000)			Description	Value

			Asset-Backed Securities—(cont’d)
$	2,825		DaimlerChrysler Auto Trust, Ser. A, Class A3, 5.00%, 5/08/10	$	2,819,264
	2,850		Ford Credit Auto Owner Trust, Ser. A, Class A4, 5.08%, 12/15/10		2,850,324
	2,300		Harley-Davidson Motorcycle Trust, Ser. 2, Class A2, 4.07%, 2/15/12		2,268,627
	2,495		Maryland Trust, Ser. 1, Class A, 5.55%, 12/10/65		2,473,645
	2,825		MBNA Credit Card Master Note Trust, Ser. A1, Class A, 4.90%, 7/15/11		2,821,463
	891	^2,3	Merrill Lynch Mortgage Investors, Inc., Ser. HE2, Class A2A, 5.43%, 9/25/36		890,858
	634	²	New Century Home Equity Loan Trust, Ser. C, Class A2A, 5.40%, 1/25/36		633,687
	867	²	SLM Student Loan Trust, Ser. 5, Class A1, 5.355%, 1/25/18		867,287
	932	²	Structured Asset Investment Loan Trust, Ser. 1, Class A1, 5.40%, 1/25/36		931,858
	2,725		USAA Auto Owner Trust, Ser. 1 Class A4, 5.04%, 12/15/11		2,729,118

			Total Asset-Backed Securities		25,927,855

			Interest Only Asset-Backed Securities—0.2%
			Sterling Coofs Trust,
	16,255		Ser. 1, 2.362%, 4/15/29		487,653
	13,677		Ser. 2, 2.126%, 3/30/30		376,119

			Total Interest Only Asset-Backed Securities		863,772

			Interest Only Mortgage-Backed Securities—1.0%
			Federal Home Loan Mortgage Corp.,
	2,358		Ser. 2579, Class HI, 5.00%, 8/15/17		289,344
	6,219		Ser. 2611, Class QI, 5.50%, 9/15/32		1,090,195
			Federal National Mortgage Assoc.,
	26,413	²	Ser. 90, Class JH, 1.38%, 11/25/34		1,295,928
	4,240		Ser. 378, Class 5, 5.00%, 7/01/36		952,774

			Total Interest Only Mortgage-Backed Securities		3,628,241

			Commercial Mortgage-Backed Securities—6.8%
	2,180	²	Banc of America Commerical Mortgage, Inc., Ser. 1, Class A4, 5.039%, 11/10/42		2,170,815
	984		Commercial Mortgage Acceptance Corp., Ser. C2, Class A2, 6.03%, 9/15/30		985,698
	2,720		Credit Suisse First Boston Mortgage Securities Corp., Ser. CP5, Class A2, 4.94%, 12/15/35		2,676,114
	2,170	²	Credit Suisse Mortgage Capital Certificates, Ser. C2, Class A3, 5.542%, 1/15/49		2,190,598
	1,551		General Motor Acceptance Corp. Commercial Mortgage Securities, Inc., Ser. C3, Class A2, 7.179%, 8/15/36		1,602,182
	2,116		Goldman Sachs Mortgage Securities Corp. II, Ser. C1, Class A3, 6.135%, 10/18/30		2,126,466
	1,541		Heller Financial Commercial Mortgage Asset Co., Ser. PH1, Class A2, 6.847%, 5/15/31		1,568,008

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)



Principal Amount (000)			Description	Value

			Commercial Mortgage-Backed Securities—(cont’d)
			JPMorgan Chase Commercial Mortgage Securities Corp.,
$	2,140		Ser. C1, Class A3, 5.857%, 10/12/35	$	2,190,955
	2,180		Ser. CBX, Class A4, 4.529%, 1/12/37		2,126,379
	1,673		JPMorgan Commercial Mortgage Finance Corp., Ser. C10, Class A2, 7.371%, 8/15/32		1,750,259
	2,216		Morgan Stanley Capital Trust I, Ser. HF2, Class A2, 6.48%, 11/15/30		2,232,582
	3,500		Salomon Brothers Mortgage Securities VII, Ser. C1, Class A2, 7.52%, 12/18/09		3,660,970

			Total Commercial Mortgage-Backed Securities		25,281,026

			Corporate Bonds—58.2%
			Aerospace & Defense—1.1%
	150	⁴	Bombardier, Inc., 8.00%, 11/15/14 (Canada)		157,687
	1,305		DI Finance/DynCorp Intl., Ser. B, 9.50%, 2/15/13		1,402,875
			DRS Technologies, Inc.,
	70		6.875%, 11/01/13		70,700
	80		7.625%, 2/01/18		83,800
	960		Northrop Grumman Corp., 7.875%, 3/01/26		1,178,892
	15		Sequa Corp., 9.00%, 8/01/09		15,863
	120	⁴	TransDigm, Inc., 7.75%, 7/15/14		124,500
	1,125		United Technologies Corp., 4.875%, 5/01/15		1,093,454

			Total Aerospace & Defense		4,127,771

			Automotive—1.3%
	265		Accuride Corp., 8.50%, 2/01/15		273,612
			AutoNation, Inc.,
	150		7.00%, 4/15/14		150,750
	150	²	7.356%, 4/15/13		151,313
	30	^2,4	Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.86%, 5/15/14		30,825
	660		DaimlerChrysler NA Holding Corp., 7.45%, 3/01/27		756,624
	600		Ford Capital BV, 9.50%, 6/01/10 (Netherlands)		603,000
	485		Lear Corp., Ser. B, 8.75%, 12/01/16		472,269
	250		Metaldyne Corp., 10.00%, 11/01/13		257,500
	2,100		Sonic Automotive, Inc., Ser. B, 8.625%, 8/15/13		2,189,250

			Total Automotive		4,885,143

			Basic Materials—4.6%
	625		Abitibi-Consolidated, Inc., 6.00%, 6/20/13 (Canada)		540,625
	995		AK Steel Corp., 7.75%, 6/15/12		1,027,337
	250	⁴	American Pacific Corp., 9.00%, 2/01/15		251,250
	80	²	Bowater, Inc., 8.355%, 3/15/10		80,400
	30		Chemtura Corp., 6.875%, 6/01/16		29,550
	200		CPG Intl. I, Inc., 10.50%, 7/01/13		210,000
	60		Domtar, Inc., 7.125%, 8/15/15 (Canada)		61,125
	150		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		150,000
			Freeport-McMoRan Copper & Gold, Inc.,
	920		8.375%, 4/01/17		1,006,250
	330	²	8.564%, 4/01/15		347,738


Principal Amount (000)			Description	Value

			Basic Materials—(cont’d)
$	66		Huntsman LLC, 12.00%, 7/15/12	$	73,590
			Ineos Group Holdings Plc (United Kingdom)
	1,330	⁴	8.50%, 2/15/16		1,286,775
	285		(EUR), 7.875%, 2/07/16		367,534
	885		Innophos, Inc., 8.875%, 8/15/14		927,037
	130		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)		144,774
	515	⁴	Key Plastics LLC/Key Plastics Finance Corp., 11.75%, 3/15/13		520,150
			Lyondell Chemical Co.,
	240		8.00%, 9/15/14		251,400
	385		8.25%, 9/15/16		411,950
	1,705		NewPage Corp., 10.00%, 5/01/12		1,884,025
			Noranda, Inc. (Canada)
	825		6.00%, 10/15/15		853,678
	1,250		6.20%, 6/15/35		1,257,539
	610	²	Nova Chemicals Corp., 8.502%, 11/15/13 (Canada)		620,675
	545	⁴	Pregis Corp., 12.375%, 10/15/13		599,500
	1,430		Teck Cominco Ltd., 6.125%, 10/01/35 (Canada)		1,394,416
	430	⁴	Terra Capital, Inc., 7.00%, 2/01/17		421,400
	2,150		Vale Overseas Ltd., 6.875%, 11/21/36 (Cayman Islands)		2,273,625
	30⁴		Verso Paper Holdings LLC/Verson Paper, Inc., 11.375%, 8/01/16		32,100

			Total Basic Materials		17,024,443

			Building & Development—0.2%
	440		Goodman Global Holding Co., Inc., 7.875%, 12/15/12		443,300
	190		Nortek, Inc., 8.50%, 9/01/14		188,100
	85		North American Energy Partners, Inc., 8.75%, 12/01/11 (Canada)		87,550

			Total Building & Development		718,950

			Commercial Services—0.1%
	100		FTI Consulting, Inc., 7.75%, 10/01/16		104,375
	200	⁴	Quebecor World, Inc., 9.75%, 1/15/15 (Canada)		211,000

			Total Commercial Services		315,375

			Consumer Products—2.1%
	650	²	Ames True Temper, Inc., 9.356%, 1/15/12		663,000
	530		Federated Department Stores, Inc., 6.79%, 7/15/27		524,762
	1,125		Federated Retail Holdings, Inc., 5.90%, 12/01/16		1,126,713
			General Nutrition Centers, Inc.,
	500	⁴	9.796%, 3/15/14		489,375
	400	⁴	10.75%, 3/15/15		399,000
	320		Lazy Days RV Center, Inc., 11.75%, 5/15/12		331,200
	30		May Deptartment Stores Co., 6.65%, 7/15/24		29,784
			Michaels Stores, Inc.,
	470	⁴	10.00%, 11/01/14		515,825
	600	⁴	11.375%, 11/01/16		661,500
	50	^2,4	Nutro Products, Inc., 9.37%, 10/15/13		51,125
	1,000		Pantry, Inc. (The), 7.75%, 2/15/14		1,007,500
	200		Quiksilver, Inc., 6.875%, 4/15/15		195,000
	250		Reynolds American, Inc., 7.625%, 6/01/16		273,523
	710		Rite Aid Corp., 7.50%, 3/01/17		708,225
	390	⁴	Sally Holdings LLC, 10.50%, 11/15/16		405,600

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Consumer Products—(cont’d)
$	120		Spectrum Brands, Inc., 7.375%, 2/01/15	$	95,100
	555		United Rentals NA, Inc., 7.00%, 2/15/14		566,100

			Total Consumer Products		8,043,332

			Containers & Packaging—0.7%
			Berry Plastics Holding Corp.,
	270		8.875%, 9/15/14		278,100
	180	²	9.23%, 9/15/14		184,050
	150		Crown Americas LLC/Crown Americas Capital Corp., 7.75%, 11/15/15		158,625
	75		Graham Packaging Co., Inc., 8.50%, 10/15/12		76,500
	300	^2,4	Impress Holdings BV, 8.481%, 9/15/13 (Netherlands)		307,117
	1,500		Owens Brockway, 8.25%, 5/15/13		1,582,500

			Total Containers & Packaging		2,586,892

			Ecological Services & Equipment—0.2%
	590		Waste Services, Inc., 9.50%, 4/15/14		622,450

			Energy—6.0%
	425		Amerada Hess Corp., 7.125%, 3/15/33		466,528
	2,350		Anadarko Petroleum Corp., 6.45%, 9/15/36		2,355,936
	140		Berry Petroleum Co., 8.25%, 11/01/16		140,525
	320		Chaparral Energy, Inc., 8.50%, 12/01/15		324,800
			Chesapeake Energy Corp.,
	150		6.375%, 6/15/15		150,188
	20		6.875%, 11/15/20		20,150
	500		Cleveland Electric Illuminating Co., 5.95%, 12/15/36		482,185
			Compagnie Generale de Geophysique-Veritas (France)
	55		7.50%, 5/15/15		57,750
	90		7.75%, 5/15/17		95,400
	235		Compton Petroleum Finance Corp., 7.625%, 12/01/13 (Canada)		233,237
	360		ConocoPhillips Funding Co., 5.95%, 10/15/36 (Canada)		367,624
	725		DTE Energy Co., 6.35%, 6/01/16		757,474
	115		Edison Mission Energy, 7.50%, 6/15/13		119,600
	100		El Paso Corp., 7.80%, 8/01/31		111,500
			El Paso Natural Gas Co.,
	265		8.625%, 1/15/22		325,373
	225		8.875%, 6/15/32		281,000
	126		Elwood Energy LLC, 8.159%, 7/05/26		133,242
	1,000		EnCana Corp., 6.50%, 8/15/34 (Canada)		1,048,070
			Encore Acquisition Co.,
	40		6.00%, 7/15/15		36,600
	60		7.25%, 12/01/17		58,050
	1,500		Energy East Corp., 6.75%, 7/15/36		1,596,973
	130		Exco Resources, Inc., 7.25%, 1/15/11		130,325
	950		Florida Power & Light Co., 4.95%, 6/01/35		845,414
	80		Grant Prideco, Inc., Ser. B, 6.125%, 8/15/15		79,400
	175	⁴	Halliburton Co., 7.60%, 8/15/96		202,018
	210		KCS Energy, Inc., 7.125%, 4/01/12		207,900
	700		Midamerican Energy Co., 5.80%, 10/15/36		693,727
	75		Midwest Generation LLC, Ser. B, 8.56%, 1/02/16		82,833
	155		Mirant Americas Generation LLC, 8.30%, 5/01/11		163,913


Principal Amount (000)			Description	Value

			Energy—(cont’d)
$	590		Mission Energy Holdings Co., 13.50%, 7/15/08	$	644,575
	1,050	⁴	Nakilat, Inc., 6.067%, 12/31/33 (Qatar)		1,034,878
			NRG Energy, Inc.,
	50		7.25%, 2/01/14		51,750
	285		7.375%, 2/01/16		296,044
	1,000		Ohio Edison Co., 6.875%, 7/15/36		1,095,628
	425		ONEOK Partners LP, 6.65%, 10/01/36		442,201
	450	⁴	OPTI, Inc., 8.25%, 12/15/14 (Canada)		475,875
	130		Orion Power Holdings, Inc., 12.00%, 5/01/10		150,150
	1,650		Pemex Project Funding Master Trust, 9.625%, 12/02/08		1,749,000
			Reliant Energy, Inc.,
	210		6.75%, 12/15/14		219,975
	50		9.25%, 7/15/10		52,438
	330	⁴	Sabine Pass LNG LP, 7.50%, 11/30/16		339,075
	700		Scottish Power Plc, 5.375%, 3/15/15 (United Kingdom)		698,841
	315	⁴	SemGroup LP, 8.75%, 11/15/15		325,237
	460	^2,4	Stone Energy Corp., 8.106%, 7/15/10		460,000
	295		Suncor Energy, Inc., 5.95%, 12/01/34 (Canada)		297,624
	320	⁴	Targa Resources, Inc., 8.50%, 11/01/13		329,600
	1,050		Texaco Capital, Inc., 8.875%, 9/01/21		1,393,841
	550		Trans-Canada Pipelines Ltd., 5.85%, 3/15/36 (Canada)		539,883
	375		Whiting Petroleum Corp., 7.25%, 5/01/12-5/01/13		367,600

			Total Energy		22,531,950

			Entertainment & Leisure—0.8%
	185		AMC Entertainment, Inc., 11.00%, 2/01/16		212,288
	80		Cinemark, Inc., Zero Coupon, 3/15/14		73,600
	1,000		Circus & Eldorado Joint Venture, 10.125%, 3/01/12		1,050,000
	150		Gaylord Entertainment Co., 6.75%, 11/15/14		148,875
	335	⁴	Greektown Holdings LLC, 10.75%, 12/01/13		359,287
	500		Harrah’s Operating Co., Inc., 5.75%, 10/01/17		415,000
	110		Poster Financial Group, Inc., 8.75%, 12/01/11		114,400
	260		Seneca Gaming Corp., Ser. B, 7.25%, 5/01/12		264,550
	215	⁴	TDS Investor, 9.875%, 9/01/14		230,050
	40		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14		40,100

			Total Entertainment & Leisure		2,908,150

			Financial Institutions—20.5%
			American Real Estate Partners LP/American Real Estate Finance Corp.,
	320		7.125%, 2/15/13		314,800
	3,165		8.125%, 6/01/11		3,228,300
	325		Bank One Corp., 3.70%, 1/15/08		321,553
	1,400		BankBoston NA, 6.375%, 3/25/08-4/15/08		1,412,490
	4,970	²	Barclays Bank Plc NY, 5.35%, 3/13/09		4,973,534
	350	⁴	Belvoir Land LLC, Ser. A1, 5.27%, 12/15/47		326,182
			Berkshire Hathaway Finance Corp.,
	1,200		3.40%, 7/02/07		1,196,389
	1,075		4.75%, 5/15/12		1,061,293
	170	^2,4	BMS Holdings, Inc., 12.40%, 2/15/12		170,425
	110		Britannia Bulk Plc, 11.00%, 12/01/11 (United Kingdom)		111,100

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Financial Institutions—(cont’d)
$	600		CitiFinancial, 6.25%, 1/01/08	$	602,827
			Citigroup, Inc.,
	3,950	⁵	3.625%, 2/09/09		3,857,977
	5,470	⁵	4.125%, 2/22/10		5,349,879
	1,020		4.25%, 7/29/09		1,004,338
	525		6.875%, 2/15/98		571,773
	1,075	⁴	Depfa ACS Bank, 5.125%, 3/16/37 (Ireland)		1,029,181
	1,700		Eksportfinans A/S, 5.50%, 5/25/16 (Norway)		1,758,764
	200	²	Ford Motor Credit Co., 8.105%, 1/13/12		197,263
	525	⁴	Fort Irwin Land LLC, Ser. A-1, 5.03%, 12/15/25		495,316
	1,415		Goldman Sachs Group, Inc. (The), 5.35%, 1/15/16		1,396,660
			HBOS Treasury Services Plc (United Kingdom)
	855	⁴	3.60%, 8/15/07		851,217
	825	⁴	3.75%, 9/30/08		808,325
	775		HSBC Bank NA, 5.875%, 11/01/34		772,377
			HSBC Finance Corp.,
	1,820		4.75%, 5/15/09		1,806,978
	635		6.375%, 8/01/10		657,939
	300		HSBC Holdings Plc, 6.50%, 5/02/36 (United Kingdom)		321,408
	751	⁴	iPayment Investors LP, 11.625%, 7/15/14		780,980
	240		iPayment, Inc., 9.75%, 5/15/14		249,900
	1,500	⁴	Irwin Land LLC, 5.40%, 12/15/47		1,414,425
	255		K&F Acquisition, Inc., 7.75%, 11/15/14		272,850
	1,525		MetLife, Inc., 5.70%, 6/15/35		1,478,166
	1,150	⁴	Metropolitan Global Funding I, 4.25%, 7/30/09		1,132,443
			Momentive Performance Materials, Inc.,
	40	⁴	9.75%, 12/01/14		42,300
	770	⁴	10.125%, 12/01/14		816,200
	355	⁴	11.50%, 12/01/16		379,850
			Morgan Stanley,
	3,300	²	5.60%, 1/09/12		3,299,822
	1,900		6.25%, 8/09/26		1,964,383
	2,125	⁴	Nationwide Building Society, 3.50%, 7/31/07 (United Kingdom)		2,115,457
	850	⁴	New York Life Global Funding, 3.875%, 1/15/09		832,445
	350		Ohana Military Communities LLC, Ser. 04I, 6.193%, 4/01/49		370,069
	500		Prudential Financial, Inc., 5.90%, 3/17/36		499,270
	1,000	⁴	Prudential Funding LLC, 6.60%, 5/15/08		1,008,150
	5,550	^2,4	Rabobank Nederland Global, 5.35%, 4/06/09 (Netherlands)		5,552,181
			Rainbow National Services LLC,
	200	⁴	8.75%, 9/01/12		213,500
	1,455	⁴	10.375%, 9/01/14		1,638,694
	485		Standard Aero Holdings, Inc., 8.25%, 9/01/14		525,012
	2,533	⁶	Structured Asset Receivable Trust, 5.114%, 1/21/10		2,530,944
			SunTrust Bank,
	1,635		3.625%, 10/15/07		1,621,752
	995		4.00%, 10/15/08		977,398
	1,265		4.415%, 6/15/09		1,250,824
	235	⁴	TIAA Global Markets, Inc., 3.875%, 1/22/08		232,177


Principal Amount (000)			Description	Value

			Financial Institutions—(cont’d)
$	375		U.S. Bancorp, Ser. N, 3.95%, 8/23/07	$	373,341
	50	²	Universal City Florida Holding Co. I/II, 10.106%, 5/01/10		51,312
	2,790		US Bank NA, 6.50%, 2/01/08		2,804,536
	495	⁴	USAA Capital Corp., 4.00%, 12/10/07		490,610
			Wells Fargo & Co.,
	1,031		3.12%, 8/15/08		1,001,356
	355		4.20%, 1/15/10		348,340
	1,665		4.625%, 8/09/10		1,647,313
	435		4.875%, 1/12/11		432,985
	1,150		Wells Fargo Bank NA, 5.95%, 8/26/36		1,169,734
	630	⁴	Wimar Opco LLC/Wimar Opco Finance Corp., 9.625%, 12/15/14		639,450
	1,775	⁴	Xstrata Finance Ltd., 5.80%, 11/15/16 (Canada)		1,797,220

			Total Financial Institutions		76,553,677

			Health Care—2.2%
	1,030		Bristol-Myers Squibb Co., 5.875%, 11/15/36		1,019,442
	2,275		Eli Lilly & Co., 5.55%, 3/15/37		2,207,430
			HealthSouth Corp.,
	120	⁴	10.75%, 6/15/16		130,800
	260	^2,4	11.354%, 6/15/14		282,750
	52,000		Pfizer, Inc. (JPY), 0.80%, 3/18/08		434,907
	410		Tenet Healthcare Corp., 6.875%, 11/15/31		328,000
	995		Teva Pharmaceutical Finance LLC, 6.15%, 2/01/36		969,507
	870		UnitedHealth Group, Inc., 5.80%, 3/15/36		839,261
	410		Universal Hospital Services, Inc., 10.125%, 11/01/11		439,252
			WellPoint, Inc.,
	955		5.85%, 1/15/36		922,736
	85		5.95%, 12/15/34		84,310
	675		Wyeth, 6.00%, 2/15/36		680,481

			Total Health Care		8,338,876

			Industrials—1.2%
	1,575		3M Co., Ser. MTN, 5.70%, 3/15/37		1,570,462
	360	⁴	AGY Holding Corp., 11.00%, 11/15/14		378,450
	140		Hexcel Corp., 6.75%, 2/01/15		140,350
	120		Park-Ohio Industries, Inc., 8.375%, 11/15/14		118,800
			RBS Global, Inc./Rexnord Corp.,
	480		9.50%, 8/01/14		513,600
	505		11.75%, 8/01/16		560,550
	950	⁴	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		1,016,500
	200		Trimas Corp., 9.875%, 6/15/12		207,500

			Total Industrials		4,506,212

			Media—6.3%
			Affinion Group, Inc.,
	515		10.125%, 10/15/13		561,350
	180		11.50%, 10/15/15		198,000
	100		American Media Operations, Inc., Ser. B, 10.25%, 5/01/09		94,250
			AOL Time Warner, Inc.,
	90		6.625%, 5/15/29		91,687
	3,040		7.57%, 2/01/24		3,387,071
	205	⁵	7.625%, 4/15/31		231,879
	85		7.70%, 5/01/32		97,127

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Media—(cont’d)
$	55	⁴	BSKYB Finance Plc, 6.50%, 10/15/35 (United Kingdom)	$	55,111
	180	²	Cablevision Systems Corp., Ser. B, 9.82%, 4/01/09		190,800
	110		CanWest MediaWorks, Inc., 8.00%, 9/15/12 (Canada)		114,125
	200		CCH I Holdings LLC/CCH I Holdings Capital Corp., 11.00%, 10/01/15		212,500
			Charter Communications Holdings II LLC/Charter Communications Holdings II Capital Corp.,
	1,210		10.25%, 9/15/10		1,288,650
	130		Ser. B, 10.25%, 9/15/10		138,125
	645	⁴	CMP Susquehanna Corp., 9.875%, 5/15/14		657,900
			Comcast Corp.,
	790		6.45%, 3/15/37		798,955
	2,375		6.50%, 1/15/17-11/15/35		2,494,489
	75		Dex Media West LLC/Dex Media Finance Co., Ser. B, 9.875%, 8/15/13		81,656
	125		DirecTV Holdings LLC/DirecTV Financing Co., 8.375%, 3/15/13		131,875
			EchoStar DBS Corp.,
	175		5.75%, 10/01/08		175,219
	290		7.00%, 10/01/13		301,237
	75		7.125%, 2/01/16		78,094
	620	⁴	Idearc, Inc., 8.00%, 11/15/16		647,125
	100	⁴	Iesy Repository GMBH, 10.375%, 2/15/15 (Germany)		105,750
	450		LIN Television Corp., 6.50%, 5/15/13		443,250
	180		MediaNews Group, Inc., 6.875%, 10/01/13		163,800
	485		Network Communications, Inc., 10.75%, 12/01/13		497,125
			News America Holdings, Inc.,
	985		7.625%, 11/30/28		1,111,140
	825		7.70%, 10/30/25		942,745
	625		8.45%, 8/01/34		786,476
	560		Nexstar Finance, Inc., 7.00%, 1/15/14		544,600
			Nielsen Finance LLC/Nielsen Finance Co.,
	300	⁴	Zero Coupon, 8/01/16		216,750
	965	⁴	10.00%, 8/01/14		1,054,262
	600	^2,4	Paxson Communications Corp., 8.606%, 1/15/12		612,000
	400		Primedia, Inc., 8.00%, 5/15/13		416,000
	865		RH Donnelley Corp., Ser. A-3, 8.875%, 1/15/16		938,525
	70		Sirius Satellite Radio, Inc., 9.625%, 8/01/13		70,000
			TCI Communications, Inc.,
	200		7.125%, 2/15/28		215,068
	620		7.875%, 8/01/13-2/15/26		716,455
	70		Time Warner Cos., Inc., 6.95%, 1/15/28		73,679
	500	⁴	Umbrella Acquisition, Inc., 9.75%, 3/15/15		503,750
			Vertis, Inc.,
	645		9.75%, 4/01/09		659,512
	225		Ser. B, 10.875%, 6/15/09		223,031
	1,230		Young Broadcasting, Inc., 10.00%, 3/01/11		1,251,525

			Total Media		23,572,668


Principal Amount (000)			Description	Value

			Real Estate—1.0%
			AvalonBay Communities, Inc.,
$	350		6.625%, 9/15/11	$	369,570
	775		8.25%, 7/15/08		798,961
			Rouse Co.,
	895		3.625%, 3/15/09		862,139
	1,650		5.375%, 11/26/13		1,555,368

			Total Real Estate		3,586,038

			Technology—1.6%
			Amkor Technology, Inc.,
	80		7.75%, 5/15/13		79,200
	145		9.25%, 6/01/16		153,700
	250		Celestica, Inc., 7.625%, 7/01/13 (Canada)		238,125
			Freescale Semiconductor, Inc.,
	1,175	⁴	9.125%, 12/15/14		1,169,125
	140	^2,4	9.23%, 12/15/14		140,000
	740	⁴	NXP BV/NXP Funding LLC, 9.50%, 10/15/15 (Netherlands)		777,000
			Sanmina-SCI Corp.,
	65		6.75%, 3/01/13		61,750
	565		8.125%, 3/01/16		552,994
	450		Sensata Technologies, 8.00%, 5/01/14 (Netherlands)		451,125
			SunGard Data Systems, Inc.,
	105		9.125%, 8/15/13		112,613
	610		10.25%, 8/15/15		671,000
	945		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		982,800
	189	⁴	UGS Capital Corp. II, 10.38%, 6/01/11		194,754
	410		UGS Corp., 10.00%, 6/01/12		446,900

			Total Technology		6,031,086

			Telecommunications—7.9%
	1,700		BellSouth Telecommunications, Zero Coupon, 12/15/95		896,113
	210		Cincinnati Bell, Inc., 7.25%, 7/15/13		218,400
	415	⁴	Cricket Communications, Inc., 9.375%, 11/01/14		443,531
			Deutsche Telekom Intl. Finance BV (Netherlands)
	3,000		5.75%, 3/23/16		3,012,213
	25		8.75%, 6/15/30		31,378
			Digicel Group Ltd. (Bermuda)
	240	^1,4	8.875%, 1/15/15		235,500
	540	⁴	9.125%, 1/15/15		523,800
	190	²	Hawaiian Telcom Communications, Inc., Ser. B, 10.86%, 5/01/13		194,275
	475		Intelsat Corp., 9.00%, 6/15/16		520,719
			Intelsat Ltd. (Bermuda)
	95	²	8.872%, 1/15/15		97,193
	500		9.25%, 6/15/16		550,000
	200		11.25%, 6/15/16		228,250
	870	²	11.354%, 6/15/13		930,900
	295		Intelsat Subsidiary Holding Co. Ltd., 8.625%, 1/15/15 (Bermuda)		315,281
	770	⁴	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)		827,750
			Nortel Networks Ltd. (Canada)
	530	^2,4	9.606%, 7/15/11		567,100
	185	⁴	10.125%, 7/15/13		203,963

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Telecommunications—(cont’d)
$	155		PanAmSat Corp., 9.00%, 8/15/14	$	167,400
			Qwest Corp.,
	200		7.875%, 9/01/11		213,000
	470	²	8.605%, 6/15/13		514,063
	780		SBC Communications, Inc., 6.45%, 6/15/34		809,145
	1,715		Sprint Capital Corp., 6.875%, 11/15/28		1,701,815
	675		Sprint Nextel Corp., 6.00%, 12/01/16		663,491
			Telecom Italia Capital S.A. (Luxembourg)
	1,075		4.95%, 9/30/14		1,024,276
	1,550		6.00%, 9/30/34		1,444,958
	1,975		Telefonica Emisones SAU, 7.045%, 6/20/36 (Spain)		2,119,033
	725		Telefonica Europe BV, 7.75%, 9/15/10 (Netherlands)		780,988
	70		Verizon Global Funding Corp., 7.75%, 12/01/30		81,950
	125		Verizon Maryland, Inc., 5.125%, 6/15/33		105,116
			Verizon New Jersey, Inc.,
	230		7.85%, 11/15/29		263,942
	335		Ser. A, 5.875%, 1/17/12		341,977
	3,150		Verizon Virginia, Inc., 4.625%, 3/15/13		2,999,531
			Vodafone Group Plc (United Kingdom)
	1,465	²	5.44%, 12/28/07		1,465,674
	2,504		7.75%, 2/15/10		2,668,923
	1,100	⁴	West Corp., 11.00%, 10/15/16		1,201,750
	350	⁴	Wind Acquisition Finance S.A.,
			10.75%, 12/01/15 (Luxembourg)		404,250
			Windstream Corp.,
	500		8.125%, 8/01/13		542,500
	280		8.625%, 8/01/16		307,300

			Total Telecommunications		29,617,448

			Transportation—0.4%
	115		American Airlines, Inc., Ser. 99-1, 7.324%, 4/15/11		116,725
	350		Canadian National Railway Co., 6.25%, 8/01/34 (Canada)		363,841
	405		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		395,888
	47		Horizon Lines LLC, 9.00%, 11/01/12		49,468
	500	⁴	Navios Maritime Holdings, Inc., 9.50%, 12/15/14 (Marshall Islands)		526,250

			Total Transportation		1,452,172

			Total Corporate Bonds		217,422,633

			U.S. Government and Agency Securities—8.9%
	1,670		Aid to Israel, 5.50%, 4/26/24-9/18/33		1,733,937
	1,050	¹	Resolution Funding Corp., Zero Coupon, 7/15/18-10/15/18		603,037
	1,655		Tennessee Valley Authority, Ser. C, 5.88%, 4/01/36		1,813,270
	9,285	¹	U.S. Treasury Bonds, 4.75%, 2/15/37		9,184,898
	5,126	¹	U.S. Treasury Inflation Protected Bond, 2.00%, 1/15/26		4,866,805
			U.S. Treasury Notes,
	3,125	¹	4.50%, 3/31/12		3,122,438
	11,965	¹	4.625%, 2/15/17		11,959,388

			Total U.S. Government and Agency Securities		33,283,773


Principal Amount (000)			Description	Value

			Foreign Government Bonds—1.9%
$	133,000		Kreditanstalt Fuer Wiederaufbau (JPY), 0.325%, 8/08/11	$	1,112,854
	110,900		Republic of Finland (JPY), 0.30%, 10/18/07		925,412
			United Mexican States,
	2,000		5.625%, 1/15/17		2,031,000
	2,647		6.75%, 9/27/34		2,951,405

			Total Foreign Government Bonds		7,020,671

			Non-Agency Multiple Class Mortgage Pass-Through Securities—2.7%
			First Union National Bank Commercial Mortgage,
	3,121		Ser. C3, Class A3, 6.423%, 8/15/33		3,239,991
	2,265		Ser. C4, Class A2, 6.223%, 12/12/33		2,349,343
	2,350		General Motor Acceptance Corp. Commercial Mortgage Securities, Inc., Ser. C4, Class A2, 4.93%, 7/10/39		2,315,684
	2,440		Structured Asset Securities Corp., Ser. AL1, Class A2, 3.45%, 2/25/32		2,167,306

			Total Non-Agency Multiple Class Mortgage Pass-Through Securities		10,072,324

			Trust Preferred Stocks—0.3%
	545		BAC Capital Trust XI, 6.625%, 5/23/36		584,161
	790		Peco Energy Capital Trust IV, 5.75%, 6/15/33		699,366

			Total Trust Preferred Stocks		1,283,527


Shares

			Common Stocks—0.0%
	1,895	⁷	Critical Care Systems Intl., Inc.		11,844

			Preferred Stock—0.0%
	45,000		Superior Essex Holding Corp., Ser. A, 9.50%,		45,000

			Total Long-Term Investments (cost $399,120,729)		397,430,957



Contracts/ Notional Amount (000)

			OUTSTANDING OPTIONS PURCHASED—0.3%
			Interest Rate Swaps,
	6,600		Trust pays 3-month LIBOR, Trust receives 5.39%, expires 3/19/12		229,878
	4,900		Trust pays 3-month LIBOR, Trust receives 5.52%, expires 9/21/36		247,274
	6,600		Trust pays 5.39%, Trust receives 3-month LIBOR, expires 3/19/12		283,800
	7,300		Trust pays 5.40%, Trust receives 3-month LIBOR, expires 7/27/07		23,130
	4,900		Trust pays 5.52%, Trust receives 3-month LIBOR, expires 9/21/36		286,068
	55		U.S. Treasury Notes Future, expiring 6/16/07		859

			Total Outstanding Options Purchased (cost $1,193,525)		1,071,009

			Total investments before outstanding options written (cost $400,314,254⁸)		398,501,966

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)


Notional Amount (000)			Description	Value

			OUTSTANDING OPTIONS WRITTEN—(0.4)%
			Interest Rate Swaps,
	(5,300	)	Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/08	$	(97,299	)
	(6,600	)	Trust pays 3-month LIBOR, Trust receives 5.148%, expires 3/19/08		(146,322	)
	(4,500	)	Trust pays 3-month LIBOR, Trust receives 5.485%, expires 10/28/19		(117,354	)
	(11,500	)	Trust pays 3-month LIBOR, Trust receives 5.67%, expires 1/04/10		(256,622	)
	(6,600	)	Trust pays 5.115%, Trust receives 3-month LIBOR, expires 3/19/08		(106,392	)
	(5,300	)	Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/08		(97,299	)
	(4,500	)	Trust pays 5.485%, Trust receives 3-month LIBOR, expires 10/28/19		(164,215	)
	(11,500	)	Trust pays 5.67%, Trust receives 3-month LIBOR, expires 1/04/10		(504,816	)

			Total Outstanding Options Written (premium received $2,261,545)		(1,490,319	)

			Total investments net of outstanding options written—106.2%	$	397,011,647
			Liabilities in excess of other assets—(6.2)%		(23,191,094	)

			Net Assets—100%	$	373,820,553



¹	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
²	Variable rate security. Rate shown is interest rate as of April 30, 2007.
³	Represents an investment in an affiliate.
⁴	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2007, the Trust held 12.3% of its net assets, with a current market value of $45,863,398, in securities restricted as to resale.
⁵	Security, or a portion thereof, pledged as collateral with a value of $4,629,048 on 32 long FGBS Euro Shatz futures contracts expiring June 2007, 1,753 long U.S. Treasury Bond futures contracts expiring June 2007, 727 short Eurodollar futures contracts expiring June to December 2007 and 888 short U.S. Treasury Note futures contracts expiring June 2007. The notional value of such contracts on April 30, 2007 was $66,371,197, with an unrealized loss of $1,070,573.
⁶	Illiquid security. As of April 30, 2007, the Trust held 0.7% of its net assets, with a current market value of $2,530,944, in these securities.
⁷	Non-income producing security.
⁸	Cost for federal income tax purposes is $401,491,028. The net unrealized depreciation on a tax basis is $2,989,062, consisting of $5,355,739 gross unrealized appreciation and $8,344,801 gross unrealized depreciation.

For Trust compliance purposes, the Trust’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.



		KEY TO ABBREVIATIONS

EUR	—	Euro
JPY	—	Japanese Yen
LIBOR	—	London Interbank Offered Rate
TBA	—	To Be Announced

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS
APRIL 30, 2007 (unaudited)

BlackRock High Yield Trust (BHY)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			LONG-TERM INVESTMENTS—129.6%
			Corporate Bonds—123.2%
			Aerospace & Defense—3.0%
			AAR Corp.,
$	330		6.875%, 12/15/07	$	330,000
	350		Ser. A2, 8.39%, 5/15/11		353,500
	100	¹	Bombardier, Inc., 8.00%, 11/15/14 (Canada)		105,125
	450		DI Finance/DynCorp Intl., Ser. B, 9.50%, 2/15/13		483,750
			DRS Technologies, Inc.,
	40		6.875%, 11/01/13		40,400
	100		7.625%, 2/01/18		104,750
	20		L-3 Communications Corp., 5.875%, 1/15/15		19,475
	40		Sequa Corp., 9.00%, 8/01/09		42,300
	100	¹	TransDigm, Inc., 7.75%, 7/15/14		103,750

			Total Aerospace & Defense		1,583,050

			Automotive—5.3%
	85		Accuride Corp., 8.50%, 2/01/15		87,762
	60	¹	Asbury Automotive Group, Inc., 7.625%, 3/15/17		60,300
			AutoNation, Inc.,
	90		7.00%, 4/15/14		90,450
	80	²	7.356%, 4/15/13		80,700
	20	^1,2	Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.86%, 5/15/14		20,550
	520		Ford Capital BV, 9.50%, 6/01/10 (Netherlands)		522,600
			Ford Motor Co.,
	55		7.45%, 7/16/31		43,725
	125		8.90%, 1/15/32		107,500
			Goodyear Tire & Rubber Co.,
	10		7.857%, 8/15/11		10,500
	225	¹	8.625%, 12/01/11		243,000
	150		Keystone Automotive Operations, Inc., 9.75%, 11/01/13		142,500
	345		Lear Corp., Ser. B, 8.75%, 12/01/16		335,944
	255		Metaldyne Corp., 10.00%, 11/01/13		262,650
	250		Rent-A-Center, Inc., 7.50%, 5/01/10		252,500
	350		Stanadyne Corp., 10.00%, 8/15/14		374,500
	180	¹	United Auto Group, Inc., 7.75%, 12/15/16		182,700

			Total Automotive		2,817,881

			Basic Materials—15.2%
			Abitibi-Consolidated, Inc. (Canada)
	215		6.00%, 6/20/13		185,975
	35		8.85%, 8/01/30		30,975
	185		AK Steel Corp., 7.75%, 6/15/12		191,013
	205		Alpha Natural Resources LLC/Alpha Natural Resources Capital Corp., 10.00%, 6/01/12		221,400
	140	¹	American Pacific Corp., 9.00%, 2/01/15		140,700
	190		Bowater Finance Corp., 7.95%, 11/15/11 (Canada)		186,200
	130	²	Bowater, Inc., 8.355%, 3/15/10		130,650
	175		Cascades, Inc., 7.25%, 2/15/13 (Canada)		177,625
	170		Catalyst Paper Corp., 7.375%, 3/01/14 (Canada)		161,925
	50		Chemtura Corp., 6.875%, 6/01/16		49,250


Principal Amount (000)			Description	Value

			Basic Materials—(cont’d)
$	150		CPG Intl. I, Inc., 10.50%, 7/01/13	$	157,500
	40		Domtar, Inc., 7.125%, 8/15/15 (Canada)		40,750
	90		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		90,000
			Equistar Chemicals LP/Equistar Funding Corp.,
	50		8.75%, 2/15/09		52,188
	115		10.125%, 9/01/08		121,325
	100		10.625%, 5/01/11		105,500
			FMG Finance Ltd. (Australia)
	85	¹	10.00%, 9/01/13		93,075
	120	¹	10.625%, 9/01/16		140,400
			Freeport-McMoRan Copper & Gold, Inc.,
	550		8.375%, 4/01/17		601,562
	180	²	8.564%, 4/01/15		189,675
	50		Hercules, Inc., 6.60%, 8/01/27		50,000
			Hexion US Finance Corp./Hexion Nova Scotia Finance ULC,
	75	¹	9.75%, 11/15/14		81,000
	100	^1,2	9.86%, 11/15/14		103,500
			Huntsman LLC,
	365		11.625%, 10/15/10		393,287
	95		12.00%, 7/15/12		105,925
	205	¹	Ineos Group Holdings Plc, 8.50%, 2/15/16 (United Kingdom)		198,338
	100	¹	Innophos Holdings, Inc., 9.50%, 4/15/12		101,500
	545		Innophos, Inc., 8.875%, 8/15/14		570,887
	366		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)		407,595
	70	¹	Key Plastics LLC/Key Plastics Finance Corp., 11.75%, 3/15/13		70,700
			Lyondell Chemical Co.,
	130		8.00%, 9/15/14		136,175
	225		8.25%, 9/15/16		240,750
	260		10.50%, 6/01/13		285,025
	265	¹	MacDermid, Inc., 9.50%, 4/15/17		275,600
	340		Nalco Co., 8.875%, 11/15/13		363,800
			NewPage Corp.,
	450		10.00%, 5/01/12		497,250
	210		12.00%, 5/01/13		233,363
	310	²	Nova Chemicals Corp., 8.502%, 11/15/13 (Canada)		315,425
	310	¹	Pregis Corp., 12.375%, 10/15/13		341,000
	125		Russel Metals, Inc., 6.375%, 3/01/14 (Canada)		120,000
	85	¹	Terra Capital, Inc., 7.00%, 2/01/17		83,300
	10	¹	Verso Paper Holdings LLC/Verson Paper, Inc., 11.375%, 8/01/16		10,700

			Total Basic Materials		8,052,808

			Building & Development—1.9%
	40	²	Ainsworth Lumber Co. Ltd., 9.10%, 10/01/10 (Canada)		30,850
			Goodman Global Holding Co., Inc.,
	160		7.875%, 12/15/12		161,200
	32	²	8.36%, 6/15/12		32,480
	250		K Hovnanian Enterprises, Inc., 6.25%, 1/15/15		226,875

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Building & Development—(cont’d)
$	85	¹	Masonite Corp., 11.00%, 4/06/15	$	78,200
	135		Nortek, Inc., 8.50%, 9/01/14		133,650
	335		North American Energy Partners, Inc., 8.75%, 12/01/11 (Canada)		345,050

			Total Building & Development		1,008,305

			Commercial Services—0.5%
	100		FTI Consulting, Inc., 7.75%, 10/01/16		104,375
	145	¹	Quebecor World, Inc., 9.75%, 1/15/15 (Canada)		152,975

			Total Commercial Services		257,350

			Consumer Products—9.0%
	265	²	Ames True Temper, Inc., 9.356%, 1/15/12		270,300
	50	¹	Beverages & More, Inc., 9.25%, 3/01/12		50,625
	180		Buffets, Inc., 12.50%, 11/01/14		189,000
	165		Burlington Coat Factory Warehouse Corp., 11.125%, 4/15/14		175,725
			General Nutrition Centers, Inc.,
	280	¹	9.797%, 3/15/14		274,050
	250	¹	10.75%, 3/15/15		249,375
	270		Jarden Corp., 7.50%, 5/01/17		276,412
	485		Lazy Days RV Center, Inc., 11.75%, 5/15/12		501,975
			Michaels Stores, Inc.,
	260	¹	10.00%, 11/01/14		285,350
	330	¹	11.375%, 11/01/16		363,825
	70		Neiman-Marcus Group, Inc., 9.00%, 10/15/15		77,175
	60	^1,2	Nutro Products, Inc., 9.37%, 10/15/13		61,350
	100	^1,3	OSI Restaurant Partners, Inc., 9.625%, 5/15/15		102,875
	265		Pantry, Inc. (The), 7.75%, 2/15/14		266,987
	100		Quiksilver, Inc., 6.875%, 4/15/15		97,500
	500	¹	Rare Restaurant Group LLC, 9.25%, 5/15/14		50,000
	120		Reynolds American, Inc., 7.625%, 6/01/16		131,291
	390		Rite Aid Corp., 7.50%, 3/01/17		389,025
			Sally Holdings LLC,
	85	¹	9.25%, 11/15/14		88,400
	270	¹	10.50%, 11/15/16		280,800
	25		Spectrum Brands, Inc., 7.375%, 2/01/15		19,813
	90		Swift & Co., 12.50%, 1/01/10		93,600
	390		United Rentals NA, Inc., 7.00%, 2/15/14		397,800
			Yankee Acquisition Corp.,
	20	¹	8.50%, 2/15/15		20,500
	85	¹	9.75%, 12/15/17		87,125

