BLACKROCK FLOATING RATE INCOME TRUST

N-CSR 1 c51804_ncsr.htm

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 811-21566

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

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Global Floating Rate Income Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrants telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2007

Date of reporting period: 01/01/2007 12/31/2007

Item 1 Report to Stockholders

EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

BlackRock
Closed-End Funds
ANNUAL REPORT \| DECEMBER 31, 2007

BlackRock Global Floating Rate Income Trust (BGT)
BlackRock High Income Shares (HIS)
BlackRock Preferred Opportunity Trust (BPP)

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE

Table of Contents	Page
Letter to
Shareholders	1
Annual Report:
Trust Summaries	2
Financial Statements:
Portfolios of Investments	5
Statements of Assets and
Liabilities	19
Statements of Operations	20
Statement of Cash Flows	21
Statements of Changes in Net
Assets	22
Financial
Highlights	23
Notes to
Financial Statements	26
Report of
Independent Registered Public Accounting Firm	33
The Benefits and
Risks of Leveraging	34
Dividend
Reinvestment Plans	35
BlackRock Privacy
Principles	35
Additional
Information	36
Section 19
Notices	38
Officers and
Directors	39

ANNUAL REPORT DECEMBER 31, 2007

A Letter to Shareholders

| Dear Shareholder |
| --- |
| Financial markets endured a
heightened volatility during 2007, culminating in mixed results for some of
the major benchmark indexes: |
| Total Returns as
of December 31, 2007 |

	6-month	12-month
U.S. equities (S&P 500 Index)	1.37 %	+5.49 %
Small cap U.S. equities (Russell 2000 Index)	7.53	1.57
International equities (MSCI Europe, Australasia, Far East
Index)	+0.39	+11.17
Fixed income (Lehman Brothers U.S. Aggregate Bond Index)	+5.93	+6.97
Tax-exempt fixed income (Lehman Brothers Municipal Bond
Index)	+3.22	+3.36
High yield bonds (Lehman Brothers U.S. Corporate High
Yield 2% Issuer Cap Index)	0.67	+2.27

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

| Subprime mortgage woes dominated
headlines for much of 2007, spawning a widespread liquidity and credit crisis
with ramifications across global markets. The Federal Reserve Board (the
Fed) stepped in to inject liquidity into the markets and bolster investor
confidence, cutting the federal funds rate by 0.50% in September, 0.25% in
October and 0.25% in December, which brought the target short-term interest
rate to 4.25%. In taking action, the central bankers, who had long deemed
themselves inflation fighters, were seeking to stem the fallout from the
credit crunch and forestall a wider economic unraveling. |
| --- |
| Amid the volatility, equity
markets displayed surprising resilience. Market fundamentals generally held
firm, dividend payouts and share buybacks continued, and valuations remained
attractive. To some extent, the credit turmoil dampened corporate
merger-and-acquisition (M&A) activity, a key source of strength for
equity markets, but 2007 remained a record year for global M&A
nonetheless. As the returns indicate, the most recent six months were more
trying, reflecting the slowing U.S. economy, a troubled housing market and a
more difficult corporate earnings backdrop. Overall, large cap stocks outperformed
small caps as investors grew increasingly risk averse. International markets
fared better than their U.S. counterparts, benefiting from generally stronger
economies. |
| In fixed income markets, mixed
economic signals and subprime fallout resulted in a flight to quality.
Investors shunned bonds associated with the housing and credit markets in
favor of higher-quality Treasury issues. The yield on 10-year Treasury
issues, which touched 5.30% in June (its highest level in five years), fell
to 4.04% by year-end, while prices correspondingly rose. The tax-exempt bond
market waffled amid the economic uncertainty and concerns around the credit
worthiness of bond insurers, but set a new-issuance record in 2007. A drop in
municipal bond prices created buying opportunities, and the heightened supply
was generally well absorbed. |
| As you navigate the uncertainties
inherent in the financial markets, we encourage you to start the year by
reviewing your investment goals with your financial professional and making
portfolio changes, as needed. For more reflection on 2007 and our 10
predictions for 2008, please ask your financial professional for a copy of
Whats Ahead in 2008: An Investment Perspective, or view it online at www.blackrock.com/funds . As always, we thank you for entrusting BlackRock
with your investment assets, and we look forward to continuing to serve you
in the new year and beyond. |

Sincerely,
●
Rob Kapito
President, BlackRock Advisors,
LLC
THIS PAGE NOT PART OF YOUR TRUSTS
REPORT

Trust Summary as of December 31, 2007
Investment Objective

The Trusts investment objective is to provide a high level of current income and to seek the preservation of capital.

Trust Information

| Symbol on New York Stock
Exchange: | BGT |
| --- | --- |
| Initial Offering Date: | August 30, 2004 |
| Yield on Closing Market Price as
of 12/31/07 ($15.78): 1 | 9.51% |
| Current Monthly Distribution per
Share: 2 | $0.125 |
| Current Annualized Distribution
per Share: 2 | $1.500 |
| Leverage as of 12/31/07: 3 | 37% |

| 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. |
| 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 Trusts market price and net asset value per share: | |

Market Price	$15.78	$19.27	Change — (18.11	)%	$20.21	$14.80
Net Asset Value	$17.71	$19.11	(7.33	)%	$19.43	$17.73

| The following unaudited charts
show the portfolio composition of the Trusts long-term investments and
credit quality allocations of the Trusts corporate bond investments: |
| --- |
| Portfolio
Composition 4 |

Composition	12/31/07	12/31/06
Media	19 %	13 %
Foreign Government Bonds	12	13
Energy	11	10
Consumer Products	8	8
Telecommunications	7	8
Basic Materials	7	7
Financial Institutions	6	13
Health Care	5	5
Entertainment & Leisure	4	4
Technology	3	3
Industrials	3	2
Building & Development	3	2
Automotive	3	2
Containers & Packaging	2	3
Transportation	2	1
Real Estate	2	2
Conglomerates	2	3
Aerospace & Defense	1	1

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

Corporate Bond Breakdown 5

Credit Rating	12/31/07	12/31/06
BBB/Baa	39 %	38 %
BB/Ba	26	37
B	27	19
CCC/Caa	8	6

5 Using the higher of Standard & Poors (S&P), Moodys Investors Service (Moodys) or Fitch Ratings (Fitch) ratings. Corporate bonds represented approximately 21.1% and 21.6% of net assets on December 31, 2007 and December 31, 2006, respectively.

2 ANNUAL REPORT DECEMBER 31, 2007

Trust Summary as of December 31, 2007
Investment Objective


Trust Information

| Symbol on New York Stock
Exchange: | HIS |
| --- | --- |
| Initial Offering Date: | August 10, 1988 |
| Yield on Closing Market Price as
of 12/31/07 ($2.14): 1 | 10.21% |
| Current Monthly Distribution per
Share: 2 | $0.0182 |
| Current Annualized Distribution
per Share: 2 | $0.2184 |
| Leverage as of 12/31/07: 3 | 25% |

The table below summarizes the changes in the Trusts market price and net asset value per share:

Market Price	$2.14	$2.55	(16.08	)%	$2.72	$1.87
Net Asset Value	$2.47	$2.68	(7.84	)%	$2.79	$2.47

The following unaudited charts show the portfolio composition and credit quality allocations of the Trusts corporate bond investments:

Portfolio Composition 4

Composition	12/31/07	12/31/06
Telecommunications	15 %	14 %
Media	13	13
Energy	12	12
Basic Materials	10	11
Financial Institutions	7	10
Consumer Products	7	7
Health Care	5	4
Technology	5	6
Automotive	5	4
Containers & Packaging	5	5
Industrials	4	3
Entertainment & Leisure	4	4
Building & Development	2	2
Transportation	2	2
Aerospace & Defense	2	2
Real Estate	1
Ecological Services & Equipment	1	1

4
Corporate Bond Breakdown 5

Credit Rating	12/31/07	12/31/06
BBB/Baa	1 %	3 %
BB/Ba	21	21
B/B	54	62
CCC/Caa	21	13
Not Rated	3	1

5 Using the higher of S&P, Moodys or Fitch ratings. Corporate bonds represented approximately 122.0% and 134.0% of net assets on December 31, 2007 and December 31, 2006, respectively.