			Total Consumer Products		4,800,878

			Containers & Packaging—2.5%
			Berry Plastics Holding Corp.,
	340		8.875%, 9/15/14		350,200
	100	²	9.23%, 9/15/14		102,250
	85		Crown Americas LLC/Crown Americas Capital Corp., 7.75%, 11/15/15		89,888
	110		Graham Packaging Co., Inc., 8.50%, 10/15/12		112,200
	30		Graphic Packaging Intl. Corp., 9.50%, 8/15/13		32,100
	270	^1,2	Impress Holdings BV, 8.481%, 9/15/13 (Netherlands)		276,405


Principal Amount (000)			Description	Value

			Containers & Packaging—(cont’d)
$	375	¹	Smurfit-Stone Container Enterprises, Inc., 8.00%, 3/15/17	$	373,125

			Total Containers & Packaging		1,336,168

			Ecological Services & Equipment—0.9%
	270	¹	Aleris Intl., Inc., 9.00%, 12/15/14		286,538
	185		Waste Services, Inc., 9.50%, 4/15/14		195,175

			Total Ecological Services & Equipment		481,713

			Energy—18.2%
	132		AES Red Oak LLC, Ser. A, 8.54%, 11/30/19		143,331
	80		Berry Petroleum Co., 8.25%, 11/01/16		80,300
	100		Chaparral Energy, Inc., 8.50%, 12/01/15		101,500
			Chesapeake Energy Corp.,
	90		6.375%, 6/15/15		90,113
	250		6.625%, 1/15/16		253,750
	20		6.875%, 11/15/20		20,150
	40		Colorado Interstate Gas Co., 6.80%, 11/15/15		42,661
			Compagnie Generale de Geophysique-Veritas (France)
	50		7.50%, 5/15/15		52,500
	80		7.75%, 5/15/17		84,800
	115		Compton Petroleum Finance Corp., 7.625%, 12/01/13 (Canada)		114,138
	70		Copano Energy LLC, 8.125%, 3/01/16		72,975
	400	^1,3	Corral Finans AB, 6.855%, 4/15/10 (Sweden)		401,577
	30		Denbury Resources, Inc., 7.50%, 12/15/15		30,525
	260		East Cameron Gas Co., 11.25%, 7/09/19 (Cayman Islands)		249,600
	488		Elwood Energy LLC, 8.159%, 7/05/26		516,311
			Encore Acquisition Co.,
	40		6.00%, 7/15/15		36,600
	30		7.25%, 12/01/17		29,025
	370		Exco Resources, Inc., 7.25%, 1/15/11		370,925
	65		Frontier Oil Corp., 6.625%, 10/01/11		65,163
	50		Grant Prideco, Inc., Ser. B, 6.125%, 8/15/15		49,625
	195		Hanover Compressor Co., 8.625%, 12/15/10		203,287
	97		Homer City Funding LLC, 8.734%, 10/01/26		112,225
	5		Hornbeck Offshore Services, Inc., 6.125%, 12/01/14		4,813
	440		KCS Energy, Inc., 7.125%, 4/01/12		435,600
			Midwest Generation LLC,
	95		8.75%, 5/01/34		104,975
	96		Ser. B, 8.56%, 1/02/16		105,843
	350		Mirant Americas Generation LLC, 8.30%, 5/01/11		370,125
	610		Mission Energy Holdings Co., 13.50%, 7/15/08		666,425
	30		Newfield Exploration Co., 6.625%, 9/01/14		30,150
			NRG Energy, Inc.,
	130		7.25%, 2/01/14		134,550
	385		7.375%, 2/01/16		399,919
	440	¹	OPTI, Inc., 8.25%, 12/15/14 (Canada)		465,300
	345		Orion Power Holdings, Inc., 12.00%, 5/01/10		398,475
	210		Pride Intl., Inc., 7.375%, 7/15/14		215,512
	185		Range Resources Corp., 7.375%, 7/15/13		191,012

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Energy—(cont’d)
			Reliant Energy, Inc.,
$	390		6.75%, 12/15/14	$	408,525
	180		9.25%, 7/15/10		188,775
	130	¹	Sabine Pass LNG LP, 7.50%, 11/30/16		133,575
	210	¹	SemGroup LP, 8.75%, 11/15/15		216,825
	40		Sithe Independence Funding, Ser. A, 9.00%, 12/30/13		43,937
	315	^1,2	Stone Energy Corp., 8.106%, 7/15/10		315,000
	200	¹	Targa Resources, Inc., 8.50%, 11/01/13		206,000
	160		Tennessee Gas Pipeline Co., 8.375%, 6/15/32		199,822
	400		Transcontinental Gas Pipe Line Corp., Ser. B, 8.875%, 7/15/12		454,000
	495		Whiting Petroleum Corp., 7.25%, 5/01/12-5/01/13		485,413
	355		Williams Cos., Inc., 7.625%, 7/15/19		386,950

			Total Energy		9,682,602

			Entertainment & Leisure—5.0%
	150		AMC Entertainment, Inc., 11.00%, 2/01/16		172,125
	40		Cinemark, Inc., Zero Coupon, 3/15/14		36,800
	125	¹	French Lick Resorts & Casino LLC/French Lick Resorts & Casino Corp., 10.75%, 4/15/14		108,750
			Gaylord Entertainment Co.,
	280		6.75%, 11/15/14		277,900
	40		8.00%, 11/15/13		41,600
	320	¹	Great Canadian Gaming Corp., 7.25%, 2/15/15 (Canada)		324,800
	185	¹	Greektown Holdings LLC, 10.75%, 12/01/13		198,412
	100		Harrah’s Operating Co., Inc., 5.75%, 10/01/17		83,000
	60		MGM Mirage, 6.75%, 9/01/12		60,075
	305		Poster Financial Group, Inc., 8.75%, 12/01/11		317,200
	185		Riddell Bell Holdings, Inc., 8.375%, 10/01/12		184,075
	140		Seneca Gaming Corp., Ser. B, 7.25%, 5/01/12		142,450
	50		Station Casinos, Inc., 6.625%, 3/15/18		45,750
	75	¹	TDS Investor, 9.875%, 9/01/14		80,250
	60	^1,2	Travelport Ltd., 9.985%, 9/01/14		61,950
	435		Virgin River Casino, 9.00%, 1/15/12		454,575
	70		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14		70,175

			Total Entertainment & Leisure		2,659,887

			Financial Institutions—10.4%
	500		AES Red Oak LLC, Ser. B, 9.20%, 11/30/29		570,000
			American Real Estate Partners LP/American Real Estate Finance Corp.,
	185		7.125%, 2/15/13		181,994
	300		8.125%, 6/01/11		306,000
	105	^1,2	BMS Holdings, Inc., 12.40%, 2/15/12		105,263
	60		Britannia Bulk Plc, 11.00%, 12/01/11 (United Kingdom)		60,600
	500	¹	Dow Jones CDX HY, Ser. 6-T1, 8.625%, 6/29/11		527,800
	110	²	Ford Motor Credit Co., 8.105%, 1/13/12		108,494
	415	¹	iPayment Investors LP, 11.625%, 7/15/14		432,032
	120		iPayment, Inc., 9.75%, 5/15/14		124,950



Principal Amount (000)			Description	Value

			Financial Institutions—(cont’d)
$	200		K&F Acquisition, Inc., 7.75%, 11/15/14	$	214,000
			Momentive Performance Materials, Inc.,
	175	¹	9.75%, 12/01/14		185,062
	380	¹	10.125%, 12/01/14		402,800
	160	¹	11.50%, 12/01/16		171,200
	70	¹	NSG Holdings LLC/NSG Holdings, Inc., 7.75%, 12/15/25		73,675
	220	^1,2	PNA Intermediate Holding Corp., 12.36%, 2/15/13		226,600
			Rainbow National Services LLC,
	310	¹	8.75%, 9/01/12		330,925
	490	¹	10.375%, 9/01/14		551,862
	415		Standard Aero Holdings, Inc., 8.25%, 9/01/14		449,237
	30	²	Universal City Florida Holding Co. I/II, 10.106%, 5/01/10		30,788
	100	^1,2	USI Holdings Corp., 9.23%, 11/15/14		101,000
	350	¹	Wimar Opco LLC/Wimar Opco Finance Corp., 9.625%, 12/15/14		355,250

			Total Financial Institutions		5,509,532

			Health Care—3.0%
	50		Accellent, Inc., 10.50%, 12/01/13		51,375
	180	^1,2	Angiotech Pharmaceuticals, Inc., 9.11%, 12/01/13 (Canada)		184,725
	100	¹	Cooper Cos., Inc., 7.875%, 2/15/15		102,000
			HealthSouth Corp.,
	50	¹	10.75%, 6/15/16		54,500
	120	^1,2	11.354%, 6/15/14		130,500
	135		Norcross Safety Products LLC/Norcross Capital Corp., 9.875%, 8/15/11		142,594
	150	¹	PTS Acquisition Corp., 9.50%, 4/15/15		150,188
			Tenet Healthcare Corp.,
	85		6.875%, 11/15/31		68,000
	50		9.875%, 7/01/14		51,125
	230	¹	United Surgical Partners Intl., Inc., 8.875%, 5/01/17		236,612
	405		Universal Hospital Services, Inc., 10.125%, 11/01/11		433,895

			Total Health Care		1,605,514

			Industrials—4.2%
	200	¹	AGY Holding Corp., 11.00%, 11/15/14		210,250
			Clarke American Corp.,
	60	¹	9.50%, 5/15/15		60,600
	50	^1,2	10.105%, 5/15/15		50,000
	195		Concentra Operating Corp., 9.125%, 6/01/12		208,163
	80		Hexcel Corp., 6.75%, 2/01/15		80,200
	85		Park-Ohio Industries, Inc., 8.375%, 11/15/14		84,150
			RBS Global, Inc./Rexnord Corp.,
	85		8.875%, 9/01/16		88,400
	340		9.50%, 8/01/14		363,800
	280		11.75%, 8/01/16		310,800
	510	¹	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		545,700
	55		Terex Corp., 7.375%, 1/15/14		57,475
	190		Trimas Corp., 9.875%, 6/15/12		197,125

			Total Industrials		2,256,663

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Media—15.4%
			Affinion Group, Inc.,
$	215		10.125%, 10/15/13	$	234,350
	160		11.50%, 10/15/15		176,000
	35		American Media Operations, Inc., Ser. B, 10.25%, 5/01/09		32,988
	175	²	Cablevision Systems Corp., Ser. B, 9.82%, 4/01/09		185,500
	60		CanWest MediaWorks, Inc., 8.00%, 9/15/12 (Canada)		62,250
	60		CBD Media Holdings LLC/CBD Holdings Finance, Inc., 9.25%, 7/15/12		63,000
	240		CCH I Holdings LLC/CCH I Holdings Capital Corp., 11.00%, 10/01/15		254,675
			Charter Communications Holdings II LLC/Charter Communications Holdings II Capital Corp.,
	765		10.25%, 9/15/10		814,725
	75		Ser. B, 10.25%, 9/15/10		79,688
	290	¹	CMP Susquehanna Corp., 9.875%, 5/15/14		295,800
	45		CSC Holdings, Inc., Ser. B, 7.625%, 4/01/11		46,406
	50		Dex Media West LLC/Dex Media Finance Co., Ser. B, 9.875%, 8/15/13		54,438
	125		DirecTV Holdings LLC/DirecTV Financing Co., 8.375%, 3/15/13		131,875
			EchoStar DBS Corp.,
	200		7.00%, 10/01/13		207,750
	260		7.125%, 2/01/16		270,725
	320	¹	Idearc, Inc., 8.00%, 11/15/16		334,000
	75	¹	Iesy Repository GMBH, 10.375%, 2/15/15 (Germany)		79,313
	325		LIN Television Corp., 6.50%, 5/15/13		320,125
	165		MediaNews Group, Inc., 6.875%, 10/01/13		150,150
	290		Network Communications, Inc., 10.75%, 12/01/13		297,250
	325		Nexstar Finance, Inc., 7.00%, 1/15/14		316,062
			Nielsen Finance LLC/Nielsen Finance Co.,
	170	¹	Zero Coupon, 8/01/16		122,825
	445	¹	10.00%, 8/01/14		486,162
	125	^1,2	Paxson Communications Corp., 8.606%, 1/15/12		127,500
	605		Primedia, Inc., 8.00%, 5/15/13		629,200
	1,035		RH Donnelley Corp., Ser. A-3, 8.875%, 1/15/16		1,122,975
	230	¹	Umbrella Acquisition, Inc., 9.75%, 3/15/15		231,725
			Vertis, Inc.,
	280		9.75%, 4/01/09		286,300
	145		Ser. B, 10.875%, 6/15/09		143,731
	595		Young Broadcasting, Inc., 10.00%, 3/01/11		605,412

			Total Media		8,162,900

			Real Estate—2.2%
			Realogy Corp.,
	240	¹	10.50%, 4/15/14		240,600
	380	¹	11.00%, 4/15/14		378,100
	540	¹	12.375%, 4/15/15		540,000

			Total Real Estate		1,158,700


Principal Amount (000)			Description	Value

			Technology—7.7%
			Amkor Technology, Inc.,
$	40		7.75%, 5/15/13	$	39,600
	235		9.25%, 6/01/16		249,100
	60	¹	Belden CDT, Inc., 7.00%, 3/15/17		61,350
	350		Celestica, Inc., 7.625%, 7/01/13 (Canada)		333,375
	180	¹	Coleman Cable, Inc., 9.875%, 10/01/12		187,650
			Freescale Semiconductor, Inc.,
	815	¹	9.125%, 12/15/14		810,925
	80	^1,2	9.23%, 12/15/14		80,000
	60	¹	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)		66,900
			NXP BV/NXP Funding LLC,
	50	^1,2	8.106%, 10/15/13		51,625
	480	¹	9.50%, 10/15/15		504,000
			Sanmina-SCI Corp.,
	10		6.75%, 3/01/13		9,500
	180		8.125%, 3/01/16		176,175
	175		Sensata Technologies, 8.00%, 5/01/14 (Netherlands)		175,437
			SunGard Data Systems, Inc.,
	85		9.125%, 8/15/13		91,163
	465		10.25%, 8/15/15		511,500
	305		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		317,200
	105	¹	UGS Capital Corp. II, 10.348%, 6/01/11		108,197
	305		UGS Corp., 10.00%, 6/01/12		332,450

			Total Technology		4,106,147

			Telecommunications—16.2%
	2,000	⁴	Asia Global Crossing Ltd., 13.375%, 10/15/10 (Bermuda)		170,000
			Centennial Communications Corp.,
	455		8.125%, 2/01/14		471,494
	220	²	11.099%, 1/01/13		232,100
	405		Cincinnati Bell, Inc., 7.25%, 7/15/13		421,200
	215	¹	Cricket Communications, Inc., 9.375%, 11/01/14		229,781
			Digicel Group Ltd. (Bermuda)
	130	¹	8.875%, 1/15/15		127,563
	380	¹	9.125%, 1/15/15		368,600
	260		Dobson Cellular Systems, Inc., 8.375%, 11/01/11		277,225
	100	²	Hawaiian Telcom Communications, Inc., Ser. B, 10.86%, 5/01/13		102,250
	320		Intelsat Corp., 9.00%, 6/15/16		350,800
	40		Intelsat Intermediate Holding Co. Ltd., 9.25%, 2/01/15 (Bermuda)		33,600
			Intelsat Ltd. (Bermuda)
	60		6.50%, 11/01/13		51,600
	295	²	8.872%, 1/15/15		301,810
	150		9.25%, 6/15/16		165,000
	70		11.25%, 6/15/16		79,888
	320	²	11.354%, 6/15/13		342,400
	245		Intelsat Subsidiary Holding Co. Ltd., 8.625%, 1/15/15 (Bermuda)		261,844
	90	^1,2	iPCS, Inc., 7.48%, 5/01/13		90,450
	380	¹	MetroPCS Wireless, Inc., 9.25%, 11/01/14		405,650

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Telecommunications—(cont’d)
$	445	¹	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)	$	478,375
			Nortel Networks Ltd. (Canada)
	245	^1,2	9.606%, 7/15/11		262,150
	95	¹	10.125%, 7/15/13		104,738
			PanAmSat Corp.,
	210		6.875%, 1/15/28		197,662
	270		9.00%, 8/15/14		291,600
	387	^1,2	ProtoStar I Ltd., 12.50%, 10/15/12 (Bermuda)		414,387
			Qwest Corp.,
	600		7.875%, 9/01/11		639,000
	230	²	8.605%, 6/15/13		251,562
	125		9.125%, 3/15/12		138,125
	475	¹	West Corp., 11.00%, 10/15/16		518,937
	375	¹	Wind Acquisition Finance S.A., 10.75%, 12/01/15 (Luxembourg)		433,125
			Windstream Corp.,
	200		8.125%, 8/01/13		217,000
	145		8.625%, 8/01/16		159,137

			Total Telecommunications		8,589,053

			Transportation—2.6%
	95		American Airlines, Inc., Ser. 99-1, 7.324%, 4/15/11		96,425
	170		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		166,175
	430		Horizon Lines LLC, 9.00%, 11/01/12		452,575
	320	¹	Navios Maritime Holdings, Inc., 9.50%, 12/15/14 (Marshall Islands)		336,800
	350		Overseas Shipholding Group, Inc., 7.50%, 2/15/24		357,000

			Total Transportation		1,408,975

			Total Corporate Bonds		65,478,126

			Bank Loans—3.0%
	325		Affinion Group, Inc., LIBOR, 3/01/12		320,667
	90		Riverdeep Interactive Learning, Inc., LIBOR + 6.20%, 12/21/07		89,775
	250		Rotech Healthcare, LIBOR+6.00%, 9/26/11		250,000
			Spectrum Brands
	81		Loan B, LIBOR + 4.00%, 4/15/13		82,153
	14		Loan B2, LIBOR + 4.00%, 4/15/13		14,535
	4		Loan C, LIBOR + 4.00%, 4/15/13		4,061
	600		Travelport LLC, LIBOR + 7.00%, 3/22/12		584,250
	250		Verso Paper Finance Holdings LLC, LIBOR + 6.25%, 2/01/13		250,937

			Total Bank Loans		1,596,378

			Asset-Backed Security—2.6%
	2,000	^1,3	Zais Investment Grade Ltd., Class C, 9.95%, 9/23/14 (Cayman Islands)		1,400,760


Shares			Description	Value

			Common Stocks—0.7%
	4,737	⁵	Critical Care Systems Intl., Inc.	$	29,606
	14,991	⁵	Mattress Discounters Corp.		—
	68,358	⁵	Neon Communications Group, Inc.		334,954

			Total Common Stocks		364,560

			Preferred Stock—0.1%
	40,000		Superior Essex Holding Corp., Ser. A, 9.50%,		40,000



Units (000)

			Warrants—0.0%
	1	^1,5,6	Mattress Discounters Corp., expires 7/15/07, strike price $0.01, 4.85 shares for 1 warrant		—
	54	^5,6	Neon Communications, Inc., expires 12/02/12		1
	1	^1,5,6	PF. Net Communications, Inc., expires 5/15/10, strike price $0.01, 36.87243 shares for 1 warrant		—

			Total Warrants		1

			Total Long-Term Investments (cost $69,712,156)		68,879,825



Principal Amount (000)

			SHORT-TERM INVESTMENT—6.8%
			U.S. Government and Agency Discount Notes—6.8%
$	3,600	⁷	Federal Home Loan Bank Disc. Notes, 5.061%, 5/01/07 (cost $3,600,000)		3,600,000

			Total Investments—136.4% (cost $73,312,156⁸)	$	72,479,825
			Liabilities in excess of other assets—(36.4)%		(19,347,956	)

			Net Assets—100%	$	53,131,869


¹	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2007, the Trust held 43.3% of its net assets, with a current market value of $23,015,727, in securities restricted as to resale.
²	Variable rate security. Rate shown is interest rate as of April 30, 2007.
³	Security is fair valued.
⁴	Issuer is in default and/or bankruptcy.
⁵	Non-income producing security.
⁶	Illiquid security. As of April 30, 2007, the Trust held less than 0.1% of its net assets, with a current market value of $1, in these securities.
⁷	Rate shown is the yield to maturity as of the date of purchase.
⁸	Cost for federal income tax purposes is $73,341,879. The net unrealized depreciation on a tax basis is $862,054, consisting of $2,635,826 gross unrealized appreciation and $3,497,880 gross unrealized depreciation.



KEY TO ABBREVIATIONS

LIBOR — London Interbank Offered Rate

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS
APRIL 30, 2007 (unaudited)

BlackRock Income Opportunity Trust (BNA)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			LONG-TERM INVESTMENTS—116.5%
			Mortgage Pass-Through Securities—14.2%
			Federal Home Loan Mortgage Corp.,
$	1,058	¹	4.368%, 1/01/35	$	1,072,560
	1,456	¹	5.067%, 1/01/35		1,439,434
			Federal National Mortgage Assoc.,
	8,241		5.50%, 12/01/13-1/01/33		8,203,553
	22,657	^2,3	5.50%, 7/01/16-6/01/36		22,593,758
	7,635	³	5.50%, 12/01/32-1/01/33		7,570,133
	3,125		5.97%, 8/01/16		3,293,250
	797		6.00%, 3/01/16-7/01/17		812,724
	971	²	6.00%, 1/01/37		978,824
	126		7.00%, 2/01/24-8/01/36		130,304
	300		TBA, 5.50%, 5/14/37		296,625
	8,000		TBA, 6.00%, 5/14/37		8,060,000
	101		Government National Mortgage Assoc., 8.00%, 4/15/24-11/15/25		107,875

			Total Mortgage Pass-Through Securities		54,559,040

			Federal Housing Administration Securities—1.0%
			General Motors Acceptance Corp. Projects,
	195		Ser. 37, 7.43%, 5/01/22		197,333
	78		Ser. 44, 7.43%, 8/01/22		79,407
			Merrill Projects,
	149	⁴	Ser. 29, 7.43%, 10/01/20		151,214
	50	⁴	Ser. 42, 7.43%, 9/01/22		50,965
	1,754		Reilly Project, Ser. B-11, 7.40%, 4/01/21		1,773,209
	1,753		Westmore Project, 7.25%, 4/01/21		1,763,938

			Total Federal Housing Administration Securities		4,016,066

			Agency Multiple Class Mortgage Pass-Through Securities—9.7%
			Federal Home Loan Mortgage Corp.,
	3,159		Ser. 82, Class HJ, 5.50%, 9/25/32		3,173,152
	—	¹	Ser. 192, Class U, 1009.033%, 2/15/22		4
	—		Ser. 1057, Class J, 1008.001%, 3/15/21		802
	3,243		Ser. 2806, Class VC, 6.00%, 12/15/19		3,332,787
	6,000		Ser. 2874, Class BC, 5.00%, 10/15/19		5,859,356
	1,390		Ser. 2883, Class DR, 5.00%, 11/15/19		1,354,633
	3,364		Ser. 2922, Class GA, 5.50%, 5/15/34		3,391,053
	1,845		Ser. 2927, Class BA, 5.50%, 10/15/33		1,860,708
	1,793		Ser. 2933, Class HD, 5.50%, 2/15/35		1,810,225
	1,725		Ser. 2968, Class EG, 6.00%, 10/15/34		1,768,525
	7,005		Ser. 3174, Class PZ, 5.00%, 1/15/36		6,295,678
			Federal National Mortgage Assoc.,
	3,146		Ser. 5, Class PK, 5.00%, 12/25/34		3,124,072
	2,051		Ser. 27, Class PC, 5.50%, 5/25/34		2,062,653
	1,613	¹	Ser. 118, Class FD, 5.72%, 12/25/33		1,624,317
	1,603		Government National Mortgage Assoc., Ser. 65, Class VA, 6.00%, 6/20/15		1,637,929

			Total Agency Multiple Class Mortgage Pass-Through Securities		37,295,894

			Non-Agency Multiple Class Mortgage Pass-Through Securities—4.8%
	2,443		Donaldson, Lufkin & Jenrette Commercial Mortgage Corp., Class A 1B, 7.18%, 11/10/33		2,569,052


Principal Amount (000)			Description	Value

			Non-Agency Multiple Class Mortgage Pass-Through Securities—(cont’d)
$	2,630		First Union-Lehman Brothers-Bank of America, Ser. C2, Class D, 6.778%, 11/18/35	$	2,815,942
	2,310		GE Capital Commercial Mortgage Corp., Ser. 1A, Class A3, 6.269%, 12/10/35		2,409,277
	2,580		General Motor Acceptance Corp. Commercial Mortgage Securities, Inc., Ser. C4, Class A2, 4.93%, 7/10/39		2,542,325
	7,536		Residential Funding Securities Corp., Ser. RM2, Class AI5, 8.50%, 5/25/33		8,126,867
	3	^1,5	Summit Mortgage Trust, Ser. 1, Class B1, 6.596%, 12/28/12		3,173

			Total Non-Agency Multiple Class Mortgage Pass-Through Securities		18,466,636

			Inverse Floating Rate Mortgage Securities—0.5%
	500	¹	Federal Home Loan Mortgage Corp., Ser. 1611, Class JC, 10.00%, 8/15/23		520,558
			Federal National Mortgage Assoc.,
	—	¹	Ser. 7, Class S, 541.833%, 3/25/21		3,201
	—	¹	Ser. 17, Class S, 531.967%, 6/25/21		4,793
	1,238	¹	Ser. 23, Class PS, 9.36%, 4/25/23		1,290,634
	—	¹	Ser. 46, Class S, 1295.281%, 5/25/21		3,722
	—	¹	Ser. 49, Class S, 479.05%, 12/25/21		1,693
	62	¹	Ser. 87, Class S, 12.522%, 8/25/21		74,591

			Total Inverse Floating Rate Mortgage Securities		1,899,192

			Asset-Backed Securities—12.6%
	1,658	¹	Ameriquest Mortgage Securities, Inc., Ser. R11, Class A1, 5.622%, 11/25/34		1,660,826
	3,025		Capital Auto Receivables Asset Trust, Ser. 1, Class A3, 5.03%, 10/15/09		3,017,702
	2,650	¹	Chase Issuance Trust, Ser. A3, 5.31%, 7/15/11		2,649,465
	3,100		Chase Manhattan Auto Owner Trust, Ser. B, Class A4, 4.88%, 6/15/12		3,090,803
	3,125		Citibank Credit Card Issuance Trust, Ser. A2, Class A2, 4.85%, 2/10/11		3,115,476
			Countrywide Asset-Backed Certificates,
	199	¹	Ser. 15, Class 2AV1, 5.42%, 4/25/36		198,612
	932	¹	Ser. 16, Class 4AV1, 5.42%, 1/25/35		932,505
	3,150		DaimlerChrysler Auto Trust, Ser. A, Class A3, 5.00%, 5/08/10		3,143,604
	2,575	¹	Discover Card Master Trust I, Ser. 1, Class A, 5.33%, 9/16/10		2,575,493
	3,400		Ford Credit Auto Owner Trust, Ser. A, Class A3, 5.07%, 11/15/09		3,393,211
	2,550		Harley-Davidson Motorcycle Trust, Ser. 2, Class A2, 4.07%, 2/15/12		2,515,217
	2,483		Maryland Trust, Ser. 1, Class A, 5.55%, 12/10/65		2,461,757
			MBNA Credit Card Master Note Trust,
	3,075		Ser. A1, Class A, 4.90%, 7/15/11		3,071,150
	4,050	¹	Ser. A4, 5.31%, 9/15/11		4,049,212

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Asset-Backed Securities—(cont’d)
$	974	¹	Merrill Lynch Mortgage Investors, Inc., Ser. HE2, Class A2A, 5.43%, 9/25/36	$	974,614
			Morgan Stanley ABS Capital I,
	2,202	¹	Ser. HE5, Class A2A, 5.39%, 8/25/36		2,201,853
	1,796	¹	Ser. NC4, Class A2A, 5.35%, 6/25/36		1,795,621
	695	¹	New Century Home Equity Loan Trust, Ser. C, Class A2A, 5.40%, 1/25/36		695,011
	1,029	¹	Structured Asset Investment Loan Trust, Ser. 1, Class A1, 5.40%, 1/25/36		1,029,095
	3,075		USAA Auto Owner Trust, Ser. 1, Class A3, 5.01%, 9/15/10		3,069,540
	2,925		Wachovia Auto Owner Trust, Ser. A, Class A4, 5.38%, 3/20/13		2,953,588

			Total Asset-Backed Securities		48,594,355

			Interest Only Asset-Backed Securities—0.2%
	169	^1,5	Morgan Stanley Capital Trust I, Ser. HF1, Class X, 1.915%, 6/15/17		377
			Sterling Coofs Trust,
	16,255		Ser. 1, 2.362%, 4/15/29		487,653
	14,846		Ser. 2, 2.126%, 3/30/30		408,278

			Total Interest Only Asset-Backed Securities		896,308

			Interest Only Mortgage-Backed Securities—0.9%
			Federal Home Loan Mortgage Corp.,
	—		Ser. 176, Class M, 1,010.00%, 7/15/21		37
	—		Ser. 200, Class R, 93,522.906%, 12/15/22		181
	7	¹	Ser. 1043, Class H, 20.813%, 2/15/21		7,238
	—	¹	Ser. 1054, Class I, 413.56%, 3/15/21		106
	—		Ser. 1056, Class KD, 1,084.50%, 3/15/21		704
	—	¹	Ser. 1148, Class E, 563.074%, 10/15/21		287
	—		Ser. 1179, Class O, 1,009.389%, 11/15/21		50
	167		Ser. 1254, Class Z, 8.50%, 4/15/22		46
	277		Ser. 1831, Class PG, 6.50%, 3/15/11		22,826
	6,219		Ser. 2611, Class QI, 5.50%, 9/15/32		1,090,195
			Federal National Mortgage Assoc.,
	88		Ser. 5, Class H, 9.00%, 1/25/22		21,194
	6		Ser. 7, Class 2, 8.50%, 4/01/17		1,153
	1	¹	Ser. 10, Class S, 524.318%, 5/25/21		9,678
	—	¹	Ser. 12, Class S, 553.577%, 5/25/21		7,988
	—		Ser. 33, Class PV, 1,078.42%, 10/25/21		11,321
	—		Ser. 38, Class N, 1,008.50%, 4/25/21		294
	3		Ser. 46, Class H, 1,042.50%, 12/25/09		26,769
	375	¹	Ser. 50, Class SI, 1.20%, 4/25/23		13,538
	11		Ser. 89, Class 2, 8.00%, 6/01/18		2,495
	26,413	¹	Ser. 90, Class JH, 1.38%, 11/25/34		1,295,928
	3		Ser. 94, Class 2, 9.50%, 8/01/21		747
	—		Ser. 99, Class L, 930.00%, 8/25/21		3,505
	—		Ser. 123, Class M, 1,009.50%, 10/25/20		610
	13	¹	Ser. 136, Class S, 14.746%, 11/25/20		15,783
	—		Ser. 139, Class PT, 648.35%, 10/25/21		3,957
	—	¹	Ser. 141, Class SA, 13.625%, 8/25/07		4
	4,619		Ser. 378, Class 19, 5.00%, 6/01/35		1,011,122
	4,475	^1,5	Goldman Sachs Mortgage Securities Corp., Ser. 5, 0.988%, 2/19/25		94,687


Principal Amount (000)			Description	Value

			Interest Only Mortgage-Backed Securities—(cont’d)
$	1,539	¹	Salomon Brothers Mortgage Securities VII, Ser. 1, 0.537%, 3/25/22	$	27

			Total Interest Only Mortgage-Backed Securities		3,642,470

			Principal Only Mortgage-Backed Securities—0.1%
	92	^3,6	Federal Home Loan Mortgage Corp., Ser. 1739, Class B, 7.50%, 2/15/24		82,953
			Federal National Mortgage Assoc.,
	72	⁶	Ser. 51, Class E, 8.00%, 2/25/23		61,186
	13	⁶	Ser. 70, Class A, 7.00%, 5/25/23		10,439
	29	⁶	Ser. 167, Class D, 8.50%, 10/25/17		27,308
	22	⁶	Ser. 203, Class 1, 8.00%, 2/01/23		19,214
	15	⁶	Ser. 228, Class 1, 7.00%, 5/01/23		12,396

			Total Principal Only Mortgage-Backed Securities		213,496

			Commercial Mortgage-Backed Securities—5.0%
	2,320		Bear Stearns Commercial Mortgage Services, Ser. PWR7, Class A2, 4.945%, 2/11/41		2,294,719
	2,970	²	Credit Suisse First Boston Mortgage Securities Corp., Ser. CP5, Class A2, 4.94%, 12/15/35		2,922,081
	2,400	¹	Credit Suisse Mortgage Capital Certificates, Ser. C2, Class A3, 5.542%, 1/15/49		2,422,781
	2,090		First Union National Bank Commercial Mortgage Trust, Ser. C2, Class A2, 7.202%, 10/15/32		2,204,825
	2,475		General Motors Acceptance Corp. Commercial Mortgage Securities, Inc., Ser. C3, Class A4, 4.547%, 12/10/41		2,410,023
			JPMorgan Chase Commercial Mortgage Securities Corp.,
	1,990		Ser. C1, Class A3, 5.857%, 10/12/35		2,037,384
	2,380		Ser. CBX, Class A4, 4.529%, 1/12/37		2,321,460
	2,530	¹	Lehman Brothers-UBS Commercial Mortgage Trust, Ser. C4, Class A3, 5.153%, 6/15/29		2,538,708

			Total Commercial Mortgage-Backed Securities		19,151,981

			Collateralized Mortgage Obligation Residual Securities—0.0%
			Collateralized Mortgage Obligation Trust,
	—		Ser. 40, Class R, 580.50%, 4/01/18		162
	—		Ser. 42, Class R, 6,000.00%, 10/01/14		2,019
			Federal Home Loan Mortgage Corp.,
	—		Ser. 19, Class R, 9,427.227%, 3/15/20		1,557
	—		Ser. 75, Class R, 9.50%, 1/15/21		2
	—		Ser. 75, Class RS, 17.018%, 1/15/21		2
	—		Ser. 173, Class R, 9.00%, 11/15/21		11
	—		Ser. 173, Class RS, 9.113%, 11/15/21		11
	6		Painewebber CMO Trust, Ser. 88 M, Class 6, 13.80%, 9/01/18		—

			Total Collateralized Mortgage Obligation Residual Securities		3,764

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Corporate Bonds—54.2%
			Aerospace & Defense—0.8%
$	170	⁵	Bombardier, Inc., 8.00%, 11/15/14 (Canada)	$	178,712
	1,488		DI Finance/DynCorp Intl., Ser. B, 9.50%, 2/15/13		1,599,600
			DRS Technologies, Inc.,
	80		6.875%, 11/01/13		80,800
	80		7.625%, 2/01/18		83,800
	15		Sequa Corp., 9.00%, 8/01/09		15,863
	140	⁵	TransDigm, Inc., 7.75%, 7/15/14		145,250
	1,250		United Technologies Corp., 4.875%, 5/01/15		1,214,949

			Total Aerospace & Defense		3,318,974

			Automotive—0.4%
	305		Accuride Corp., 8.50%, 2/01/15		314,913
			AutoNation, Inc.,
	170		7.00%, 4/15/14		170,850
	160	¹	7.356%, 4/15/13		161,400
	30	^1,5	Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.86%, 5/15/14		30,825
	560		Lear Corp., Ser. B, 8.75%, 12/01/16		545,300
	295		Metaldyne Corp., 10.00%, 11/01/13		303,850

			Total Automotive		1,527,138

			Basic Materials—5.0%
	585		Abitibi-Consolidated, Inc., 6.00%, 6/20/13 (Canada)		506,025
	1,115		AK Steel Corp., 7.75%, 6/15/12		1,151,237
	280	⁵	American Pacific Corp., 9.00%, 2/01/15		281,400
	90	¹	Bowater, Inc., 8.355%, 3/15/10		90,450
	30		Chemtura Corp., 6.875%, 6/01/16		29,550
	230		CPG Intl. I, Inc., 10.50%, 7/01/13		241,500
	80		Domtar, Inc., 7.125%, 8/15/15 (Canada)		81,500
	170		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		170,000
	300		Equistar Chemicals LP/Equistar Funding Corp., 10.625%, 5/01/11		316,500
			Freeport-McMoRan Copper & Gold, Inc.,
	1,020		8.375%, 4/01/17		1,115,625
	360	¹	8.564%, 4/01/15		379,350
			Huntsman LLC,
	230		11.625%, 10/15/10		247,825
	72		12.00%, 7/15/12		80,280
	1,500	⁵	Ineos Group Holdings Plc, 8.50%, 2/15/16 (United Kingdom)		1,451,250
	975		Innophos, Inc., 8.875%, 8/15/14		1,021,313
	135		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)		150,342
	565	⁵	Key Plastics LLC/Key Plastics Finance Corp., 11.75%, 3/15/13		570,650
			Lyondell Chemical Co.,
	260		8.00%, 9/15/14		272,350
	515		8.25%, 9/15/16		551,050
	130		10.50%, 6/01/13		142,513
	1,785		11.125%, 7/15/12		1,901,025
	60		Nalco Co., 8.875%, 11/15/13		64,200
	575		NewPage Corp., 10.00%, 5/01/12		635,375
			Noranda, Inc. (Canada)
	600		6.00%, 10/15/15		620,857
	1,550		6.20%, 6/15/35		1,559,348


Principal Amount (000)			Description	Value

			Basic Materials—(cont’d)
$	630	¹	Nova Chemicals Corp., 8.502%, 11/15/13 (Canada)	$	641,025
	535	⁵	Pregis Corp., 12.375%, 10/15/13		588,500
	1,570		Teck Cominco Ltd., 6.125%, 10/01/35 (Canada)		1,530,932
	360	⁵	Terra Capital, Inc., 7.00%, 2/01/17		352,800
	2,325		Vale Overseas Ltd., 6.875%, 11/21/36 (Cayman Islands)		2,458,687
	25	⁵	Verso Paper Holdings LLC/Verson Paper, Inc., 11.375%, 8/01/16		26,750

			Total Basic Materials		19,230,209

			Building & Development—0.2%
	495		Goodman Global Holding Co., Inc., 7.875%, 12/15/12		498,713
	210		Nortek, Inc., 8.50%, 9/01/14		207,900
	85		North American Energy Partners, Inc., 8.75%, 12/01/11 (Canada)		87,550

			Total Building & Development		794,163

			Commercial Services—0.1%
	125		FTI Consulting, Inc., 7.75%, 10/01/16		130,469
	225	⁵	Quebecor World, Inc., 9.75%, 1/15/15 (Canada)		237,375

			Total Commercial Services		367,844

			Consumer Products—2.0%
	720	¹	Ames True Temper, Inc., 9.356%, 1/15/12		734,400
	560		Federated Department Stores, Inc., 6.79%, 7/15/27		554,466
	1,325		Federated Retail Holdings, Inc., 5.90%, 12/01/16		1,327,018
			General Nutrition Centers, Inc.,
	500	⁵	9.796%, 3/15/14		489,375
	450	⁵	10.75%, 3/15/15		448,875
	369		Lazy Days RV Center, Inc., 11.75%, 5/15/12		381,915
			Michaels Stores, Inc.,
	530	⁵	10.00%, 11/01/14		581,675
	670	⁵	11.375%, 11/01/16		738,675
	50	^1,5	Nutro Products, Inc., 9.37%, 10/15/13		51,125
	300		Quiksilver, Inc., 6.875%, 4/15/15		292,500
	250		Reynolds American, Inc., 7.625%, 6/01/16		273,522
	790		Rite Aid Corp., 7.50%, 3/01/17		788,025
	190	⁵	Sally Holdings LLC, 10.50%, 11/15/16		197,600
	125		Spectrum Brands, Inc., 7.375%, 2/01/15		99,062
	670		United Rentals NA, Inc., 7.00%, 2/15/14		683,400

			Total Consumer Products		7,641,633

			Containers & Packaging—0.7%
			Berry Plastics Holding Corp.,
	290		8.875%, 9/15/14		298,700
	190	¹	9.23%, 9/15/14		194,275
	150		Crown Americas LLC/Crown Americas Capital Corp., 7.75%, 11/15/15		158,625
	330	^1,5	Impress Holdings BV, 8.481%, 9/15/13 (Netherlands)		337,829
	1,626		Owens-Brockway Glass Container, Inc., 8.875%, 2/15/09		1,658,520

			Total Containers & Packaging		2,647,949

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Ecological Services & Equipment—0.8%
$	2,250		Casella Waste Systems, Inc., 9.75%, 2/01/13	$	2,379,375
	600		Waste Services, Inc., 9.50%, 4/15/14		633,000

			Total Ecological Services & Equipment		3,012,375

			Energy—5.9%
	2,625		Anadarko Petroleum Corp., 6.45%, 9/15/36		2,631,631
	160		Berry Petroleum Co., 8.25%, 11/01/16		160,600
	380		Chaparral Energy, Inc., 8.50%, 12/01/15		385,700
			Chesapeake Energy Corp.,
	175		6.375%, 6/15/15		175,219
	20		6.875%, 11/15/20		20,150
	1,300		Cleveland Electric Illuminating Co., 5.95%, 12/15/36		1,253,681
			Compagnie Generale de Geophysique-Veritas (France)
	60		7.50%, 5/15/15		63,000
	100		7.75%, 5/15/17		106,000
	225		Compton Petroleum Finance Corp., 7.625%, 12/01/13 (Canada)		223,313
	1,970	¹	ConocoPhillips Australia Funding Co., 5.45%, 4/09/09		1,970,904
	450		DTE Energy Co., 6.35%, 6/01/16		470,156
	130		Edison Mission Energy, 7.50%, 6/15/13		135,200
	120		El Paso Corp., 7.80%, 8/01/31		133,800
	150		El Paso Natural Gas Co., 8.875%, 6/15/32		187,334
	185		Elwood Energy LLC, 8.159%, 7/05/26		195,698
	425		EnCana Corp., 6.50%, 8/15/34 (Canada)		445,430
			Encore Acquisition Co.,
	50		6.00%, 7/15/15		45,750
	60		7.25%, 12/01/17		58,050
	1,675		Energy East Corp., 6.75%, 7/15/36		1,783,287
	435		Exco Resources, Inc., 7.25%, 1/15/11		436,087
	480		FirstEnergy Corp., Ser. B, 6.45%, 11/15/11		503,432
	575		Florida Power & Light Co., 4.95%, 6/01/35		511,698
	90		Grant Prideco, Inc., Ser. B, 6.125%, 8/15/15		89,325
	190	⁵	Halliburton Co., 7.60%, 8/15/96		219,333
	255		KCS Energy, Inc., 7.125%, 4/01/12		252,450
	1,250		Kinder Morgan Energy Partners LP, 7.30%, 8/15/33		1,364,975
	800		Midamerican Energy Co., 5.80%, 10/15/36		792,830
	83		Midwest Generation LLC, Ser. B, 8.56%, 1/02/16		92,037
	175		Mirant Americas Generation LLC, 8.30%, 5/01/11		185,063
	1,020		Mission Energy Holdings Co., 13.50%, 7/15/08		1,114,350
	1,100	⁵	Nakilat, Inc., 6.067%, 12/31/33 (Qatar)		1,084,158
			NRG Energy, Inc.,
	50		7.25%, 2/01/14		51,750
	285		7.375%, 2/01/16		296,044
	350		Ohio Edison Co., 6.875%, 7/15/36		383,470
	500		ONEOK Partners LP, 6.65%, 10/01/36		520,237
	490	⁵	OPTI, Inc., 8.25%, 12/15/14 (Canada)		518,175
	140		Orion Power Holdings, Inc., 12.00%, 5/01/10		161,700
			Reliant Energy, Inc.,
	325		6.75%, 12/15/14		340,438
	40		9.25%, 7/15/10		41,950
	350	⁵	Sabine Pass LNG LP, 7.50%, 11/30/16		359,625


Principal Amount (000)			Description	Value

			Energy—(cont’d)
$	175		Scottish Power Plc, 5.375%, 3/15/15 (United Kingdom)	$	174,710
	350	⁵	SemGroup LP, 8.75%, 11/15/15		361,375
	500	^1,5	Stone Energy Corp., 8.106%, 7/15/10		500,000
	360	⁵	Targa Resources, Inc., 8.50%, 11/01/13		370,800
	325		Texaco Capital, Inc., 8.875%, 9/01/21		431,427
	600		Trans-Canada Pipelines Ltd., 5.85%, 3/15/36 (Canada)		588,963
	415		Whiting Petroleum Corp., 7.25%, 5/01/12-5/01/13		406,800

			Total Energy		22,598,105

			Entertainment & Leisure—1.3%
	185		AMC Entertainment, Inc., 11.00%, 2/01/16		212,287
	90		Cinemark, Inc., Zero Coupon, 3/15/14		82,800
	250		Gaylord Entertainment Co., 6.75%, 11/15/14		248,125
	325	⁵	Greektown Holdings LLC, 10.75%, 12/01/13		348,562
	600		Harrah’s Operating Co., Inc., 5.75%, 10/01/17		498,000
	800		MGM Mirage, 9.75%, 6/01/07		803,000
	2,000		Park Place Entertainment Corp., 8.875%, 9/15/08		2,077,500
	205		Poster Financial Group, Inc., 8.75%, 12/01/11		213,200
	290		Seneca Gaming Corp., Ser. B, 7.25%, 5/01/12		295,075
	245	⁵	TDS Investor, 9.875%, 9/01/14		262,150
	25		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14		25,063