ANNUAL REPORT DECEMBER 31, 2007 3

| Trust Summary as
of December 31, 2007 |
| --- |
| Investment Objective |

The Trusts investment objective is to seek high current income consistent with capital preservation.

Trust Information

| Symbol on New York Stock
Exchange: | BPP |
| --- | --- |
| Initial Offering Date: | February 28, 2003 |
| Yield on Closing Market Price as
of 12/31/07 ($17.31): 1 | 8.67% |
| Current Monthly Distribution per
Share: 2 | $0.125 |
| Current Annualized Distribution
per Share: 2 | $1.500 |
| Leverage as of 12/31/07: 3 | 38% |

The table below summarizes the changes in the Trusts market price and net asset value per share:

Market Price	$17.31	$26.31	(34.21	)%	$27.25	$16.77
Net Asset Value	$19.47	$24.52	(20.60	)%	$25.03	$19.22

The following unaudited charts show the portfolio composition and credit quality allocations of the Trusts long-term investments:

Portfolio Composition 4

Corporate Portfolio Composition	12/31/07	12/31/06
Financial Institutions	83 %	75 %
Energy	5	5
Media	4	3
Real Estate	3	11
Telecommunications	2	1
Basic Materials	1	1
Technology	1	1
Building & Development	1
Consumer Products		1
Industrials		1
U.S. Government and Agency Securities		1

4 For Trust compliance purposes, the Trusts 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.

Preferred, Trust Preferred and Corporate Bond Breakdown 5

Credit Rating	12/31/07	12/31/06
AAA/Aaa	%	1 %
AA/Aa	26	16
A	39	41
BBB/Baa	24	28
BB/Ba	5	7
B	6	6
CCC/Caa		1

5 Using the higher of S&P, Moodys or Fitch ratings.

4 ANNUAL REPORT DECEMBER 31, 2007

| Portfolio of
Investments as
of December 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description	Value
LONG-TERM
INVESTMENTS151.3%
Corporate
Bonds21.1%
Aerospace
& Defense0.2%
$ 616		DI Finance/DynCorp Intl., 9.50%, 2/15/13	$ 644,490
Automotive0.1%
		AutoNation, Inc.,
60		7.00%,
4/15/14	56,850
70	1	7.243%,
4/15/13	64,575
100		Lear Corp., 8.75%, 12/01/16	91,000
120		Metaldyne Corp., 10.00%, 11/01/13	99,000
		Total Automotive	311,425
Basic
Materials3.8%
1,000	1	Abitibi-Consolidated, Inc., 8.491%, 6/15/11 (Canada)	790,000
2,040	1	AbitibiBowater, Inc., 7.991%, 3/15/10	1,777,350
970		AK Steel Corp., 7.75%, 6/15/12	974,850
2,000		Alrosa Finance Ltd., 8.125%, 5/06/08 (Luxembourg)	2,003,000
125		American Pacific Corp., 9.00%, 2/01/15	125,312
10		Chemtura Corp., 6.875%, 6/01/16	9,400
90		CPG Intl. I, Inc., 10.50%, 7/01/13	85,050
20		Domtar Corp., 7.125%, 8/15/15	19,600
250	1	Freeport-McMoRan Copper & Gold, Inc., 8.394%, 4/01/15	253,750
750		Hercules, Inc., 6.75%, 10/15/29	721,875
		Ineos Group Holdings Plc (United Kingdom)
225	2	7.875%,
2/15/16 (EUR)	274,683
430	2	8.50%,
2/15/16	382,700
625	2	Key Plastics LLC/Key Plastics Finance Corp.,
		11.75%,
3/15/13	500,000
4,000	1,2,3	Lecta S.A., 8.58%, 2/15/08 (Luxembourg) (EUR)	5,117,176
1,500	1	NewPage Corp., 11.161%, 5/01/12	1,546,875
1,215	1	Verso Paper
Holdings LLC/Verson Paper, Inc., 8.661%, 8/01/14	1,184,625
		Total Basic Materials	15,766,246
Building
& Development0.2%
1,000	1	Ainsworth Lumber Co. Ltd., 8.58%, 10/01/10 (Canada)	720,000
20		Goodman Global Holding Co., Inc., 7.875%, 12/15/12	20,600
		Total Building & Development	740,600
Consumer
Products1.0%
1,100	1	Ames True
Temper, Inc., 9.243%, 1/15/12	935,000
150	1	Avis Budget
Car Rental LLC/Avis Budget Finance, Inc., 7.369%, 5/15/14	138,000
400	3,4	Berkline
BenchCraft LLC, 7.61%, 5/03/12
500	1	General
Nutrition Centers, Inc., 10.01%, 3/15/14	472,500
380		Lazy Days
RV Center, Inc., 11.75%, 5/15/12	326,800
210		Michaels
Stores, Inc., 10.00%, 11/01/14	199,500
80	2	Quebecor
World Capital Corp., 8.75%, 3/15/16 (Canada)	58,900
2,000		Reynolds
American, Inc., 7.625%, 6/01/16	2,125,992
		Total
Consumer Products	4,256,692
Containers
& Packaging0.2%
		Berry Plastics Holding Corp.,
500	1	8.866%,
9/15/14	467,500
110		8.875%,
9/15/14	104,500
150	1,2	Impress Holdings BV, 8.368%, 9/15/13 (Netherlands)	145,500
		Total Containers & Packaging	717,500
Energy7.6%
135		Chaparral Energy, Inc., 8.50%, 12/01/15	121,500
		Compagnie Generale de Geophysique-Veritas (France)
70		7.50%,
5/15/15	70,875