			Total Entertainment & Leisure		5,065,762

			Financial Institutions—15.2%
	350		American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		344,312
	2,450	²	Bank of America Corp., 7.80%, 2/15/10		2,622,095
	5,465	¹	Barclays Bank Plc NY, 5.35%, 3/13/09		5,468,886
	2,525	²	Berkshire Hathaway Finance Corp., 3.375%, 10/15/08		2,463,524
	190	^1,5	BMS Holdings, Inc., 12.40%, 2/15/12		190,475
	120		Britannia Bulk Plc, 11.00%, 12/01/11 (United Kingdom)		121,200
			Citigroup, Inc.,
	5,975	³	4.125%, 2/22/10		5,843,789
	1,350	²	6.125%, 8/25/36		1,391,977
	550		6.875%, 2/15/98		599,000
			Credit Suisse First Boston, Inc.,
	700	³	6.125%, 11/15/11		728,311
	1,000		7.125%, 7/15/32		1,187,400
	1,200	⁵	Depfa ACS Bank, 5.125%, 3/16/37 (Ireland)		1,148,854
	1,900		Eksportfinans A/S, 5.50%, 5/25/16 (Norway)		1,965,677
	220	¹	Ford Motor Credit Co., 8.105%, 1/13/12		216,989
			Fort Irwin Land LLC,
	780	⁵	Ser. A, Class II, 5.30%, 12/15/35		740,189
	575	⁵	Ser. A-1, 5.03%, 12/15/25		542,489
	3,000	²	General Electric Capital Corp., 6.75%, 3/15/32		3,415,746
	1,000		Goldman Sachs Group, Inc. (The), 6.60%, 1/15/12		1,055,917
	1,275		HSBC Holdings Plc, 6.50%, 5/02/36 (United Kingdom)		1,365,986
	826	⁵	iPayment Investors LP, 11.625%, 7/15/14		858,524

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Financial Institutions—(cont’d)
$	270		iPayment, Inc., 9.75%, 5/15/14	$	281,137
	360		K&F Acquisition, Inc., 7.75%, 11/15/14		385,200
	1,500		Lehman Brothers Holdings, Inc., 6.625%, 1/18/12		1,584,978
	1,200		MetLife, Inc., 5.70%, 6/15/35		1,163,147
			Momentive Performance Materials, Inc.,
	50	⁵	9.75%, 12/01/14		52,875
	830	⁵	10.125%, 12/01/14		879,800
	390	⁵	11.50%, 12/01/16		417,300
			Morgan Stanley,
	3,620	¹	5.60%, 1/09/12		3,619,805
	2,100		6.25%, 8/09/26		2,171,161
	6,100	^1,5	Rabobank Nederland Global, 5.35%, 4/06/09 (Netherlands)		6,102,397
			Rainbow National Services LLC,
	225	⁵	8.75%, 9/01/12		240,188
	1,650	⁵	10.375%, 9/01/14		1,858,312
	520		Standard Aero Holdings, Inc., 8.25%, 9/01/14		562,900
	50	¹	Universal City Florida Holding Co. I/II,
			10.106%, 5/01/10		51,313
	1,000		Wells Fargo & Co., 4.625%, 8/09/10		989,377
			Wells Fargo Bank NA,
	1,375		5.95%, 8/26/36		1,398,595
	2,000		7.55%, 6/21/10		2,136,574
	700	⁵	Wimar Opco LLC/Wimar Opco Finance Corp., 9.625%, 12/15/14		710,500
	1,875	⁵	Xstrata Finance Ltd., 5.80%, 11/15/16 (Canada)		1,898,472

			Total Financial Institutions		58,775,371

			Health Care—1.7%
	1,135		Bristol-Myers Squibb Co., 5.875%, 11/15/36		1,123,366
	2,495		Eli Lilly & Co., 5.55%, 3/15/37		2,420,895
			HealthSouth Corp.,
	145	⁵	10.75%, 6/15/16		158,050
	335	^1,5	11.354%, 6/15/14		364,312
	375		Tenet Healthcare Corp., 6.875%, 11/15/31		300,000
	1,175		Teva Pharmaceutical Finance LLC, 6.15%, 2/01/36		1,144,895
	450		Universal Hospital Services, Inc., 10.125%, 11/01/11		482,106
	595		WellPoint, Inc., 5.85%, 1/15/36		574,899

			Total Health Care		6,568,523

			Industrials—2.4%
	1,700		3M Co., Ser. MTN, 5.70%, 3/15/37		1,695,102
	400	⁵	AGY Holding Corp., 11.00%, 11/15/14		420,500
	2,000		Briggs & Stratton Corp., 8.875%, 3/15/11		2,151,454
	150		Hexcel Corp., 6.75%, 2/01/15		150,375
	915		Honeywell Intl., Inc., 5.70%, 3/15/37		883,154
	1,306		Manitowoc, Inc., 10.50%, 8/01/12		1,387,625
	165		Park-Ohio Industries, Inc., 8.375%, 11/15/14		163,350
			RBS Global, Inc./Rexnord Corp.,
	540		9.50%, 8/01/14		577,800
	555		11.75%, 8/01/16		616,050
	1,050	⁵	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		1,123,500
	150		Trimas Corp., 9.875%, 6/15/12		155,625

			Total Industrials		9,324,535


Principal Amount (000)			Description	Value

			Media—7.0%
			Affinion Group, Inc.,
$	540		10.125%, 10/15/13	$	588,600
	200		11.50%, 10/15/15		220,000
	125		American Media Operations, Inc., Ser. B, 10.25%, 5/01/09		117,813
			AOL Time Warner, Inc.,
	1,635		7.57%, 2/01/24		1,821,665
	3,000		9.125%, 1/15/13		3,520,734
	1,415		AT&T Broadband Corp., 8.375%, 3/15/13		1,622,593
	55	⁵	BSKYB Finance Plc, 6.50%, 10/15/35 (United Kingdom)		55,111
	161	¹	Cablevision Systems Corp., Ser. B, 9.82%, 4/01/09		170,660
	120		CanWest MediaWorks, Inc., 8.00%, 9/15/12 (Canada)		124,500
	230		CCH I Holdings LLC/CCH I Holdings Capital Corp., 11.00%, 10/01/15		244,375
			Charter Communications Holdings II LLC/Charter Communications Holdings II Capital Corp.,
	955		10.25%, 9/15/10		1,017,075
	180		Ser. B, 10.25%, 9/15/10		191,250
	690	⁵	CMP Susquehanna Corp., 9.875%, 5/15/14		703,800
	1,000		Comcast Cable Communications, Inc., 6.75%, 1/30/11		1,053,511
	85		Dex Media West LLC/Dex Media Finance Co., Ser. B, 9.875%, 8/15/13		92,544
	140		DirecTV Holdings LLC/DirecTV Financing Co., 8.375%, 3/15/13		147,700
			EchoStar DBS Corp.,
	180		5.75%, 10/01/08		180,225
	320		7.00%, 10/01/13		332,400
	75		7.125%, 2/01/16		78,094
	665	⁵	Idearc, Inc., 8.00%, 11/15/16		694,094
	90	⁵	Iesy Repository GMBH, 10.375%, 2/15/15 (Germany)		95,175
	460		LIN Television Corp., 6.50%, 5/15/13		453,100
	200		MediaNews Group, Inc., 6.875%, 10/01/13		182,000
	535		Network Communications, Inc., 10.75%, 12/01/13		548,375
			News America Holdings, Inc.,
	145		8.15%, 10/17/36		174,335
	2,475		8.45%, 8/01/34		3,114,443
	660		Nexstar Finance, Inc., 7.00%, 1/15/14		641,850
			Nielsen Finance LLC/Nielsen Finance Co.,
	330	⁵	Zero Coupon, 8/01/16		238,425
	1,100	⁵	10.00%, 8/01/14		1,201,750
	500	^1,5	Paxson Communications Corp., 8.606%, 1/15/12		510,000
	450		Primedia, Inc., 8.00%, 5/15/13		468,000
	950		RH Donnelley Corp., Ser. A-3, 8.875%, 1/15/16		1,030,750
	70		Sirius Satellite Radio, Inc., 9.625%, 8/01/13		70,000
	1,495		TCI Communications, Inc., 8.75%, 8/01/15		1,794,139
	800	⁵	Time Warner Cable, Inc., 6.55%, 5/01/37		809,060
	475	⁵	Umbrella Acquisition, Inc., 9.75%, 3/15/15		478,562
			Vertis, Inc.,
	570		9.75%, 4/01/09		582,825
	255		Ser. B, 10.875%, 6/15/09		252,769

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)


Principal
Amount
(000)			Description	Value

			Media—(cont’d)
$	1,319		Young Broadcasting, Inc., 10.00%, 3/01/11	$	1,342,082

			Total Media		26,964,384

			Real Estate—0.9%
	1,000		AvalonBay Communities, Inc., 6.625%, 9/15/11		1,055,915
			Rouse Co.,
	725		3.625%, 3/15/09		698,381
	1,715		5.375%, 11/26/13		1,616,639

			Total Real Estate		3,370,935

			Technology—1.8%
			Amkor Technology, Inc.,
	90		7.75%, 5/15/13		89,100
	135		9.25%, 6/01/16		143,100
	555		Celestica, Inc., 7.625%, 7/01/13 (Canada)		528,637
			Freescale Semiconductor, Inc.,
	1,260	⁵	9.125%, 12/15/14		1,253,700
	160	^1,5	9.23%, 12/15/14		160,000
	100	⁵	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)		111,500
	805	⁵	NXP BV/NXP Funding LLC, 9.50%, 10/15/15 (Netherlands)		845,250
			Sanmina-SCI Corp.,
	70		6.75%, 3/01/13		66,500
	590		8.125%, 3/01/16		577,462
	495		Sensata Technologies, 8.00%, 5/01/14 (Netherlands)		496,238
			SunGard Data Systems, Inc.,
	95		9.125%, 8/15/13		101,888
	675		10.25%, 8/15/15		742,500
	950		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		988,000
	210	⁵	UGS Capital Corp. II, 10.38%, 6/01/11		216,395
	480		UGS Corp., 10.00%, 6/01/12		523,200

			Total Technology		6,843,470

			Telecommunications—7.4%
	1,700		BellSouth Telecommunications, Zero Coupon, 12/15/95		896,112
	470		Cincinnati Bell, Inc., 7.25%, 7/15/13		488,800
	460	⁵	Cricket Communications, Inc., 9.375%, 11/01/14		491,625
	325		Deutsche Telekom Intl. Finance BV, 5.75%, 3/23/16 (Netherlands)		326,323
	270	⁵	Digicel Group Ltd., 8.875%, 1/15/15 (Bermuda)		264,938
	170	¹	Hawaiian Telcom Communications, Inc., Ser. B, 10.86%, 5/01/13		173,825
	515		Intelsat Corp., 9.00%, 6/15/16		564,569
			Intelsat Ltd. (Bermuda)
	120	¹	8.872%, 1/15/15		122,770
	450		9.25%, 6/15/16		495,000
	210		11.25%, 6/15/16		239,663
	920	¹	11.354%, 6/15/13		984,400
	300		Intelsat Subsidiary Holding Co. Ltd., 8.625%, 1/15/15 (Bermuda)		320,625
	935	⁵	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)		1,005,125


Principal
Amount
(000)			Description	Value

			Telecommunications—(cont’d)
			Nortel Networks Ltd. (Canada)
$	585	^1,5	9.606%, 7/15/11	$	625,950
	200	⁵	10.125%, 7/15/13		220,500
	160		PanAmSat Corp., 9.00%, 8/15/14		172,800
			Qwest Corp.,
	55		7.875%, 9/01/11		58,575
	375	¹	8.605%, 6/15/13		410,156
	2,500	⁵	SBC Communications, Inc., 4.214%, 6/05/07		2,497,075
			Sprint Capital Corp.,
	1,205		6.875%, 11/15/28		1,195,736
	1,250		8.75%, 3/15/32		1,475,182
	4,375		Telecom Italia Capital S.A., 4.95%, 9/30/14 (Luxembourg)		4,168,566
	1,000		Telefonica Emisones SAU, 7.045%, 6/20/36 (Spain)		1,072,928
	575		Verizon Global Funding Corp., 7.75%, 6/15/32		673,395
			Verizon Maryland, Inc.,
	540		5.125%, 6/15/33		454,099
	1,355		Ser. A, 6.125%, 3/01/12		1,397,531
	750		Verizon Virginia, Inc., 4.625%, 3/15/13		714,174
			Vodafone Group Plc (United Kingdom)
	1,700	¹	5.41%, 6/29/07		1,700,008
	1,615	¹	5.44%, 12/28/07		1,615,743
	1,000		7.75%, 2/15/10		1,065,864
	1,210	⁵	West Corp., 11.00%, 10/15/16		1,321,925
	360	⁵	Wind Acquisition Finance S.A., 10.75%, 12/01/15 (Luxembourg)		415,800
			Windstream Corp.,
	410		8.125%, 8/01/13		444,850
	325		8.625%, 8/01/16		356,687

			Total Telecommunications		28,431,319

			Transportation—0.6%
	120		American Airlines, Inc., Ser. 99-1, 7.324%, 4/15/11		121,800
	1,000		Canadian National Railway Co., 6.375%, 10/15/11 (Canada)		1,044,659
	450		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		439,875
	47		Horizon Lines LLC, 9.00%, 11/01/12		49,467
	600	⁵	Navios Maritime Holdings, Inc., 9.50%, 12/15/14 (Marshall Islands)		631,500

			Total Transportation		2,287,301

			Total Corporate Bonds		208,769,990

			U.S. Government and Agency Securities—11.5%
			Overseas Private Investment Corp.,
	350		4.09%, 5/29/12		332,033
	979	¹	4.30%, 5/29/12		954,286
	734		4.64%, 5/29/12		725,611
	415		4.68%, 5/29/12		397,943
	3,144		4.87%, 5/29/12		3,135,478
	3,909	¹	5.40%, 5/29/12		4,100,245
	6,055		Resolution Funding Corp., Ser. B, Zero Coupon, 4/15/30		1,934,809

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			U.S. Government and Agency Securities—(cont’d)
$	884		Small Business Administration, Ser. 20K-1, 6.95%, 11/01/16	$	913,202
	1,800		Tennessee Valley Authority, Ser. C, 5.88%, 4/01/36		1,972,181
	8,770	²	U.S. Treasury Bonds, 4.75%, 2/15/37		8,675,456
	8,678	²	U.S. Treasury Inflation Protected Bond, 2.00%, 1/15/26		8,238,779
	12,805	²	U.S. Treasury Notes, 4.625%, 2/15/17		12,798,994

			Total U.S. Government and Agency Securities		44,179,017

			Trust Preferred Stock—0.6%
	2,000	^1,7	UBS Preferred Funding Trust I, 8.622%		2,207,582

			Foreign Government Bond—1.2%
	4,228		United Mexican States, 6.75%, 9/27/34		4,714,220



	Shares

			Common Stocks—0.0%
	1,895	⁸	Critical Care Systems Intl., Inc.		11,844

			Total Long-Term Investments (cost $449,354,125)		448,621,855



Contracts/
Notional
Amount
(000)

		OUTSTANDING OPTIONS PURCHASED—0.3%
		Interest Rate Swaps,
	7,300	Trust pays 5.39%, Trust receives 3-month LIBOR, expires 3/19/12	313,900
	7,300	Trust pays 3-month LIBOR, Trust receives 5.39%, expires 3/19/12	254,259
	8,000	Trust pays 5.40%, Trust receives 3-month LIBOR, expires 7/27/07	25,348
	5,500	Trust pays 5.52%, Trust receives 3-month LIBOR, expires 9/21/36	321,097
	5,500	Trust pays 3-month LIBOR, Trust receives 5.52%, expires 9/21/36	277,552
	61	U.S. Treasury Notes Future, expiring 6/16/07	953

		Total Outstanding Options Purchased (cost $1,329,528)	1,193,109

		Total investments before TBA sale commitment and outstanding options written (cost $450,683,653⁹)	449,814,964



Principal
Amount
(000)

			TBA SALE COMMITMENT—(6.4)%
$	(24,900	)	Federal National Mortgage Assoc., TBA, 5.50%, 5/14/37 (proceeds $24,627,656)	(24,619,875	)


Notional Amount (000)			Description	Value

			OUTSTANDING OPTIONS WRITTEN—(0.4)%
			Interest Rate Swaps,
	(7,300	)	Trust pays 3-month LIBOR, Trust receives 5.148%, expires 3/19/08	$	(161,841	)
	(7,300	)	Trust pays 5.115%, Trust receives 3-month LIBOR, expires 3/19/08		(117,676	)
	(5,700	)	Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/08		(104,642	)
	(5,700	)	Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/08		(104,642	)
	(12,400	)	Trust pays 3-month LIBOR, Trust receives 5.67%, expires 1/04/10		(276,706	)
	(12,400	)	Trust pays 5.67%, Trust receives 3-month LIBOR, expires 1/04/10		(544,323	)
	(5,300	)	Trust pays 5.485%, Trust receives 3-month LIBOR, expires 10/28/19		(193,409	)
	(5,300	)	Trust pays 3-month LIBOR, Trust receives 5.485%, expires 10/28/19		(138,217	)

			Total Outstanding Options Written (premium received $2,478,560)		(1,641,456	)

			Total investments net of TBA sale commitment and outstanding options written—110.0%	$	423,553,633
			Liabilities in excess of other assets—(10.0)%		(38,642,762	)

			Net Assets—100%	$	384,910,871


¹	Variable rate security. Rate shown is interest rate as of April 30, 2007.
²	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
³	Security, or a portion thereof, pledged as collateral with a value of $7,226,308 on 1,910 long U.S. Treasury Bonds futures contracts expiring June 2007, 721 short Eurodollar futures contracts expiring June 2007 to December 2007 and 719 short U.S. Treasury Note futures contracts expiring June 2007. The notional value of such contracts on April 30, 2007 was $33,630,859, with an unrealized loss of $384,757.
⁴	Represents an investment in an affiliate.
⁵	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2007, the Trust held 11.3% of its net assets, with a current market value of $43,385,078, in securities restricted as to resale.
⁶	Rate shown is effective yield of the underlying collateral as of April 30, 2007.
⁷	The security is a perpetual bond and has no stated maturity date.
⁸	Non-income producing security.
⁹	Cost for federal income tax purposes is $451,652,978. The net unrealized depreciation on a tax basis is $1,838,014, consisting of $6,333,598 gross unrealized appreciation and $8,171,612 gross unrealized depreciation.


KEY TO ABBREVIATIONS
LIBOR	—	London Interbank Offered Rate
TBA	—	To Be Announced

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS
APRIL 30, 2007 (unaudited)

BlackRock Income Trust Inc. (BKT)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			LONG-TERM INVESTMENTS—105.6%
			Mortgage Pass-Through Securities—25.3%
			Federal Home Loan Mortgage Corp.,
$	775	¹	4.019%, 1/01/35	$	769,431
	809	¹	4.934%, 10/01/34		800,931
	9,723		5.50%, 12/01/21-3/01/22		9,736,029
	28	¹	6.01%, 11/01/17		28,353
	70		6.50%, 5/01/29-5/01/30		72,657
	22		8.00%, 11/01/15		22,432
	—		8.50%, 3/01/08		87
	142		9.00%, 9/01/20		152,318
			Federal National Mortgage Assoc.,
	18,754		5.00%, 6/01/33-7/01/34		18,160,894
	48,113		5.50%, 6/01/21-3/01/37		47,925,680
	3,125		5.97%, 8/01/16		3,293,250
	6,517		6.00%, 11/01/31-10/01/36		6,587,712
	16,073		6.50%, 2/01/26-11/01/36		16,435,008
	—		7.50%, 2/01/22		249
	75		8.00%, 5/01/08-5/01/22		75,384
	4		9.50%, 1/01/19-9/01/19		4,283
			Government National Mortgage Assoc.,
	49		7.00%, 10/15/17		50,620
	437		7.50%, 8/15/21-12/15/23		453,520
	226		8.00%, 10/15/22-2/15/29		241,799
	21		9.00%, 6/15/18-9/15/21		22,864

			Total Mortgage Pass-Through Securities		104,833,501

			Federal Housing Administration Securities—2.0%
	397		General Motors Acceptance Corp. Colonial, 7.40%, 12/01/22		401,404
			General Motors Acceptance Corp. Projects,
	292	²	Ser. 51, 7.43%, 2/01/23		295,534
	491		Ser. 56, 7.43%, 11/01/22		497,297
	50	³	Merrill Projects, Ser. 54, 7.43%, 5/15/23		51,029
	782		Reilly Project, Ser. 41, 8.28%, 3/01/20		789,563
			USGI Projects,
	108		Ser. 87, 7.43%, 12/01/22		109,441
	336		Ser. 99,7.43%, 10/01/23		340,144
	5,562		Ser. 6094, 7.43%, 6/01/21		5,628,445

			Total Federal Housing Administration Securities		8,112,857

			Agency Multiple Class Mortgage Pass-Through Securities—28.1%
			Federal Home Loan Mortgage Corp.,
	4,472	¹	Ser. 11, Class A9, 2.319%, 1/25/28		3,264,598
	203		Ser. 19, Class F, 8.50%, 3/15/20		202,269
	814		Ser. 40, Class K, 6.50%, 8/17/24		835,949
	—	¹	Ser. 192, Class U, 1,009.033%, 2/15/22		9
	—		Ser. 1057, Class J, 1,008.001%, 3/15/21		1,722
	3,000		Ser. 1598, Class J, 6.50%, 10/15/08		2,991,480
	437		Ser. 1961, Class H, 6.50%, 5/15/12		441,843
	9,110		Ser. 2218, Class Z, 8.50%, 3/15/30		9,983,777
	14,295		Ser. 2461, Class Z, 6.50%, 6/15/32		14,788,518
	10,200		Ser. 2542, Class UC, 6.00%, 12/15/22		10,572,439
	2,475		Ser. 2562, Class PG, 5.00%, 1/15/18		2,444,896
	928		Ser. 2564, Class NC, 5.00%, 2/15/33		886,408
	2,050		Ser. 2750, Class TC, 5.25%, 2/15/34		2,028,606


Principal Amount (000)			Description	Value

			Agency Multiple Class Mortgage Pass-Through Securities—(cont’d)
$	11,689		Ser. 2758, Class KV, 5.50%, 5/15/23	$	11,734,831
	1,573		Ser. 2765, Class UA, 4.00%, 3/15/11		1,519,738
	3,301		Ser. 2806, Class VC, 6.00%, 12/15/19		3,392,397
	2,337		Ser. 2927, Class BZ, 5.50%, 2/15/35		2,277,669
	2,667		Ser. 2996, Class MK, 5.50%, 6/15/35		2,692,501
			Federal National Mortgage Assoc.,
	1,256	¹	Ser. 2, Class KP, 1.133%, 2/25/35		1,174,544
	4,996		Ser. 28, Class PB, 6.00%, 8/25/28		5,014,496
	2,307		Ser. 29, Class HC, 7.50%, 7/25/30		2,445,614
	2,294		Ser. 31, Class ZG, 7.50%, 5/25/34		2,783,937
	7,503		Ser. 32, Class VT, 6.00%, 9/25/15		7,636,928
	61	¹	Ser. 38, Class F, 8.325%, 4/25/21		63,380
	4,395		Ser. 38, Class Z, 5.00%, 5/25/36		4,369,279
	2,891		Ser. 68, Class PC, 5.50%, 7/25/35		2,912,592
	12,264		Ser. 135, Class PB, 6.00%, 1/25/34		12,483,816
			Government National Mortgage Assoc.,
	1,151		Ser. 5, Class Z, 7.00%, 5/16/26		1,197,628
	1,932		Ser. 33, Class PB, 6.50%, 7/20/31		1,970,018
	4,357		Ser. 89, Class PE, 6.00%, 10/20/34		4,473,538

			Total Agency Multiple Class Mortgage Pass-Through Securities		116,585,420

			Non-Agency Multiple Class Mortgage Pass-Through Securities—8.2%
	6,570		CWALT, Inc., Ser. 28CB, Class 1A5, 5.50%, 8/25/35		6,576,806
	1,726		MASTR Alternative Loan Trust, Ser. 7, Class 4A3, 8.00%, 11/25/18		1,828,877
	7,928		MASTR Asset Securitization Trust, Ser. 12, Class 3A5, 5.25%, 10/25/14		7,815,210
	6,211	¹	Residential Asset Securitization Trust, Ser. A8, Class A2, 5.67%, 10/25/18		6,193,591
	10,551		Residential Funding Securities Corp., Ser. RM2, Class AI5, 8.50%, 5/25/33		11,377,614
	22	^1,4	Summit Mortgage Trust, Ser. 1, Class B1, 6.596%, 12/28/12		21,828

			Total Non-Agency Multiple Class Mortgage Pass-Through Securities		33,813,926

			Inverse Floating Rate Mortgage Securities—3.1%
			Federal Home Loan Mortgage Corp.,
	34	¹	Ser. 1160, Class F, 17.319%, 10/15/21		34,629
	163	^1,5	Ser. 1616, Class SB, 8.50%, 11/15/08		163,008
	459	¹	Ser. 1688, Class S, 9.549%, 12/15/13		465,917
	3,957	¹	Ser. 3167, Class SX, 5.58%, 6/15/36		3,933,489
			Federal National Mortgage Assoc.,
	—	¹	Ser. 7, Class S, 541.833%, 3/25/21		6,872
	1	¹	Ser. 17, Class S, 531.967%, 6/25/21		10,291
	62	¹	Ser. 38, Class SA, 10.186%, 4/25/21		65,891
	—	¹	Ser. 46, Class S, 1,295.281%, 5/25/21		7,980
	—	¹	Ser. 49, Class S, 479.05%, 12/25/21		3,636
	196	¹	Ser. 72, Class S, 8.75%, 5/25/08		198,990
	6,307	¹	Ser. 73, Class DS, 3.718%, 8/25/35		6,039,926
	136	¹	Ser. 87, Class S, 12.522%, 8/25/21		162,980
	71	¹	Ser. 93, Class S, 8.50%, 5/25/08		71,391
	27	¹	Ser. 170, Class SC, 9.00%, 9/25/08		27,740

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Inverse Floating Rate Mortgage Securities—(cont’d)
$	407	¹	Ser. 196, Class SC, 8.124%, 10/25/08	$	412,088
	182	¹	Ser. 214, Class SH, 4.359%, 12/25/08		182,122
	984	¹	Ser. 247, Class SN, 10.00%, 12/25/23		1,074,407
	118	¹	Kidder Peabody Acceptance Corp., Ser. 1, Class A6, 6.741%, 8/25/23		117,867

			Total Inverse Floating Rate Mortgage Securities		12,979,224

			Interest Only Asset-Backed Securities—0.2%
	563	^1,4	Morgan Stanley Capital Trust I, Ser. HF1, Class X, 1.915%, 6/15/17		1,253
			Sterling Coofs Trust,
	20,229		Ser. 1, 2.362%, 4/15/29		606,857
	15,189		Ser. 2, 2.126%, 3/30/30		417,697

			Total Interest Only Asset-Backed Securities		1,025,807

			Interest Only Mortgage-Backed Securities—12.6%
	1,635		ABN Amro Mortgage Corp., Ser. 4, Class A2, 5.50%, 3/25/33		60,810
	241,128	¹	Banc of America Mortgage Securities, Inc., Ser. 3, Class 1A, 0.285%, 5/25/18		1,587,542
	70,676	¹	Commercial Mortgage Acceptance Corp., Ser. ML1, 0.922%, 11/15/17		826,169
	7,564	^1,4	Credit Suisse First Boston Mortgage Securities Corp., Ser. C1, Class AX, 1.791%, 6/20/29		312,273
	153,396	¹	CWALT, Inc., Ser. 79CB, Class A2, Zero Coupon, 1/25/36		829,106
			Federal Home Loan Mortgage Corp.,
	3,330	¹	Ser. 60, Class HS, 0.625%, 4/25/24		20,608
	—		Ser. 176, Class M, 1,010.00%, 7/15/21		80
	—		Ser. 200, Class R, 93,522.906%, 12/15/22		387
	1,874		Ser. 204, Class IO, 6.00%, 5/01/29		400,890
	15	¹	Ser. 1043, Class H, 20.813%, 2/15/21		15,539
	—	¹	Ser. 1054, Class I, 413.56%, 3/15/21		228
	—		Ser. 1056, Class KD, 1,084.50%, 3/15/21		1,511
	—	¹	Ser. 1148, Class E, 563.074%, 10/15/21		615
	—		Ser. 1179, Class O, 1,009.389%, 11/15/21		107
	232		Ser. 1706, Class IA, 7.00%, 10/15/23		11,541
	79		Ser. 1720, Class PK, 7.50%, 1/15/24		5,567
	3,330		Ser. 1914, Class PC, 0.75%, 12/15/11		38,390
	839	¹	Ser. 2296, Class SA, 2.43%, 3/15/16		45,861
	442	¹	Ser. 2444, Class ST, 2.65%, 9/15/29		14,349
	132		Ser. 2513, Class BI, 5.50%, 12/15/15		1,361
	1,543		Ser. 2542, Class MX, 5.50%, 5/15/22		276,320
	2,888		Ser. 2545, Class NI, 5.50%, 3/15/22		417,661
	764	¹	Ser. 2559, Class IO, 0.768%, 8/15/30		6,180
	4,674		Ser. 2561, Class EW, 5.00%, 9/15/16		427,071
	11,350		Ser. 2611, Class QI, 5.50%, 9/15/32		1,989,755
	2,753		Ser. 2633, Class PI, 4.50%, 3/15/12		39,224
	16,760	¹	Ser. 2647, Class IV, 0.45%, 7/15/33		959,003
	3,539		Ser. 2653, Class MI, 5.00%, 4/15/26		322,832
	5,425		Ser. 2658, Class PI, 4.50%, 6/15/13		176,153
	4,033		Ser. 2672, Class TQ, 5.00%, 3/15/23		134,618
	601		Ser. 2676, Class JI, 5.50%, 8/15/13		884


Principal Amount (000)			Description	Value

			Interest Only Mortgage-Backed Securities—(cont’d)
$	3,633		Ser. 2687, Class IL, 5.00%, 9/15/18	$	424,775
	4,783		Ser. 2687, Class IQ, 5.50%, 9/15/22		79,703
	4,729		Ser. 2693, Class IB, 4.50%, 6/15/13		162,090
	2,761		Ser. 2694, Class LI, 4.50%, 7/15/19		196,659
	5,121		Ser. 2773, Class OX, 5.00%, 2/15/18		619,871
	16,985	¹	Ser. 2780, Class SM, 0.68%, 4/15/34		152,022
	13		Ser. 2786, Class PI, 4.50%, 10/15/10		2
	6,727		Ser. 2825, Class NI, 5.50%, 3/15/30		1,533,733
	18,066	¹	Ser. 2865, Class SR, 0.405%, 10/15/33		668,563
	12,235	¹	Ser. 2865, Class SV, 0.584%, 10/15/33		659,232
	1,922		Ser. 2949, Class IO, 5.50%, 3/15/35		202,382
	35,670	¹	Ser. 2990, Class WR, 1.306%, 6/15/35		1,863,631
	101,782	¹	Ser. 3122, Class IS, 1.38%, 3/15/36		4,878,743
	95,868	¹	Ser. 3225, Class EY, 0.97%, 10/15/36		4,125,727
			Federal National Mortgage Assoc.,
	226		Ser. 5, Class H, 9.00%, 1/25/22		54,499
	13		Ser. 7, Class 2, 8.50%, 4/01/17		2,477
	4,411		Ser. 9, Class BI, 5.50%, 10/25/22		622,097
	1	¹	Ser. 10, Class S, 524.318%, 5/25/21		20,778
	1		Ser. 12, Class C, 1,016.897%, 2/25/22		16,815
	1	¹	Ser. 12, Class S, 553.577%, 5/25/21		17,151
	4,888		Ser. 13, Class IG, 5.00%, 10/25/22		189,381
	2,520		Ser. 16, Class PI, 5.00%, 11/25/12		21,325
	1		Ser. 33, Class PV, 1,078.42%, 10/25/21		24,302
	1,159	¹	Ser. 33, Class SG, 2.756%, 3/25/09		27,233
	53,218	¹	Ser. 36, Class SP, 1.38%, 5/25/36		3,175,209
	—		Ser. 38, Class N, 1,008.50%, 4/25/21		630
	1,045		Ser. 43, Class LC, 6.00%, 3/25/34		262,562
	1		Ser. 50, Class G, 1,158.628%, 12/25/21		11,674
	749	¹	Ser. 50, Class SI, 1.20%, 4/25/23		27,076
	4,625		Ser. 51, Class IE, 5.50%, 4/25/26		147,643
	6,044		Ser. 55, Class GI, 5.00%, 7/25/19		595,390
	13,278	¹	Ser. 55, Class SB, 0.83%, 7/25/35		473,776
	4,077	¹	Ser. 59, Class S, 4.924%, 10/25/22		632,270
	650	¹	Ser. 60, Class SB, 1.60%, 10/25/22		31,478
	322		Ser. 62, Class IC, 5.50%, 7/25/15		7,533
	5,899		Ser. 66, Class CI, 5.00%, 7/25/33		1,237,708
	2,265	¹	Ser. 68, Class SC, 2.756%, 1/25/24		122,500
	14,882	¹	Ser. 73, Class ST, 0.81%, 8/25/35		508,238
	6,389		Ser. 88, Class TI, 4.50%, 11/25/13		201,442
	24		Ser. 89, Class 2, 8.00%, 6/01/18		5,357
	32,838	¹	Ser. 90, Class JH, 1.38%, 11/25/34		1,611,153
	14,206		Ser. 90, Class M, 6.00%, 1/25/28		2,910,406
	7		Ser. 94, Class 2, 9.50%, 8/01/21		1,605
	—		Ser. 99, Class L, 930.00%, 8/25/21		7,527
	3,741		Ser. 122, Class IC, 5.00%, 9/25/18		449,495
	—		Ser. 123, Class M, 1,009.50%, 10/25/20		1,306
	28	¹	Ser. 136, Class S, 14.746%, 11/25/20		33,887
	—		Ser. 139, Class PT, 648.35%, 10/25/21		8,495
	—	¹	Ser. 141, Class SA, 13.625%, 8/25/07		8
	2,411	¹	Ser. 199, Class SB, 2.156%, 10/25/23		147,759
	689		Ser. W4, Class IO, 6.50%, 12/25/28		156,552
	98		First Boston Mortgage Securities Corp., Ser. C, Class I, 10.965%, 4/25/17		25,381

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Interest Only Mortgage-Backed Securities—(cont’d)
			First Horizon Alternative Mortgage Securities,
$	49,865	¹	Ser. FA2, Class 1A4, 0.18%, 5/25/36	$	231,100
	78,150	¹	Ser. FA7, Class 1A7, Zero Coupon, 10/25/35		863,521
	195,278	¹	Ser. FA9, Class A2, Zero Coupon, 12/25/35		550,215
	14,599	¹	General Motors Acceptance Corp., Commercial Mortgage Securities, Inc., Ser. C1, Class X, 1.513%, 7/15/27		390,066
	8,896	^1,4	Goldman Sachs Mortgage Securities Corp., Ser. 5, 0.988%, 2/19/25		188,230
			Government National Mortgage Assoc.,
	1,890		Ser. 39, Class ID, 5.00%, 5/20/33		476,041
	2,228		Ser. 58, Class IT, 5.50%, 7/20/33		303,186
	4,732		Ser. 75, Class IJ, 5.50%, 7/20/25		94,837
	18,701	¹	Ser. 89, Classl SA, 0.58%, 10/16/33		609,117
	161,549		Indymac Index Mortgage Loan Trust, Ser. AR33, Class 4AX, 0.165%, 1/25/37		656,293
	77		Kidder Peabody Acceptance Corp., Ser. B, Class A2, 9.50%, 4/22/18		16,105
	26,661		MASTR Adjustable Rate Mortgages Trust, Ser. 3, Class 3AX, 0.977%, 4/25/34		492,696
	1,470		MASTR Alternative Loan Trust, Ser. 9, Class 15X2, 6.00%, 1/25/19		251,512
	1,856		Morgan Stanley Capital Trust I, Ser. 3, Class 1AX, 5.00%, 5/25/19		277,205
	156,526	¹	Residential Accredit Loans, Inc., Ser. QS16, Class A2, Zero Coupon, 11/25/35		311,424
	83,758	¹	Sequoia Mortgage Trust, Ser. 2, Class XA, 1.021%, 3/20/35		601,947
	8,970	²	Small Business Administration, Ser. 1, 1.381%, 4/01/15		1
			Structured Adjustable Rate Mortgage Loan Trust,
	5,680	¹	Ser. 18, Class 7AX, 5.50%, 9/25/35		1,006,068
	16,283	¹	Ser. 2, Class 4AX, 5.50%, 3/25/36		2,758,290
	4,706		Ser. 20, Class 3AX, 5.50%, 10/25/35		764,702
	47,983	¹	Ser. 7, Class 3AS, 6.441%, 8/25/36		2,938,966
	93,800	¹	Vendee Mortgage Trust, Ser. 2, Class 1, 0.052%, 5/15/29		237,567

			Total Interest Only Mortgage-Backed Securities		52,298,975

			Principal Only Mortgage-Backed Securities—5.4%
			Countrywide Home Loans, Inc.,
	5,730	⁶	Ser. 26, 4.944%, 8/25/33		4,517,145
	1,092	⁶	Ser. J4, 5.142%, 6/25/33		832,319
	1,575	⁶	Ser. J5, 4.911%, 7/25/33		1,270,076
	1,220	⁶	Ser. J8, 4.787%, 9/25/23		994,394
			Drexel Burnham Lambert, Inc.,
	27	⁶	Ser. K, Class 1, 11.50%, 9/23/17		26,413
	325	⁶	Ser. V, Class 1, 11.50%, 9/01/18		300,724
			Federal Home Loan Mortgage Corp.,
	254	⁶	Ser. 8, Class A10, 6.737%, 11/15/28		213,394
	166	⁶	Ser. 1418, Class M, 7.50%, 11/15/22		155,068
	577	⁶	Ser. 1571, Class G, 7.50%, 8/15/23		528,334
	2,202	⁶	Ser. 1691, Class B, 7.50%, 3/15/24		1,911,323
	205	⁶	Ser. 1739, Class B, 7.50%, 2/15/24		185,895


Principal Amount (000)			Description		Value

			Principal Only Mortgage-Backed Securities—(cont’d)
			Federal National Mortgage Assoc.,
$	321	⁶	Ser. 2, Class KB, 8.00%, 1/25/23	$	268,714
	46	⁶	Ser. 7, Class J, 10.00%, 2/25/21		38,824
	980	⁶	Ser. 13, Class PR, 6.50%, 3/25/32		773,744
	154	⁶	Ser. 51, Class E, 8.00%, 2/25/23		131,366
	27	⁶	Ser. 70, Class A, 7.00%, 5/25/23		22,412
	62	⁶	Ser. 167, Class D, 8.50%, 10/25/17		58,630
	48	⁶	Ser. 203, Class 1, 8.00%, 2/01/23		41,252
	33	⁶	Ser. 228, Class 1, 7.00%, 5/01/23		26,614
	2,030	⁶	Ser. 249, Class B, 7.50%, 11/25/23		1,639,440
	255	⁶	Ser. 273, Class 1, 7.00%, 7/01/26		208,354
	4,775	⁶	Ser. 328, Class 1, 6.00%, 11/01/32		3,743,792
	3,831	⁶	Ser. 338, Class 1, 5.50%, 6/01/33		2,924,391
	361	⁶	Ser. W4, Class PO, 5.985%, 2/25/29		283,408
	314	⁶	MASTR Asset Securitization Trust, Ser. 3, Class 4A15, 5.634%, 3/25/34		173,896
	983	⁶	Residential Asset Securitization Trust, Ser. A15, Class 1A8, 5.713%, 2/25/36		525,701
	14	^2,6	Structured Mortgage Asset Residential Trust, Ser. 3C, Class CX, 7.031%, 4/25/24		13,351
	999	⁶	Washington Mutual, Ser. 9, Class CP, 5.112%, 11/25/35		760,472

			Total Principal Only Mortgage-Backed Securities		22,569,446

			Collateralized Mortgage Obligation Residual Securities—0.0%
			Collateralized Mortgage Obligation Trust,
	—		Ser. 40, Class R, 580.50%, 4/01/18		347
	—		Ser. 42, Class R, 6,000.00%, 10/01/14		4,335
			Federal Home Loan Mortgage Corp.,
	—		Ser. 19, Class R, 9,427.227%, 3/15/20		3,344
	—		Ser. 75, Class R, 9.50%, 1/15/21		5
	—		Ser. 75, Class RS, 17.018%, 1/15/21		5
	—		Ser. 173, Class R, 9.00%, 11/15/21		24
	—		Ser. 173, Class RS, 9.113%, 11/15/21		25
	13		Painewebber CMO Trust, Ser. 88 M, Class 6, 13.80%, 9/01/18		—

			Total Collateralized Mortgage Obligation Residual Securities		8,085

			U.S. Government and Agency Securities—19.4%
			Overseas Private Investment Corp.,
	318		4.09%, 5/29/12		301,848
	890	¹	4.30%, 5/29/12		867,533
	668		4.64%, 5/29/12		659,646
	377		4.68%, 5/29/12		361,766
	2,858		4.87%, 5/29/12		2,850,435
	3,554	¹	5.40%, 5/29/12		3,727,495
	13,000		Resolution Funding Corp., Ser. B, Zero Coupon, 4/15/30		4,154,007
			Small Business Administration,
	688		Ser. 20C-1, 7.15%, 3/01/17		714,377
	742		Ser. 20E-1, 7.60%, 5/01/16		773,193
	1,011		Ser. 20F-1, 7.55%, 6/01/16		1,052,745
	613		Ser. 20G-1, 7.70%, 7/01/16		640,302
	1,010		Ser. 20H-1, 7.25%, 8/01/16		1,049,248
	1,673		Ser. 20K-1, 6.95%, 11/01/16		1,729,081

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			U.S. Government and Agency Securities—(cont’d)
$	19,400	^5,7	U.S. Treasury Notes, 4.00%, 8/31/07	$	19,334,835
	100,000	^5,7	U.S. Treasury Strip, Zero Coupon, 11/15/24		42,200,400

			Total U.S. Government and Agency Securities		80,416,911

			Corporate Bond—0.7%
	2,857	²	Structured Asset Receivable Trust, 5.114%, 1/21/10		2,855,424

			Commercial Mortgage-Backed Security—0.6%
	2,420	¹	Credit Suisse Mortgage Capital Certificates, Ser. C2, Class A3, 5.542%, 1/15/49		2,442,976

			Total Long-Term Investments (cost $455,226,074)		437,942,552



Notional Amount (000)

		OUTSTANDING OPTIONS PURCHASED—0.3%
		Interest Rate Swaps,
	7,300	Trust pays 3-month LIBOR, Trust receives 5.39%, expires 3/19/12	254,259
	5,500	Trust pays 3-month LIBOR, Trust receives 5.52%, expires 9/21/36	277,552
	7,300	Trust pays 5.39%, Trust receives 3-month LIBOR, expires 3/19/12	313,900
	8,200	Trust pays 5.40%, Trust receives 3-month LIBOR, expires 7/27/07	25,982
	5,500	Trust pays 5.52%, Trust receives 3-month LIBOR, expires 9/21/36	321,096

	`	Total Outstanding Options Purchased (cost $1,303,850)	1,192,789

		Total investments before borrowed bonds, investments sold short, TBA sale commitments, and outstanding options written (cost $456,529,924⁸)	439,135,341



Principal Amount (000)

			BORROWED BONDS—14.9%
$	32,808	⁹	U.S. Treasury Bonds, 5.00%, TBD	32,808,000
	29,060	⁹	U.S. Treasury Notes, 5.00%, TBD	29,059,750

			Total Borrowed Bonds (cost $61,867,750)	61,867,750


Principal Amount (000)			Description	Value

			INVESTMENTS SOLD SHORT—(11.8)%
			U.S. Treasury Bonds,
$	(12,930	)	5.375%, 2/15/31	$	(13,849,245	)
	(15,750	)	6.25%, 8/15/23		(18,160,490	)
			U.S. Treasury Notes,
	(14,900	)	4.00%, 2/15/15		(14,322,625	)
	(2,500	)	5.125%, 5/15/16		(2,591,113	)

			Total Investments Sold Short (proceeds $49,629,126)		(48,923,473	)

			TBA SALE COMMITMENTS—(4.8)%
			Federal National Mortgage Assoc.,
	(5,200	)	5.00%, 5/14/37		(5,022,877	)
	(15,000	)	5.50%, 5/14/37		(14,831,250	)

			Total TBA Sale Commitments (proceeds $19,885,469)		(19,854,127	)



Notional Amount (000)

			OUTSTANDING OPTIONS WRITTEN—(0.4)%
			Interest Rate Swaps,
	(5,700	)	Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/08		(104,642	)
	(7,300	)	Trust pays 3-month LIBOR, Trust receives 5.148%, expires 3/19/08		(161,841	)
	(5,400	)	Trust pays 3-month LIBOR, Trust receives 5.485%, expires 10/28/19		(140,825	)
	(12,400	)	Trust pays 3-month LIBOR, Trust receives 5.67%, expires 1/04/10		(276,706	)
	(7,300	)	Trust pays 5.115%, Trust receives 3-month LIBOR, expires 3/19/08		(117,676	)
	(5,700	)	Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/08		(104,642	)
	(5,400	)	Trust pays 5.485%, Trust receives 3-month LIBOR, expires 10/28/19		(197,058	)
	(12,400	)	Trust pays 5.67%, Trust receives 3-month LIBOR, expires 1/04/10		(544,323	)

			Total Outstanding Options Written (premium received $2,486,055)		(1,647,713	)

			Total investments net of borrowed bonds, investments sold short, TBA sale commitments and outstanding options written—103.8%	$	430,577,778
			Liabilities in excess of other assets—(3.8)%		(15,685,340	)

			Net Assets—100%	$	414,892,438

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)


¹	Variable rate security. Rate shown is interest rate as of April 30, 2007.
²	Illiquid security. As of April 30, 2007, the Trust held 0.8% of its net assets, with a current market value of $3,164,310, in these securities.
³	Represents an investment in an affiliate.
⁴	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2007, the Trust held 0.1% of its net assets, with a current market value of $523,584, in securities restricted as to resale.
⁵	Security, or a portion thereof, pledged as collateral with a value of $8,748,968 on 1,092 long U.S. Treasury Note futures contracts expiring June 2007, 1,214 short Eurodollar futures contracts expiring June 2007 to September 2009 and 709 short U.S. Treasury Bond futures contracts expiring June 2007. The notional value of such contracts on April 30, 2007 was $250,399,713, with an unrealized gain of $1,296,868.
⁶	Rate shown is effective yield of the underlying collateral as of April 30, 2007.
⁷	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
⁸	Cost for federal income tax purposes is $457,237,846. The net unrealized depreciation on a tax basis is $18,102,505, consisting of $11,101,899 gross unrealized appreciation and $29,204,404 gross unrealized depreciation.
⁹	The interest rate and maturity date shown represent the terms of the borrowed transaction, not the security borrowed.