Principal Amount (000)		Description	Value
Energy(contd)
$ 50		7.75%,
5/15/17	$ 50,500
505		Foundation Pennsylvania Coal Co., 7.25%, 8/01/14	498,688
14,430		Gazprom OAO, 9.625%, 3/01/13 (Germany)	16,354,154
40		Grant Prideco, Inc., 6.125%, 8/15/15	41,800
750		KCS Energy, Inc., 7.125%, 4/01/12	721,875
		Pemex Project Funding Master Trust,
12,700	1	7.043%,
10/15/09	13,036,550
404		9.375%,
12/02/08	418,665
220	2	SemGroup LP, 8.75%, 11/15/15	209,000
300		Whiting Petroleum Corp., 7.25%, 5/01/13	295,500
		Total Energy	31,819,107
Entertainment
& Leisure0.0%
130	2	Greektown
Holdings LLC, 10.75%, 12/01/13	126,425
20		Wynn Las
Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14	19,650
		Total
Entertainment & Leisure	146,075
Financial
Institutions2.1%
88		AES
Ironwood LLC, 8.857%, 11/30/25	96,579
140		American
Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13	131,600
2,500	2,3	E*Trade
Financial Corp., 12.50%, 11/27/17	2,375,000
1,501	2	Marsico
Parent Co. LLC, 10.625%, 1/15/16	1,508,505
515	2	Marsico
Parent Holdco LLC, 12.50%, 7/15/16	517,575
343	2	Marsico
Parent Superholdco LLC, 14.50%, 1/15/18	325,032
130	2	Momentive
Performance Materials, Inc., 11.50%, 12/01/16	112,450
750	2	Rainbow
National Services LLC, 8.75%, 9/01/12	771,562
3,000	1,2	TuranAlem
Finance BV, 6.555%, 1/22/09 (Netherlands)	2,760,000
300	1	Universal
City Florida Holding Co. I/II, 9.661%, 5/01/10	300,000
		Total
Financial Institutions	8,898,303
Health
Care0.8%
1,750	1	Angiotech
Pharmaceuticals, Inc., 8.874%, 12/01/13 (Canada)	1,662,500
1,500	2	ReAble
Therapeutics Finance LLC/ReAble Therapeutics Finance Corp., 10.875%, 11/15/14	1,473,750
250		Tenet
Healthcare Corp., 6.50%, 6/01/12	222,500
		Total
Health Care	3,358,750
Industrials0.1%
60	1	Goodyear Tire & Rubber Co. (The), 8.663%, 12/01/09	60,450
125		Park-Ohio Industries, Inc., 8.375%, 11/15/14	111,250
210	2	Sunstate Equipment Co. LLC, 10.50%, 4/01/13	186,900
		Total Industrials	358,600
Media1.0%
50		Affinion
Group, Inc., 10.125%, 10/15/13	50,563
100	1	Cablevision
Systems Corp., 9.644%, 4/01/09	101,125
600		Charter
Communications Holdings II LLC/Charter Communications Holdings II Capital Corp., 10.25%, 9/15/10	587,775
		EchoStar
DBS Corp.,
135		6.375%,
10/01/11	133,380
1,055		7.00%,
10/01/13	1,065,550
230		7.125%,
2/01/16	234,600
250		Idearc,
Inc., 8.00%, 11/15/16	229,375
350	1,2	ION Media
Networks, Inc., 8.493%, 1/15/12	340,812
80		Network
Communications, Inc., 10.75%, 12/01/13	78,400
410		Nielsen
Finance LLC/Nielsen Finance Co., 10.00%, 8/01/14	419,225