KEY TO ABBREVIATIONS

LIBOR	—	London Interbank Offered Rate
TBA	—	To Be Announced
TBD	—	To Be Determined

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS
APRIL 30, 2007 (unaudited)

BlackRock Limited Duration Income Trust (BLW)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			LONG-TERM INVESTMENTS—141.9%
			Corporate Bonds—59.0%
			Aerospace & Defense—1.5%
$	1,560		AAR Corp., Ser. A2, 8.39%, 5/15/11	$	1,575,600
	745	¹	Bombardier, Inc., 8.00%, 11/15/14 (Canada)		783,181
	5,676		DI Finance/DynCorp Intl., Ser. B, 9.50%, 2/15/13		6,101,700
			DRS Technologies, Inc.,
	330		6.875%, 11/01/13		333,300
	310		7.625%, 2/01/18		324,725
	755		Sequa Corp., 9.00%, 8/01/09		798,413
	570	¹	TransDigm, Inc., 7.75%, 7/15/14		591,375

			Total Aerospace & Defense		10,508,294

			Automotive—2.4%
	850		Accuride Corp., 8.50%, 2/01/15		877,625
			AutoNation, Inc.,
	690		7.00%, 4/15/14		693,450
	690	²	7.356%, 4/15/13		696,037
	130	^1,2	Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.86%, 5/15/14		133,575
	7,500	³	DaimlerChrysler NA Holding Corp., 4.05%, 6/04/08		7,395,345
	500		Ford Capital BV, 9.50%, 6/01/10 (Netherlands)		502,500
	2,225		Lear Corp., Ser. B, 8.75%, 12/01/16		2,166,594
	1,000	³	Metaldyne Corp., 11.00%, 11/01/13		1,030,000
	3,500		Sonic Automotive, Inc., Ser. B, 8.625%, 8/15/13		3,648,750

			Total Automotive		17,143,876

			Basic Materials—5.5%
	1,630		Abitibi-Consolidated, Inc., 6.00%, 6/20/13 (Canada)		1,409,950
	2,200		AK Steel Corp., 7.75%, 6/15/12		2,271,500
	1,100	¹	American Pacific Corp., 9.00%, 2/01/15		1,105,500
	670	²	Bowater, Inc., 8.355%, 3/15/10		673,350
	120		Chemtura Corp., 6.875%, 6/01/16		118,200
	750		CPG Intl. I, Inc., 10.50%, 7/01/13		787,500
			Domtar, Inc. (Canada)
	300		7.125%, 8/15/15		305,625
	140		7.875%, 10/15/11		148,225
	740		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		740,000
			Freeport-McMoRan Copper & Gold, Inc.,
	4,280	³	8.375%, 4/01/17		4,681,250
	750	²	8.564%, 4/01/15		790,313
			Huntsman LLC,
	1,950	³	11.625%, 10/15/10		2,101,125
	310		12.00%, 7/15/12		345,650
			Ineos Group Holdings Plc (United Kingdom)
	2,885	¹	8.50%, 2/15/16		2,791,237
	1,490		(EUR), 7.875%, 2/07/16		1,921,494
	2,225		Innophos, Inc., 8.875%, 8/15/14		2,330,688
	980	¹	Key Plastics LLC/Key Plastics Finance Corp., 11.75%, 3/15/13		989,800
			Lyondell Chemical Co.,
	1,100		8.00%, 9/15/14		1,152,250


	Principal Amount (000)		Description		Value

			Basic Materials—(cont’d)
$	1,835		8.25%, 9/15/16	$	1,963,450
	560		10.50%, 6/01/13		613,900
	3,020	³	11.125%, 7/15/12		3,216,300
	215		Nalco Co., 8.875%, 11/15/13		230,050
			NewPage Corp.,
	810		10.00%, 5/01/12		895,050
	1,500	^2,3	11.606%, 5/01/12		1,663,125
	300		12.00%, 5/01/13		333,375
	2,690	²	Nova Chemicals Corp., 8.502%, 11/15/13 (Canada)		2,737,075
	2,020	¹	Pregis Corp., 12.375%, 10/15/13		2,222,000
	730	¹	Terra Capital, Inc., 7.00%, 2/01/17		715,400
	60	¹	Verso Paper Holdings LLC/Verson Paper, Inc., 11.375%, 8/01/16		64,200

			Total Basic Materials		39,317,582

			Building & Development—0.9%
	3,000	³	DR Horton, Inc., 5.875%, 7/01/13		2,924,886
			Goodman Global Holding Co., Inc.,
	2,000		7.875%, 12/15/12		2,015,000
	269	²	8.36%, 6/15/12		273,035
	890		Nortek, Inc., 8.50%, 9/01/14		881,100
	270		North American Energy Partners, Inc., 8.75%, 12/01/11 (Canada)		278,100

			Total Building & Development		6,372,121

			Commercial Services—0.2%
	350		FTI Consulting, Inc., 7.75%, 10/01/16		365,313
	875	¹	Quebecor World, Inc., 9.75%, 1/15/15 (Canada)		923,125

			Total Commercial Services		1,288,438

			Conglomerates—1.1%
	7,500	³	Tyco Intl. Group S.A., 6.125%, 11/01/08 (Luxembourg)		7,609,560

			Consumer Products—5.3%
	2,085	²	Ames True Temper, Inc., 9.356%, 1/15/12		2,126,700
			General Nutrition Centers, Inc.,
	2,250	¹	9.796%, 3/15/14		2,202,187
	1,880	¹	10.75%, 3/15/15		1,875,300
	5,000	³	Group 1 Automotive, Inc., 8.25%, 8/15/13		5,175,000
	4,400	³	JC Penney Co., Inc., 8.00%, 3/01/10		4,708,902
	1,505		Lazy Days RV Center, Inc., 11.75%, 5/15/12		1,557,675
			Michaels Stores, Inc.,
	2,210	¹	10.00%, 11/01/14		2,425,475
	2,496	¹	11.375%, 11/01/16		2,751,564
	173		Neiman-Marcus Group, Inc., 9.00%, 10/15/15		190,733
	210	^1,2	Nutro Products, Inc., 9.37%, 10/15/13		214,725
	600		Quiksilver, Inc., 6.875%, 4/15/15		585,000
	1,000		Reynolds American, Inc., 7.625%, 6/01/16		1,094,090
			Rite Aid Corp.,
	3,320		7.50%, 3/01/17		3,311,700
	5,000	³	8.125%, 5/01/10		5,162,500
	1,790^1,3		Sally Holdings LLC, 10.50%, 11/15/16		1,861,600
	565		Spectrum Brands, Inc., 7.375%, 2/01/15		447,762
	2,175		United Rentals NA, Inc., 7.00%, 2/15/14		2,218,500

			Total Consumer Products		37,909,413

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)


	Principal Amount (000)		Description		Value

			Containers & Packaging—0.7%
			Berry Plastics Holding Corp.,
$	1,210		8.875%, 9/15/14	$	1,246,300
	835	²	9.23%, 9/15/14		853,788
	885		Crown Americas LLC/Crown Americas Capital Corp., 7.75%, 11/15/15		935,887
	585		Graham Packaging Co., Inc., 8.50%, 10/15/12		596,700
	1,370	^1,2	Impress Holdings BV, 8.481%, 9/15/13 (Netherlands)		1,402,501

			Total Containers & Packaging		5,035,176

			Ecological Services & Equipment—0.6%
	2,000		Casella Waste Systems, Inc., 9.75%, 2/01/13		2,115,000
	2,065		Waste Services, Inc., 9.50%, 4/15/14		2,178,575

			Total Ecological Services & Equipment		4,293,575

			Energy—6.1%
	5,500	^1,3	AES Corp., 8.75%, 5/15/13		5,864,375
	550		Berry Petroleum Co., 8.25%, 11/01/16		552,063
	1,210		Chaparral Energy, Inc., 8.50%, 12/01/15		1,228,150
			Chesapeake Energy Corp.,
	650		6.375%, 6/15/15		650,813
	100		6.875%, 11/15/20		100,750
	4,000	³	7.50%, 9/15/13		4,180,000
			Compagnie Generale de Geophysique-Veritas (France)
	255		7.50%, 5/15/15		267,750
	420		7.75%, 5/15/17		445,200
	925		Compton Petroleum Finance Corp., 7.625%, 12/01/13 (Canada)		918,062
	1,640		East Cameron Gas Co., 11.25%, 7/09/19 (Cayman Islands)		1,574,400
	590		Edison Mission Energy, 7.50%, 6/15/13		613,600
	400		El Paso Corp., 7.80%, 8/01/31		446,000
	400		El Paso Natural Gas Co., 8.875%, 6/15/32		499,556
	161		Elwood Energy LLC, 8.159%, 7/05/26		170,716
			Encore Acquisition Co.,
	250		6.00%, 7/15/15		228,750
	200		7.25%, 12/01/17		193,500
	495		Exco Resources, Inc., 7.25%, 1/15/11		496,238
	380	³	Grant Prideco, Inc., Ser. B, 6.125%, 8/15/15		377,150
	895		KCS Energy, Inc., 7.125%, 4/01/12		886,050
	4,324	³	Midwest Generation LLC, Ser. B, 8.56%, 1/02/16		4,767,502
	625		Mirant Americas Generation LLC, 8.30%, 5/01/11		660,937
	500		Mission Energy Holdings Co., 13.50%, 7/15/08		546,250
			NRG Energy, Inc.,
	210		7.25%, 2/01/14		217,350
	1,185		7.375%, 2/01/16		1,230,919
	1,990	¹	OPTI, Inc., 8.25%, 12/15/14 (Canada)		2,104,425
	580		Orion Power Holdings, Inc., 12.00%, 5/01/10		669,900
			Reliant Energy, Inc.,
	1,035		6.75%, 12/15/14		1,084,162
	170		9.25%, 7/15/10		178,288
	1,515	¹	Sabine Pass LNG LP, 7.50%, 11/30/16		1,556,662


	Principal Amount (000)		Description		Value

			Energy—(cont’d)
$	1,240	¹	SemGroup LP, 8.75%, 11/15/15	$	1,280,300
	1,890	^1,2	Stone Energy Corp., 8.106%, 7/15/10		1,890,000
	5,000		Swift Energy Co., 9.375%, 5/01/12		5,225,000
	725	¹	Targa Resources, Inc., 8.50%, 11/01/13		746,750
	1,550		Whiting Petroleum Corp., 7.25%, 5/01/12-5/01/13		1,519,400

			Total Energy		43,370,968

			Entertainment & Leisure—1.3%
	505		AMC Entertainment, Inc., 11.00%, 2/01/16		579,487
	370		Cinemark, Inc., Zero Coupon, 3/15/14		340,400
	1,430	¹	Greektown Holdings LLC, 10.75%, 12/01/13		1,533,675
	1,100		Harrah’s Operating Co., Inc., 5.75%, 10/01/17		913,000
	4,425		MGM Mirage, 9.75%, 6/01/07		4,441,594
	250		Poster Financial Group, Inc., 8.75%, 12/01/11		260,000
	1,255	¹	TDS Investor, 9.875%, 9/01/14		1,342,850
	100		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14		100,250

			Total Entertainment & Leisure		9,511,256

			Financial Institutions—6.7%
			American Real Estate Partners LP/American Real Estate Finance Corp.,
	1,480	³	7.125%, 2/15/13		1,455,950
	5,860	³	8.125%, 6/01/11		5,977,200
	790	^1,2	BMS Holdings, Inc., 12.40%, 2/15/12		791,975
	490		Britannia Bulk Plc, 11.00%, 12/01/11 (United Kingdom)		494,900
			Ford Motor Credit Co.,
	2,800		7.375%, 2/01/11		2,769,379
	940	²	8.105%, 1/13/12		927,134
	60	²	9.806%, 4/15/12		64,128
	2,735	³	General Motors Acceptance Corp., 6.875%, 8/28/12		2,733,085
	3,494	¹	iPayment Investors LP, 11.625%, 7/15/14		3,633,496
	950		iPayment, Inc., 9.75%, 5/15/14		989,187
	900		K&F Acquisition, Inc., 7.75%, 11/15/14		963,000
	5,000	^1,3	Kazkommerts Intl. BV, 10.125%, 5/08/07 (Netherlands)		5,002,500
	200	²	Marsh & McLennan Cos., Inc., 5.495%, 7/13/07		200,026
			Momentive Performance Materials, Inc.,
	3,430	¹	10.125%, 12/01/14		3,635,800
	1,310	¹	11.50%, 12/01/16		1,401,700
			Rainbow National Services LLC,
	925	¹	8.75%, 9/01/12		987,438
	4,835	¹	10.375%, 9/01/14		5,445,419
	1,480		Standard Aero Holdings, Inc., 8.25%, 9/01/14		1,602,100
	5,146	⁴	Structured Asset Receivable Trust, 5.114%, 1/21/10		5,143,007
	220	²	Universal City Florida Holding Co. I/II, 10.106%, 5/01/10		225,775
	2,930	¹	Wimar Opco LLC/Wimar Opco Finance Corp., 9.625%, 12/15/14		2,973,950

			Total Financial Institutions		47,417,149

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)


	Principal Amount (000)		Description		Value

			Health Care—1.9%
$	5,000	³	Concentra Operating Corp., 9.50%, 8/15/10	$	5,275,000
			HealthSouth Corp.,
	860	¹	10.75%, 6/15/16		937,400
	1,390	^1,2	11.354%, 6/15/14		1,511,625
	3,000		Norcross Safety Products LLC/Norcross Capital Corp., 9.875%, 8/15/11		3,168,750
	1,045		Tenet Healthcare Corp., 6.875%, 11/15/31		836,000
	1,830		Universal Hospital Services, Inc., 10.125%, 11/01/11		1,960,563

			Total Health Care		13,689,338

			Industrials—2.3%
	1,700	¹	AGY Holding Corp., 11.00%, 11/15/14		1,787,125
	4,000		Fasten Tech, Inc., 11.50%, 5/01/11		4,245,000
	650		Hexcel Corp., 6.75%, 2/01/15		651,625
	905		Park-Ohio Industries, Inc., 8.375%, 11/15/14		895,950
			RBS Global, Inc./Rexnord Corp.,
	2,000		9.50%, 8/01/14		2,140,000
	1,430		11.75%, 8/01/16		1,587,300
	3,125	¹	Sunstate Equipment Co. LLC,
			10.50%, 4/01/13		3,343,750
	1,415		Trimas Corp., 9.875%, 6/15/12		1,468,063

			Total Industrials		16,118,813

			Media—9.1%
			Affinion Group, Inc.,
	1,975		10.125%, 10/15/13		2,152,750
	850		11.50%, 10/15/15		935,000
	420		American Media Operations, Inc., Ser. B, 10.25%, 5/01/09		395,850
	800	²	Cablevision Systems Corp., Ser. B, 9.82%, 4/01/09		848,000
	520		CanWest MediaWorks, Inc., 8.00%, 9/15/12 (Canada)		539,500
	3,500		CBD Media, Inc., 8.625%, 6/01/11		3,679,375
	950		CCH I Holdings LLC/CCH I Holdings Capital Corp., 11.00%, 10/01/15		1,009,375
			Charter Communications Holdings II
			LLC/Charter Communications Holdings II Capital Corp.,
	2,255		10.25%, 9/15/10		2,401,575
	865		Ser. B, 10.25%, 9/15/10		919,063
	2,425	¹	CMP Susquehanna Corp., 9.875%, 5/15/14		2,473,500
	6,685	³	Comcast Cable Communications, Inc., 6.875%, 6/15/09		6,913,092
	1,650		Dex Media West LLC/Dex Media Finance Co., Ser. B, 9.875%, 8/15/13		1,796,437
	500		DirecTV Holdings LLC/DirecTV Financing Co., 8.375%, 3/15/13		527,500
			EchoStar DBS Corp.,
	2,800		5.75%, 10/01/08		2,803,500
	1,330		7.00%, 10/01/13		1,381,538
	200		7.125%, 2/01/16		208,250
	2,525	¹	Idearc, Inc., 8.00%, 11/15/16		2,635,469
	300	¹	Iesy Repository GMBH, 10.375%, 2/15/15 (Germany)		317,250
	740		LIN Television Corp., 6.50%, 5/15/13		728,900
	820		MediaNews Group, Inc., 6.875%, 10/01/13		746,200
	2,105		Network Communications, Inc., 10.75%, 12/01/13		2,157,625


	Principal Amount (000)		Description		Value

			Media—(cont’d)
$	2,790		Nexstar Finance, Inc., 7.00%, 1/15/14	$	2,713,275
			Nielsen Finance LLC/Nielsen Finance Co.,
	1,400	¹	Zero Coupon, 8/01/16		1,011,500
	4,340	^1,3	10.00%, 8/01/14		4,741,450
	2,000	^1,2	Paxson Communications Corp., 8.606%, 1/15/12		2,040,000
	1,900		Primedia, Inc., 8.00%, 5/15/13		1,976,000
	4,260	³	RH Donnelley Corp., Ser. A-3, 8.875%, 1/15/16		4,622,100
	2,000		Salem Communications Corp., 7.75%, 12/15/10		2,045,000
	460		Sinclair Broadcast Group, Inc., 4.875%, 7/15/18		461,150
	185		Sirius Satellite Radio, Inc., 9.625%, 8/01/13		185,000
	1,965	¹	Umbrella Acquisition, Inc., 9.75%, 3/15/15		1,979,737
			Vertis, Inc.,
	2,390		9.75%, 4/01/09		2,443,775
	865		Ser. B, 10.875%, 6/15/09		857,431
	4,442		Young Broadcasting, Inc., 10.00%, 3/01/11		4,519,735

			Total Media		65,165,902

			Real Estate—0.3%
	2,000	³	Rouse Co., 5.375%, 11/26/13		1,885,294

			Technology—3.8%
			Amkor Technology, Inc.,
	2,063		7.75%, 5/15/13		2,042,370
	600		9.25%, 6/01/16		636,000
	1,965		Celestica, Inc., 7.625%, 7/01/13 (Canada)		1,871,662
			Freescale Semiconductor, Inc.,
	5,460	¹	9.125%, 12/15/14		5,432,700
	600	^1,2	9.23%, 12/15/14		600,000
	430	¹	Hynix Semiconductor, Inc.,
			9.875%, 7/01/12 (South Korea)		479,450
	2,700	¹	NXP BV/NXP Funding LLC,
			9.50%, 10/15/15 (Netherlands)		2,835,000
			Sanmina-SCI Corp.,
	125		6.75%, 3/01/13		118,750
	1,710	³	8.125%, 3/01/16		1,673,663
	1,340		Sensata Technologies, 8.00%, 5/01/14 (Netherlands)		1,343,350
			SunGard Data Systems, Inc.,
	590		9.125%, 8/15/13		632,775
	2,600		10.25%, 8/15/15		2,860,000
	3,765		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		3,915,600
	872	¹	UGS Capital Corp. II, 10.38%, 6/01/11		898,037
	1,780		UGS Corp., 10.00%, 6/01/12		1,940,200

			Total Technology		27,279,557

			Telecommunications—8.4%
	1,420		Cincinnati Bell, Inc., 7.25%, 7/15/13		1,476,800
	1,830	¹	Cricket Communications, Inc., 9.375%, 11/01/14		1,955,812
	5,000	³	Deutsche Telekom Intl. Finance BV, 8.00%, 6/15/10 (Netherlands)		5,410,445
			Digicel Group Ltd. (Bermuda)
	1,120	^1,3	8.875%, 1/15/15		1,099,000
	2,695	¹	9.125%, 1/15/15		2,614,150
	860	²	Hawaiian Telcom Communications, Inc., Ser. B, 10.86%, 5/01/13		879,350

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Telecommunications—(cont’d)
$	2,495		Intelsat Corp., 9.00%, 6/15/16	$	2,735,144
			Intelsat Ltd. (Bermuda)
	415	²	8.872%, 1/15/15		424,580
	1,800		9.25%, 6/15/16		1,980,000
	630		11.25%, 6/15/16		718,988
	2,815	²	11.354%, 6/15/13		3,012,050
	1,470		Intelsat Subsidiary Holding Co. Ltd., 8.625%, 1/15/15 (Bermuda)		1,571,062
	3,850	¹	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)		4,138,750
			Nortel Networks Ltd. (Canada)
	2,220	^1,2	9.606%, 7/15/11		2,375,400
	465	¹	10.125%, 7/15/13		512,663
	3,517		PanAmSat Corp., 9.00%, 8/15/14		3,798,360
	3,231	^1,2	ProtoStar I Ltd., 12.50%, 10/15/12 (Bermuda)		3,456,865
	4,000	^2,3	Qwest Communications Intl., Inc., 8.86%, 2/15/09		4,040,000
			Qwest Corp.,
	1,000	³	7.875%, 9/01/11		1,065,000
	2,500	^2,3	8.605%, 6/15/13		2,734,375
	3,675	³	9.125%, 3/15/12		4,060,875
	3,595	¹	West Corp., 11.00%, 10/15/16		3,927,537
	1,500	¹	Wind Acquisition Finance S.A., 10.75%, 12/01/15 (Luxembourg)		1,732,500
			Windstream Corp.,
	2,340	³	8.125%, 8/01/13		2,538,900
	1,310		8.625%, 8/01/16		1,437,725

			Total Telecommunications		59,696,331

			Transportation—0.9%
	520		American Airlines, Inc., Ser. 99-1, 7.324%, 4/15/11		527,800
	1,715		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		1,676,413
	111		Horizon Lines LLC, 9.00%, 11/01/12		116,828
	2,150	¹	Navios Maritime Holdings, Inc., 9.50%, 12/15/14 (Marshall Islands)		2,262,875
	1,650		Overseas Shipholding Group, Inc., 8.75%, 12/01/13		1,833,562

			Total Transportation		6,417,478

			Total Corporate Bonds		420,030,121

			Bank Loans—55.8%
			Aerospace & Defense—0.5%
	970		Arinc, Inc., Loan B, LIBOR + 2.00%, 2/15/11		972,425
	1,960		DI Finance/DynCorp Intl., Loan B, LIBOR + 2.25%, 1/31/11		1,972,250
	469		Primus Intl., Inc., Loan B, LIBOR + 2.50%, 6/16/12		470,896
	495		Wesco Aircraft Hardware Corp., First Lien Loan, LIBOR + 2.25%, 9/29/13		498,668

			Total Aerospace & Defense		3,914,239

			Automotive—2.4%
	2,000		Goodyear Tire & Rubber Co., Third Lien Loan, LIBOR + 3.50%, 4/01/11		2,006,500
	741		IAP Worldwide Services, Inc., First Lien Loan, LIBOR + 4.25%, 12/31/12		741,088


	Principal Amount (000)	Description		Value

		Automotive—(cont’d)
$	1,496	Keystone Automotive Industries, Inc., Loan B, LIBOR, 1/15/12	$	1,492,509
	449	Lear Corp., First Lien Loan, LIBOR + 2.50%, 3/23/12		449,051
	993	Mark IV Industries, Inc., First Lien Loan, LIBOR + 2.50%, 6/30/11		1,000,771
		Metaldyne Corp.,
	98	Deposit Funded Loan, LIBOR, 1/15/12		98,813
	667	LIBOR, 1/15/14		671,925
	499	Motorsport Aftermarket Group, Inc., LIBOR, 11/15/13		502,491
		Navistar Intl. Corp.,
	2,750	LIBOR + 3.25%, 1/30/12		2,784,947
	1,000	Revolver Loan, LIBOR + 3.25%, 1/30/12		1,012,708
	974	Rent-A-Center, Inc., Loan B, LIBOR + 1.75%, 6/30/12		975,516
		Reynolds & Reynolds Co.,
	1,990	LIBOR + 2.00%, 10/31/12		1,997,462
	1,250	Second Lien Loan, LIBOR + 5.50%, 10/31/13		1,276,562
	2,444	TRW Automotive Acquisitions Corp., Loan B, LIBOR + 1.50%, 6/30/12		2,439,549

		Total Automotive		17,449,892

		Basic Materials—3.1%
		Basell N.V.,
	417	Loan B2, 9/30/13		420,963
	83	Loan B4, LIBOR + 2.25%, 8/01/13		84,193
	417	Loan C2, LIBOR + 3.00%, 9/30/14		420,964
	83	Loan C4, LIBOR + 3.00%, 8/01/14		84,193
	810	Boise Cascade Corp., Loan D, LIBOR + 1.75%, 10/31/11		812,033
		Brenntag Holdings,
	282	Loan B6, LIBOR + 2.25%, 9/15/14		389,184
	218	Loan B6 B, LIBOR + 2.50%, 9/15/14		301,304
	3,000	Cognis Deutschland, Loan B, LIBOR + 4.75%, 11/15/13		3,045,000
	848	Compass Minerals Group, Inc., LIBOR + 1.50%, 12/31/12		848,846
		Ineos Group Holdings Plc,
	1,350	Loan A4, LIBOR + 2.25%, 12/16/12		1,357,313
	1,733	Loan B2, LIBOR + 2.25%, 12/16/13		1,751,062
	1,733	Loan C2, LIBOR + 2.75%, 12/16/14		1,751,062
		Invista BV,
	1,290	Loan B1, LIBOR + 1.50%, 4/30/11		1,289,939
	684	Loan B2, LIBOR + 1.50%, 4/30/11		686,327
	692	ISP Chemco, Inc., LIBOR + 1.75%, 2/28/13		695,470
	1,237	John Maneely Co., Loan B, LIBOR + 3.25%, 12/15/13		1,238,436
	1,562	Nalco Co., Loan B, LIBOR + 1.75%, 11/01/10		1,569,897
	490	PQ Corp., LIBOR + 2.00%, 2/28/12		490,817
	980	Rockwood Specialties Group, Inc., Loan E, LIBOR + 2.00%, 8/15/12		987,167
	1,611	SP Newsprint, Loan B, LIBOR + 2.25%,1/09/10		1,617,153

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)


	Principal Amount (000)	Description		Value

		Basic Materials—(cont’d)
		UPC Technology Corp.,
$	1,000	Loan J2, LIBOR + 2.00%, 3/31/13	$	999,821
	1,000	Loan K2, LIBOR + 2.00%, 12/31/13		999,821

		Total Basic Materials		21,840,965

		Building & Development—2.0%
	398	Armstrong World Industries, Inc., LIBOR + 1.75%, 10/12/13		398,370
	1,244	Beacon Roofing Supply, Inc., Loan B, LIBOR + 2.00%, 10/31/13		1,243,750
		Brand Energy & Infrastructure Services, Inc.,
	500	First Lien Loan B, LIBOR + 2.25%, 2/15/14		502,032
	500	Second Lien Loan, LIBOR, 2/15/15		504,062
	2,494	Building Materials Holding Corp., LIBOR + 2.75%, 3/15/14		2,476,294
	1,500	Custom Building Products, Inc., Second Lien Loan, LIBOR + 5.00%, 4/30/12		1,495,000
	1,500	Edge-Star Partners, First Lien Loan, 4.00%, 11/18/07		1,492,500
	250	Euramax Intl., Inc., Second Lien Loan, LIBOR + 7.00%, 7/15/13		242,500
	1,500	Hanley Wood LLC, LIBOR + 2.25%,3/07/14		1,496,250
	422	Maxim Crane Works LP, PRIME + 1.00%,1/28/10		421,657
	496	Nacco Industries, Inc., TBD, 3/31/13		498,731
	488	Nortek, Inc., Loan B, PRIME + 1.00%,8/24/11		488,719
	850	Rhodes Ranch, First Lien Loan, LIBOR + 3.25%, 11/15/10		852,125
	1,975	United Subcontractors, Inc., First Lien Loan, LIBOR + 2.75%, 12/31/12		1,963,480

		Total Building & Development		14,075,470

		Conglomerates—1.5%
		Atlantis Plastics, Inc.,
	983	First Lien Loan, LIBOR + 4.00%, 9/30/11		976,605
	250	Second Lien Loan, LIBOR + 9.00%,9/30/11		231,250
	895	Blount Intl., Loan B, LIBOR + 1.75%,8/15/10		894,644
	1,956	Colfax Corp., Loan B, LIBOR + 2.25%,11/30/11		1,965,462
		Invensys Plc,
	1,000	Loan A, LIBOR + 2.00%, 12/15/10		1,006,250
	1,000	Loan B, LIBOR + 2.13%, 12/15/10		2,002,200
	597	Jarden Corp., LIBOR + 1.75%, 1/15/12		597,615
	752	Mueller Group, Inc., Loan B, LIBOR + 2.00%, 9/30/12		756,513
		Sensus Metering Systems, Inc.,
	1,154	Loan B1, LIBOR + 2.00%, 12/30/09		1,157,234
	125	Loan B2, LIBOR + 2.00%, 12/30/09		125,367
	722	St. John Knits Intl., Inc., Loan B, LIBOR + 3.00%, 3/30/12		725,701

		Total Conglomerates		10,438,841


	Principal Amount (000)		Description		Value

			Consumer Products—7.7%
$	1,000		Aearo Technologies, Inc., Second Lien Loan, LIBOR + 6.50%, 9/30/13	$	1,015,000
	990		24 Hour Fitness Worldwide, Inc., Loan B, LIBOR + 2.50%, 6/30/12		993,713
			Advance Food Co.,
	778		Loan B, LIBOR, 3/16/14		777,778
	222		Loan B, LIBOR, 3/31/14		222,222
	750		American Safety Razor Co., Second Lien
			Loan, LIBOR + 6.25%, 2/15/14		761,250
			Aramark Corp.,
	198		Letter of Credit, LIBOR + 2.13%, 1/30/14		198,400
	2,764		Loan B, LIBOR + 2.13%, 1/30/14		2,776,115
	450		Arby’s Restaurant Group, Inc., Loan B, LIBOR + 2.25%, 7/31/12		453,309
	452		Bare Escentuals Beauty, Inc., First Lien Loan, LIBOR + 2.50%, 2/15/12		455,724
			Berkline Bench Craft,
	97	⁵	Loan B, PRIME + 4.75%, 10/31/11		64,030
	1,005	⁵	Second Lien Loan, PRIME + 7.00%,4/30/12		100,505
	1,250		Brickman Group Ltd., LIBOR + 2.00%,1/30/14		1,252,344
	1,290		Burger King Corp., Loan B1, LIBOR + 1.50%, 2/28/13		1,291,978
	1,024		Burlington Coat Factory Warehouse Corp., Loan B, LIBOR + 2.25%, 4/15/13		1,017,032
	491		Centerplate, Inc., PRIME + 1.25%, 10/15/10		492,149
	1,095		Central Garden & Pet Co., Loan B, LIBOR + 1.50%, 9/30/12		1,094,044
			Cenveo Corp.,
	2,188		Loan C, LIBOR + 1.75%, 9/07/13		2,189,299
	62		Delayed Draw Loan, LIBOR + 1.75%,9/07/13		62,108
	491		Chiquita Brands Intl., Inc., Loan C, LIBOR + 3.00%, 7/15/13		496,470
	995		Coinmach Corp., Loan B1, 1.25%,12/15/12		1,000,864
	2,215		Cracker Barrel, Loan B, LIBOR + 1.50%,5/15/13		2,216,612
	1,000		David’s Bridal, Inc., LIBOR + 2.00%,1/30/14		994,167
			Dole Food Co., Inc.,
	468		Letter of Credit, LIBOR + 1.88%, 4/12/13		467,651
	1,044		LIBOR + 2.00%, 4/30/12		1,042,483
	3,480		Loan C, LIBOR + 2.00%, 3/31/13		3,474,942
	429		Douglas Dynamics LLC, LIBOR + 1.75%,12/16/10		424,334
	500		DS Waters Holdings, Inc., Loan B, LIBOR, 3/31/12		500,000
			Eastman Kodak Co.,
	476		Loan B1, LIBOR + 2.25%, 10/15/12		476,104
	364		Loan B2, 1.50%, 10/15/12		364,244
	1,914		Eight O’Clock Coffee, First Lien Loan, LIBOR + 2.75%, 11/14/11		1,913,594
	471		Foamex Intl. Inc., First Lien Loan, LIBOR + 2.25%, 2/15/13		471,373
	709		FTD, Inc., LIBOR, 8/15/13		712,123

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Consumer Products—(cont’d)
$	350		Gold Toe, Second Lien Loan, LIBOR + 6.00%, 4/30/14	$	357,438
	802		Language Line, Inc., Loan B1, LIBOR + 3.25%, 6/14/11		808,310
	1,000	⁵	Le-Natures, Inc., Loan B, LIBOR + 4.00%, 9/30/11		646,000
	1,080		Maidenform, Inc., LIBOR + 1.75%, 5/14/10		1,083,057
	2,420		Michael Foods, Inc., Loan B1, LIBOR + 2.00%, 11/30/10		2,426,364
	1,506		Neiman-Marcus Group, Inc., LIBOR + 2.00%, 4/15/13		1,518,686
	1,391		New Page, Loan B, LIBOR + 2.25%, 4/30/12		1,401,007
	455		Nice Pak Products, LIBOR + 3.75%, 6/15/10		457,171
	1,500		Orchard Supply Hardware Stores Corp., Loan B2, LIBOR + 2.45%, 12/09/07		1,515,000
	993		Oriental Trading Co., LIBOR + 2.25%, 1/30/14		1,007,387
			OSI Group LLC,
	1,463		LIBOR + 2.00%, 9/15/11		1,465,242
	1,463		Loan B, LIBOR + 2.00%, 9/15/11		1,465,242
	399		PETCO Animal Supplies, Inc., LIBOR + 2.50%, 10/31/12		401,850
	591		Pierre Foods, Inc., Loan B, LIBOR + 2.25%, 7/15/10		593,465
	750		Pivotal Promontory LLC, Second Lien Loan, LIBOR + 6.50%, 9/15/11		729,375
	1,425		Prestige Brands Holdings, Inc., Loan B, LIBOR + 2.25%, 4/06/11		1,431,362
	1,985		Quiznos Corp., First Lien Loan, LIBOR + 2.25%, 5/01/12		1,991,451
	730		Riverdeep Interactive Learning, Inc., LIBOR + 6.20%, 12/21/07		728,175
			Sturm Foods, Inc.,
	1,375		LIBOR + 2.50%, 1/30/14		1,377,292
	500		Second Lien Loan, LIBOR + 7.00%, 6/30/14		502,917
	621	⁵	Synventive Acquisition, Inc., Mezzanine Loan, LIBOR + 14.0%, 2/17/14		233,047
	831		Tupperware Corp., LIBOR + 1.50%, 11/07/12		830,681
	356		Warnaco, Inc., Loan B, PRIME + 0.50%, 1/31/12		356,111
			Wastequip, Inc.,
	311		Delayed Draw Loan, 0.75%, 2/15/13		313,512
	689		Loan B, LIBOR + 2.25%, 2/15/13		693,988
	750		Waterpik Technologies, Inc., Second Lien Loan, LIBOR + 6.50%, 10/15/13		746,250

			Total Consumer Products		54,852,341

			Containers & Packaging—2.3%
			Bluegrass Container Co. LLC,
	343		First Lien Loan, LIBOR + 2.25%, 6/30/13		346,354
	1,146		Loan B, LIBOR + 2.25%, 6/30/13		1,157,550
	1,500		Second Lien Loan, LIBOR + 5.00%, 12/30/13		1,524,000
			Consolidated Container Co. LLC,
	1,000		First Lien Loan, LIBOR, 4/15/14		1,002,083
	750		Second Lien Loan, LIBOR, 10/15/14		743,750


Principal Amount (000)		Description	Value

		Containers & Packaging—(cont’d)
$	2,469	Georgia-Pacific Corp., First Lien Loan, LIBOR + 1.75%, 2/28/13	$	2,479,914
	5,000	Graham Packaging Co., LP, Loan B, LIBOR, 4/15/11		5,026,040
	1,260	Graphic Packaging Intl., Inc., Loan C, LIBOR + 2.50%, 8/08/10		1,262,063
	568	Smurfit-Stone Container Enterprises, Inc., Deposit Funded Loan, 0.50%, 11/15/10		571,580
	1,940	Solo Cup, Inc., LIBOR + 3.50%, 2/27/11		1,968,190

		Total Containers & Packaging		16,081,524

		Ecological Services & Equipment—0.1%
	500	Envirosolutions, Inc., Initial Loan, LIBOR + 3.50%, 7/15/12		504,063

		Energy—4.0%
	429	AES Corp., LIBOR + 1.75%, 4/30/08		430,625
		Coffeyville Resources LLC,
	243	Letter of Credit, 0.50%, 12/21/13		246,486
	1,254	Loan D, LIBOR + 3.00%, 12/21/13		1,270,329
		Coleto Creek Power,
	127	Letter of Credit, LIBOR + 2.75%, 7/31/13		127,813
	1,859	Loan B, LIBOR + 2.75%, 7/31/13		1,864,761
		ElectricInvest Holding Co. Ltd.,
	1,100	Junior Loan, LIBOR, 12/21/12		2,217,934
	596	LIBOR, 12/21/12		819,768
		Generac Power Systems, Inc.,
	990	First Lien Loan, LIBOR + 2.50%, 11/15/13		990,000
	500	Second Lien Loan, LIBOR + 6.00%, 5/15/14		498,959
	1,481	Key Energy Services, Inc., Loan C, LIBOR + 2.50%, 8/15/12		1,487,730
		LSP General Finance Co. LLC,
	40	0.88%, 4/15/13		39,619
	889	First Lien Loan, LIBOR + 1.75%, 4/15/13		890,444
		MACH Gen LLC,
	70	Letter of Credit, 0.50%, 2/22/14		70,291
	678	LIBOR + 2.00%, 2/22/14		677,480
	499	McJunkin Corp., Loan B, LIBOR + 2.25%, 1/30/14		501,088
	495	MEG Energy Corp., Loan B, LIBOR + 2.00%, 4/15/13		498,403
		Northeast Energy,
	159	Letter of Credit, LIBOR + 2.50%, 10/31/13		159,686
	1,341	Loan B, LIBOR + 2.50%, 10/31/13		1,351,189
	250	Second Lien Loan, LIBOR + 4.50%, 10/31/14		252,708
	5,404	NRG Energy, Inc., LIBOR + 2.00% , 1/31/13		5,442,376
	287	Petro Geological Services, Loan B, LIBOR + 2.50%, 12/31/12		288,266
	83	Regency Gas, First Lien Loan, LIBOR + 2.50%, 8/15/13		83,542
		SandRidge Energy, Inc.,
	1,500	8.625%, 3/01/15		1,496,250
	1,500	LIBOR, 3/01/14		1,496,250
	971	SemCrude LP, LIBOR + 2.25% , 2/28/11		970,993

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)		Description	Value

		Energy—(cont’d)
		TPF Generation Holdings LLC,
$	151	Letter of Credit, LIBOR + 2.10%, 12/31/13	$	151,484
	800	Loan B, LIBOR + 2.00%, 4/12/26		805,261
	47	Revolver Loan, 0.50%, 12/31/13		47,487
	1,485	Trinidad Energy Services Income Trust, LIBOR + 2.50%, 4/15/11		1,488,713
	1,000	Western Refining, LIBOR + 1.75%, 3/15/14		1,001,250
		Wolf Hollow I LP,
	473	Loan B, LIBOR + 2.25%, 6/15/12		463,451
	400	Synthetic Letter of Credit, LIBOR + 2.25%, 6/15/12		392,000
	96	Synthetic Revolver Loan, LIBOR + 2.25%, 6/22/12		94,149

		Total Energy		28,616,785

		Entertainment & Leisure—3.1%
	3,204	CCM Merger, Inc., Loan B, LIBOR + 2.00%, 7/31/12		3,212,258
	1,119	Cinemark, Inc., Loan B, LIBOR + 1.75%, 10/05/13		1,123,106
	500	Edge Las Vegas, First Lien Loan, LIBOR + 3.50%, 6/15/07		500,000
	938	Fairmont Hotels & Resorts, Inc., Loan B, LIBOR + 3.25%, 7/15/11		942,598
	1,990	Greektown Holdings LLC, Loan B, LIBOR + 2.50%, 12/15/12		2,009,900
		Green Valley Ranch Gaming LLC,
	482	First Lien Loan, LIBOR + 2.00%, 1/29/12		484,055
	1,000	Second Lien Loan, LIBOR + 3.25%, 1/29/12		1,007,375
	493	Hit Entertainment Ltd., LIBOR + 2.25%, 8/31/12		494,655
	4,950	Metro-Goldwyn-Mayer Studios, Inc., Loan B, LIBOR + 3.25%, 4/15/12		4,951,935
	983	Penn National Gaming, Inc., Loan B, LIBOR + 1.75%, 5/31/12		989,239
	5,030	Travelport LLC, LIBOR + 7.00%, 3/22/12		4,897,962
		Travelport, Inc.,
	29	Letter of Credit, LIBOR + 2.50%, 8/31/13		29,233
	295	LIBOR + 2.50%, 8/31/13		296,916
	497	Wembley, Inc., First Lien Loan, LIBOR + 2.50%, 8/31/11		501,832
	451	Yellowstone Mountain Club, LIBOR + 2.38%, 10/15/10		450,652

		Total Entertainment & Leisure		21,891,716

		Financial Institutions—4.2%
	984	Advantage Sales & Marketing, Inc., LIBOR + 2.00%, 4/15/13		985,021
	1,496	Alix Partners, LIBOR + 2.25%, 10/30/13		1,505,601
	915	Arias Acquisitions, Inc., LIBOR + 5.50%, 7/30/11		882,234
		Asurion Corp.,
	956	First Lien Loan, LIBOR + 3.00%, 8/30/12		967,148
	500	Second Lien Loan, LIBOR + 6.25%, 2/28/13		508,125


Principal Amount (000)		Description	Value

		Financial Institutions—(cont’d)
$	995	Bankruptcy Management, LIBOR + 2.75%, 6/30/11	$	1,000,597
	950	Billing Services Group, LIBOR + 2.50%, 5/05/12		1,296,417
	929	BNY Convergex Group LLC, First Lien Loan, LIBOR + 3.00%, 8/31/13		935,536
	451	CCC Information Services Group, Inc., Loan B, LIBOR + 2.50%, 2/15/13		452,245
	1,244	Charter Mac, Loan B, LIBOR + 2.50%, 8/15/12		1,248,414
	746	Conseco, Inc., LIBOR + 2.00%, 9/30/13		749,515
		GS Holdings Corp.,
	56	Delayed Draw Loan, 0.50%, 5/15/13		56,093
	83	LIBOR + 1.75%, 5/15/11		83,528
	551	LIBOR + 1.75%, 5/15/13		550,899
		J.G. Wentworth LLC,
	4,000	First Lien Loan, LIBOR, 4/15/14		4,000,000
	1,000	Second Lien Loan, LIBOR, 10/15/14		1,012,500
	872	Jostens, Inc., Loan C, LIBOR + 2.00%, 10/15/11		875,302
	934	Lucite Intl. Finance Plc, LIBOR + 9.00%, 7/15/14		1,311,801
	659	N.E.W. Holdings I LLC, First Lien Loan, LIBOR + 2.25%, 8/31/13		661,829
		NASDAQ Stock Market, Inc.,
	971	Loan B, LIBOR + 1.75%, 4/18/12		972,817
	563	Loan C, LIBOR + 1.75%, 4/18/12		563,973
	858	Professional Service, Inc., Loan B, LIBOR + 2.75%, 10/31/12		859,957
	498	Renfro Corp., Delayed Draw Loan, LIBOR + 1.00%, 9/30/13		502,462
	1,116	Sedgewick Claims Management Services, Inc., Loan B, LIBOR + 2.25%, 2/28/13		1,117,873
		TPG Springs Ltd.,
	886	Loan B, LIBOR + 2.75%, 3/22/13		1,769,617
	886	Loan C, LIBOR + 3.25%, 3/22/14		1,775,311
	993	TransFirst Holdings, Inc., Loan B, PRIME + 1.00%, 8/09/12		997,462
	425	Universal American Financial Corp., LIBOR + 2.25%, 5/25/09		426,594
	901	USI Holdings Corp., Loan B, LIBOR + 2.25%, 7/30/08		900,575
	744	Vertellus, First Lien Loan, LIBOR + 3.25%, 7/08/13		749,493

		Total Financial Institutions		29,718,939

		Health Care—3.5%
		Cardinal Health, Inc.,
	1,500	LIBOR, 4/15/14		1,500,000
	2,000	Loan B, LIBOR, 4/15/14		2,729,299
	853	CCS Medical, Loan B, LIBOR + 3.25%, 10/31/12
				852,951
	2,925	Community Health Systems, Inc., First Incremental Loan, LIBOR + 1.75%, 8/15/11		2,929,113
	975	Concentra Operating Corp., Loan B, LIBOR + 2.00%, 9/30/11		976,707
	95	Duloxetine Royalty, First Lien Loan, LIBOR + 4.50%, 10/15/13		95,130

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)		Description	Value

		Health Care—(cont’d)
$	250	Emdeon Business Services, LLC, Second Lien Loan, LIBOR, 5/30/14	$	255,000
	730	Eye Care Centers of America, Inc., LIBOR + 2.50%, 2/28/12		730,442
	2,000	Health Management Associates, Inc., LIBOR + 1.75%, 2/15/14		2,007,222
	1,985	HealthSouth Corp., Loan B, LIBOR + 2.50%, 3/15/13		1,996,956
	1,000	IASIS Healthcare Corp., LIBOR + 2.00%, 5/15/14		1,002,188
	2,041	Jean Coutu Group, Inc., Loan B, LIBOR + 2.50%, 6/30/11		2,041,846
	430	Multiplan, Inc., LIBOR + 2.50%, 4/15/13		432,226
	493	National Renal Institutes, Inc., Loan B, LIBOR + 2.25%, 4/15/13		492,832
		Quintiles Transnational Corp.,
	990	First Lien Loan, LIBOR + 2.00%, 3/31/13		990,310
	250	Second Lien Loan, LIBOR + 4.00%, 3/31/14		253,125
	980	Select Medical Corp., Loan B, LIBOR + 2.00%, 2/28/12		975,768
	985	Vanguard Health Holding Co. II LLC, Replacement Loan, LIBOR + 2.25%, 9/30/11		990,840
		Warner Chilcott Corp.,
	306	Dovonex Loan, LIBOR + 2.00%, 1/18/12		306,584
	1,863	Loan B, LIBOR + 2.00%, 1/18/11		1,870,290
	518	Loan C, LIBOR + 2.00%, 1/18/11		520,062
	973	WellCare Holdings LLC, LIBOR + 2.50%, 5/13/09		974,323

		Total Health Care		24,923,214

		Industrials—2.1%
	993	Acosta, Inc., LIBOR + 2.25%, 8/15/13		999,737
	988	Bolthouse Farms, Inc., First Lien Loan, LIBOR + 2.25%, 12/01/12		990,895
		Buhrmann U.S., Inc.,
	499	Loan D, LIBOR + 1.75%, 12/30/10		499,997
	2,258	Loan D1, LIBOR + 1.75%, 12/30/10		2,263,479
	1,500	Clarke American Corp., Loan B, LIBOR, 3/12/13		1,498,437
	1,800	Drummond Co., Inc., LIBOR + 1.50%, 2/15/12		1,755,000
		Kion Group,
	250	Loan B, LIBOR, 3/15/15		253,594
	250	Loan C, LIBOR, 3/15/16		254,719
		Novelis, Inc.,
	199	Loan B, LIBOR + 2.25%, 1/13/10		199,150
	346	Loan B, LIBOR + 2.25%, 12/30/11		345,891
	2,494	Oshkosh Truck Corp., Loan B, LIBOR + 1.75%, 11/30/13		2,500,765
	625	QTC Acquisition, Inc., Second Lien Loan, LIBOR + 6.50%, 5/04/13		626,562
		Standard Steel LLC,
	83	Delayed Draw Loan, 1.00%, 7/15/12		83,854
	414	Loan B, LIBOR + 2.50%, 7/15/12		416,126
	1,260	Thermo Fluids, Inc., Loan B, LIBOR + 3.00%, 8/15/11		1,260,302


Principal Amount (000)		Description	Value

		Industrials—(cont’d)
		Trimas Corp.,
$	94	Letter of Credit, + 0.50%, 7/31/11	$	94,805
	404	Loan B, LIBOR + 2.75%, 7/31/13		408,766
	470	United Rentals NA, Inc., Initial Loan, LIBOR + 2.00%, 2/12/11		471,716

		Total Industrials		14,923,795

		Media—10.4%
	500	Affinion Group, Inc., LIBOR, 3/01/12		493,333
		American Lawyers Media, Inc.,
	1,702	First Lien Loan, 0.75%, 3/15/10		1,702,099
	2,000	Second Lien Loan, LIBOR + 5.75%, 3/07/11		2,000,000
	1,000	Audio Visual Services Corp., Second Lien Loan, LIBOR + 5.50%, 9/15/14		1,003,750
	3,970	Cablevision Systems Corp., Incremental Loan, LIBOR + 1.75%, 3/31/13		3,982,902
	6,500	Cequel Communications II LLC, LIBOR, 11/05/13		6,491,875
	6,000	Charter Communications Holdings LLC, TBD, 4/30/14		5,989,686
	3,500	Charter Communications Holdings LLC/ Charter Communication Holdings Capital Corp., LIBOR + 2.625%, 4/28/13		3,496,087
	718	CMP Susquehanna Corp., Loan B, LIBOR + 2.00%, 5/05/12		720,998
		Dex Media West LLC/Dex Media Finance Co.,
	720	Loan B1, LIBOR + 1.50%, 9/09/10		720,134
	2,865	Loan B2, LIBOR + 1.50%, 9/01/09		2,864,934
	1,317	DirecTV Holdings LLC, Loan B, LIBOR + 1.50%, 3/06/10		1,320,543
		Gatehouse Media Operating, Inc.,
	1,000	Loan B, LIBOR + 1.75%, 9/15/14		994,375
	592	Delayed Draw Loan, LIBOR + 0.50%, 9/15/14		588,339
	2,000	Gray Television, Inc., Delayed Draw Loan, LIBOR + 1.50%, 9/18/14		1,997,503
	2,993	Idearc, Inc., Loan B, LIBOR + 2.00%, 11/15/14		3,011,416
	500	Knology, First Lien Loan, LIBOR + 2.25%, 3/15/12		501,250
	495	Liberty Cablevision of Puerto Rico Ltd., LIBOR + 2.25%, 2/15/13		495,928
	1,995	Mediacom Broadband LLC, Loan D1, LIBOR + 1.75%, 1/31/15		1,993,442
	1,970	Mediacom Illinois LLC, Loan C, LIBOR + 1.75%, 1/15/15		1,968,831
	1,917	Mission Broadcasting, Inc., Loan B, LIBOR + 1.75%, 8/14/12		1,913,133
	399	Multicultural Radio Broadcasting, Inc., LIBOR + 2.75%, 12/15/12		399,997
	1,000	National CineMedia, Inc., Loan B, LIBOR + 1.75%, 2/28/15		1,000,179
		New Wave Communications,
	70	LIBOR + 3.25%, 6/20/13		70,000
	943	PRIME + 2.50%, 6/20/13		942,875
	230	TBD, 6/20/13		230,000
	1,816	Nexstar Finance, Inc., Loan B, LIBOR + 1.75%, 8/14/12		1,812,516

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)		Description	Value

		Media—(cont’d)
$	3,483	Nielsen Finance LLC/Nielsen Finance Co., Loan B, LIBOR + 2.25%, 8/15/13	$	3,510,433
	484	NTL Investment Holding Ltd., Loan B4, LIBOR + 2.00%, 9/03/12		485,751
		Penton Media, Inc.,
	1,125	First Lien Loan, LIBOR + 2.25%, 2/15/13		1,128,691
	1,000	Second Lien Loan, LIBOR + 5.00%, 2/15/14		1,008,125
	1,000	Persona Communications, Inc., Second Lien Loan, LIBOR + 6.00%, 4/30/14		1,010,000
	750	Puerto Rico Cable Acquisition Co., Second Lien Loan, LIBOR + 6.25%, 7/31/11		756,562
	3,318	RH Donnelley, Inc., Loan D2, LIBOR + 1.50%, 12/31/11		3,319,665
		Univision Communications, Inc.,
	5,638	Loan B, LIBOR + 2.25%, 9/15/14		5,623,169
	1,000	Second Lien Loan, LIBOR, 3/31/16		999,583
	362	TBD, 9/30/14		361,489
	1,413	UPC Broadband Holding BV, Loan M1, LIBOR, 12/31/14		1,936,133
	500	Wide Open West Finance LLC, Loan B, LIBOR + 2.25%, 4/30/13		502,604
	1,934	WMG Acquisition Corp., LIBOR + 2.00%, 4/08/11		1,939,797
	2,500	Yell Group Plc, Loan B, LIBOR + 2.00% , 2/15/13		3,074,319

		Total Media		74,362,446

		Real Estate—0.7%
	2,250	Foster Wheeler Ltd., Letter of Credit, 0.50%, 9/15/11		2,255,625
	270	Kyle Acquisition Group LLC, Loan B, LIBOR + 3.50%, 7/31/08		272,707
	490	Masonite Intl. Corp., LIBOR + 2.00% , 3/31/13		478,554
	1,500	Realogy Corp., LIBOR, 9/22/14		1,505,758
	558	Stewart Enterprises, Inc., Loan B, LIBOR + 1.75%, 11/30/11		558,223

		Total Real Estate		5,070,867

		Technology—2.1%
	741	Affiliated Computer Services, Inc., Loan B, LIBOR + 2.00%, 3/31/13		741,551
	998	ClientLogic Corp., LIBOR + 2.50%, 1/30/14		1,002,903
	373	Coinstar, Inc., LIBOR + 2.25%, 7/15/11		374,345
	500	Electrical Components Intl. Holdings Co., Second Lien Loan, LIBOR + 6.50%, 5/19/14		500,000
		Intergraph Corp.,
	475	First Lien Loan, LIBOR + 2.25%, 5/15/14		477,513
	750	Second Lien Loan, LIBOR, 11/15/14		763,594
	994	Marvell Technology Group Ltd., Loan B, LIBOR + 2.00%, 11/06/09		999,347
	697	RedPrairie Corp., Loan B, LIBOR, 7/31/12		697,491
	1,500	San Juan Cable, LIBOR + 6.50%, 3/15/13		1,502,345
	2,481	Sensata Technologies BV, Loan B, LIBOR + 1.75%, 4/27/13		2,478,007
	2,456	SunGard Data Systems, Inc., Loan B, LIBOR + 2.00%, 1/05/13		2,475,380


Principal Amount (000)		Description	Value

		Technology—(cont’d)
$	1,995	Verifone, Inc., LIBOR + 1.75%, 2/28/13	$	2,009,963
	191	Westcom Corp., Loan B, LIBOR + 2.75%, 12/31/10		190,659
		Wire Rope Corp.,
	171	Delayed Draw Loan, LIBOR + 2.25%, 1/30/14		171,857
	829	LIBOR + 2.25%, 1/30/14		834,786

		Total Technology		15,219,741

		Telecommunications—4.4%
	2,000	American Cellular Corp., Loan B, LIBOR + 2.00%, 3/16/14		2,002,500
	1,250	American Cellular Wireless LLC, Loan B, LIBOR + 2.00%, 3/16/14		1,252,604
	993	Atlantic Broadband Finance LLC, Loan B2, LIBOR + 2.25%, 1/30/11		1,001,807
	1,481	Consolidated Communications, Inc., Loan D, LIBOR + 1.75%, 4/07/12		1,484,953
	500	Country Road Communications LLC, Second Lien Loan, LIBOR + 7.75%, 6/30/13		505,000
		Eircom Group PLC,
	2,000	Loan B, LIBOR + 2.38%, 9/15/15		2,762,563
	2,000	Loan C, LIBOR + 2.75%, 9/15/14		2,734,984
	4,000	Insight Midwest Holdings LLC, Loan B, 2.50%, 4/03/14		4,018,752
	2,000	Iowa Telecommunications Services, Inc., Loan B, LIBOR + 1.75%, 11/30/11		2,010,416
	746	IPC Acquisition Corp., First Lien Loan, LIBOR + 2.50%, 9/30/13		751,847
	1,709	NTELOS, Inc., First Lien Loan, LIBOR + 2.25%, 2/24/10		1,716,221
		NTL Investment Holding Ltd.,
	968	Loan B2, LIBOR + 2.13%, 9/03/12		1,940,384
	2,000	Loan C, LIBOR + 2.75%, 3/03/13		4,106,260
	744	Nuvox Communications, LIBOR + 5.00%, 5/15/12		744,375
	2,993	West Corp., Loan B2, LIBOR + 2.38%, 10/31/13		3,013,074
	832	Wind Acquisition Finance S.A., Loan A1, LIBOR + 2.00%, 6/17/12		1,136,801

		Total Telecommunications		31,182,541

		Transportation—1.7%
	824	Delta Air Lines, Inc., Loan A, LIBOR + 2.75%, 4/15/08		825,761
		Dockwise Transport N.V.,
	192	Loan B1, LIBOR, 4/15/16		195,180
	296	Loan B2, LIBOR, 4/15/16		300,910
	489	Loan C, LIBOR, 4/15/15		495,275
		Hawker Beechraft Acquisition Co.,
	78	Letter of Credit, LIBOR, 3/31/14		78,265
	922	LIBOR + 2.00%, 3/31/14		924,949
	1,750	RailAmerica, Inc., Loan B, LIBOR, 10/15/08		1,751,094
	644	Sirva Worldwide, Inc., LIBOR + 6.25%, 11/30/10		629,939
	3,000	U.S. Airways, Loan B, LIBOR, 3/22/14		3,012,750
	2,250	United Air Lines, Inc., Loan B, LIBOR + 2.00%, 1/30/14		2,249,120

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Transportation—(cont’d)
$	1,763		Vanguard Car Rental Holdings, Inc., Loan B, LIBOR + 3.00%, 6/30/13	$	1,775,403

			Total Transportation		12,238,646

			Total Bank Loans		397,306,025

			Mortgage Pass-Through Securities—20.6%
			Federal National Mortgage Assoc.,
	1,507		5.50%, 12/01/28-11/01/33		1,494,049
	7,559	³	5.50%, 2/01/32-10/01/33		7,495,859
	17,000	³	7.25%, 1/15/10		18,040,757
	121,000		TBA, 5.00%, 5/17/22		119,260,625

			Total Mortgage Pass-Through Securities		146,291,290

			Interest Only Asset-Backed Securities—0.2%
			Sterling Coofs Trust,
	28,175		Ser. 1, 2.362%, 4/15/29		845,265
	24,469		Ser. 2, 2.126%, 3/30/30		672,896

			Total Interest Only Asset-Backed Securities		1,518,161

			U.S. Government and Agency Securities—3.9%
			U.S. Treasury Notes,
	20,425	³	3.375%, 12/15/08-9/15/09		19,989,389
	6,000	^3,6	3.875%, 5/15/09		5,914,920
	1,815	³	4.25%, 8/15/15		1,770,191

			Total U.S. Government and Agency Securities		27,674,500

			Foreign Government Bonds—2.4%
	476		Bolivarian Republic of Venezuela, 6.25%, 12/18/07		476,124
	4,871	³	Peru Government International Bond, 8.375%, 5/03/16		5,825,716
	5,000	³	Republic of Colombia, 9.75%, 4/23/09		5,405,000
	5,093	³	Turkey, 7.00%, 9/26/16		5,207,592

			Total Foreign Government Bonds		16,914,432



Units (000)

			Warrants—0.0%
	10	⁷	Reliant Resources, Inc., expires 8/25/08, strike price $0.001, 1 share for 1 warrant	172,264



Shares

			Common Stocks—0.0%
	7,579	⁷	Critical Care Systems Intl., Inc.	47,368

			Preferred Stock—0.0%
	125,000		Superior Essex Holding Corp., Ser. A, 9.50%	125,000

			Total Long-Term Investments (cost $999,202,694)	1,010,079,161


Principal Amount (000)			Description	Value

			SHORT-TERM INVESTMENT—0.5%
			U.S. Government and Agency Discount Notes—0.5%
$	3,400	⁸	Federal Home Loan Bank Disc. Notes, 5.061%, 5/01/07 (cost $3,400,000)	$	3,400,000

			Total Investments—142.4% (cost $1,002,602,694⁹)	$	1,013,479,161
			Liabilities in excess of other assets— (42.4)%		(301,539,548	)

			Net Assets—100%	$	711,939,613



¹	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2007, the Trust held 16.9% of its net assets, with a current market value of $120,343,605, in securities restricted as to resale.
²	Variable rate security. Rate shown is interest rate as of April 30, 2007.
³	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
⁴	Illiquid security. As of April 30, 2007, the Trust held 0.7% of its net assets, with a current market value of $5,143,007, in these securities.
⁵	Issuer is in default and/or bankruptcy.
⁶	Security, or a portion thereof, pledged as collateral with a value of $54,220 on 89 long U.S. Treasury Note futures contracts expiring June 2007. The notional value of such contracts on April 30, 2007 was $9,418,703, with an unrealized gain of $4,613.
⁷	Non-income producing security.
⁸	Rate shown is the yield to maturity as of the date of purchase.
⁹	Cost for federal income tax purposes is $1,002,820,424. The net unrealized appreciation on a tax basis is $10,658,737, consisting of $17,527,484 gross unrealized appreciation and $6,868,747 gross unrealized depreciation.


KEY TO ABBREVIATIONS
EUR	—	Euro
GBP	—	British Pound
LIBOR	—	London Interbank Offered Rate
PRIME	—	Prime Rate
TBA	—	To Be Announced
TBD	—	To Be Determined

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS
APRIL 30, 2007 (unaudited)

BlackRock Preferred and Equity Advantage Trust (BTZ)

(Percentages shown are based on Net Assets)


Shares		Description	Value

		LONG-TERM INVESTMENTS—138.9%
		Common Stocks—37.6%
		Aerospace & Defense—0.4%
	18,800	L-3 Communications Holdings, Inc.	$	1,690,684
	28,300	Lockheed Martin Corp.		2,720,762

		Total Aerospace & Defense		4,411,446

		Automotive—0.3%
	89,500	Ford Motor Co.		719,580
	62,500	General Motors Corp.		1,951,875
	11,200	Genuine Parts Co.		553,392
	10,000	PACCAR, Inc.		839,800

		Total Automotive		4,064,647

		Basic Materials—1.6%
	17,900	Air Products & Chemicals, Inc.		1,369,350
	29,800	Alcoa, Inc.		1,057,602
	6,800	Allegheny Technologies, Inc.		745,144
	29,700	Aluminum Corp. of China Ltd. (ADR)		862,785
	5,200	BASF AG (ADR)		617,812
	46,000	Dow Chemical Co. (The)		2,052,060
	46,500	E.I. du Pont de Nemours & Co.		2,286,405
	46,100	Freeport-McMoRan Copper & Gold, Inc.		3,096,076
	74,200	Intl. Paper Co.		2,798,824
	33,900	MeadWestvaco Corp.		1,130,904
	24,600	Plum Creek Timber Co., Inc. (REIT)		976,620
	13,700	PPG Industries, Inc.		1,008,046
	52,100	USEC, Inc.		1,050,857

		Total Basic Materials		19,052,485

		Building & Development—0.2%
	15,800	Centex Corp.		707,366
	26,400	D.R. Horton, Inc.		585,552
	16,000	KB Home		705,760
	7,600	Lennar Corp., Class A		324,596
	16,000	Masco Corp.		435,360

		Total Building & Development		2,758,634

		Consumer Products—5.4%
	108,300	Altria Group, Inc.		7,464,036
	30,400	Amazon.com, Inc.		1,864,432
	70,200	Amgen, Inc.		4,502,628
	45,000	Anheuser-Busch Cos., Inc.		2,213,550
	10,300	Black & Decker Corp.		934,416
	8,300	Clorox Co.		556,764
	113,100	Coca-Cola Co. (The)		5,902,689
	19,706	CVS/Caremark Corp.		714,145
	26,400	Eastman Kodak Co.		657,624
	17,100	Federated Deptartment Stores, Inc.		751,032
	21,800	Fortune Brands, Inc.		1,746,180
	67,700	Gap, Inc.		1,215,215
	92,900	Home Depot, Inc.		3,518,123
	6,900	JC Penney Co., Inc.		545,721
	74,946	Kraft Foods, Inc.		2,508,443
	72,600	Lowe’s Cos., Inc.		2,218,656
	12,600	Ltd. Brands, Inc., Class A		347,382
	17,400	Newell Rubbermaid, Inc.		533,658
	13,700	Nordstrom, Inc.		752,404
	6,800	OfficeMax, Inc.		334,696
	18,800	PepsiCo, Inc.		1,242,492
	128,000	Procter & Gamble Co.		8,231,680
	19,700	Reynolds American, Inc.		1,265,922


Shares			Description	Value

			Consumer Products—(cont’d)
	183,800		Sara Lee Corp.	$	3,016,158
	6,100	¹	Sears Holdings Corp.		1,164,551
	43,300	¹	Starbucks Corp.		1,343,166
	26,000		Tupperware Brands Corp.		731,120
	9,500		Universal Corp.		595,460
	53,100		UST, Inc.		3,009,708
	4,700		VF Corp.		412,707
	96,600		Wal-Mart Stores, Inc.		4,629,072
	37,900		Walgreen Co.		1,663,810
	7,000		Whole Foods Market, Inc.		327,530

			Total Consumer Products		66,915,170

			Energy—4.5%
	36,100		American Electric Power, Inc.		1,812,942
	26,300		Anadarko Petroleum Corp.		1,227,158
	20,300		Apache Corp.		1,471,750
	19,900		Baker Hughes, Inc.		1,599,761
	32,100		BP Plc (ADR)		2,160,972
	70,500		Chevron Corp.		5,484,195
	66,700		ConocoPhillips		4,625,645
	9,200		Consol Energy, Inc.		385,204
	54,600		Consolidated Edison, Inc.		2,798,796
	32,100		Devon Energy Corp.		2,339,127
	11,400		DTE Energy Co.		576,726
	34,800		Duke Energy Corp.		714,096
	14,100		EOG Resources, Inc.		1,035,504
	197,600		Exxon Mobil Corp.		15,685,488
	17,000		Great Plains Energy, Inc.		554,880
	48,200		Halliburton Co.		1,531,314
	20,300		Hess Corp.		1,152,025
	7,500		Marathon Oil Corp.		761,625
	9,400		Nicor, Inc.		481,656
	7,600		NiSource, Inc.		186,884
	7,300		Peabody Energy Corp.		350,254
	17,500		Rowan Cos., Inc.		641,200
	21,000		Sasol Ltd. (ADR)		717,570
	17,000		Schlumberger Ltd.		1,255,110
	13,900		Smith Intl., Inc.		728,916
	21,000		Southern Co.		793,590
	9,600		Sunoco, Inc.		725,088
	38,300		Total S.A. (ADR)		2,822,327
	15,400	¹	Transocean, Inc.		1,327,480

			Total Energy		55,947,283

			Entertainment & Leisure—0.3%
	12,500		Brunswick Corp.		409,500
	31,900		Carnival Corp.		1,559,591
	50,000		Regal Entertainment Group		1,087,500

			Total Entertainment & Leisure		3,056,591

			Financial Institutions—7.7%
	40,000		American Express Co.		2,426,800
	79,200	²	American Intl. Group, Inc.		5,536,872
	18,300		Arthur J. Gallagher & Co.		511,668
	164,100		Bank of America Corp.		8,352,690
	39,700		Bank of New York Co., Inc.		1,607,056
	92,300		BB&T Corp.		3,841,526
	7,500		Bear Stearns Cos., Inc.		1,167,750
	2,800		Cigna Corp.		435,652
	152,300		Citigroup, Inc.		8,166,326

See Notes to Financial Statements.

BlackRock Preferred and Equity Advantage Trust (BTZ) (continued)

(Percentages shown are based on Net Assets)


Shares			Description	Value

			Financial Institutions—(cont’d)
	33,800		Comerica, Inc.	$	2,092,558
	62,900	¹	E*Trade Financial Corp.		1,388,832
	37,400		Fannie Mae		2,203,608
	22,900		Freddie Mac		1,483,462
	27,300		Goldman Sachs Group, Inc. (The)		5,968,053
	30,300		HSBC Holdings Plc (ADR)		2,798,508
	99,300		JPMorgan Chase & Co.		5,173,530
	38,500		KeyCorp		1,373,680
	34,400		Lehman Brothers Holdings, Inc.		2,589,632
	35,700		Lincoln National Corp.		2,540,055
	54,900		Marsh & McLennan Cos., Inc.		1,743,624
	25,600		MCG Capital Corp.		451,072
	71,300		Morgan Stanley		5,989,913
	92,200		National City Corp.		3,369,910
	152,300		New York Community Bancorp, Inc.		2,659,158
	54,700		Progressive Corp.		1,261,929
	75,000		Regions Financial Corp.		2,631,750
	30,700		Travelers Cos., Inc.		1,660,870
	91,400		U.S. Bancorp		3,139,590
	101,000		Wachovia Corp.		5,609,540
	74,000		Washington Mutual, Inc.		3,106,520
	107,300		Wells Fargo & Co.		3,850,997

			Total Financial Institutions		95,133,131

			Health Care-4.6%
	58,400		Abbott Laboratories		3,306,608
	58,700		Aetna, Inc.		2,751,856
	5,100		Applera Corp. - Applied Biosystems Group		159,324
	8,100		Bausch & Lomb, Inc.		476,523
	37,900		Baxter Intl., Inc.		2,146,277
	30,600		Becton Dickinson & Co.		2,407,914
	9,300¹		Biogen Idec, Inc.		439,053
	32,600		Boston Scientific Corp.		503,344
	176,100		Bristol-Myers Squibb Co.		5,082,246
	10,300	¹	Celgene Corp.		629,948
	40,700		Eli Lilly & Co.		2,406,591
	16,500	¹	Express Scripts, Inc.		1,576,575
	24,800	¹	Gilead Sciences, Inc.		2,026,656
	4,600		Humana, Inc.		290,904
	114,000		Johnson & Johnson		7,321,080
	6,600		MedImmune, Inc.		374,088
	64,500		Medtronic, Inc.		3,413,985
	90,800		Merck & Co., Inc.		4,670,752
	274,300	²	Pfizer, Inc.		7,257,978
	11,100		Quest Diagnostics, Inc.		542,679
	49,500		Schering-Plough Corp.		1,570,635
	9,800	¹	St. Jude Medical, Inc.		419,342
	39,200		UnitedHealth Group, Inc.		2,079,952
	44,200		Wyeth		2,453,100
	19,500	¹	Zimmer Holdings, Inc.		1,764,360

			Total Health Care		56,071,770

			Industrials—3.0%
	37,600		3M Co.		3,112,152
	33,700		Boeing Co.		3,134,100
	44,000		Caterpillar, Inc.		3,195,280
	14,800		Deere & Co.		1,619,120
	6,700		Fluor Corp.		640,654
	389,000		General Electric Co.		14,338,540
	29,700		Honeywell Intl., Inc.		1,609,146
	38,000		Illinois Tool Works, Inc.		1,949,780
	30,100		Ingersoll-Rand Co. Ltd. Bermuda		1,343,965


Shares			Description	Value

			Industrials—(cont’d)
	20,300		Leggett & Platt, Inc.	$	477,456
	15,900		Rockwell Automation, Inc.		946,686
	2,800		Terex Corp.		217,980
	5,500		Textron, Inc.		559,185
	130,000		Tyco Intl. Ltd. Bermuda		4,241,900

			Total Industrials		37,385,944

			Media—1.0%
	75,100		CBS Corp., Class B		2,385,927
	122,950	¹	Comcast Corp., Class A		3,277,847
	55,700		DIRECTV Group, Inc.		1,327,888
	13,200		Dow Jones & Co., Inc.		479,556
	87,500		Time Warner, Inc.		1,805,125
	28,200		Viacom, Inc.		1,163,250
	38,900		Walt Disney Co. (The)		1,360,722

			Total Media		11,800,315

			Real Estate—0.8%
	31,000		Annaly Capital Management, Inc. (REIT)		493,210
	33,700		Crescent Real Estate Equities Co. (REIT)		691,187
	27,900		Equity Residential (REIT)		1,295,397
	15,600		First Industrial Realty Trust, Inc. (REIT)		683,124
	13,900		Health Care Property Investors, Inc.		491,921
	59,100		Hospitality Properties Trust (REIT)		2,690,823
	56,300		HRPT Properties Trust (REIT)		689,112
	20,200		Inland Real Estate Corp. (REIT)		367,438
	39,600		Starwood Hotels & Resorts Worldwide, Inc.		2,653,992

			Total Real Estate		10,056,204

			Technology—4.4%
	10,400		Agilent Technologies, Inc.		357,448
	39,700		Apple, Inc.		3,962,060
	182,100		Applied Materials, Inc.		3,499,962
	30,100		AutoDesk, Inc.		1,242,227
	38,300		Automatic Data Processing, Inc.		1,714,308
	9,575		Broadridge Financial Solutions, Inc.		191,883
	13,600		Cognizant Technology Solutions Corp.		1,215,840
	35,600	¹	Dell, Inc.		897,476
	46,200	¹	eBay, Inc.		1,568,028
	16,500		Electronic Arts, Inc.		831,765
	140,800	¹	EMC Corp.		2,137,344
	10,300	¹	Google, Inc.		4,855,214
	84,600		Hewlett-Packard Co.		3,565,044
	202,400		Intel Corp.		4,351,600
	51,200		Intl. Business Machines Corp.		5,233,152
	38,600		Maxim Integrated Products, Inc.		1,224,392
	296,300		Microsoft Corp.		8,871,222
	54,500		National Semiconductor Corp.		1,433,350
	94,700	¹	Oracle Corp.		1,780,360
	12,900		Paychex, Inc.		478,590
	17,200		Pitney Bowes, Inc.		825,600
	6,200		SanDisk Corp.		269,390
	115,800		Sanmina-SCI Corp.		399,510
	252,400	¹	Sun Microsystems, Inc.		1,317,528
	43,700		Xilinx, Inc.		1,288,276
	33,900	¹	Yahoo!, Inc.		950,556

			Total Technology		54,462,125

			Telecommunications—2.8%
	217,687		AT&T, Inc.		8,428,841
	129,100		Chunghwa Telecom Co. Ltd. (ADR)		2,569,090
	8,400	¹	Ciena Corp.		244,944
	174,800	¹	Cisco Systems, Inc.		4,674,152

See Notes to Financial Statements.

BlackRock Preferred and Equity Advantage Trust (BTZ) (continued)

(Percentages shown are based on Net Assets)


Shares			Description	Value

			Telecommunications—(cont’d)
	64,000		Citizens Communications Co.	$	996,480
	43,300	¹	Corning, Inc.		1,027,076
	15,700		Juniper Networks, Inc.		351,052
	140,400		Motorola, Inc.		2,433,132
	119,200		Qualcomm, Inc.		5,220,960
	109,900		Sprint Nextel Corp.		2,201,297
	47,000		Tele Norte Leste Participacoes (ADR)		769,390
	156,000		Verizon Communications, Inc.		5,956,080

			Total Telecommunications		34,872,494

			Transportation—0.6%
	39,700		General Maritime Corp.		1,273,179
	37,600		Nordic American Tanker Shipping		1,448,352
	15,700		Ship Finance Intl. Ltd.		466,918
	62,900		United Parcel Service, Inc., Class B		4,430,047

			Total Transportation		7,618,496

			Total Common Stocks		463,606,735

			Preferred Stocks—28.9%
			Energy—3.3%
	40,000		Entergy Louisiana LLC, 6.95%		3,983,277
	785,000		Interstate Power & Light Co., Ser. B, 8.375%		25,757,812
	120,000		Nexen, Inc., 7.35%		3,060,000
	288,000		PPL Energy Supply LLC, 7.00%		7,450,560

			Total Energy		40,251,649

			Financial Institutions—22.0%
	400,000		ACE Ltd., Ser. C, 7.80%		10,328,000
	400,000		Aegon N.V., 6.50%		10,262,520
			Arch Capital Group Ltd.,
	100,000		8.00%		2,662,500
	160,000		Ser. B, 7.875%		4,230,000
	600,000	⁴	Aspen Insurance Holdings Ltd., 7.401%		15,420,000
	180,000	⁴	Axis Capital Holdings Ltd., Ser. B, 7.50%		19,473,750
	170,731		Berkley W.R. Capital Trust II, 6.75%		4,310,958
	10,000	³	Centaur Funding Corp., Ser. B, 9.08%		11,787,500
	210,000		Citizens Funding Trust I, 7.50%		5,424,300
	150,000	³	CoBank ACB, 7.00%		7,731,900
	113,200		Countrywide Capital V, 7.00%		2,790,380
	600,000		Deutsche Bank Capital Funding Trust VIII, 6.375%		15,450,000
	389,000		Endurance Specialty Holdings Ltd., 7.75%		10,394,080
	120,000		Everest RE Capital Trust, 7.85%		3,026,256
			Federal Home Loan Mortgage Corp.,
	260,000		5.66%		6,505,200
	535,000		Ser. V, 5.57%		13,385,700
	5,000,000	^3,4	Glitnir Banki HF, 7.451%		5,398,550
	300,000		HSBC Holdings Plc, Ser. A, 6.20%		7,602,000
	200,000		ING Groep N.V., 6.125%		5,006,260
	805,000		KeyCorp Capital IX, 6.75%		20,535,550
	298,100		National City Capital Trust II, 6.625%		7,517,724
	265,600		PartnerRE Ltd., Ser. C, 6.75%		6,756,200
	285,000		RenaissanceRe Holdings Ltd., Ser. D, 6.60%		6,956,850
	50	⁴	Roslyn Real Estate Asset Corp., Ser. D, 9.00%		5,009,375
	665,000		Royal Bank of Scotland Group Plc (ADR), Ser. R, 6.125%		16,691,500
			Santander Finance Preferred S.A. Unipersonal,
	522,000	³	6.50%		13,017,375
	670,000	³	6.80%		17,022,221
	85,000		Sovereign Capital Trust V, 7.75%		2,273,750
	7,150,000	^3,4	Woori Bank, 6.208%		7,149,786
	300,000		XL Capital Ltd., Ser. B, 7.625%		7,640,640

			Total Financial Institutions		271,760,825


Shares		Description	Value

		Real Estate—3.1%
	520,000	CBL & Associates Properties, Inc. (REIT), Ser. C, 7.75%	$	13,265,200
	60,000	iStar Financial, Inc. (REIT), Ser. I, 7.50%		1,515,000
	341,300	PS Business Parks, Inc. (REIT), Ser. P, 6.70%		8,447,175
	600,000	Public Storage, Inc. (REIT), Ser. M, 6.625%		14,844,000

		Total Real Estate		38,071,375

		Telecommunications—0.5%
	270,000	AT&T, Inc., 6.375%		6,750,000

		Total Preferred Stocks		356,833,849



Principal Amount (000)

			Trust Preferred Stocks—45.7%
			Building & Development—0.9%
$	10,750	^3,4,5	C8 Capital SPV Ltd., 6.64%	10,796,010

			Energy—2.0%
	4,500	^4,5	Enterprise Products Operating LP, 8.375%	4,983,035
	11,900	⁴	PPL Capital Funding, Inc., Ser. A, 6.70%, 3/30/67	11,907,544
	7,325	⁵	Trans-Canada Pipelines Ltd., 6.35%	7,325,000

			Total Energy	24,215,579

			Financial Institutions—41.3%
	17,000		Ace Capital Trust II, 9.70%, 4/01/30	22,757,643
	11,150		American Intl. Group, Inc., Ser. A1, 6.25%, 3/15/37	11,109,463
	23,273		AON Corp., 8.205%, 1/01/27	26,296,815
	5,000		Astoria Capital Trust I, Ser. B, 9.75%, 11/01/29	5,561,099
	32,000	^3,4,5	AXA S.A., 6.463% (France)	31,619,744
	30,000	^3,4,5	BOI Capital Funding No. 3, 6.107% (Ireland)	29,396,430
	10,000	⁵	BTA Finance Luxembourg S.A., 8.25% (Kazakhstan)	9,261,100
	8,250	^3,4,5	C10 Capital SPV Ltd., 6.722% (British Virgin Islands)	8,238,615
	5,000	²	Capital One Capital III, 7.686%, 8/15/36	5,401,465
	15,000		Capital One Capital IV, 6.745%, 2/17/37	14,633,475
	7,650	⁴	Chubb Corp., 6.375%, 3/29/67	7,742,771
	20,000	^3,4,5	Commonwealth Bank of Australia, 6.024% (Australia)	20,196,200
	65,000	³	DJ CDX NA HY, Ser. 7-T1, 8.375%, 12/29/11	67,275,000
	4,000	³	Dresdner Funding Trust I, 8.151%, 6/30/31	4,835,724
	8,775	^4,5	Everest Reinsurance Holdings, Inc., 6.60%	8,866,799
	10,000	^3,4,5	HBOS Plc, 6.413% (United Kingdom)	9,818,680
	7,000	^3,4,5,6	HSBC Capital Funding LP, Ser. 2, 10.176% (Jersey Channel Islands)	10,220,315
	25,100	^3,4,5	ICICI Bank Ltd., 7.25% (India)	26,077,244
	35,000	^2,4	JPMorgan Chase Capital XXI, Ser. U, 6.305%, 2/02/37	35,400,085
	5,000	⁵	Kazkommerts Finance 2 BV, 9.25% (Netherlands)	5,099,000
	11,600	^3,4	Liberty Mutual Group, Inc., Ser. B, 7.00%, 3/15/37	11,655,773
	13,000	^3,4,5	Lloyds TSB Group Plc, 6.267% (United Kingdom)	12,932,179
	10,000	^3,4	Mangrove Bay Pass-Through Trust, 6.102%, 7/15/33	9,823,300

See Notes to Financial Statements.

BlackRock Preferred and Equity Advantage Trust (BTZ) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Financial Institutions—(cont’d)
$	21,000	^3,4,5	Mizuho Capital Investment 1 Ltd., 6.686% (Cayman Islands)	$	21,570,003
	25,000	^3,4,5	Resona Preferred Global Securities Ltd., 7.191% (Cayman Islands)		26,427,025
	7,000	^3,4,5	Shinsei Finance II, 7.16% (Cayman Islands)		7,144,375
	10,000	^3,4,5	SMFG Preferred Capital 1 Ltd., 6.078% (Cayman Islands)		10,026,500
	17,850	^3,4,5	Societe Generale, 5.922% (France)		17,856,783
	11,350	⁴	State Street Capital Trust IV, 6.355%, 6/01/67		11,123,000
	11,325	⁴	Travelers Cos., Inc., 6.25%, 3/15/67		11,340,447
	10,000	^4,5	XL Capital Ltd., Ser. E, 6.50% (Cayman Islands)		9,870,200

			Total Financial Institutions		509,577,252

			Real Estate—1.5%
	13,000	^3,5	Sovereign Real Estate Investment Corp. (REIT), 12.00%		19,305,000

			Total Trust Preferred Stocks		563,893,841

			Corporate Bonds—26.7%
			Automotive—1.7%
	20,000		Ford Motor Co., 7.45%, 7/16/31		15,900,000
	5,000		Lear Corp., Ser. B, 8.75%, 12/01/16		4,868,750

			Total Automotive		20,768,750

			Basic Materials—0.2%
	2,350	³	Ineos Group Holdings Plc, 8.50%, 2/15/16 (United Kingdom)		2,273,625

			Commercial Services—0.4%
	5,000	³	Quebecor World, Inc., 9.75%, 1/15/15 (Canada)		5,275,000

			Consumer Products—0.7%
	5,000	³	Michaels Stores, Inc., 11.375%, 11/01/16		5,512,500
	3,850		Spectrum Brands, Inc., 7.375%, 2/01/15		3,051,125

			Total Consumer Products		8,563,625

			Energy—1.3%
	2,610	³	Halliburton Co., 7.60%, 8/15/96		3,012,948
	8,000		Pioneer Natural Resources Co., 6.65%, 3/15/17		7,840,928
	5,000	⁴	Southern Union Co., 7.20%, 11/01/66		5,082,870

			Total Energy		15,936,746

			Entertainment & Leisure—0.6%
	2,500		AMC Entertainment, Inc., 11.00%, 2/01/16		2,868,750
	2,000		Harrah’s Operating Co., Inc., 5.75%, 10/01/17		1,660,000
	3,000		Station Casinos, Inc., 6.875%, 3/01/16		2,823,750

			Total Entertainment & Leisure		7,352,500

			Financial Institutions—17.9%
			Barclays Bank Plc (United Kingdom)
	15,000	^3,4,5	5.926%		15,151,950
	20,000	^3,4,5	6.86%		21,598,000
	100,000	³	CDX North America High Yield, 8-T1, 7.625%, 6/29/12		99,750,000
	15,000	^3,4,5,6	HBOS Plc, 5.92% (United Kingdom)		14,740,380
	6,500	^3,4	ICICI Bank Ltd., 6.375%, 4/30/22 (India)		6,503,186
	5,000	³	Momentive Performance Materials, Inc., 9.75%, 12/01/14		5,287,500


Principal Amount (000)			Description	Value

			Financial Institutions—(cont’d)
$	15,000	⁴	Reinsurance Group of America, Inc., 6.75%, 12/15/65	$	15,066,465
	18,000	^4,5	Royal Bank of Scotland Group Plc, 7.648% (United Kingdom)		21,188,880
	20,000	^3,4,5	Swiss Re Capital I LP, 6.854%		20,881,060

			Total Financial Institutions		220,167,421

			Health Care—0.4%
	4,500		Tenet Healthcare Corp., 9.875%, 7/01/14		4,601,250

			Industrials—0.4%
	5,000	³	Aleris Intl., Inc., 10.00%, 12/15/16		5,218,750

			Media—1.1%
	5,000		Cablevision Systems Corp., Ser. B, 8.00%, 4/15/12		5,125,000
	1,000		Nexstar Finance, Inc., 7.00%, 1/15/14		972,500
	5,000		Primedia, Inc., 8.00%, 5/15/13		5,200,000
	2,000		Vertis, Inc., Ser. B, 10.875%, 6/15/09		1,982,500

			Total Media		13,280,000

			Technology—1.3%
	5,000	³	Freescale Semiconductor, Inc., 9.125%, 12/15/14		4,975,000
	5,000	³	NXP BV/NXP Funding LLC, 9.50%, 10/15/15 (Netherlands)		5,250,000
	5,000		SunGard Data Systems, Inc., 10.25%, 8/15/15		5,500,000

			Total Technology		15,725,000

			Telecommunications—0.7%
			Intelsat Ltd. (Bermuda)
	3,325	⁴	8.872%, 1/15/15		3,401,753
	5,000		11.25%, 6/15/16		5,706,250

			Total Telecommunications		9,108,003

			Total Corporate Bonds		328,270,670

			Total Long-Term Investments (cost $1,701,774,301)		1,712,605,095



Shares (000)

		MONEY MARKET FUND—0.9%
	11,500⁷	SSgA Tax Free Money Mkt. Fund - Class A, 3.326% (cost $11,500,000)	11,500,000

		Total Investments before borrowed bonds, investment sold short, and outstanding call options written (cost $1,713,274,301⁸)	1,724,105,095



Principal Amount (000)

			BORROWED BONDS—15.1%
			U.S. Treasury Notes,
$	102,375	⁹	4.81%, 6/04/07	102,375,000
	83,948	⁹	4.927%, 6/04/07	83,947,500

			Total Borrowed Bonds (cost $186,322,500)	186,322,500

			INVESTMENT SOLD SHORT—(15.0)%
	(182,000	)	U.S. Treasury Notes, 4.875%, 8/15/16 (proceeds $183,539,692)	(185,341,338	)

See Notes to Financial Statements.

BlackRock Preferred and Equity Advantage Trust (BTZ) (continued)

(Percentages shown are based on Net Assets)


Contracts (000)			Description	Value

			OUTSTANDING CALL OPTIONS WRITTEN—(0.3)%
	(10	)	S&P 500 Index, strike price $1,470, expires 5/19/07	$	(265,000	)
	(55	)	S&P 500 Index, strike price $1,475, expires 5/19/07		(1,237,500	)
	(65	)	S&P 500 Index, strike price $1,485, expires 5/19/07		(1,040,000	)
	(80	)	S&P 500 Index, strike price $1,490, expires 5/19/07		(1,080,000	)
	(5	)	S&P 500 Index, strike price $1,520, expires 5/19/07		(14,000	)

			Total Outstanding Call Options Written (premium received $2,935,287)		(3,636,500	)

			Total Investments net of borrowed bonds, investment sold short, and outstanding call options written —139.6%	$	1,721,449,757
			Liabilities in excess of other assets—(2.1)%		(25,945,321	)
			Preferred shares at redemption value, including dividends payable—(37.5)%		(462,269,872	)

			Net Assets Applicable to Common Shareholders—100%	$	1,233,234,564


¹	Non-income producing security.
²	Security, or a portion thereof, pledged as collateral with a value of $18,506,417 on 806 long U.S. Treasury Note futures contracts expiring June 2007, 887 long U.S. Treasury Bond futures contracts expiring June 2007, 34 long S&P 500 Index futures contracts expiring June 2007 and 3,339 short U.S. Treasury Note futures contracts expiring June 2007. The notional value of such contracts on April 30, 2007 was $164,636,491, with an unrealized loss of $998,584.
³	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2007, the Trust held 51.3% of its net assets, with a current market value of $632,752,131, in securities restricted as to resale.
⁴	Variable rate security. Rate shown is interest rate as of April 30, 2007.
⁵	The security is a perpetual bond and has no stated maturity date.
⁶	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
⁷	Represents current yield as of April 30, 2007.
⁸	Cost for federal income tax purposes is $1,713,481,774. The net unrealized appreciation on a tax basis is $10,623,321, consisting of $26,783,822 gross unrealized appreciation and $16,160,501 gross unrealized depreciation.
⁹	The interest rate and maturity date shown represent the terms of the borrowed transaction, not the security borrowed.


KEY TO ABBREVIATIONS

ADR	—	American Depositary Receipt
REIT	—	Real Estate Investment Trust
USD	—	U.S. Dollar

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS
APRIL 30, 2007 (unaudited)

BlackRock Strategic Bond Trust (BHD)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			LONG-TERM INVESTMENTS—102.5%
			Corporate Bonds—97.7%
			Aerospace & Defense—6.8%
$	250		AAR Corp., Ser. A2, 8.39%, 5/15/11	$	252,500
	120	¹	Bombardier, Inc., 8.00%, 11/15/14 (Canada)		126,150
	1,164		DI Finance/DynCorp Intl., Ser. B, 9.50%, 2/15/13		1,251,300
			DRS Technologies, Inc.,
	50		6.875%, 11/01/13		50,500
	80		7.625%, 2/01/18		83,800
	2,000		Lockheed Martin Corp., Ser. B, 6.15%, 9/01/36		2,080,895
	1,000		Northrop Grumman Corp., 7.125%, 2/15/11		1,068,839
	650		Raytheon Co., 4.85%, 1/15/11		643,239
	50		Sequa Corp., 9.00%, 8/01/09		52,875
	90	¹	TransDigm, Inc., 7.75%, 7/15/14		93,375
	1,000		United Technologies Corp., 6.35%, 3/01/11		1,046,285

			Total Aerospace & Defense		6,749,758

			Automotive—3.9%
	110		Accuride Corp., 8.50%, 2/01/15		113,575
	45	¹	Ashtead Capital, Inc., 9.00%, 8/15/16		48,375
			AutoNation, Inc.,
	110		7.00%, 4/15/14		110,550
	110	²	7.356%, 4/15/13		110,963
	20	^1,2	Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.86%, 5/15/14		20,550
	1,000		DaimlerChrysler NA Holding Corp., 7.30%, 1/15/12		1,078,261
	350		Ford Capital BV, 9.50%, 6/01/10 (Netherlands)		351,750
	400		Lear Corp., Ser. B, 8.75%, 12/01/16		389,500
	200		Metaldyne Corp., 11.00%, 11/01/13		206,000
	1,400		Sonic Automotive, Inc., Ser. B, 8.625%, 8/15/13		1,459,500

			Total Automotive		3,889,024

			Basic Materials—6.9%
	270		Abitibi-Consolidated, Inc., 6.00%, 6/20/13 (Canada)		233,550
	320		AK Steel Corp., 7.75%, 6/15/12		330,400
	180	¹	American Pacific Corp., 9.00%, 2/01/15		180,900
	60	²	Bowater, Inc., 8.355%, 3/15/10		60,300
	20		Chemtura Corp., 6.875%, 6/01/16		19,700
	150		CPG Intl. I, Inc., 10.50%, 7/01/13		157,500
	40		Domtar, Inc., 7.125%, 8/15/15 (Canada)		40,750
	120		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		120,000
	130	¹	FMG Finance Ltd., 10.625%, 9/01/16 (Australia)		152,100
			Freeport-McMoRan Copper & Gold, Inc.,
	660		8.375%, 4/01/17		721,875
	240	²	8.564%, 4/01/15		252,900
			Huntsman LLC,
	50		11.625%, 10/15/10		53,875
	99		12.00%, 7/15/12		110,385
	595	¹	Ineos Group Holdings Plc, 8.50%, 2/15/16 (United Kingdom)		575,662
	190	¹	Innophos Holdings, Inc., 9.50%, 4/15/12		192,850


Principal Amount (000)			Description	Value

			Basic Materials—(cont’d)
$	980		Innophos, Inc., 8.875%, 8/15/14	$	1,026,550
	135	¹	Key Plastics LLC/Key Plastics Finance Corp., 11.75%, 3/15/13		136,350
			Lyondell Chemical Co.,
	170		8.00%, 9/15/14		178,075
	290		8.25%, 9/15/16		310,300
	130		10.50%, 6/01/13		142,513
	55		Nalco Co., 8.875%, 11/15/13		58,850
	530		NewPage Corp., 10.00%, 5/01/12		585,650
	475	²	Nova Chemicals Corp., 8.502%, 11/15/13 (Canada)		483,312
	565	¹	Pregis Corp., 12.375%, 10/15/13		621,500
	170	¹	Terra Capital, Inc., 7.00%, 2/01/17		166,600
	5	¹	Verso Paper Holdings LLC/Verson Paper, Inc., 11.375%, 8/01/16		5,350

			Total Basic Materials		6,917,797

			Building & Development—0.7%
	465		Goodman Global Holding Co., Inc., 7.875%, 12/15/12		468,488
	140		Nortek, Inc., 8.50%, 9/01/14		138,600
	125		North American Energy Partners, Inc., 8.75%, 12/01/11 (Canada)		128,750

			Total Building & Development		735,838

			Commercial Services—0.1%
	120	¹	Quebecor World, Inc., 9.75%, 1/15/15 (Canada)		126,600

			Conglomerates—0.4%
	325		Honeywell Intl., Inc., 7.50%, 3/01/10		345,827

			Consumer Products—4.6%
	350	²	Ames True Temper, Inc., 9.356%, 1/15/12		357,000
	60	¹	Beverages & More, Inc., 9.25%, 3/01/12		60,750
			General Nutrition Centers, Inc.,
	360	¹	9.796%, 3/15/14		352,350
	290	¹	10.75%, 3/15/15		289,275
	369		Lazy Days RV Center, Inc., 11.75%, 5/15/12		381,915
			Michaels Stores, Inc.,
	340	¹	10.00%, 11/01/14		373,150
	430	¹	11.375%, 11/01/16		474,075
	30	^1,2	Nutro Products, Inc., 9.37%, 10/15/13		30,675
	500		Pantry, Inc. (The), 7.75%, 2/15/14		503,750
	100		Quiksilver, Inc., 6.875%, 4/15/15		97,500
	200		Reynolds American, Inc., 7.625%, 6/01/16		218,818
	510		Rite Aid Corp., 7.50%, 3/01/17		508,725
	270	¹	Sally Holdings LLC, 10.50%, 11/15/16		280,800
	75		Spectrum Brands, Inc., 7.375%, 2/01/15		59,437
	600		United Rentals NA, Inc., 7.00%, 2/15/14		612,000

			Total Consumer Products		4,600,220

			Containers & Packaging—0.9%
			Berry Plastics Holding Corp.,
	190		8.875%, 9/15/14		195,700
	130	²	9.23%, 9/15/14		132,925
	250		Crown Americas LLC/Crown Americas Capital Corp., 7.75%, 11/15/15		264,375
	55		Graham Packaging Co., Inc., 8.50%, 10/15/12		56,100

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Containers & Packaging—(cont’d)
$	260	^1,2	Impress Holdings BV, 8.481%, 9/15/13 (Netherlands)	$	266,168

			Total Containers & Packaging		915,268

			Ecological Services & Equipment—2.2%
	1,500		Casella Waste Systems, Inc., 9.75%, 2/01/13		1,586,250
	550		Waste Services, Inc., 9.50%, 4/15/14		580,250

			Total Ecological Services & Equipment		2,166,500

			Energy—12.3%
	100		Berry Petroleum Co., 8.25%, 11/01/16		100,375
	250		Chaparral Energy, Inc., 8.50%, 12/01/15		253,750
			Chesapeake Energy Corp.,
	130		6.375%, 6/15/15		130,163
	20		6.875%, 11/15/20		20,150
			Compagnie Generale de Geophysique-Veritas (France)
	65		7.50%, 5/15/15		68,250
	70		7.75%, 5/15/17		74,200
	255		Compton Petroleum Finance Corp., 7.625%, 12/01/13 (Canada)		253,088
	1,000		ConocoPhillips Holding Co., 6.95%, 4/15/29		1,141,707
	725	^1,3	Corral Finans AB, 6.855%, 4/15/10 (Sweden)		727,859
	1,000		Dominion Resources, Inc., 5.70%, 9/17/12		1,025,648
	250	⁴	DTE Energy Co., 7.05%, 6/01/11		266,161
	125		Edison Mission Energy, 7.50%, 6/15/13		130,000
			El Paso Corp.,
	165		7.75%, 1/15/32		183,975
	205		7.80%, 8/01/31		228,575
	175		El Paso Natural Gas Co., 8.875%, 6/15/32		218,556
	31		Elwood Energy LLC, 8.159%, 7/05/26		33,310
			Encore Acquisition Co.,
	30		6.00%, 7/15/15		27,450
	40		7.25%, 12/01/17		38,700
	275		Exco Resources, Inc., 7.25%, 1/15/11		275,687
	1,075		FirstEnergy Corp., Ser. C, 7.375%, 11/15/31		1,234,038
	60		Grant Prideco, Inc., Ser. B, 6.125%, 8/15/15		59,550
	225		KCS Energy, Inc., 7.125%, 4/01/12		222,750
			Midwest Generation LLC,
	370		8.75%, 5/01/34		408,850
	426		Ser. B, 8.56%, 1/02/16		469,388
	185		Mirant Americas Generation LLC, 8.30%, 5/01/11		195,638
	120		Mission Energy Holdings Co., 13.50%, 7/15/08		131,100
			NRG Energy, Inc.,
	50		7.25%, 2/01/14		51,750
	285		7.375%, 2/01/16		296,044
	250		Occidental Petroleum Corp., 6.75%, 1/15/12		267,867
	320	¹	OPTI, Inc., 8.25%, 12/15/14 (Canada)		338,400
	140		Orion Power Holdings, Inc., 12.00%, 5/01/10		161,700
	1,000		Progress Energy, Inc., 7.75%, 3/01/31		1,210,930
			Reliant Energy, Inc.,
	285		6.75%, 12/15/14		298,537
	130		9.25%, 7/15/10		136,338
	305	¹	Sabine Pass LNG LP, 7.50%, 11/30/16		313,387
	275	¹	SemGroup LP, 8.75%, 11/15/15		283,937


Principal Amount (000)			Description	Value

			Energy—(cont’d)
$	260	^1,2	Stone Energy Corp., 8.106%, 7/15/10	$	260,000
	400	¹	Targa Resources, Inc., 8.50%, 11/01/13		412,000
	330		Whiting Petroleum Corp., 7.25%, 5/01/12-5/01/13		323,475
	25		Williams Cos., Inc., 7.125%, 9/01/11		26,250

			Total Energy		12,299,533

			Entertainment & Leisure—1.2%
	200		AMC Entertainment, Inc., 11.00%, 2/01/16		229,500
	60		Cinemark, Inc., Zero Coupon, 3/15/14		55,200
	225	¹	Greektown Holdings LLC, 10.75%, 12/01/13		241,313
	100		Harrah’s Operating Co., Inc., 5.75%, 10/01/17		83,000
	55		Poster Financial Group, Inc., 8.75%, 12/01/11		57,200
	190		Seneca Gaming Corp., Ser. B, 7.25%, 5/01/12		193,325
	155	¹	TDS Investor, 9.875%, 9/01/14		165,850
	140		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14		140,350

			Total Entertainment & Leisure		1,165,738

			Financial Institutions—16.1%
	104		AES Ironwood LLC, 8.857%, 11/30/25		116,721
			American Real Estate Partners LP/American Real Estate Finance Corp.,
	230		7.125%, 2/15/13		226,262
	860		8.125%, 6/01/11		877,200
	100	^1,2	BMS Holdings, Inc., 12.40%, 2/15/12		100,250
	80		Britannia Bulk Plc, 11.00%, 12/01/11 (United Kingdom)		80,800
			Ford Motor Credit Co.,
	1,600	²	6.926%, 1/15/10		1,563,094
	150	²	8.105%, 1/13/12		147,947
	2,000	⁴	General Electric Capital Corp., 3.45%, 7/16/07		1,992,624
	1,500		HSBC Bank, Inc., 3.875%, 9/15/09		1,459,872
	538	¹	iPayment Investors LP, 11.625%, 7/15/14		559,425
	175		iPayment, Inc., 9.75%, 5/15/14		182,219
	225		K&F Acquisition, Inc., 7.75%, 11/15/14		240,750
	325		MetLife, Inc., 6.125%, 12/01/11		338,305
			Momentive Performance Materials, Inc.,
	30	¹	9.75%, 12/01/14		31,725
	555	¹	10.125%, 12/01/14		588,300
	185	¹	11.50%, 12/01/16		197,950
			Rainbow National Services LLC,
	210	¹	8.75%, 9/01/12		224,175
	2,245	¹	10.375%, 9/01/14		2,528,431
	460		Standard Aero Holdings, Inc., 8.25%, 9/01/14		497,950
	666	⁵	Structured Asset Receivable Trust, 5.114%, 1/21/10		665,184
	1,000	^1,4	TIAA Global Markets, Inc., 3.875%, 1/22/08		987,987
	50	²	Universal City Florida Holding Co. I/II, 10.106%, 5/01/10		51,313
	2,000	⁴	Wells Fargo & Co., 3.50%, 4/04/08		1,966,848
	450	¹	Wimar Opco LLC/Wimar Opco Finance Corp., 9.625%, 12/15/14		456,750

			Total Financial Institutions		16,082,082

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

(Percentages shown are based on Net Assets)


Principal Amount (000)			Description	Value

			Health Care—3.7%
			HealthSouth Corp.,
$	85	¹	10.75%, 6/15/16	$	92,650
	150	^1,2	11.354%, 6/15/14		163,125
	1,000	⁴	Merck & Co., Inc., 4.375%, 2/15/13		960,531
	150		Tenet Healthcare Corp., 6.875%, 11/15/31		120,000
	290		Universal Hospital Services, Inc., 10.125%, 11/01/11		310,690
	1,000		WellPoint, Inc., 5.95%, 12/15/34		991,883
	1,000		Wyeth, 6.50%, 2/01/34		1,075,862

			Total Health Care		3,714,741

			Industrials—2.1%
	260	¹	AGY Holding Corp., 11.00%, 11/15/14		273,325
	100		Hexcel Corp., 6.75%, 2/01/15		100,250
	300		Park-Ohio Industries, Inc., 8.375%, 11/15/14		297,000
			RBS Global, Inc./Rexnord Corp.,
	350		9.50%, 8/01/14		374,500
	225		11.75%, 8/01/16		249,750
	470	¹	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		502,900
	330		Trimas Corp., 9.875%, 6/15/12		342,375

			Total Industrials		2,140,100

			Media—15.5%
			Affinion Group, Inc.,
	435		10.125%, 10/15/13		474,150
	220		11.50%, 10/15/15		242,000
	125		American Media Operations, Inc., Ser. B, 10.25%, 5/01/09		117,813
	1,000		AOL Time Warner, Inc., 7.70%, 5/01/32		1,142,668
	120	²	Cablevision Systems Corp., Ser. B, 9.82%, 4/01/09		127,200
	80		CanWest MediaWorks, Inc., 8.00%, 9/15/12 (Canada)		83,000
	150		CCH I Holdings LLC/CCH I Holdings Capital Corp., 11.00%, 10/01/15		159,375
			Charter Communications Holdings II LLC/Charter Communications Holdings II Capital Corp.,
	515		10.25%, 9/15/10		548,475
	105		Ser. B, 10.25%, 9/15/10		111,563
	500	¹	CMP Susquehanna Corp., 9.875%, 5/15/14		510,000
	1,000		Comcast Cable Communications, Inc.,6.875%, 6/15/09		1,034,120
	50		Dex Media West LLC/Dex Media Finance Co., Ser. B, 9.875%, 8/15/13		54,438
	100		DirecTV Holdings LLC/DirecTV Financing Co., 8.375%, 3/15/13		105,500
			EchoStar DBS Corp.,
	550		5.75%, 10/01/08		550,687
	210		7.00%, 10/01/13		218,138
	45		7.125%, 2/01/16		46,856
	485	¹	Idearc, Inc., 8.00%, 11/15/16		506,219
	75	¹	Iesy Repository GMBH, 10.375%, 2/15/15 (Germany)		79,313
	165		LIN Television Corp., 6.50%, 5/15/13		162,525
	130		MediaNews Group, Inc., 6.875%, 10/01/13		118,300
	405		Network Communications, Inc., 10.75%, 12/01/13		415,125
	1,500		News America, Inc., 6.20%, 12/15/34		1,471,942


	Principal Amount (000)		Description		Value

			Media—(cont’d)
$	560		Nexstar Finance, Inc., 7.00%, 1/15/14	$	544,600
			Nielsen Finance LLC/Nielsen Finance Co.,
	220	¹	Zero Coupon, 8/01/16		158,950
	710	¹	10.00%, 8/01/14		775,675
	500	^1,2	Paxson Communications Corp., 8.606%, 1/15/12		510,000
	320		Primedia, Inc., 8.00%, 5/15/13		332,800
	945		RH Donnelley Corp., Ser. A-3, 8.875%, 1/15/16		1,025,325
	70		Sinclair Broadcast Group, Inc., 4.875%,7/15/18		70,175
	80		Sirius Satellite Radio, Inc., 9.625%, 8/01/13		80,000
	1,000		TCI Communications, Inc., 7.875%, 2/15/26		1,156,123
	375	¹	Umbrella Acquisition, Inc., 9.75%, 3/15/15		377,812
			Vertis, Inc.,
	445		9.75%, 4/01/09		455,012
	370		Ser. B, 10.875%, 6/15/09		366,762
	85		Viacom, Inc., 6.625%, 5/15/11		88,758
	1,215		Young Broadcasting, Inc., 10.00%, 3/01/11		1,236,262

			Total Media		15,457,661

			Real Estate—0.5%
	500		ERP Operating LP, 6.95%, 3/02/11		531,882

			Technology—5.4%
			Amkor Technology, Inc.,
	50		7.75%, 5/15/13		49,500
	90		9.25%, 6/01/16		95,400
	565		Celestica, Inc., 7.625%, 7/01/13 (Canada)		538,162
			Freescale Semiconductor, Inc.,
	970	¹	9.125%, 12/15/14		965,150
	100	^1,2	9.23%, 12/15/14		100,000
	100	¹	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)		111,500
	540	¹	NXP BV/NXP Funding LLC, 9.50%, 10/15/15 (Netherlands)		567,000
			Sanmina-SCI Corp.,
	15		6.75%, 3/01/13		14,250
	330		8.125%, 3/01/16		322,988
	200		Sensata Technologies, 8.00%, 5/01/14 (Netherlands)		200,500
			SunGard Data Systems, Inc.,
	140		9.125%, 8/15/13		150,150
	610		10.25%, 8/15/15		671,000
	1,010		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		1,050,400
	137	¹	UGS Capital Corp. II, 10.38%, 6/01/11		140,656
	410		UGS Corp., 10.00%, 6/01/12		446,900

			Total Technology		5,423,556

			Telecommunications—12.4%
	190		Cincinnati Bell, Inc., 7.25%, 7/15/13		197,600
	280	¹	Cricket Communications, Inc., 9.375%,11/01/14		299,250
			Digicel Group Ltd. (Bermuda)
	170	^1,4	8.875%, 1/15/15		166,812
	520	¹	9.125%, 1/15/15		504,400
	130	²	Hawaiian Telcom Communications, Inc.,Ser. B, 10.86%, 5/01/13		132,925
	355		Intelsat Corp., 9.00%, 6/15/16		389,169

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

(Percentages shown are based on Net Assets)


	Principal Amount (000)		Description		Value

			Telecommunications—(cont’d)
			Intelsat Ltd. (Bermuda)
$	85	²	8.872%, 1/15/15	$	86,962
	300		9.25%, 6/15/16		330,000
	170		11.25%, 6/15/16		194,012
	730	²	11.354%, 6/15/13		781,100
	240		Intelsat Subsidiary Holding Co. Ltd., 8.625%,1/15/15 (Bermuda)		256,500
	500	¹	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)		537,500
			Nortel Networks Ltd. (Canada)
	390	^1,2	9.606%, 7/15/11		417,300
	135	¹	10.125%, 7/15/13		148,838
	125		PanAmSat Corp., 9.00%, 8/15/14		135,000
			Qwest Corp.,
	200		7.875%, 9/01/11		213,000
	340	²	8.605%, 6/15/13		371,875
	1,500		SBC Communications, Inc., 6.45%, 6/15/34		1,556,049
	1,000		Telecom Italia Capital S.A., 4.95%, 9/30/14 (Luxembourg)		952,815
	2,000		Verizon New England, Inc., 6.50%, 9/15/11		2,085,508
	1,000	⁴	Vodafone Group Plc, 7.75%, 2/15/10 (United Kingdom)		1,065,864
	590	¹	West Corp., 11.00%, 10/15/16		644,575
	250	¹	Wind Acquisition Finance S.A., 10.75%, 12/01/15 (Luxembourg)		288,750
			Windstream Corp.,
	360		8.125%, 8/01/13		390,600
	220		8.625%, 8/01/16		241,450

			Total Telecommunications		12,387,854

			Transportation—2.0%
	125		American Airlines, Inc., Ser. 99-1, 7.324%,4/15/11		126,875
	500		Canadian National Railway Co., 6.90%,7/15/28 (Canada)		557,773
	475		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		464,312
	39		Horizon Lines LLC, 9.00%, 11/01/12		41,048
	425	¹	Navios Maritime Holdings, Inc., 9.50%,12/15/14 (Marshall Islands)		447,313
	300		Overseas Shipholding Group, Inc., 8.25%, 3/15/13		315,000

			Total Transportation		1,952,321

			Total Corporate Bonds		97,602,300

			U.S. Government and Agency Securities—3.6%
	410	⁴	U.S. Treasury Bonds, 5.375%, 2/15/31		439,149
			U.S. Treasury Notes,
	810	⁴	4.125%, 8/15/10		800,824
	1,000	⁴	4.25%, 8/15/13		985,312
	75	⁴	4.25%, 8/15/15		73,148
	710	⁴	4.75%, 5/15/14		717,627
	550	⁴	4.875%, 8/15/16		560,097

			Total U.S. Government and Agency Securities		3,576,157

			Foreign Government Bond—0.2%
	225		United Mexican States, 6.75%, 9/27/34		250,876


Shares		Description		Value

		Common Stocks—0.2%
396,568	⁶	Adelphia Recovery Trust	$	27,760
947	⁶	Critical Care Systems Intl., Inc.		5,919
6,007	⁶	Time Warner Cable, Inc.		221,177

		Total Common Stocks		254,856

		Preferred Stock—0.1%
50,000		Superior Essex Holding Corp., Ser. A, 9.50%,		50,000



	Principal Amount (000)

			Trust Preferred Stock—0.7%
$	650	^1,2,7	Barclays Bank Plc, 8.55% (United Kingdom)			728,856

			Total Long-Term Investments (cost $100,288,930)			102,463,045

			SHORT-TERM INVESTMENT—6.2%
			U.S. Government and Agency Discount Notes—6.2%
	6,200	⁸	Federal Home Loan Bank Disc. Notes, 5.061%, 5/01/07 (cost $6,200,000)	.		6,200,000

			Total investments—108.7% (cost $106,488,930⁹)		$	108,663,045
			Liabilities in excess of other assets—(8.7)%	.		(8,721,255	)

			Net Assets—100%		$	99,941,790



¹	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of April 30, 2007, the Trust held 23.0% of its net assets, with a current market value of $23,009,213, in securities restricted as to resale.
²	Variable rate security. Rate shown is interest rate as of April 30, 2007.
³	Security is fair valued.
⁴	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
⁵	Illiquid security. As of April 30, 2007, the Trust held 0.7% of its net assets, with a current market value of $665,184, in these securities.
⁶	Non-income producing security.
⁷	The security is a perpetual bond and has no stated maturity date.
⁸	Rate shown is the yield to maturity as of the date of purchase.
⁹	Cost for federal income tax purposes is $106,564,680. The net unrealized appreciation on a tax basis is $2,098,365, consisting of $3,197,368 gross unrealized appreciation and $1,099,003 gross unrealized depreciation.

See Notes to Financial Statements.

STATEMENTS OF ASSETS AND LIABILITIES (unaudited)

April 30, 2007


	Broad Investment Grade 2009 Term Trust Inc.¹(BCT)			Core Bond Trust (BHK)

Assets
Investments at value, unaffiliated²	$	40,033,423		$	397,611,108
Investments at value, affiliated³		—			890,858
Investments in affiliates		21,463			81,796
Cash		143,967			81,596
Foreign currency at value⁴		—			8,580,440
Receivable from investments sold		—			979,270
Variation margin receivable		—			1,084,294
Deposits with brokers as collateral for borrowed bonds		—			—
Interest receivable		232,812			5,875,518
Unrealized appreciation on interest rate swaps		—			3,059,604
Unrealized appreciation on credit default swaps		—			—
Other assets		1,124			14,872

		40,432,789			418,259,356

Liabilities
Reverse repurchase agreements		—			36,554,125
Payable for investments purchased		—			4,369,118
Variation margin payable		—			—
Unrealized loss on foreign currency exchange contracts		—			4,281
Loans payable		—			—
Investments sold short at value⁵		—			—
Outstanding options written at value⁶		—			1,490,319
TBA sale commitments⁷		—			—
Unrealized depreciation on interest rate swaps		—			516,016
Unrealized depreciation on total return swaps		—			9,303
Interest payable		—			1,029,672
Interest rate floors at value		—			—
Investment advisory fees payable		18,267			151,459
Administration fees payable		4,982			—
Deferred Trustees’fees		21,463			81,796
Payable to affiliates		3,252			29,116
Other accrued expenses		35,159			203,598

		83,123			44,438,803

Preferred Shares at Redemption Value
$0.001 par value per share and $25,000 liquidation value per share, including dividends payable⁸		—			—

Net Assets Applicable to Common Shareholders	$	40,349,666		$	373,820,553

Composition of Net Assets
Par value⁹	$	29,571		$	27,019
Paid-in capital in excess of par		38,447,104			386,089,643
Cost of shares held in treasury¹⁰		—			—
Undistributed (distributions in excess of) net investment income		5,276,270			(7,085,134	)
Accumulated net realized gain (loss)		(3,223,700	)		(5,431,330	)
Net unrealized appreciation (depreciation)		(179,579	)		220,355

Net assets, April 30, 2007	$	40,349,666		$	373,820,553


Net asset value¹¹	$	13.65		$	13.84



¹Consolidated Statement of Assets and Liabilities
²Investments at cost, unaffiliated	$	40,213,002		$	399,423,196
³Investments at cost, affiliated	$	—		$	891,058
⁴Foreign currency at cost	$	—		$	8,766,766
⁵Proceeds received	$	—		$	—
⁶Premiums received	$	—		$	2,261,545
⁷Proceeds for TBA sale commitments	$	—		$	—
⁸Preferred shares outstanding		—			—
⁹Par value per share	$	0.01		$	0.001
¹⁰Shares held in treasury		—			—
¹¹Common shares outstanding		2,957,093			27,018,774

See Notes to Financial Statements.


	High Yield Trust (BHY)			Income Opportunity Trust (BNA)			Income Trust Inc. (BKT)			Limited Duration Income Trust (BLW)			Preferred and Equity Advantage Trust (BTZ)			Strategic Bond Trust (BHD)

Assets
Investments at value, unaffiliated²	$	72,479,825		$	448,638,171		$	439,084,312		$	1,013,479,161		$	1,724,105,095		$	108,663,045
Investments at value, affiliated³		—			1,176,793			51,029			—			—			—
Investments in affiliates		31,113			153,393			184,118			75,575			—			16,678
Cash		2,466			43,849			3,012,715			2,295,071			2,180,548			52,390
Foreign currency at value⁴		—			—			—			1,681			—			—
Receivable from investments sold		10,300			25,786,001			67,604,951			5,333,025			107,419,606			101,000
Variation margin receivable		—			1,281,924			—			27,813			—			—
Deposits with brokers as collateral for borrowed bonds		—			—			61,867,750			—			186,322,500			—
Interest receivable		1,572,303			5,956,547			4,968,878			15,693,079			16,979,390			1,993,620
Unrealized appreciation on interest rate swaps		—			3,538,661			1,850,384			—			—			—
Unrealized appreciation on credit default swaps		10,172			—			—			—			—			—
Other assets		6,391			18,156			24,960			31,718			7,274			7,462

		74,112,570			486,593,495			578,649,097			1,036,937,123			2,037,014,413			110,834,195

Liabilities
Reverse repurchase agreements		—			61,184,826			36,189,500			182,178,141			10,061,000			10,479,908
Payable for investments purchased		476,082			11,934,469			51,151,545			139,177,034			138,170,750			100,000
Variation margin payable		—			—			306,344			—			671,977			—
Unrealized loss on foreign currency exchange contracts		—			—			—			487,961			—			—
Loans payable		20,250,000			—			—			—			—			—
Investments sold short at value⁵		—			—			48,923,473			—			185,341,338			—
Outstanding options written at value⁶		—			1,641,456			1,647,713			—			3,636,500			—
TBA sale commitments⁷		—			24,619,875			19,854,127			—			—			—
Unrealized depreciation on interest rate swaps		—			623,785			824,402			—			—			—
Unrealized depreciation on total return swaps		—			10,255			3,594			—			—			—
Interest payable		89,577			1,070,094			1,943,231			2,357,014			1,839,735			133,852
Interest rate floors at value		—			—			2,142,702			—			—			—
Investment advisory fees payable		44,994			188,313			221,500			394,537			900,153			59,066
Administration fees payable		2,194			64,874			94,809			—			—			—
Deferred Trustees’fees		31,113			153,393			184,118			75,575			—			16,678
Payable to affiliates		264			16,493			47,597			35,796			11,909			8,838
Other accrued expenses		86,477			174,791			222,004			291,452			876,615			94,063

		20,980,701			101,682,624			163,756,659			324,997,510			341,509,977			10,892,405

Preferred Shares at Redemption Value
$0.001 par value per share and $25,000 liquidation value per share, including dividends payable⁸		—			—			—			—			462,269,872			—

Net Assets Applicable to Common Shareholders	$	53,131,869		$	384,910,871		$	414,892,438		$	711,939,613		$	1,233,234,564		$	99,941,790


Composition of Net Assets
Par value⁹	$	6,417		$	344,497		$	639,425		$	36,850		$	51,828		$	7,058
Paid-in capital in excess of par		92,987,168			404,369,870			518,124,907			701,609,463			1,230,315,432			98,443,594
Cost of shares held in treasury¹⁰		—			(17,377,850	)		—			—			—			—
Undistributed (distributions in excess of) net investment income		85,248			(2,061,255	)		(1,932,916	)		(1,443,777	)		(3,950,451	)		117,368
Accumulated net realized gain (loss)		(39,124,805	)		(2,863,478	)		(90,676,760	)		1,354,318			(511,596	)		(800,345	)
Net unrealized appreciation (depreciation)		(822,159	)		2,499,087			(11,262,218	)		10,382,759			7,329,351			2,174,115

Net assets, April 30, 2007	$	53,131,869		$	384,910,871		$	414,892,438		$	711,939,613		$	1,233,234,564		$	99,941,790


Net asset value¹¹	$	8.28		$	11.17		$	6.49		$	19.32		$	23.79		$	14.16



¹Consolidated Statement of Assets and Liabilities
²Investments at cost, unaffiliated	$	73,312,156		$	449,496,071		$	456,476,407		$	1,002,602,694		$	1,713,274,301		$	106,488,930
³Investments at cost, affiliated	$	—		$	1,187,582		$	53,517		$	—		$	—		$	—
⁴Foreign currency at cost	$	—		$	—		$	—		$	605		$	—		$	—
⁵Proceeds received	$	—		$	—		$	49,629,126		$	—		$	183,539,692		$	—
⁶Premiums received	$	—		$	2,478,560		$	2,486,055		$	—		$	2,935,287		$	—
⁷Proceeds for TBA sale commitments	$	—		$	24,627,656		$	19,885,469		$	—		$	—		$	—
⁸Preferred shares outstanding		—			—			—			18,480			—			—
⁹Par value per share	$	0.001		$	0.01		$	0.01		$	0.001		$	0.001		$	0.001
¹⁰Shares held in treasury		—			1,757,400			—			—			—			—
¹¹Common shares outstanding		6,417,363			34,449,693			63,942,536			36,849,516			51,828,157			7,058,402

STATEMENTS OF OPERATIONS (unaudited)

For the six months ended April 30, 2007


	Broad Investment Grade 2009 Term Trust Inc.¹ (BCT)		Core Bond Trust (BHK)

Investment Income
Interest income	$	1,054,164	$	11,455,123
Dividend income		—		5,454
Foreign taxes withheld		—		—
Income from affiliates		182		2,060
Affiliated income		—		34,249

Total investment income		1,054,346		11,496,886

Expenses
Investment advisory		110,637		1,082,808
Administration		30,174		—
Transfer agent		4,403		6,800
Custodian		34,607		120,832
Reports to shareholders		16,916		51,293
Directors/Trustees		1,834		11,544
Registration		575		7,561
Independent accountants		14,834		38,158
Legal		4,780		38,555
Officers fees		348		2,988
Insurance		1,327		12,104
Organization		—		—
Auction agent		—		—
Deferred Trustees’ fees		182		2,060
Miscellaneous		5,958		26,091

Total expenses excluding interest expense and excise tax		226,575		1,400,794
Interest expense		—		630,830
Excise tax		54,413		—

Total expenses		280,988		2,031,624
Less Advisory fees waived		—		—
Less fees paid indirectly		—		(4,389	)

Net expenses		280,988		2,027,235

Net investment income		773,358		9,469,651

Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		15,531		1,278,777
Foreign currency		—		(142,785	)
Futures and swaps		—		2,494,820
Interest rate floors		—		3,317
Options written		—		472,353
Short sales		—		—

		15,531		4,106,482

Net change in unrealized appreciation/depreciation on:
Investments		110,151		1,283,794
Foreign currency		—		(143,401	)
Futures and swaps		—		(3,391,917	)
Interest rate floors		—		—
Options written		—		(160,633	)
Short sales		—		—

		110,151		(2,412,157	)

Net gain		125,682		1,694,325

Dividends from net investment income to preferred shareholders		—		—

Net Increase in Net Assets Resulting from Operations	$	899,040	$	11,163,976


¹	Consolidated Statement of Operations.
²	Commencement of investment operations for Preferred and Equity Advantage Trust was December 27, 2006. This information includes the initial investment by BlackRock Funding, Inc.

See Notes to Financial Statements.


	High Yield Trust (BHY)			Income Opportunity Trust (BNA)			Income Trust Inc. (BKT)			Limited Duration Income Trust (BLW)			Preferred and Equity Advantage Trust² (BTZ)			Strategic Bond Trust (BHD)

Investment Income
Interest income	$	3,158,041		$	13,451,472		$	15,739,308		$	34,668,232		$	21,536,601		$	4,163,263
Dividend income		10,706			3,316			—			19,200			11,672,571			4,158
Foreign taxes withheld		—			—			—			—			(50,904	)		—
Income from affiliates		554			3,425			4,896			—			—			—
Affiliated income		—			45,899			1,881			1,895			—			312

Total investment income		3,169,301			13,504,112			15,746,085			34,689,327			33,158,268			4,167,733

Expenses
Investment advisory		374,184			1,142,227			1,332,105			2,484,667			3,437,209			413,791
Administration		35,637			190,371			307,409			—			—			—
Transfer agent		6,731			9,823			31,678			6,592			5,625			6,554
Custodian		58,055			113,968			130,211			215,099			96,334			54,865
Reports to shareholders		17,704			58,462			80,310			95,995			68,118			15,511
Directors/Trustees		1,876			11,592			11,716			12,966			7,927			3,288
Registration		7,538			10,127			16,580			10,938			9,124			7,532
Independent accountants		21,887			38,237			38,330			26,782			17,842			20,438
Legal		4,804			34,294			34,198			50,917			36,485			9,631
Officers fees		397			3,078			3,364			5,693			5,370			782
Insurance		2,170			13,311			15,137			28,806			20,205			3,457
Organization		—			—			—			—			15,000			—
Auction agent		—			—			—			—			158,294			—
Deferred Trustees’ fees		554			3,425			4,896			1,895			—			312
Miscellaneous		5,751			27,737			28,853			36,644			35,279			7,758

Total expenses excluding interest expense and excise tax		537,288			1,656,652			2,034,787			2,976,994			3,912,812			543,919
Interest expense		597,904			1,643,919			3,243,877			5,540,337			5,428,787			333,702
Excise tax		—			—			—			—			14,538			—

Total expenses		1,135,192			3,300,571			5,278,664			8,517,331			9,356,137			877,621
Less Advisory fees waived		—			—			—			—			—			(101,157	)
Less fees paid indirectly		(4,648	)		(4,336	)		(12,336	)		(31,027	)		(45,843	)		(3,447	)

Net expenses		1,130,544			3,296,235			5,266,328			8,486,304			9,310,294			773,017

Net investment income		2,038,757			10,207,877			10,479,757			26,203,023			23,847,974			3,394,716

Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		(2,489,403	)		(593,598	)		935,244			4,362,012			4,836,696			716,167
Foreign currency		—			—			—			405,541			—			—
Futures and swaps		—			3,331,676			(573,758	)		64,385			212,584			—
Interest rate floors		—			3,654			3,623			—			—			—
Options written		—			505,900			42,523			—			(7,452,467	)		—
Short sales		—			(14,313	)		(23,452	)		—			1,891,591			—

		(2,489,403	)		3,233,319			384,180			4,831,938			(511,596	)		716,167

Net change in unrealized appreciation/depreciation on:
Investments		5,150,819			1,483,024			(1,550,865	)		8,476,479			10,830,794			1,478,277
Foreign currency		—			—			—			(459,348	)		—			—
Futures and swaps		10,172			(3,554,749	)		2,505,083			4,613			(998,584	)		—
Interest rate floors		—			—			448,464			—			—			—
Options written		—			(161,965	)		(151,089	)		—			(701,213	)		—
Short sales		—			221,468			210,050			—			(1,801,646	)		—

		5,160,991			(2,012,222	)		1,461,643			8,021,744			7,329,351			1,478,277

Net gain		2,671,588			1,221,097			1,845,823			12,853,682			6,817,755			2,194,444

Dividends from net investment income to preferred shareholders		—			—			—			—			(3,526,895	)		—

Net Increase in Net Assets Resulting from Operations	$	4,710,345		$	11,428,974		$	12,325,580		$	39,056,705		$	27,138,834		$	5,589,160

STATEMENTS OF CASH FLOWS (unaudited)

For the six months ended April 30, 2007


	Broad Investment Grade 2009 Term Trust Inc.¹(BCT)			Core Bond Trust (BHK)

Net Increase in Net Assets Resulting from Operations to Net Cash Flows Provided by Operating Activities
Net increase in net assets resulting from operations, excluding dividends to preferred shareholders	$	899,040		$	11,163,976

Purchases of long-term investments		(564,277	)		(467,403,416	)
Proceeds from sales of long-term investments		5,832,043			448,064,708
Net proceeds (purchases) of short-term investments		(4,564,288	)		850,714
Increase in deposits with brokers as collateral for borrowed bonds		—			—
Amortization of premium and discount on investments		(64,839	)		1,114,209
Net realized loss (gain) on investments		(15,531	)		(1,278,777	)
Decrease (Increase) in unrealized appreciation/depreciation on investments		(110,151	)		(1,283,794	)
Net effect of exchange rates on foreign currency		—			142,785
Increase (Decrease) in investments sold short		—			—
Increase (Decrease) in outstanding options written		—			(637,453	)
Increase (Decrease) in TBA sale commitments		—			—
Decrease in interest rate floors		—			—
Decrease (Increase) in unrealized appreciation/depreciation on swaps		—			(143,128	)
Increase in investments in affiliates		(181	)		(2,060	)
Decrease (Increase) in receivable for investments sold		—			(583,452	)
Decrease in unrealized gain on foreign currency exchange contracts		—			83,487
Increase in variation margin receivable		—			(450,956	)
Decrease (Increase) in interest receivable		115,107			(522,831	)
Decrease (Increase) in other assets		1,326			7,464
Decrease in foreign currency payable to custodian		—			—
Increase (Decrease) in payable for investments purchased		—			(6,596,670	)
Decrease in payable for dollar rolls		—			—
Increase in unrealized loss on foreign currency exchange contracts		—			4,281
Increase (Decrease) in variation margin payable		—			—
Increase in interest payable		—			346,935
Increase (Decrease) in investment advisory fee payable		(1,074	)		4,323
Decrease in cash with brokers as collateral		—			(600,000	)
Increase (Decrease) in administration fee payable		(293	)		—
Increase in Deferred Directors/Trustees’ fees		181			2,060
Increase (Decrease) in payable to affiliates		(4,702	)		11,277
Increase (Decrease) in accrued expenses		(159,027	)		24,451

Total adjustments		464,294			(28,845,843	)

Net cash provided by (used for) operating activities	$	1,363,334		$	(17,681,867	)

Cash flows provided by (used for) financing activities:
Capital contributions		—			—
Increase (Decrease) in reverse repurchase agreements		—			32,643,037
Increase in preferred shares at redemption value including dividends payable		—			—
Cash dividends paid to common shareholders		(1,330,692	)		(10,861,547	)
Distributions to preferred shareholders		—			—

Net cash provided by (used for) financing activities:	$	(1,330,692	)	$	21,781,490

Net increase (decrease) in cash		32,642			4,099,623
Cash and foreign currency at beginning of period		111,325			4,562,413

Cash and foreign currency at end of period	$	143,967		$	8,662,036

Cash paid during the period for interest	$	—		$	283,895


¹	Consolidated Statement of Cash Flows.
2	Commencement of investment operations for Preferred and Equity Advantage Trust was December 27, 2006. This information includes the initial investment by BlackRock Funding, Inc.

See Notes to Financial Statements.


	High Yield Trust (BHY)			Income Opportunity Trust (BNA)			Income Trust Inc. (BKT)			Limited Duration Income Trust (BLW)			Preferred and Equity Advantage Trust² (BTZ)			Strategic Bond Trust (BHD)

Net Increase in Net Assets Resulting from Operations to Net Cash Flows Provided by Operating Activities
Net increase in net assets resulting from operations, excluding dividends to preferred shareholders	$	4,710,345		$	11,428,974		$	12,325,580		$	39,056,705		$	30,665,729		$	5,589,160

Purchases of long-term investments		(26,286,574	)		(820,732,923	)		(1,003,845,253	)		(1,194,937,865	)		(2,197,351,517	)		(23,146,631	)
Proceeds from sales of long-term investments		26,881,619			792,455,597			1,060,668,586			1,237,939,483			500,039,052			32,669,494
Net proceeds (purchases) of short-term investments		(1,442,087	)		5,181,809			1,032,677			(3,297,390	)		(10,583,017	)		(6,147,991	)
Increase in deposits with brokers as collateral for borrowed bonds		—			—			(1,465,374	)		—			(186,322,500	)		—
Amortization of premium and discount on investments		(15,906	)		933,234			5,765,809			1,245,920			(542,123	)		4,510
Net realized loss (gain) on investments		2,489,403			593,598			(935,244	)		(4,362,012	)		(4,836,696	)		(716,167	)
Decrease (Increase) in unrealized appreciation/depreciation on investments		(5,150,819	)		(1,483,024	)		1,550,865			(8,476,479	)		(10,830,794	)		(1,478,277	)
Net effect of exchange rates on foreign currency		—			—			—			(405,541	)		—			—
Increase (Decrease) in investments sold short		—			—			(12,144,967	)		—			185,341,338			—
Increase (Decrease) in outstanding options written		—			(681,098	)		(675,416	)		—			3,636,500			—
Increase (Decrease) in TBA sale commitments		—			(1,367,812	)		3,272,725			—			—			—
Decrease in interest rate floors		—			—			247,846			—			—			—
Decrease (Increase) in unrealized appreciation/depreciation on swaps		(10,172	)		(146,917	)		61,120			—			—			—
Increase in investments in affiliates		(554	)		(3,425	)		(4,896	)		(1,895	)		—			(312	)
Decrease (Increase) in receivable for investments sold		211,419			752,397			(51,140,957	)		(2,057,801	)		(107,419,606	)		175,351
Decrease in unrealized gain on foreign currency exchange contracts		—			—			—			—			—			—
Increase in variation margin receivable		—			(471,830	)		—			(27,813	)		—			—
Decrease (Increase) in interest receivable		(7,851	)		(406,322	)		(674,407	)		(221,718	)		(16,979,390	)		170,200
Decrease (Increase) in other assets		(2,384	)		11,419			2,976			26,815			(7,274	)		(1,079	)
Decrease in foreign currency payable to custodian		—			—			—			(1,100	)		—			—
Increase (Decrease) in payable for investments purchased		415,450			(1,655,880	)		51,151,545			(388,715	)		138,170,750			19,157
Decrease in payable for dollar rolls		—			—			(15,527,433	)		—			—			—
Increase in unrealized loss on foreign currency exchange contracts		—			—			—			450,981			—			—
Increase (Decrease) in variation margin payable		—			—			(762,327	)		—			671,977			—
Increase in interest payable		2,677			192,923			339,995			1,681,776			1,839,735			108,603
Increase (Decrease) in investment advisory fee payable		387			(5,675	)		(6,240	)		(28,337	)		900,153			7,350
Decrease in cash with brokers as collateral		—			(600,000	)		—			—			—			—
Increase (Decrease) in administration fee payable		37			(946	)		(1,440	)		—			—			—
Increase in Deferred Directors/Trustees’ fees		554			3,425			4,896			1,895			—			312
Increase (Decrease) in payable to affiliates		264			10,688			(155	)		17,288			11,909			3,068
Increase (Decrease) in accrued expenses		8,140			4,583			58,242			66,381			876,615			4,960

Total adjustments		(2,906,397	)		(27,416,179	)		36,973,173			27,223,873			(1,703,384,888	)		1,672,548

Net cash provided by (used for) operating activities	$	1,803,948		$	(15,987,205	)	$	49,298,753		$	66,280,578		$	(1,672,719,159	)	$	7,261,708

Cash flows provided by (used for) financing activities:
Capital contributions		—			—			—			1,286,908			1,230,367,260			—
Increase (Decrease) in reverse repurchase agreements		—			26,858,668			(34,501,125	)		(37,821,390	)		10,061,000			(4,471,227	)
Increase in preferred shares at redemption value including dividends payable		—			—			—			—			462,269,872			—
Cash dividends paid to common shareholders		(1,963,713	)		(11,368,402	)		(11,893,314	)		(27,610,100	)		(24,271,530	)		(3,260,982	)
Distributions to preferred shareholders		—			—			—			—			(3,526,895	)		—

Net cash provided by (used for) financing activities:	$	(1,963,713	)	$	15,490,266		$	(46,394,439	)	$	(64,144,582	)	$	1,674,899,707		$	(7,732,209	)

Net increase (decrease) in cash		(159,765	)		(496,939	)		2,904,314			2,135,996			2,180,548			(470,501	)
Cash and foreign currency at beginning of period		162,231			540,788			108,401			160,756			—			522,891

Cash and foreign currency at end of period	$	2,466		$	43,849		$	3,012,715		$	2,296,752		$	2,180,548		$	52,390

Cash paid during the period for interest	$	595,227		$	1,450,996		$	2,903,882		$	3,858,561		$	3,589,052		$	225,099

STATEMENT OF CHANGES IN NET ASSETS

For the six months ended April 30, 2007 (unaudited) and the year ended October 31, 2006


	Broad Investment Grade 2009 Term Trust Inc.¹(BCT)						Core Bond Trust (BHK)

	2007			2006			2007			2006

Net Increase in Net Assets

Operations:
Net investment income	$	773,358		$	1,918,798		$	9,469,651		$	17,700,447
Net realized gain (loss)		15,531			(493,395	)		4,106,482			(8,285,073	)
Net change in unrealized appreciation/depreciation		110,151			341,005			(2,412,157	)		11,551,542

Net increase in net assets resulting from operations		899,040			1,766,408			11,163,976			20,966,916

Dividends and Distributions to Common Shareholders from:
Net investment income²		(1,330,692	)		(4,191,834	)		(10,861,547	)		(25,048,230	)
Net realized gains		—			(69,260	)		—			(7,914,351	)
Tax return of capital distributions		—			—			—			—

Total dividends and distributions		(1,330,692	)		(4,261,094	)		(10,861,547	)		(32,962,581	)

Capital Share Transactions:
Reinvestment of common dividends		—			—			—			—

Total increase (decrease)		(431,652	)		(2,494,686	)		302,429			(11,995,665	)

Net Assets
Beginning of period		40,781,318			43,276,004			373,518,124			385,513,789

End of period	$	40,349,666		$	40,781,318		$	373,820,553		$	373,518,124

End of period undistributed (distribution in excess of) net investment income	$	5,276,270		$	5,833,604		$	(7,085,134	)	$	(5,693,238	)


1	Consolidated Statement of Changes in Net Assets.
2	A portion of the dividends from net investment income for the six months ended April 30, 2007 may be deemed a tax return of capital or net realized gain at fiscal year end.

See Notes to Financial Statements.


	High Yield Trust (BHY)						Income Opportunity Trust (BNA)						Income Trust Inc. (BKT)

	2007			2006			2007			2006			2007			2006

Net Increase in Net Assets

Operations:
Net investment income	$	2,038,757		$	4,211,671		$	10,207,877		$	19,514,794		$	10,479,757		$	20,352,044
Net realized gain (loss)		(2,489,403	)		(2,067,969	)		3,233,319			(7,330,378	)		384,180			1,937,674
Net change in unrealized appreciation/depreciation		5,160,991			4,444,627			(2,012,222	)		7,965,246			1,461,643			1,267,311

Net increase in net assets resulting from operations		4,710,345			6,588,329			11,428,974			20,149,662			12,325,580			23,557,029

Dividends and Distributions to Common Shareholders from:
Net investment income²		(1,963,713	)		(4,175,232	)		(11,368,402	)		(22,238,524	)		(11,893,314	)		(21,910,288	)
Net realized gains		—			—			—			(8,976,694	)		—			—
Tax return of capital distributions		—			—			—			(2,162,198	)		—			(5,576,693	)

Total dividends and distributions		(1,963,713	)		(4,175,232	)		(11,368,402	)		(33,377,416	)		(11,893,314	)		(27,486,981	)

Capital Share Transactions:
Reinvestment of common dividends		—			48,307			—			—			—			—

Total increase (decrease)		2,746,632			2,461,404			60,572			(13,227,754	)		432,266			(3,929,952	)

Net Assets
Beginning of period		50,385,237			47,923,833			384,850,299			398,078,053			414,460,172			418,390,124

End of period	$	53,131,869		$	50,385,237		$	384,910,871		$	384,850,299		$	414,892,438		$	414,460,172

End of period undistributed (distribution in excess of) net investment income	$	85,248		$	10,204		$	(2,061,255	)	$	(900,730	)	$	(1,932,916	)	$	(519,359	)

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the six months ended April 30, 2007 (unaudited) and the year ended October 31, 2006


	Limited Duration Income Trust (BLW)						Preferred and Equity Advantage Trust¹(BTZ)			Strategic Bond Trust (BHD)

	2007			2006			2007			2007			2006

Net Increase in Net Assets

Operations:
Net investment income	$	26,203,023		$	49,596,055		$	23,847,974		$	3,394,716		$	6,965,538
Net realized gain (loss)		4,831,938			(1,589,905	)		(511,596	)		716,167			(759,640	)
Net change in unrealized appreciation/depreciation		8,021,744			2,473,132			7,329,351			1,478,277			2,082,388
Dividends from net investment income to Preferred Shareholders		—			—			(3,526,895	)		—			—

Net increase in net assets resulting from operations		39,056,705			50,479,282			27,138,834			5,589,160			8,288,286

Dividends and Distributions to Common Shareholders from:
Net investment income²		(27,610,100	)		(55,725,066	)		(24,271,530	)		(3,260,982	)		(6,969,104	)
Tax return of capital		—			(760,960	)		—			—			(251,641	)

Total dividends and distributions		(27,610,100	)		(56,486,026	)		(24,271,530	)		(3,260,982	)		(7,220,745	)

Capital Share Transactions:
Net proceeds from the issuance of common shares		—			—			1,115,290,352			—			—
Net proceeds from the underwriters’ over-allotment excercised		—			—			113,370,625			—			—
Reinvestment of common dividends		1,286,908			251,427			1,706,283			—			—

Net proceeds from capital share transactions		1,286,908			251,427			1,230,367,260			—			—

Total increase (decrease)		12,733,513			(5,755,317	)		1,233,234,564			2,328,178			1,067,541

Net Assets
Beginning of period		699,206,100			704,961,417			—			97,613,612			96,546,071

End of period	$	711,939,613		$	699,206,100		$	1,233,234,564		$	99,941,790		$	97,613,612

End of period undistributed (distribution in excess of) net investment income	$	(1,443,777	)	$	(36,700	)	$	(3,950,451	)	$	117,368		$	(16,366	)



¹	Commencement of investment operations for Preferred and Equity Advantage Trust was December 27, 2006. This information includes the intial investment by BlackRock Funding, Inc. The other Trusts’ statements are for six months ended April 30, 2007 and the full year ended October 31, 2006.
²	A portion of the dividend from net investment income for the six months ended April 30, 2007 may be deemed a tax return of capital or net realized gain at fiscal year end.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)


	Six Months Ended April 30, 2007 (unaudited)
					Year Ended October 31,

					2006			2005			2004			2003			2002

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period		$	13.79		$	14.63		$	15.98		$	16.02		$	17.33		$	16.05

Investment operations:
Net investment income			0.26			0.65			0.80			0.61			1.28			2.01
Net realized and unrealized gain (loss)			0.05			(0.05	)		(0.87	)		0.25			(1.40	)		0.04

Net increase (decrease) from investment operations			0.31			0.60			(0.07	)		0.86			(0.12	)		2.05

Dividends and distributions from:
Net investment income			(0.45	)¹		(1.42	)		(1.03	)		(0.90	)		(1.19	)		(0.77	)
Net realized gains			—			(0.02	)		(0.25	)		—			—			—

Total dividends and distributions			(0.45	)		(1.44	)		(1.28	)		(0.90	)		(1.19	)		(0.77	)

Net asset value, end of period		$	13.65		$	13.79		$	14.63		$	15.98		$	16.02		$	17.33

Market price, end of period		$	15.15		$	15.08		$	15.86		$	15.80		$	15.85		$	16.18

TOTAL INVESTMENT RETURNS:²
At net asset value³			1.96	%		3.53	%		(0.82	)%		5.52	%		(0.61	)%		13.65	%

At market value			3.48	%		4.44	%		8.74	%		5.45	%		5.32	%		18.34	%

RATIOS TO AVERAGE NET ASSETS:
Total expenses			1.40	%⁴		1.14	%		2.37	%		2.48	%		2.43	%		2.50	%
Net expenses			1.40	%⁴		1.14	%		2.37	%		2.48	%		2.43	%		2.50	%
Net expenses excluding excise tax			1.13	%⁴		1.14	%		1.19	%		1.11	%		1.18	%		1.16	%
Net investment income			3.84	%⁴		4.50	%		5.23	%		3.83	%		7.54	%		12.22	%
SUPPLEMENTAL DATA:
Average net assets (000)		$	40,565		$	42,625		$	45,264		$	47,191		$	49,882		$	48,731
Portfolio turnover			1	%		8	%		116	%		20	%		39	%		35	%
Net assets, end of period (000)		$	40,350		$	40,781		$	43,276		$	47,255		$	47,381		$	51,244
Reverse repurchase agreements outstanding, end of period (000)		$	—		$	—		$	—		$	19,263		$	19,953		$	23,669
Asset coverage, end of period⁵		$	—		$	—		$	—		$	3,453		$	3,375		$	3,165
Reverse repurchase agreements average daily balance (000)		$	—		$	—		$	7,865		$	22,055		$	19,409		$	18,388
Reverse repurchase agreements weighted average interest rate			—	%		—	%		2.32	%		1.20	%		1.21	%		1.82	%



1	A portion of the dividend from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
2	Total investment returns at market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
3	Unaudited.
4	Annualized.
5	Per $1,000 of reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s shares.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Core Bond Trust (BHK)


	Six Months Ended April 30, 2007 (unaudited)																For the period November 30, 2001¹through October 31, 2002

					Year Ended October 31,

					2006			2005			2004			2003

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period		$	13.82		$	14.27		$	15.22		$	14.75		$	14.33			$	14.33	²

Investment operations:
Net investment income			0.35			0.66			0.78			0.92			0.83				0.99
Net realized and unrealized gain (loss)			0.07			0.11			(0.37	)		0.66			0.77				0.04

Net increase from investment operations			0.42			0.77			0.41			1.58			1.60				1.03

Dividends and distributions from:
Net investment income			(0.40	)³		(0.93	)		(1.01	)		(0.86	)		(1.00	)			(1.00	)
Net realized gains			—			(0.29	)		(0.35	)		(0.25	)		(0.18	)			—

Total dividends and distributions			(0.40	)		(1.22	)		(1.36	)		(1.11	)		(1.18	)			(1.00	)

Capital charges with respect to issuance of shares			—			—			—			—			—				(0.03	)

Net asset value, end of period		$	13.84		$	13.82		$	14.27		$	15.22		$	14.75			$	14.33

Market price, end of period		$	12.95		$	12.86		$	13.69		$	14.02		$	13.57			$	13.82

TOTAL INVESTMENT RETURNS:⁴
At net asset value⁵			3.27	%		6.20	%		3.32	%		11.64	%		11.76	%			7.47	%

At market value			3.84	%		3.07	%		7.46	%		11.93	%		6.62	%			(1.02	)%

RATIOS TO AVERAGE NET ASSETS:
Total expenses			1.10	%⁶		1.08	%		1.50	%		1.32	%		1.05	%			1.04	%⁶
Net expenses			1.10	%⁶		1.08	%		1.50	%		1.32	%		1.05	%			1.04	%⁶
Net expenses excluding interest expense			0.76	%⁶		0.77	%		0.85	%		0.92	%		0.87	%			0.93	%⁶
Net investment income			5.12	%⁶		4.78	%		5.20	%		6.20	%		5.58	%			7.67	%⁶
SUPPLEMENTAL DATA:
Average net assets (000)		$	372,941		$	370,219		$	402,783		$	401,212		$	401,049			$	380,277
Portfolio turnover			37	%		88	%		220	%		398	%		161	%			73	%
Net assets, end of period (000)		$	373,821		$	373,518		$	385,514		$	411,163		$	398,540			$	387,238
Reverse repurchase agreements outstanding, end of period (000)		$	36,554		$	3,911		$	86,876		$	102,474		$	91,668			$	165,215
Asset coverage, end of period⁷		$	11,226		$	96,502		$	5,438		$	5,012		$	5,348			$	3,342
Reverse repurchase agreements average daily balance (000)		$	24,157		$	25,340		$	91,130		$	145,094		$	67,591			$	35,207
Reverse repurchase agreements weighted average interest rate			5.19	%		4.54	%		2.86	%		1.11	%		1.05	%			1.04	%



1	Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
2	Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.
3	A portion of the dividend from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
4	Total investment returns at market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
⁵	Unaudited.
6	Annualized.
7	Per $1,000 of reverse repurchase agreements outstanding.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock High Yield Trust (BHY)


	Six Months Ended April 30, 2007 (unaudited)			Year Ended October 31,

				2006			2005			2004			2003			2002

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	7.85		$	7.48		$	7.95		$	6.96		$	6.13		$	7.20

Investment operations:
Net investment income		0.32			0.66			0.68			0.92			1.06			1.20
Net realized and unrealized gain (loss)		0.42			0.36			(0.36	)		1.02			0.89			(0.98	)

Net increase from investment operations		0.74			1.02			0.32			1.94			1.95			0.22

Dividends to common shareholders from:
Net investment income		(0.31	)¹		(0.65	)		(0.79	)		(0.92	)		(1.07	)		(1.20	)
Tax return of capital		—			—			—			(0.03	)		(0.05	)		(0.09	)

Total dividends and distributions		(0.31	)		(0.65	)		(0.79	)		(0.95	)		(1.12	)		(1.29	)

Net asset value, end of period	$	8.28		$	7.85		$	7.48		$	7.95		$	6.96		$	6.13

Market price, end of period	$	8.32		$	7.77		$	7.36		$	9.30		$	10.25		$	8.68

TOTAL INVESTMENT RETURNS:²
At net asset value³		9.58	%		14.25	%		2.72	%		29.18	%		25.00	%		(2.78	)%


At market value		11.24	%		14.93	%		(13.49	)%		0.28	%		32.87	%		7.97	%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		4.44	%⁴		4.50	%		3.52	%		2.69	%		3.07	%		3.45	%
Net expenses		4.42	%⁴		4.49	%		3.51	%		2.68	%		3.07	%		3.45	%
Net expenses excluding interest expense		2.08	%⁴		2.19	%		2.10	%		1.96	%		2.22	%		2.20	%
Net investment income		7.97	%⁴		8.74	%		8.71	%		12.16	%		16.37	%		16.29	%
SUPPLEMENTAL DATA:
Average net assets (000)	$	51,614		$	48,176		$	50,104		$	48,186		$	41,326		$	46,751
Portfolio turnover		38	%		85	%		102	%		156	%		30	%		147	%
Net assets, end of period (000)	$	53,132		$	50,385		$	47,924		$	50,914		$	44,438		$	38,953
Loan outstanding, end of period (000)	$	20,250		$	20,250		$	20,750		$	19,250		$	19,250		$	19,250
Asset coverage, end of period⁵	$	3,624		$	3,488		$	3,310		$	3,645		$	3,308		$	3,024
Loan average daily balance (000)	$	20,250		$	20,621		$	20,425		$	19,250		$	19,250		$	22,664
Loan weighted average interest rate		5.42	%		4.75	%		2.87	%		1.80	%		1.96	%		2.65	%


¹	A portion of the dividend from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
²	Total investment returns at market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
³	Unaudited.
⁴	Annualized.
⁵	Per $1,000 of loan outstanding.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Income Opportunity Trust (BNA)


	Six Months Ended April 30, 2007 (unaudited)			Year Ended October 31,

				2006			2005			2004			2003			2002

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	11.17		$	11.56		$	12.38		$	11.93		$	11.83		$	11.47

Investment operations:
Net investment income		0.30			0.57			0.72			0.76			0.84			1.15
Net realized and unrealized gain (loss)		0.03			0.01			(0.45	)		0.53			0.31			(0.05	)

Net increase from investment operations		0.33			0.58			0.27			1.29			1.15			1.10

Dividends and distributions from:
Net investment income		(0.33	)¹		(0.65	)		(0.81	)		(0.84	)		(0.81	)		(0.75	)
Net realized gains		—			(0.26	)		(0.28	)		—			(0.24	)		—
Tax return of capital		—			(0.06	)		—			—			—			—

Total dividends and distributions		(0.33	)		(0.97	)		(1.09	)		(0.84	)		(1.05	)		(0.75	)

Increase resulting from Trust shares repurchased		—			—			—			—			—			0.01

Net asset value, end of period	$	11.17		$	11.17		$	11.56		$	12.38		$	11.93		$	11.83

Market price, end of period	$	10.70		$	10.58		$	10.90		$	11.38		$	10.95		$	10.50

TOTAL INVESTMENT RETURNS:²
At net asset value³		3.15	%		5.76	%		3.03	%		11.81	%		10.92	%		11.14	%

At market value		4.32	%		6.27	%		5.53	%		12.04	%		14.71	%		8.44	%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		1.73	%⁴		1.61	%		1.72	%		1.11	%		1.29	%		1.40	%
Net expenses		1.73	%⁴		1.61	%		1.72	%		1.11	%		1.29	%		1.40	%
Net expenses excluding interest expense		0.87	%⁴		0.89	%		0.87	%		0.84	%		0.89	%		0.93	%
Net investment income		5.36	%⁴		4.92	%		5.97	%		6.29	%		6.99	%		10.04	%
SUPPLEMENTAL DATA:
Average net assets (000)	$	383,898		$	381,726		$	413,777		$	415,131		$	413,543		$	394,495
Portfolio turnover		77	%		131	%		396	%		300	%		46	%		153	%
Net assets, end of period (000)	$	384,911		$	384,850		$	398,078		$	426,643		$	410,981		$	407,480
Reverse repurchase agreements outstanding, end of period (000)	$	61,185		$	34,326		$	120,179		$	94,644		$	103,378		$	85,704
Asset coverage, end of period⁵	$	7,291		$	12,212		$	4,312		$	5,508		$	4,976		$	5,755
Reverse repurchase agreements average daily balance (000)	$	62,115		$	59,691		$	122,457		$	97,264		$	136,172		$	36,153
Reverse repurchase agreements weighted average interest rate		5.26	%		4.59	%		2.87	%		1.14	%		1.22	%		1.93	%


¹	A portion of the dividend from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
²	Total investment returns at market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
³	Unaudited.
⁴	Annualized.
⁵	Per $1,000 of reverse repurchase agreements outstanding.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Income Trust Inc. (BKT)


	Six Months Ended April 30, 2007 (unaudited)			Year Ended October 31,

				2006			2005			2004			2003			2002

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	6.48		$	6.54		$	6.95		$	7.21		$	8.13		$	8.06

Investment operations:
Net investment income		0.17			0.32			0.44			0.51			0.61			0.99
Net realized and unrealized gain (loss)		0.03			0.05			(0.30	)		(0.16	)		(0.52	)		(0.35	)

Net increase from investment operations		0.20			0.37			0.14			0.35			0.09			0.64

Dividends and distributions from:
Net investment income		(0.19	)¹		(0.34	)		(0.48	)		(0.61	)		(1.01	)		(0.57	)
Tax return of capital		—			(0.09	)		(0.07	)		—			—			—

Total dividends and distributions		(0.19	)		(0.43	)		(0.55	)		(0.61	)		(1.01	)		(0.57	)

Net asset value, end of period	$	6.49		$	6.48		$	6.54		$	6.95		$	7.21		$	8.13

Market price, end of period	$	6.21		$	6.07		$	5.90		$	7.50		$	7.71		$	8.07

TOTAL INVESTMENT RETURNS:²
At net asset value³		3.16	%		6.06	%		1.97	%		5.16	%		1.20	%		8.50	%

At market value		5.37	%		10.18	%		(14.63	)%		5.97	%		15.41	%		15.35	%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		2.58	%⁴		2.85	%		2.80	%		1.37	%		1.36	%		2.05	%
Net expenses		2.57	%⁴		2.84	%		2.79	%		1.37	%		1.36	%		2.05	%
Net expenses excluding interest expense		0.99	%⁴		1.00	%		0.99	%		0.97	%		1.02	%		1.03	%
Net investment income		5.11	%⁴		4.92	%		6.54	%		7.13	%		8.18	%		12.28	%
SUPPLEMENTAL DATA:
Average net assets (000)	$	413,275		$	413,597		$	430,035		$	447,984		$	472,676		$	506,533
Portfolio turnover		157	%		80	%		60	%		120	%		64	%		125	%
Net assets, end of period (000)	$	414,892		$	414,460		$	418,390		$	442,635		$	457,301		$	511,385
Reverse repurchase agreements outstanding, end of period (000)	$	36,190		$	70,691		$	149,558		$	223,736		$	121,767		$	205,792
Asset coverage, end of period⁵	$	12,464		$	6,863		$	3,798		$	2,978		$	4,756		$	3,485
Reverse repurchase agreements average daily balance (000)	$	70,182		$	104,393		$	180,553		$	158,278		$	135,804		$	173,501
Reverse repurchase agreements weighted average interest rate		5.21	%		4.54	%		2.81	%		1.12	%		1.17	%		1.81	%


¹	A portion of the dividend from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
²	Total investment returns at market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
³	Unaudited.
⁴	Annualized.
⁵	Per $1,000 of reverse repurchase agreements outstanding.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Limited Duration Income Trust (BLW)


	Six Months Ended April 30, 2007 (unaudited)												For the period July 30, 2003¹through October 31, 2003
				Year Ended October 31,

				2006			2004			2005

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	19.01		$	19.17		$	20.13		$	19.74		$	19.10	²

Investment operations:
Net investment income		0.71			1.35			1.46			1.46			0.33
Net realized and unrealized gain (loss)		0.35			0.03			(0.94	)		0.43			0.60

Net increase from investment operations		1.06			1.38			0.52			1.89			0.93

Dividends and distributions from:
Net investment income		(0.75	)³		(1.52	)		(1.33	)		(1.49	)		(0.25	)
Net realized gains		—			—			(0.15	)		(0.01	)		—
Tax return of capital		—			(0.02	)		—			—			—

Total dividends and distributions		(0.75	)		(1.54	)		(1.48	)		(1.50	)		(0.25	)

Capital charges with respect to issuance of shares		—			—			—			—			(0.04	)

Net asset value, end of period	$	19.32		$	19.01		$	19.17		$	20.13		$	19.74

Market price, end of period	$	19.57		$	18.85		$	17.48		$	19.95		$	18.80

TOTAL INVESTMENT RETURNS:⁴
At net asset value⁵		5.67	%		7.85	%		2.93	%		10.17	%		4.71	%

At market value		7.95	%		17.31	%		(5.30	)%		14.64	%		(4.77	)%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		2.44	%⁶		2.20	%		1.71	%		1.26	%		0.82	%⁶
Net expenses		2.43	%⁶		2.19	%		1.71	%		1.25	%		0.82	%⁶
Net expenses excluding interest expense		0.84	%⁶		0.91	%		0.92	%		0.90	%		0.79	%⁶
Net investment income		7.50	%⁶		7.10	%		7.42	%		7.34	%		6.87	%⁶
SUPPLEMENTAL DATA:
Average net assets (000)	$	704,563		$	698,382		$	722,668		$	730,369		$	686,655
Portfolio turnover		46	%		132	%		70	%		215	%		127	%
Net assets, end of period (000)	$	711,940		$	699,206		$	704,961		$	739,225		$	724,747
Reverse repurchase agreements outstanding, end of period (000)	$	182,178		$	220,000		$	176,010		$	159,416		$	118,993
Asset coverage, end of period⁷	$	4,908		$	4,178		$	5,005		$	5,637		$	7,091
Reverse repurchase agreements average daily balance (000)	$	207,835		$	179,366		$	186,660		$	195,845		$	26,591
Reverse repurchase agreements weighted average interest rate		5.34	%		4.96	%		3.08	%		1.32	%		0.76	%



¹	Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
²	Net asset value, beginning of period, reflects a deduction of $0.90 per share sales charge from the initial offering price of $20.00 per share.
³	A portion of the dividend from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
⁴	Total investment returns at market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
⁵	Unaudited.
⁶	Annualized.
⁷	Per $1,000 of reverse repurchase agreements outstanding.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Preferred and Equity Advantage Trust (BTZ)


	For the period December 27, 2006¹ through April 30, 2007 (unaudited)

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	23.88	²

Investment operations:
Net investment income		0.46
Net realized and unrealized gain		0.16
Dividends to preferred shareholders from net investment income		(0.07	)

Net increase from investment operations		0.55

Dividends to common shareholders from net investment income³		(0.47	)

Capital charges with respect to issuance of:
Common shares		(0.04	)
Preferred shares		(0.13	)

Total capital charges		(0.17	)

Net asset value, end of period	$	23.79

Market price, end of period	$	23.43

TOTAL INVESTMENT RETURNS:⁴
At net asset value		1.63	%

At market value		(4.41	)%

RATIOS TO AVERAGE NET ASSETS:^5,6
Total expenses		2.28	%
Net expenses		2.27	%
Net expenses excluding interest expense and excise tax		0.94	%
Net investment income before preferred share dividends		5.80	%
Preferred share dividends		0.86	%
Net investment income available to common shareholders		4.94	%
SUPPLEMENTAL DATA:
Average net assets (000)	$	1,200,281
Portfolio turnover		24	%
Net assets applicable to common shareholders, end of period (000)	$	1,233,235
Reverse repurchase agreements outstanding, end of period (000)	$	10,061
Preferred shares value outstanding, end of period (000)	$	462,000
Asset coverage, end of period	$	92,293
Reverse repurchase agreements average daily balance (000)	$	201,159
Reverse repurchase agreements weighted average interest rate		5.39	%



¹	Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
²	Net asset value, beginning of period, reflects a deduction of $1.125 per share sales charge from the initial offering price of $25.00 per share.
³	A portion of the dividend from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
⁴	Total investment returns at market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
⁵	Annualized.
⁶	Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

FINANCIAL HIGHLIGHTS

BlackRock Strategic Bond Trust (BHD)


	Six Months Ended April 30, 2007 (unaudited)															For the period February 28, 2002¹ through October 31, 2002
				Year Ended October 31,

				2006			2005			2004			2003

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	13.83		$	13.68		$	15.10		$	15.07		$	12.63		$	14.33	²

Investment operations:
Net investment income		0.48			0.99			1.10			1.39			1.59			0.98
Net realized and unrealized gain (loss)		0.31			0.18			(1.13	)		0.25			2.34			(1.77	)

Net increase (decrease) from investment operations		0.79			1.17			(0.03	)		1.64			3.93			(0.79	)

Dividends and distributions from:
Net investment income		(0.46	)³		(0.98	)		(1.12	)		(1.61	)		(1.49	)		(0.84	)
Tax return of capital		—			(0.04	)		(0.27	)		—			—			—

Total dividends and distributions		(0.46	)		(1.02	)		(1.39	)		(1.61	)		(1.49	)		(0.84	)

Capital charges with respect to issuance of shares		—			—			—			—			—			(0.07	)

Net asset value, end of period	$	14.16		$	13.83		$	13.68		$	15.10		$	15.07		$	12.63

Market price, end of period	$	13.19		$	12.85		$	12.45		$	16.70		$	15.27		$	12.35

TOTAL INVESTMENT RETURNS:⁴
At net asset value⁵		6.01	%		9.58	%		(0.49	)%		11.35	%		32.55	%		(6.16	)%

At market value		6.28	%		11.87	%		(18.11	)%		21.54	%		37.36	%		(12.34	)%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		1.79	%⁶		2.25	%		2.14	%		1.49	%		2.01	%		2.57	%⁶
Net expenses		1.58	%⁶		2.00	%		1.87	%		1.23	%		1.71	%		2.26	%⁶
Net expenses excluding interest expense		0.90	%⁶		0.94	%		0.92	%		0.89	%		1.01	%		1.25	%⁶
Net investment income		6.92	%⁶		7.26	%		7.58	%		9.23	%		11.32	%		10.68	%⁶
SUPPLEMENTAL DATA:
Average net assets (000)	$	98,857		$	96,003		$	101,990		$	106,330		$	98,498		$	95,675
Portfolio turnover		21	%		56	%		51	%		31	%		32	%		22	%
Net assets, end of period (000)	$	99,942		$	97,614		$	96,546		$	106,433		$	106,045		$	88,594
Reverse repurchase agreements outstanding, end of period (000)	$	10,480		$	14,951		$	31,883		$	13,188		$	45,872		$	44,223
Asset coverage, end of period⁷	$	10,537		$	7,529		$	4,028		$	9,071		$	3,312		$	3,003
Reverse repurchase agreements average daily balance (000)	$	12,675		$	21,104		$	30,406		$	27,562		$	46,036		$	44,889
Reverse repurchase agreements weighted average interest rate		5.36	%		4.81	%		3.20	%		1.33	%		1.51	%		1.45	%



¹	Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
²	Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.
³	A portion of the dividend from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
⁴	Total investment returns at market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
⁵	Unaudited.
⁶	Annualized.
⁷	Per $1,000 of reverse repurchase agreements outstanding.

See Notes to Financial Statements.

NOTES TO FINANCIAL STATEMENTS (unaudited)

Note 1. Organization & Accounting Policies

BlackRock Broad Investment Grade 2009 Term Trust Inc. (“Broad Investment Grade”), BlackRock Core Bond Trust (“Core Bond”), BlackRock High Yield Trust (“High Yield”), BlackRock Income Opportunity Trust (“Income Opportunity”), BlackRock Income Trust Inc. (“Income Trust”), BlackRock Limited Duration Income Trust (“Limited Duration”) and BlackRock Strategic Bond Trust (“Strategic Bond”) are registered as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended (the “1940 Act”). BlackRock Preferred and Equity Advantage Trust (“Preferred and Equity”) is registered as a non-diversified, closed-end management investment company under the 1940 Act. Broad Investment Grade, Income Opportunity and Income Trust are organized as Maryland corporations. Core Bond, High Yield, Limited Duration, Equity and Preferred and Strategic Bond are organized as Delaware statutory trusts. Broad Investment Grade, Core Bond, High Yield, Income Opportunity, Income Trust, Limited Duration, Preferred and Equity and Strategic Bond are individually referred to as a “Trust” and collectively as the “Trusts”.

Preferred and Equity was organized on October 26, 2006 and had no transactions until November 21, 2006 when the Trust sold 4,817 common shares for $115,006 to BlackRock Funding, Inc. Investment operations for Preferred and Equity commenced on December 27, 2006. The Trust incurred organization costs which were deferred from the organization date until the commencement of operations.

On December 3, 1999, Broad Investment Grade transferred a substantial portion of its total assets to a 100% owned regulated investment company subsidiary called BCT Subsidiary, Inc. The financial statements and these notes to the financial statements for Broad Investment Grade are consolidated and include the operations of both Broad Investment Grade and its wholly owned subsidiary after elimination of all intercompany transactions and balances.

Under the Trusts’ organizational documents, their officers and Trustees (as defined below) are indemnified against certain liabilities arising out of the performance of their duties to the Trusts. In addition, in the normal course of business, the Trusts enter into contracts with their vendors and others that provide for general indemnifications. The Trusts’ maximum exposure under these arrangements are unknown as this would involve future claims that may be made against the Trusts. However, based on experience, the Trusts consider the risk of loss from such claims to be remote.

The following is a summary of significant accounting policies followed by the Trusts.

Investment Valuation: The Trusts value most of their investments on the basis of current market quotations provided by dealers or pricing services selected under the supervision of each Trust’s Board (the “Board”) of Directors/Trustees (the “Trustees”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, market transactions in comparable investments, various relationships observed in the market between investments, and calculated yield measures based on valuation technology commonly employed in the market for such investments. Exchange-traded options are valued at their last sales price as of the close of options trading on applicable exchanges. In the absence of a last sale price, options are valued at the average of the quoted bid and asked prices as of the close of business. Swap quotations are provided by dealers selected under supervision of the Board. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Short-term securities may be valued at amortized cost. Investments or other assets for which such current market quotations are not readily available are valued at fair value (“Fair Value Assets”) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust’s Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to the Board.

When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that BlackRock Advisors deems relevant.

In September 2006, Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. At this time, management is evaluating the implication of FAS 157 and its impact on the Trusts’ financial statements, if any, has not been determined.

In addition, in February 2007, Statement of Financial Accounting Standards No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“FAS 159”), was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. At this time, management is evaluating the implications of FAS 159 and its impact on the Trusts’ financial statements, if any, has not been determined.

Investment Transactions and Investment Income: Investment transactions are recorded on trade date. The cost of investments sold and the related gain or loss is determined by use of the specific identification method, generally first-in, first-out, for both financial reporting and federal income tax purposes. Each Trust records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.

Each Trust may, from time to time, purchase, in the secondary market, certain mortgage pass-through securities packaged or master serviced by affiliates or mortgage-related securities containing loans or mortgages originated by Merrill Lynch & Co., Inc. and PNC Bank, or their affiliates, including Midland Loan Services, Inc., each of which may be presumed to be an affiliate of BlackRock Advisors, LLC. It is possible, under certain circumstances, that Merrill Lynch Mortgage Investors, Inc. and PNC Mortgage Securities Corp. or their affiliates, including Midland Loan Services, Inc., could have interests that are in conflict with the holders of these mortgage-backed securities, and such hold-

ers could have rights against Merrill Lynch Mortgage Investors, Inc. and PNC Mortgage Securities Corp. or their affiliates, including Midland Loan Services, Inc.

Reverse Repurchase Agreements: The Trusts may enter into reverse repurchase agreements with qualified third-party broker-dealers as determined by and under the direction of the Trusts’ Board. Interest on the value of reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance. At the time a Trust enters into a reverse repurchase agreement, it will establish and maintain a segregated account with the lender, containing liquid investment grade securities having a value not less than the repurchase price, including accrued interest of the reverse repurchase agreement.

Dollar Rolls: The Trusts may enter into dollar rolls in which a Trust sells securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date. During the roll period the Trusts forgo principal and interest paid on the securities. The Trusts will be compensated by the interest earned on the cash proceeds of the initial sale and/or by the lower repurchase price at the future date.

Loan Payable: High Yield has a $32 million committed credit facility (the “facility”). Under the terms of the facility, the Trust borrows at the London Interbank Offered Rate (“LIBOR”) plus facility and administrative fees. In addition, the Trust pays a liquidity fee on the unused portion of the facility. The Trust may borrow up to 33¹/₃% of its total assets up to the committed amount. In accordance with the terms of the facility, the Trust has pledged its portfolio assets as collateral for the borrowing.

Bank Loans: In the process of buying, selling and holding bank loans, a Trust may receive and/or pay certain fees. These fees are included in the purchase price and may include facility fees, commitment fees, amendment fees, commissions and prepayment penalty fees. These fees are amortized as premioum and/or accreted as discount over the term of the loan. When a Trust buys a bank loan it may receive a facility fee and when it sells a bank loan it may pay a facility fee. On an ongoing basis, a Trust may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a bank loan. In certain circumstances, a Trust may receive a prepayment penalty fee upon the prepayment of a bank loan by a borrower. Other fees received by a Trust may include covenant waiver fees and covenant modification fees.

A Trust may invest in multiple series or tranches of an issuer. A different series or tranche may have varying terms and carry different associated risks.

Option Writing/Purchasing: When a Trust writes or purchases an option, an amount equal to the premium received or paid by the Trust is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Trust on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or a loss on investment transactions. A Trust, as writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option.

Option writing and purchasing may be used by the Trusts as an attempt to manage the duration of positions, or collections of positions, so that changes in interest rates do not adversely affect the targeted duration of the portfolio unexpectedly. Duration is a measure of the price sensitivity of a security or a portfolio to relative changes in interest rates. For instance, a duration of “one” means that a portfolio’s or a security’s price would be expected to change by approximately one percent with a one percent change in interest rates, while a duration of five would imply that the price would move approximately five percent in relation to a one percent change in interest rates.

A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying position at the exercise price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying position at the exercise price at any time or at a specified time during the option period. The main risk that is associated with purchasing options is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is considered the loss. The risk associated with writing call options is that a Trust may forgo the opportunity for a profit if the market value of the underlying position increases and the option is exercised. The risk in writing put options is that a Trust may incur a loss if the market value of the underlying position decreases and the option is exercised. In addition, the Trust risks not being able to enter into a closing transaction for the written option as the result of an illiquid market.

Stripped Mortgage-Backed Securities: Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. In certain cases, one class will receive all of the interest (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). The yield to maturity on IOs is sensitive to the rate of principal repayments (including prepayments) on the related underlying mortgage assets, and principal payments may have a material effect on yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, a Trust may not fully recoup its initial investment in IOs. Such securities will be considered liquid only if so determined in accordance with guidelines established by the Trustees.

Inverse Floating Rate Securities: The Trusts may invest in inverse floating rate securities that pay interest at a rate that varies inversely with interest rates. As interest rates rise, inverse floating rates decline. The market value of such securities is more volatile than comparable fixed rate securities.

Credit Default Swaps: Credit default swaps are agreements in which one party pays fixed periodic payments to a counterparty in consideration for a guarantee from the counterparty to make a specific payment should a negative credit event take place. Risks arise from the possible inability of the counterparties to meet the terms of their contracts.

During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by “marking-to-market” to reflect the market value of the swap. When the swap is terminated, a Trust will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract, if any.

The Trusts are exposed to credit loss in the event of non-performance by the other party to the swap. However, the Trusts closely monitor swaps and do not anticipate non-performance by any counterparty.

Total Return Swaps: Total return swaps are agreements in which one party commits to pay interest in exchange for a market-linked return. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Trust will receive a payment from or make a payment to the counterparty.

Interest Rate Swaps: In an interest rate swap, one investor pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, an investor may pay a fixed rate and receive a floating rate. Interest rate swaps are efficient as asset/liability management tools. In more complex swaps, the notional principal amount may decline (or amortize) over time.

Swap Options: Swap options are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swap option is granting or buying the right to enter into a previously agreed upon interest rate swap agreement at any time before the expiration of the option. Premiums received or paid from writing or purchasing options are recorded as liabilities or assets and are subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by a Trust on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commission, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or loss on investment transactions.

The main risk that is associated with purchasing swap options is that the swap option expires without being exercised. In this case, the option expires worthless and the premium paid for the swap option is considered the loss. The main risk that is associated with the writing of a swap option is the market risk of an unfavorable change in the value of the interest rate swap underlying the written swap option.

Swap options may be used by the Trusts to manage the duration of the Trusts’ portfolios in a manner similar to more generic options described above.

Interest Rate Caps: Interest rate caps are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party pays the excess, if any, of a floating rate over a specified fixed or floating rate.

Interest rate caps are intended to both manage the duration of the Trusts’ portfolios and their exposure to changes in short-term interest rates. Owning interest rate caps reduces a portfolio’s duration, making it less sensitive to changes in interest rates from a market value perspective. The effect on income involves protection from rising short-term interest rates, which the Trusts experience primarily in the form of leverage.

The Trusts are exposed to credit loss in the event of non-performance by the other party to the interest rate cap. However, the Trusts do not anticipate non-performance by any counterparty.

Transaction fees paid or received by the Trusts are recognized as assets or liabilities and amortized or accreted into interest expense or income over the life of the interest rate cap. The asset or liability is subsequently adjusted to the current market value of the interest rate cap purchased or sold. Changes in the value of the interest rate cap are recognized as unrealized gains and losses.

Interest Rate Floors: Interest rate floors are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party pays the deficiency, if any, of a floating rate under a specified fixed or floating rate.

Interest rate floors are used by the Trusts to both manage the duration of the portfolios and their exposure to changes in short-term interest rates. Selling interest rate floors reduces a portfolio’s duration, making it less sensitive to changes in interest rates from a market value perspective. The Trusts’ leverage provides extra income in a period of falling rates. Selling floors reduces some of that extra income by partially monetizing it as an up front payment which the Trusts receive.

The Trusts are exposed to credit loss in the event of non-performance by the other party to the interest rate floor. However, the Trusts do not anticipate non-performance by any counterparty.

Transaction fees paid or received by the Trusts are recognized as assets or liabilities and amortized or accreted into interest expense or income over the life of the interest rate floor. The asset or liability is subsequently adjusted to the current market value of the interest rate floor purchased or sold. Changes in the value of the interest rate floor are recognized as unrealized gains and losses.

Financial Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking-to-market” on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, a Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract.

Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly.

Forward Currency Contracts: The Trusts enter into forward currency contracts primarily to facilitate settlement of purchases and sales of foreign securities and to help manage the overall exposure to foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date (usually the security transaction settlement date) at a negotiated forward rate. In the event that a security fails to settle within the normal settlement period, the forward currency contract is renegotiated at a new rate. The gain or loss arising from the difference between the settlement value of the original and renegotiated forward contracts is isolated and is included in net realized gains (losses) from foreign currency transactions. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contract.

Forward currency contracts, when used by the Trusts, help to manage the overall exposure to the foreign currency backing some of the investments held by the Trusts. Forward currency contracts are not meant to be used to eliminate all of the exposure to the foreign currency, rather they allow the Trusts to limit their exposure to foreign currency within a narrow band to the objectives of the Trusts.

Foreign Currency Translation: Foreign currency amounts are translated into United States dollars on the following basis:


	(i)	market value of investment securities, assets and liabilities at the current rate of exchange; and

	(ii)	purchases and sales of investment securities, income and expenses-at the rates of exchange prevailing on the respective dates of such transactions.

The Trusts isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Trusts isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the period.

Net realized and unrealized foreign exchange gains and losses including realized foreign exchange gains and losses from sales and maturities of foreign portfolio securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of interest and discount recorded on the Trusts’ books and the U.S. dollar equivalent amounts actually received or paid, and changes in unrealized foreign exchange gains and losses in the value of portfolio securities and other assets and liabilities arising as a result of changes in the exchange rate.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

Short Sales: The Trusts may make short sales of securities as a method of managing potential price declines in similar securities owned. When a Trust makes a short sale, it may borrow the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. The Trusts may have to pay a fee to borrow the particular securities and may be obligated to pay over any payments received on such borrowed securities. A gain, limited to the price at which a Trust sold the security short, or a loss, unlimited as to dollar amount, will be recognized upon the termination of a short sale if the market price is greater or less than the proceeds originally received.

Bonds Borrowed Agreements: In a bonds borrowed agreement, the Trust borrows securities from a third party, with the commitment that they will be returned to the lender on an agreed-upon date. Bonds borrowed agreements are primarily entered into to settle short positions. In a bonds borrowed agreement, the Trust’s prime broker or third party broker takes possession of the underlying collateral securities or cash to settle such short positions. The value of the underlying collateral securities or cash approximates the principal amount of the bonds borrowed transaction, including accrued interest. To the extent that bonds borrowed transactions exceed one business day, the value of the collateral with any counterparty is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the lender defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the lender of the security, realization of the collateral by the Trust may be delayed or limited.

Segregation: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Trust segregate assets in connection with certain investments (e.g., when issued securities, reverse repurchase agreements, swaps or futures contracts), each Trust will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.

Federal Income Taxes: It is each Trust’s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient amounts of their taxable income to shareholders. Therefore, no federal income tax provisions have been recorded. As part of a tax planning strategy, Broad Investment Grade has retained a portion of its taxable income and will pay excise tax on the undistributed amounts.

In July 2006, the Financial Accounting Standards Board released FASB Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes”. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Trusts’ tax returns to determine whether

the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be booked as a tax expense in the current year and recognized as: a liability for unrecognized tax benefits; a reduction of an income tax refund receivable; a reduction of deferred tax asset; an increase in deferred tax liability; or a combination thereof. Adoption of FIN 48 is required for the last net asset value calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact on the Trusts’ financial statements, if any, has not yet been determined.

Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss carryforwards may be distributed in accordance with the 1940 Act. If the total dividends and distributions made in any tax year exceeds net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a tax-free return of capital. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities including investment and swap valuations at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and such differences may be material.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trust’s Board, non-interested Trustees (“Independent Trustees”) are required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of the other BlackRock Closed-End Funds selected by the Independent Trustees. These amounts are shown on the Statement of Assets and Liabilities as “Investments in Affiliates”. This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in such Trusts.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Independent Trustees in order to match its deferred compensation obligations.

Other: Expenses that are directly related to one of the Trusts are charged directly to that Trust. Other operating expenses are generally prorated to the Trusts on the basis of relative net assets of all the BlackRock Closed-End Funds.

Note 2. Agreements and Other Transactions with Affiliates and Related Parties

Each Trust has an Investment Management Agreement with BlackRock Advisors, LLC (the “Advisor”), which is a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc. (“BFM”), a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to Core Bond, Limited Duration, Preferred and Equity and Strategic Bond. BlackRock Investment Management, LLC (“BIM”), a wholly owned subsidiary of BlackRock, Inc., also serves as sub-advisor to Preferred and Equity. Merrill Lynch & Co., Inc. (“Merrill Lynch”) and The PNC Financial Services Group, Inc. (“PNC”) are principal owners of BlackRock, Inc.

Broad Investment Grade, High Yield, Income Opportunity and Income Trust each have an Administration Agreement with the Advisor. The Investment Management Agreement for Core Bond, Limited Duration, Preferred and Equity and Strategic Bond covers both investment advisory and administration services.

Each Trust’s investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.55% for Broad Investment Grade, 0.60% for Income Opportunity and 0.65% for Income Trust, of each Trust’s average net assets and 0.55% for Core Bond and Limited Duration, 0.65% for Preferred and Equity, 0.75% for Strategic Bond and 1.05% for High Yield, of each Trust’s average weekly managed assets. “Net assets” means the toal assets of the Trust minus the sum of accrued liabilities. “Managed assets” means the total assets of a Trust (including any assets attributable to any borrowing that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fees or other expenses on Strategic Bond as a percentage of its average weekly managed assets as follows: 0.20% for the first five years of the Trust’s operations from 2002 through 2007, 0.15% in 2008, 0.10% in 2009 and 0.05% in 2010.

The Advisor pays BFM and BIM fees for its sub-advisory services.

The administration fee paid to the Advisor by Broad Investment Grade, High Yield, Income Opportunity and Income Trust is computed weekly and payable monthly based on an annual rate of 0.15%, 0.10%, 0.10%, and 0.15%, respectively, of the Trusts’ average weekly managed assets.

Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, as well as occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for cost of employees that provide pricing, secondary market support and compliance services provided to each Trust. For the six months ended April 30, 2007, the Trusts reimbursed the Advisor the following amounts, which are included in miscellaneous expenses in the Statement of Operations:


Trust	Amount		Trust	Amount

Broad Investment Grade	$	1,798	Income Trust	$	15,345
Core Bond		12,277	Limited Duration		22,289
High Yield		1,244	Preferred and Equity		11,909
Income Opportunity		12,688	Strategic Bond		3,068

Pursuant to the terms of the custody agreements, each Trust may receive earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees. These credits are shown on the Statements of Operations as “fees paid indirectly.”

During the six months ended April 30, 2007, Merrill Lynch, through its affiliated broker dealer Merrill Lynch, Pierce, Fenner & Smith Incorporated, earned commissions on transactions of securities as follows:


Trust	Commission Amount

Core Bond	$	43,604
Income Opportunity		48,057
Income Trust		15,853
Limited Duration		614
Preferred and Equity		143,915

For the six months ended April 30, 2007, investments in companies assumed to be an affiliate of the Trusts, were as follows:


Trust	Portfolio Company	Beginning Principal Amount		Sales		Ending Principal Amount		Interest Income		Market Value of Affiliates at April 30, 2007

Core Bond	Merrill Lynch
	Mortgage Investors, Inc.,
	Ser. HE2, Class A2A	$	1,509,548	$	618,847	$	890,701	$	34,249	$	890,858

Income Opportunity	Merrill Lynch
	Mortgage Investors, Inc.,
	Ser. HE2, Class A2A		1,651,471		677,029		974,442		38,421		974,614
	Merrill Projects, Ser. 29		152,326		2,859		149,467		5,585		151,214
	Merrill Projects, Ser. 42		51,398		1,053		50,345		1,893		50,965

Income Trust	Merrill Projects, Ser. 54		51,249		847		50,402		1,881		51,029


Note 3. Portfolio Securities

Purchases and sales of investment securities, other than short-term investments, dollar rolls and U.S. government securities, for the six months ended April 30, 2007 were as follows:


Trust	Purchases		Sales		Trust	Purchases		Sales

Broad Investment Grade	$	564,277	$	2,632,043	Income Trust	$	772,139,401	$	819,761,664
Core Bond		105,314,228		105,722,400	Limited Duration		480,300,522		513,363,584
High Yield		26,286,574		26,881,619	Preferred and Equity		2,076,052,986		378,801,519
Income Opportunity		257,450,521		246,888,773	Strategic Bond		23,146,631		31,736,494

Purchases and sales of U.S. government securities for the six months ended April 30, 2007, aggregated as follows:


Trust	Purchases		Sales		Trust	Purchases		Sales

Broad Investment Grade	$	—	$	3,200,000	Income Trust	$	11,800,781	$	21,000,000
Core Bond		91,500,255		71,749,375	Limited Duration		—		10,000,000
Income Opportunity		117,445,898		99,740,058	Strategic Bond		—		933,000

Details of open forward currency contracts at April 30, 2007 were as follows:


Trust	Foreign Currency		Settlement Date	Contract to Receive		Value at Settlement Date		Value at April 30, 2007		Unrealized Depreciation

Core Bond		Sold:
		Euro	7/18/07	$	207,567	$	279,795	$	284,076	$	4,281

Limited Duration		Sold:
		Euro	7/18/07	$	19,790,550	$	26,726,116	$	27,085,352	$	359,236
		British Pounds	7/18/07		6,563,875		12,989,497		13,118,222		128,725

										$	487,961

Income Trust held interest rate floors at April 30, 2007. Under the agreement, Income Trust pays the excess, if any, of a fixed rate over a floating rate. Income Trust received a transaction fee for the floors. Transaction fees are amortized through the termination of the agreement. Details of the interest rate floors held at April 30, 2007 were as follows:


Notional Amount (000)	Variable Rate	Counter Party	Floating Rate	Effective Date	Termination Date	Amortized Cost			Value at April 30, 2007			Unrealized Appreciation

$165,000	4.80%	Goldman Sachs	3-month LIBOR	12/25/05	03/25/11	$	(1,840,997	)	$	(852,777	)	$	988,220
119,000	4.95	JPMorgan	3-month LIBOR	03/27/06	03/25/11		(1,427,694	)		(418,999	)		1,008,695
80,000	5.50	Union Bank of Switzerland	3-month LIBOR	12/15/06	03/15/10		(1,111,783	)		(870,926	)		240,857

						$	(4,380,474	)	$	(2,142,702	)	$	2,237,772

Details of open interest rate swaps at April 30, 2007 were as follows:


Trust	Notional Amount (000)		Fixed Rate		Counter Party	Floating Rate	Effective Date	Termination Date	Unrealized Appreciation (Depreciation)

Core Bond	$	41,200	4.510	%^(b)	Citibank	3-month LIBOR	10/29/04	10/29/14	$	1,450,998
		2,800	4.500	^(b)	JPMorgan	3-month LIBOR	05/26/05	05/26/15		83,293
		4,800	4.372	^(a)	Union Bank of Switzerland	3-month LIBOR	06/30/05	06/30/15		(188,640	)
		4,600	5.000	^(a)	Deutsche Bank	3-month LIBOR	11/07/05	11/07/10		59,861
		4,800	5.723	^(a)	JPMorgan	3-month LIBOR	07/14/06	07/14/16		272,303
		25,100	5.496	^(a)	Bank of America	3-month LIBOR	07/28/06	07/28/11		842,858
		3,000	5.025	^(a)	Deutsche Bank	3-month LIBOR	11/21/06	11/21/11		41,855
		2,200	5.348	^(a)	Union Bank of Switzerland	3-month LIBOR	02/05/07	11/29/11		21,656
		8,300	5.002	^(b)	Union Bank of Switzerland	3-month LIBOR	01/08/07	01/08/12		(104,580	)
		8,545	5.411	^(a)	JPMorgan	3-month LIBOR	02/05/07	08/15/22		92,115
		3,100	5.347	^(a)	Goldman Sachs	3-month LIBOR	02/05/07	02/05/17		43,408
		11,300	5.295	^(a)	Union Bank of Switzerland	3-month LIBOR	02/08/07	02/08/17		101,301
		13,500	4.922	^(a)	Lehman Brothers	3-month LIBOR	03/22/07	03/22/11		29,025
		700	5.250	^(a)	Goldman Sachs	3-month LIBOR	04/12/07	04/12/17		4,430
		21,400	5.068	^(b)	Goldman Sachs	3-month LIBOR	04/30/07	04/30/09		(17,548	)
		2,900	5.411	^(a)	Goldman Sachs	3-month LIBOR	04/30/07	04/30/27		16,501
		7,110	6.533	^(a)	Deutsche Bank	3-month LIBOR	01/12/07	01/12/11		(4,402	)
		7,110	6.544	^(a)	Deutsche Bank	3-month LIBOR	01/22/07	01/22/11		(1,709	)
		6,200	4.725	^(a)	Morgan Stanley	3-month LIBOR	08/02/05	08/02/15		(169,168	)
		5,000	4.870	^(a)	Goldman Sachs	3-month LIBOR	01/25/06	01/25/16		(29,969	)

									$	2,543,588

Income Opportunity Trust	$	5,200	4.372	%^(a)	Union Bank of Switzerland	3-month LIBOR	06/30/05	06/30/15	$	(204,360	)
		8,000	4.670	^(a)	Goldman Sachs	3-month LIBOR	09/20/05	09/20/15		(248,874	)
		10,000	4.897	^(a)	JPMorgan	3-month LIBOR	12/12/06	12/12/11		79,700
		23,600	5.068	^(b)	Goldman Sachs	3-month LIBOR	04/30/07	04/30/09		(19,351	)
		3,100	4.950	^(a)	Union Bank of Switzerland	3-month LIBOR	11/29/06	11/29/11		30,515
		12,000	5.002	^(b)	Union Bank of Switzerland	3-month LIBOR	01/08/07	01/08/12		(151,200	)
		800	5.250	^(a)	Goldman Sachs	3-month LIBOR	04/12/07	04/12/17		5,063
		5,000	5.000	^(a)	Deutsche Bank	3-month LIBOR	11/07/05	11/07/10		65,067
		3,200	5.025	^(a)	Deutsche Bank	3-month LIBOR	11/21/06	11/21/11		18,208
		3,200	5.411	^(a)	Lehman Brothers	3-month LIBOR	04/30/07	04/30/27		44,645
		14,800	4.922	^(b)	Union Bank of Switzerland	3-month LIBOR	03/22/07	03/22/11		31,820
		5,000	5.071	^(b)	Goldman Sachs	3-month LIBOR	03/26/07	03/26/17		38,750
		3,400	5.348	^(a)	JPMorgan	3-month LIBOR	02/05/07	02/05/17		47,609
		9,405	5.411	^(a)	Union Bank of Switzerland	3-month LIBOR	02/05/07	08/15/22		101,385
		12,000	5.295	^(a)	JPMorgan	3-month LIBOR	02/08/07	02/08/17		107,576
		3,000	4.500	^(b)	JPMorgan	3-month LIBOR	05/26/05	05/26/15		89,243
		5,200	5.723	^(a)	Citibank	3-month LIBOR	07/14/06	07/14/16		294,995
		13,800	4.510	^(b)	Bank of America	3-month LIBOR	10/29/04	10/29/14		486,013
		27,900	5.496	^(a)	Deutsche Bank	3-month LIBOR	07/28/06	07/28/11		936,882
		27,500	4.399	^(b)	Morgan Stanley	3-month LIBOR	10/25/04	10/25/14		1,161,190

									$	2,914,876


Income Trust	$	12,500	4.399	%^(b)	Deutsche Bank	3-month LIBOR	10/25/04	10/25/14	$	527,813
		3,000	4.500	^(b)	JPMorgan	3-month LIBOR	05/26/05	05/26/15		89,243
		5,400	5.723	^(a)	JPMorgan	3-month LIBOR	07/14/06	07/14/16		306,341
		3,000	5.025	^(a)	Deutsche Bank	3-month LIBOR	11/21/06	11/21/11		41,855
		4,400	5.348	^(a)	Union Bank of Switzerland	3-month LIBOR	02/05/07	11/29/11		43,312
		9,565	5.411	^(a)	JPMorgan	3-month LIBOR	02/05/07	08/15/22		103,110
		3,400	5.347	^(a)	Goldman Sachs	3-month LIBOR	02/05/07	02/05/17		47,609
		11,900	5.295	^(a)	Union Bank of Switzerland	3-month LIBOR	02/08/07	02/08/17		106,679
		800	5.250	^(a)	Goldman Sachs	3-month LIBOR	04/30/07	04/12/17		5,063
		12,000	4.320	^(a)	Union Bank of Switzerland	3-month LIBOR	09/08/05	09/08/10		(261,999	)
		19,000	4.889	^(b)	Goldman Sachs	3-month LIBOR	04/22/04	04/22/14		196,809
		25,000	4.883	^(a)	Union Bank of Switzerland	3-month LIBOR	03/21/05	03/21/15		(378,000	)
		16,000	4.925	^(a)	Deutsche Bank	3-month LIBOR	03/22/05	03/22/15		182,742
		4,500	4.442	^(a)	Morgan Stanley	3-month LIBOR	07/11/05	07/11/15		(151,438	)
		2,800	5.940	^(a)	Union Bank of Switzerland	3-month LIBOR	12/07/05	12/07/15		199,808
		5,500	4.870	^(a)	Goldman Sachs	3-month LIBOR	01/25/06	01/25/16		(32,965	)

									$	1,025,982

Details of open total return swaps at April 30, 2007 were as follows:

Trust

Notional
Amount
(000)

Fixed
Rate

Counter Party

Floating Rate

Effective
Date

Termination
Date

Unrealized
Depreciation

Core Bond

7,430

0.676

%^(b)

Morgan Stanley

Lehman +0.40

04/18/07

10/31/07

9,303

Income
Opportunity
Trust

81,900

0.676

^(b)

Morgan Stanley

Lehman +0.40

04/18/07

10/31/07

10,255

Income Trust

28,700

0.676

^(b)

Morgan Stanley

Lehman +0.40

04/18/07

10/31/07

3,594

^(a) Trust pays floating interest rate and receives fixed rate.
^(b) Trust pays fixed interest rate and receives floating rate.

The terms of the open credit default swap agreements in High Yield at April 30, 2007 were to receive the quarterly notional amount multiplied by the fixed rate and pay the counterparty, upon default event of Primedia, Inc., the par value of the notional amount of Primedia, Inc. Details of the open credit default swap in High Yield at April 30, 2007 were as follows:

Notional
Amount
(000)

Fixed
Rate

Counter Party

Effective
Date

Termination
Date

Unrealized
Appreciation

$300

2.450%

Lehman Brothers

02/24/07

03/20/12

10,172

Transaction in options written during the six months ended April 30, 2007 were as follows:


	Calls						Puts

Trust	Contracts/ Notional Amount			Premium Received			Contracts/ Notional Amount			Premium Received

Core Bond
Options outstanding at October 31, 2006	$	21,300,000		$	991,347		$	135,100,037		$	2,068,284
Options written		18,200,000			455,276			18,200,000			455,276
Options closed		(11,600,000	)		(315,851	)		(125,400,037	)		(1,392,787	)

Options outstanding at April 30, 2007	$	27,900,000		$	1,130,772		$	27,900,000		$	1,130,773

Income Opportunity Trust
Options outstanding at October 31, 2006	$	23,400,000		$	1,085,069		$	148,200,041		$	2,236,554
Options written		19,700,000			491,847			19,700,000			491,847
Options closed		(12,400,000	)		(337,634	)		(137,200,041	)		(1,489,123	)

Options outstanding at April 30, 2007	$	30,700,000		$	1,239,282		$	30,700,000		$	1,239,278

Income Trust
Options outstanding at October 31, 2006	$	23,500,000		$	1,088,815		$	150,100,000		$	2,223,745
Options written		19,600,000			489,124			19,600,000			489,124
Options closed		(12,300,000	)		(334,911	)		(138,900,000	)		(1,469,842	)

Options outstanding at April 30, 2007	$	30,800,000		$	1,243,028		$	30,800,000		$	1,243,027

Preferred and Equity
Options outstanding at October 31, 2006	$	—		$	—		$	—		$	—
Options written		1,426,500			19,941,479			—			—
Options closed		(1,210,500	)		(17,002,202	)		—			—
Options expired		(1,000	)		(3,990	)		—			—

Options outstanding at April 30, 2007	$	215,000		$	2,935,287		$	—		$	—

Note 4. Borrowings

Details of open reverse repurchase agreements at April 30, 2007 were as follows (please see Corresponding Underlying Collateral Chart):


Trust/Counter Party	Rate	Trade Date	Maturity Date¹	Net Closing Amount		Par

Core Bond
Lehman Brothers	4.150%	04/30/07	TBD	$	3,125,360	$	3,125,000
	4.750	04/18/07	TBD		2,336,376		2,332,375
	5.000	03/07/07	TBD		210,597		209,000
	5.000	04/26/07	5/3/07		7,901,861		7,895,281
	5.000	04/30/07	TBD		12,011,537		12,009,869
	5.220	04/23/07	TBD		4,766,529		4,761,006
	5.250	04/23/07	TBD		593,285		592,594
	5.280	04/23/07	5/1/07		5,328,244		5,322,000
	5.300	04/30/07	TBD		307,045		307,000

						$	36,554,125

Income Opportunity
Lehman Brothers	5.400	04/23/07	TBD	$	8,939,802	$	8,930,425
	5.180	04/23/07	TBD		8,065,203		8,057,088
	5.280	04/23/07	05/01/07		22,782,366		22,759,000
	4.800	04/26/07	05/02/07		7,226,597		7,220,820
	4.900	04/30/07	TBD		12,854,768		12,853,018
	5.050	04/30/07	TBD		1,364,666		1,364,475

						$	61,184,826

Income Trust
Lehman Brothers	5.210	01/09/07	TBD	$	22,599,299	$	22,242,000
	4.950	03/12/07	TBD		14,041,471		13,947,500

						$	36,189,500

Limited Duration
Barclay’s Bank	5.380	04/24/07	TBD	$	4,063,474	$	4,061,000
	5.400	04/26/07	05/02/07		1,239,519		1,239,147

						$	5,300,147

Credit Suisse First Boston LLC	5.450	11/28/06	TBD	$	2,722,635	$	2,661,000
	5.400	12/05/06	TBD		21,430,624		20,974,430
	5.400	12/07/06	TBD		7,629,893		7,467,475
	5.500	12/14/06	TBD		3,525,732		3,455,000
	5.400	01/17/07	TBD		2,240,300		2,206,214
	5.500	01/18/07	TBD		58,213,681		57,311,816
	5.500	02/01/07	TBD		2,616,094		2,581,000
	4.000	04/17/07	TBD		1,561,946		1,559,520
	5.450	04/17/07	TBD		12,862,264		12,837,000
	5.450	04/19/07	TBD		4,482,539		4,474,410
	5.300	04/23/07	TBD		2,547,477		2,544,480
	5.350	04/25/07	TBD		572,797		570,000

						$	118,642,345



¹	TBD - To be determined


Trust/Counter Party	Rate		Trade Date	Maturity Date¹	Net Closing Amount		Par

Limited Duration (con’t) Lehman Brothers	3.250	%	01/09/06	TBD	$	1,406,615	$	1,384,000
	1.500		09/06/06	TBD		894,697		888,000
	5.500		11/27/06	TBD		341,858		334,000
	5.180		01/09/07	TBD		3,401,891		3,347,937
	5.200		01/11/07	TBD		16,857,549		16,596,250
	5.150		02/12/07	TBD		1,803,135		1,783,237
	5.250		02/28/07	TBD		5,976,087		5,923,294
	5.000		03/07/07	TBD		984,463		977,000
	5.270		03/19/07	TBD		18,408,741		18,296,250
	3.500		04/11/07	TBD		1,733,028		1,730,000
	5.260		04/20/07	TBD		1,444,318		1,442,000
	5.290		04/24/07	05/02/07		1,912,927		1,910,681
	5.280		04/26/07	05/03/07		3,624,595		3,623,000

							$	58,235,649

Preferred and Equity Credit Suisse First Boston LLC	5.400		04/27/07	TBD	$	4,321,648	$	4,321,000
	5.400		04/30/07	TBD		5,740,861		5,740,000

							$	10,061,000

Strategic Bond Credit Suisse First Boston LLC	5.000		03/07/07	TBD	$	1,146,693	$	1,138,000
	5.200		03/07/07	TBD		2,189,255		2,172,000
	5.240		03/07/07	TBD		247,969		246,000
	5.400		01/18/07	TBD		6,040,419		5,949,393
	5.400		01/19/07	TBD		989,425		974,515

							$	10,479,908



¹	TBD - To be determined

Details of underlying collateral for open reverse repurchase agreements at April 30, 2007 were as follows:


Trust / Counter Party	Description	Rate		Maturity Date		Original Face		Current Face		Market Value

Core Bond Lehman Brothers	Federal Home Loan
	Mortgage Corp.	5.500	%	11/01/18	$	690,000	$	315,298	$	316,391
	Federal National Mortgage Assoc.	6.000		02/01/36		1,000,000		866,860		873,610
	Federal National Mortgage Assoc.	6.000		09/01/36		1,000,000		894,207		901,170
	Federal National Mortgage Assoc.	6.000		11/01/36		4,000,000		3,691,036		3,719,778
	Digicel Group Ltd.	8.875		01/15/15		240,000		240,000		235,500
	Resolution Funding Corp.	0.000		07/15/18		525,000		525,000		303,641
	Resolution Funding Corp.	0.000		10/15/18		525,000		525,000		299,396
	U.S. Treasury Inflation Protected Bond	2.000		01/15/26		5,005,000		5,124,369		4,864,948
	U.S. Treasury Bonds	4.750		02/15/37		7,925,000		7,925,000		10,164,225
	U.S. Treasury Notes	4.625		02/15/17		11,965,000		11,965,000		11,959,388
	U.S. Treasury Notes	4.500		03/31/12		3,125,000		3,125,000		3,122,438

									$	36,760,485

Income Opportunity Lehman Brothers	Bank of America Corp.	7.800		02/15/10		2,450,000		2,450,000	$	2,622,095
	Berkshire Hathaway Finance Corp.	3.375		10/15/08		2,525,000		2,525,000		2,463,524
	Citigroup, Inc.	6.125		08/25/36		1,350,000		1,350,000		1,391,977
	Federal National Mortgage Assoc.	5.500		10/01/20		445,159		371,002		371,675
	Federal National Mortgage Assoc.	5.500		07/01/16		5,601,876		502,529		504,766
	Federal National Mortgage Assoc.	5.500		03/01/18		1,539,074		529,211		531,060
	Federal National Mortgage Assoc.	5.500		05/01/17		2,610,656		432,974		434,683
	Federal National Mortgage Assoc.	5.500		11/01/17		4,172,428		543,440		545,586
	Federal National Mortgage Assoc.	5.500		08/01/17		13,451,104		2,479,521		2,489,311
	Federal National Mortgage Assoc.	5.500		12/01/32		583,245		331,624		328,807
	Federal National Mortgage Assoc.	5.500		09/01/17		2,272,174		373,721		375,197
	Federal National Mortgage Assoc.	5.500		08/01/17		2,274,535		324,370		325,651
	Federal National Mortgage Assoc.	5.500		01/01/33		12,476,919		5,958,886		5,908,261
	Federal National Mortgage Assoc.	5.500		03/01/18		1,483,364		510,924		512,710
	Federal National Mortgage Assoc.	5.500		04/01/34		875,003		469,625		465,649
	Federal National Mortgage Assoc.	5.500		02/01/35		5,014,015		3,278,696		3,250,936
	Federal National Mortgage Assoc.	5.500		05/18/35		600,000		390,038		391,578
	Federal National Mortgage Assoc.	5.500		10/01/20		810,190		756,131		757,502
	Federal National Mortgage Assoc.	5.500		07/01/20		906,698		627,378		628,515
	Federal National Mortgage Assoc.	5.500		10/01/20		807,941		734,105		735,436
	Federal National Mortgage Assoc.	5.500		03/01/21		677,502		601,106		601,951
	Federal National Mortgage Assoc.	5.500		04/01/21		410,151		360,261		360,767
	Federal National Mortgage Assoc.	5.500		06/01/36		1,001,094		946,330		936,113
	Federal National Mortgage Assoc.	5.500		10/01/20		833,871		659,220		660,416
	Federal National Mortgage Assoc.	5.500		12/01/20		353,789		292,162		292,692
	Federal National Mortgage Assoc.	5.500		02/01/21		505,628		423,235		423,829
	Federal National Mortgage Assoc.	5.500		03/01/21		654,254		587,474		588,299
	Federal National Mortgage Assoc.	6.000		01/01/37		1,000,000		971,274		978,824
	General Electric Capital Corp.	6.750		03/15/32		2,650,000		2,650,000		3,017,242
	U.S. Treasury Inflation Protected Bond	2.000		01/15/26		8,470,000		8,673,534		8,234,436
	U.S. Treasury Bonds	4.750		02/15/37		8,628,000		8,628,000		8,534,982
	U.S. Treasury Notes	4.625		02/15/17		12,805,000		12,805,000		12,798,994

									$	62,463,465

Income Trust Lehman Brothers	U.S. Treasury Strip	0.000		11/15/24		52,800,000		52,800,000	$	22,281,811
	U.S. Treasury Notes	4.000		08/31/07		14,000,000		14,000,000		13,952,974

									$	36,234,785


Trust / Counter Party	Description	Rate		Maturity Date	Original Face		Current Face		Market Value

Limited Duration Barclay’s Bank	Lyondell Chemical Co.	11.125	%	07/15/12	$	3,020,000	$	3,020,000	$	3,216,300
	Huntsman LLC	11.625		10/15/10		925,000		925,000		996,688
	Freeport-McMoRan
	Copper & Gold, Inc.	8.375		04/01/17		1,246,000		1,246,000		1,362,812

									$	5,575,800

Credit Suisse First Boston LLC	AES Corp.	8.750		05/15/13		5,100,000		5,100,000	$	5,437,875
	American Real Estate Partners LP/American Real Estate Finance Corp.	8.125		06/01/11		4,970,000		4,970,000		5,069,400
	American Real Estate Partners LP/American Real Estate Finance Corp.	7.125		02/15/13		1,480,000		1,480,000		1,455,950
	Chesapeake Energy Corp.	7.500		09/15/13		4,000,000		4,000,000		4,180,000
	Republic of Colombia	9.750		04/23/09		5,000,000		5,000,000		5,405,000
	Comcast Cable Communications, Inc.	6.875		06/15/09		6,685,000		6,685,000		6,913,092
	Concentra Operating Corp.	9.500		08/15/10		5,000,000		5,000,000		5,275,000
	DR Horton, Inc.	5.875		07/01/13		3,000,000		3,000,000		2,924,886
	DaimlerChrysler NA Holding Corp.	4.050		06/04/08		7,500,000		7,500,000		7,395,345
	Deutsche Telekom Intl. Finance BV	8.000		06/15/10		5,000,000		5,000,000		5,410,445
	General Motors Acceptance Corp.	6.875		08/28/12		2,735,000		2,735,000		2,733,085
	Group 1 Automotive, Inc.	8.250		08/15/13		5,000,000		5,000,000		5,175,000
	Kazkommerts Intl. BV	10.125		05/08/07		5,000,000		5,000,000		5,002,500
	Midwest Generation LLC	8.560		01/02/16		5,180,000		4,324,265		4,767,502
	Nielsen Finance LLC/Nielsen Finance Co.	10.000		08/01/14		4,340,000		4,340,000		4,741,450
	JC Penney Co., Inc.	8.000		03/01/10		4,400,000		4,400,000		4,708,902
	Peru Government International Bond	8.375		05/03/16		2,795,000		2,795,000		3,342,820
	Qwest Communications Intl., Inc.	8.860		02/15/09		4,000,000		4,000,000		4,040,000
	Qwest Corp.	9.125		03/15/12		3,675,000		3,675,000		4,060,875
	Qwest Corp.	7.875		09/01/11		1,000,000		1,000,000		1,065,000
	Qwest Corp.	8.605		06/15/13		2,500,000		2,500,000		2,734,375
	RH Donnelley Corp.	8.875		01/15/16		4,260,000		4,260,000		4,622,100
	Rite Aid Corp.	8.125		05/01/10		5,000,000		5,000,000		5,162,500
	Rouse Co.	5.375		11/26/13		2,000,000		2,000,000		1,885,294
	Sanmina-SCI Corp.	8.125		03/01/16		1,710,000		1,710,000		1,673,663
	Swift Energy Co.	9.375		05/01/12		5,000,000		5,000,000		5,225,000
	Turkey	7.000		09/26/16		5,093,000		5,093,000		5,207,592
	Tyco Intl. Group S.A.	6.125		11/01/08		7,500,000		7,500,000		7,609,560
	Windstream Corp.	8.125		08/01/13		2,340,000		2,340,000		2,538,900

									$	125,763,111

Lehman Brothers	Digicel Group Ltd.	8.875		01/15/15		1,120,000		1,120,000	$	1,099,000
	Federal National Mortgage Assoc.	7.250		01/15/10		17,000,000		17,000,000		18,040,757
	Federal National Mortgage Assoc.	5.500		10/01/33		2,317,378		1,123,789		1,114,268
	Federal National Mortgage Assoc.	5.500		02/01/32		390,000		125,329		124,264
	Federal National Mortgage Assoc.	5.500		03/01/32		900,000		311,268		309,594
	Federal National Mortgage Assoc.	5.500		01/01/33		263,772		103,987		103,104
	Federal National Mortgage Assoc.	5.500		03/01/33		900,000		249,818		247,702
	Federal National Mortgage Assoc.	5.500		06/01/33		800,952		389,380		386,083
	Federal National Mortgage Assoc.	5.500		07/01/33		1,982,153		1,030,583		1,021,858
	Federal National Mortgage Assoc.	5.500		08/01/33		1,236,912		558,619		553,890
	Federal National Mortgage Assoc.	5.500		09/01/33		5,790,192		3,135,887		3,109,336
	Federal National Mortgage Assoc.	5.500		10/01/33		453,504		208,605		206,839
	Grant Prideco, Inc.	6.125		08/15/15		380,000		380,000		377,150
	Metaldyne Corp.	11.000		11/01/13		1,000,000		1,000,000		1,030,000
	NewPage Corp.	11.606		05/01/12		1,500,000		1,500,000		1,663,125
	Sally Holdings LLC	10.500		11/15/16		1,790,000		1,790,000		1,861,600
	U.S. Treasury Notes	3.375		12/15/08		17,000,000		17,000,000		16,654,696
	U.S. Treasury Notes	3.875		05/15/09		5,945,000		5,945,000		5,860,700
	U.S. Treasury Notes	3.375		09/15/09		3,425,000		3,425,000		3,334,693
	U.S. Treasury Notes	4.250		08/15/15		1,815,000		1,815,000		1,770,191

									$	58,868,850


Trust / Counter Party	Description	Rate		Maturity Date	Original Face		Current Face		Market Value

Preferred and Equity Credit Suisse First Boston LLC	HBOS Plc	5.920	%	N/A¹	$	6,000,000	$	6,000,000	$	5,896,152
	HSBC Capital Funding LP	10.176		N/A¹		3,000,000		3,000,000		4,380,135

									$	10,276,287

Strategic Bond Credit Suisse First Boston LLC	DTE Energy Co.	7.050		06/01/11		100,000		100,000	$	106,465
	Digicel Group Ltd.	8.875		01/15/15		170,000		170,000		166,812
	General Electric Capital Corp.	3.450		07/16/07		2,000,000		2,000,000		1,992,624
	Merck & Co., Inc.	4.375		02/15/13		1,000,000		1,000,000		960,531
	TIAA Global Markets, Inc.	3.875		01/22/08		1,000,000		1,000,000		987,987
	U.S. Treasury Bonds	5.375		02/15/31		225,000		225,000		240,996
	U.S. Treasury Notes	4.250		08/15/13		1,000,000		1,000,000		985,312
	U.S. Treasury Notes	4.750		05/15/14		710,000		710,000		717,627
	U.S. Treasury Notes	4.125		08/15/10		810,000		810,000		800,824
	U.S. Treasury Notes	4.250		08/15/15		75,000		75,000		73,148
	U.S. Treasury Notes	4.875		08/15/16		550,000		550,000		560,097
	Vodafone Group Plc	7.750		02/15/10		1,000,000		1,000,000		1,065,864
	Wells Fargo & Co.	3.500		04/04/08		2,000,000		2,000,000		1,966,848

									$	10,625,135



¹	The security is a perpetual bond and has no stated maturity date.

Note 5. Commitments

Bridge Debt Commitments: At April 30, 2007, High Yield and Limited Duration had $2,310,000 and $19,510,000, respectively, in commitments outstanding to fund high yield bridge debt. The Trusts are entitled to a fee upon the expiration of the commitment period, generally within six months of the initial commitment date. The bridge debt terms approximate market rates at the time the commitment is entered into.

Note 6. Income Tax Information

The tax character of distributions paid during the year ended October 31, 2006 were as follows:


	Year ended October 31, 2006

Distributions Paid from:	Ordinary Income		Non-taxable Return of Capital		Long-term Capital Gains		Total Distributions

Broad Investment Grade	$	4,241,016	$	—	$	20,078	$	4,261,094
Core Bond		25,048,230		—		7,914,351		32,962,581
High Yield		4,175,232		—		—		4,175,232
Income Opportunity		22,238,533		2,162,198		8,976,685		33,377,416
Income Trust		21,910,288		5,576,693		—		27,486,981
Limited Duration		55,725,066		760,960		—		56,486,026
Strategic Bond		6,969,104		251,641		—		7,220,745

For Federal income tax purposes, the following Trusts had capital loss carryforwards as of their last respective tax year end. These amounts may be used to offset future realized capital gains, if any:


Trust	Capital Loss Carryforward Amount			Expires		Trust	Capital Loss Carryforward Amount			Expires

Broad Investment Grade		$	2,061,303		2011	Income Trust		$	33,107,952		2007
			684,360		2012				1,352,206		2008
			493,567		2014				13,940,898		2009

		$	3,239,230						21,960,613		2011

									10,100,201		2012
									3,861,222		2013
High Yield		$	2,558,868		2007				6,952,429		2014

			3,270,311		2008			$	91,275,521
			15,159,280		2009
			8,468,860		2010
			4,771,417		2011	Limited Duration		$	2,008,113		2013
			316,410		2012				1,268,222		2014

			2,060,533		2014			$	3,276,335

		$	36,605,679

						Strategic Bond		$	432,713		2011
Income Opportunity		$	2,451,628		2014				318,492		2013
									689,609		2014

								$	1,440,814

Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward amounts.

Note 7. Capital

There are 200 million of $0.01 par value common shares authorized for Broad Investment Grade, Income Opportunity and Income Trust. There are an unlimited number of $0.001 par value common shares authorized for Core Bond, High Yield, Limited Duration, Preferred and Equity and Strategic Bond. At April 30, 2007, the shares owned by an affiliate of the Advisor of Limited Duration and Preferred and Equity were 6,021 and 4,817, respectively.

Preferred and Equity, which commenced on December 27, 2006, issued 47,004,817 common shares under the initial public offering. On February 1, 2007, an additional 4,750,000 shares were issued by the undewriters’ exercising their over-allotment option. Offering costs incurred in connection with the offering of common shares have been charged against the proceeds from the initial common share offering in the amount of $1,367,957.

During the period ended April 30, 2007 and the year ended October 31, 2006, the following Trusts issued additional shares under their respec tive dividend reinvestment plan:


Trust	April 30, 2007	October 31, 2006

High Yield	—	6,259
Limited Duration	67,233	13,785
Preferred and Equity	73,340	—

As of April 30, 2007, Preferred and Equity has the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.


Series			Shares

T7			4,620
W7			4,620
R7			4,620
F7			4,620

Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. The dividend ranges on the preferred shares for Preferred and Equity for the period ended April 30, 2007 were as follows:


Series	Low			High			Average

T7		5.10	%		5.30	%		5.22	%
W7		5.20			5.30			5.23
R7		5.20			5.30			5.23
F7		5.20			5.30			5.25

Preferred and Equity may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding preferred shares and any other borrowings would be less than 200%. The preferred shares are redeemable at the option of Preferred and Equity, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated or unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of Preferred and Equity, as set forth in Preferred and Equity’s Declaration of Trust, are not satisfied. The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares, voting as a separate class, are also entitled to elect two Trustees for Preferred and Equity. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions and (c) change the nature of its business so as to cease to be an investment company.

Note 8. Subsequent Dividends

Subsequent to April 30, 2007, the Board of each of the Trusts declared dividends from undistributed earnings per common share payable May 31, 2007, to shareholders of record on May 15, 2007. The per share common dividends declared were as follows:


Trust	Common Dividend Per Share

Broad Investment Grade		$	0.07500
Core Bond			0.06700
High Yield			0.05100
Income Opportunity			0.05500
Income Trust			0.03100
Limited Duration			0.12500
Preferred and Equity			0.15625
Strategic Bond			0.07700

The dividends declared on preferred shares for the period May 1, 2007 to May 31, 2007 for Preferred and Equity were as follows:


Series	Dividends Declared

T7		$	583,044
W7			582,767
R7			469,346
F7			479,140

DIVIDEND REINVESTMENT PLANS

Pursuant to each Trust’s respective Dividend Reinvestment Plan (the “Plan”), shareholders of Broad Investment Grade, Income Opportunity and Income Trust may elect, while shareholders of Core Bond, High Yield, Limited Duration, Preferred and Equity and Strategic Bond are automatically enrolled, to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

After Broad Investment Grade declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ account, by the purchase of outstanding shares on the open market, on the Trust’s primary exchange or elsewhere (“open market purchases”). The Trust will not issue any new shares under the Plan.

After Core Bond, High Yield, Income Trust, Limited Duration and/or Strategic Bond declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ account, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by open market purchases. If, on the dividend payment date, the NAV is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as “market premium”), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases.

At a meeting of the Board of Trustees of the Income Opportunity Trust on November 21, 2006, the Board approved an amendment to the Dividend Reinvestment Plan of the Income Opportunity Trust. The Plan previously operated in a manner similar to Broad Investment Grade’s Plan, and permitted shares to be purchased only on the open market. As a result of the amendment, the Plan began permitting purchases of newly issued shares on terms similar to the Plans described in the next paragraph on April 1, 2007.

The Plan Agent’s fees for the handling of the reinvestment of dividends and distributions is paid by each Trust. However, each participant pays a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions does not relieve participants of any Federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants who request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021 or (800) 699-1BFM.

ADDITIONAL INFORMATION

Each Trust listed for trading on the New York Stock Exchange (“NYSE”) has filed with the NYSE its annual chief executive officer certification regarding compliance with the NYSE’s listing standards and each Trust listed for trading on the American Stock Exchange (“AMEX”) has filed with the AMEX its corporate governance certification regarding compliance with the AMEX’s listing standards. All of the Trusts have filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of such Trust’s offering and the information contained in each Trust’s Statement of Additional Information may have become outdated.

During the period, there were no material changes in any Trust’s investment objective or policies or to any Trust’s charters or by-laws that were not approved by the shareholders or in the principle risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRock’s website into this report.

Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisors. They serve in the following capacities for the Advisor or Sub-Advisors: Robert S. Kapito—Director and Vice Chairman of the Advisor and the Sub-Advisors, Donald Burke, Anne Ackerley, Bartholomew Battista, Vincent Tritto and Brian Kindelan—Managing Directors of the Advisor and the Sub-Advisors, Neal Andrews—Managing Director of the Advisor, James Kong and Jay Fife—Managing Directors of the Sub-Advisors, Spencer Fleming—Director of the Advisor and a Sub-Advisor and Robert Mahar—Director of a Sub-Advisor.

Important Information Regarding the BlackRock Closed-End Funds Semi-Annual Investor Update

The Semi-Annual Investor Update (“Update”) is available on the Internet and may be accessed through BlackRock’s website at http://www.blackrock.com. The Update provides information on the fixed income markets and summaries of BlackRock Closed-End Funds’ investment objectives and strategies. It also contains recent news regarding certain BlackRock Closed-End Funds.

If you would like to receive a hard copy of the BlackRock Closed-End Funds Semi-Annual Investor Update, please call (800) 699-1BFM.

SECTION 19 NOTICES

The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Trust’s investment experience during the remainder of its fiscal year and may be subject to changes based on the tax regulations. The Trust will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.


	Total Fiscal Year to Date¹Cumulative Distributions			Percentage of Fiscal Year to Date¹Cumulative Distributions by Character

Trust	Net Investment Income	Net Realized Capital Gains	Return of Capital	Total Per Common Share	Net Investment Income	Net Realized Capital Gains	Return of Capital	Total Per Common Share

Preferred & Equity Advantage*	$0.38	$—	$0.09	$0.47	81%	—%	19%	100%


¹	Commencement of investment operations for Preferred and Equity Advantage was December 27, 2006.

*	The Trust estimates that it has distributed more than its income and net realized gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Trust is paid back to you. A return of capital does not necessarily reflect the Trust’s investment performance and should not be confused with ‘yield’ or ‘income.’

BlackRock Closed-End Funds


Directors/Trustees
	Ralph L. Schlosstein, Chairman
	Andrew F. Brimmer, Lead Trustee¹
	Richard E. Cavanagh, Lead Trustee²
	Kent Dixon
	Frank J. Fabozzi
	Kathleen Feldstein
	R. Glenn Hubbard Robert S. Kapito³

Officers
	Robert S. Kapito, President
	Donald C. Burke, Treasurer
	Bartholomew Battista, Chief Compliance Officer
	Anne Ackerley, Vice President
	Neal Andrews, Assistant Treasurer
	Jay Fife, Assistant Treasurer
	Spencer Fleming, Assistant Treasurer
	James Kong, Assistant Treasurer
	Robert Mahar, Assistant Treasurer
	Vincent B. Tritto, Secretary
	Brian P. Kindelan, Assistant Secretary

Investment Advisor
	BlackRock Advisors, LLC
	100 Bellevue Parkway
	Wilmington, DE 19809
	(800) 227-7BFM

Sub-Advisor
	BlackRock Financial Management, Inc.⁴
	40 East 52nd Street
	New York, NY 10022

	BlackRock Investment Management, LLC⁵
	40 East 52nd Street
	New York, NY 10022


Accounting Agent and Custodian
	State Street Bank and Trust Company
	2 Avenue de Lafayette
	Boston, MA 02111

Transfer Agent
	Computershare Trust Company, N.A.
	250 Royall Street
	Canton, MA 02021
	(800) 699-1BFM

Auction Agent⁵
	Bank of New York
	101 Barclay Street, 7 West
	New York, NY 10286

Independent Registered Public Accounting Firm
	Deloitte & Touche LLP
	200 Berkeley Street
	Boston, MA 02116

Legal Counsel
	Skadden, Arps, Slate, Meagher & Flom LLP
	4 Times Square
	New York, NY 10036

Legal Counsel – Independent Directors/Trustees
	Debevoise & Plimpton LLP
	919 Third Avenue
	New York, NY 10022

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change.

BlackRock Closed-End Funds

c/o BlackRock Advisors, LLC

100 Bellevue Parkway

Wilmington, DE 19809

(800) 227-7BFM



¹	Retired, effective December 31, 2006.
²	Effective as of January 1, 2007.
³	Resigned, effective December 31, 2006.
⁴	For Core Bond, Limited Duration, Preferred and Equity and Strategic Bond.
⁵	For Preferred and Equity.

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 699-1BFM.

The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor’s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the “Commission”) at http://www.sec.gov.

Information on how proxies relating to the Trusts’ voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (800) 699-1BFM or on the website of the Commission at http://www.sec.gov.

The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust’s Form N-Q will be available on the Commission’s website at http://www.sec.gov. Each Trust’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Each Trust’s Form N-Q may also be obtained, upon request, by calling (800) 699-1BFM.

This report is for shareholder information. This is not a prospectus intended for
use in the purchase or sale of Trust shares. Statements and other information
contained in this report are as dated and are subject to change.

CEF-SEMI-3-0407

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Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semi-annual reports.

Item 6. Schedule of Investments.

The Registrant’s Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable for semi-annual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

(a) Not applicable for semi-annual reports.

(b) Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Companies and Affiliated Purchasers.

Not applicable because no such purchases were made during the period covered by this report.

Item 10. Submission of Matters to a Vote of Security Holders.

No matters were voted on by shareholders during the period covered by this report.

Item 11. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrant’s management, including its principle executive and principle financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the Registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Not applicable.

(a) (2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached as EX-99.CERT.

(a) (3) Not applicable.

(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) BlackRock Broad Investment Grade 2009 Term Trust, Inc.

By:		/s/ Donald C. Burke
Name:		Donald C. Burke
Title:		Treasurer
Date:		July 3, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:		/s/ Robert S. Kapito
Name:		Robert S. Kapito
Title:		Principal Executive Officer
Date:		July 3, 2007

By:		/s/ Donald C. Burke
Name:		Donald C. Burke
Title:		Principal Financial Officer
Date:		July 3, 2007