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names of many of the securities have been abbreviated according to the list on the right.

CORTS	Corporate Backed Trust Securities
EUR	Euro
EURIBOR	Euro Interbank Offered Rate
GBP	British Pound
LIBOR	London Interbank Offerred Rate
MXN	Mexican Peso
PPLUS	Preferred Plus
PRIME	Prime Rate
REIT	Real Estate Investment Trust
SATURNS	Structured Asset Trust Unit Repackagings

| See Notes to Financial Statements. — ANNUAL
REPORT | DECEMBER 31, 2007 | 5 |
| --- | --- | --- |

| Portfolio of
Investments as
of December 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description	Value
Media(contd)
		R.H. Donnelley Corp.,
$ 250		8.875%,
1/15/16	$ 233,750
1,000	2	Ser. A,
8.875%, 10/15/17	925,000
		Total Media	4,399,555
Real
Estate1.3%
6,350		Rouse Co., 5.375%, 11/26/13	5,484,152
Technology0.2%
		Freescale Semiconductor, Inc.,
100	1	8.866%,
12/15/14	85,000
180		9.125%,
12/15/14	153,000
		Sanmina-SCI Corp.,
55		6.75%,
3/01/13	47,850
465		8.125%,
3/01/16	412,106
20		SunGard Data Systems, Inc., 10.25%, 8/15/15	20,450
140		Superior
Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12	134,400
		Total Technology	852,806
Telecommunications2.5%
1,250	1	Centennial Communications Corp., 10.98%, 1/01/13	1,278,125
310		Cincinnati Bell, Inc., 7.25%, 7/15/13	310,775
		Intelsat Ltd. (Bermuda)
75		5.25%,
11/01/08	74,063
50		8.25%,
1/15/13	50,250
85	1	8.886%,
1/15/15	85,212
200		Intelsat
Subsidiary Holding Co. Ltd., 8.625%, 1/15/15 (Bermuda)	201,000
1,755	1	iPCS, Inc.,
7.036%, 5/01/13	1,654,087
1,500		Nordic
Telephone Co. Holdings ApS, 10.11%, 2/18/08 (Denmark) (EUR)	2,225,972
784	1	Qwest
Communications Intl., Inc., 8.369%, 2/15/09	784,000
2,500	1	Qwest
Corp., 8.241%, 6/15/13	2,550,000
150	2	Wind
Acquisition Finance S.A., 10.75%, 12/01/15 (Luxembourg)	163,500
977	2	Windstream
Regatta Holdings, Inc., 11.00%, 12/01/17	967,230
		Total
Telecommunications	10,344,214
		Total
Corporate Bonds	88,098,515
Bank
Loans112.5%
Aerospace
& Defense0.9%
2,140		Caci Intl.,
Inc., LIBOR + 2.00%, 5/03/11	2,070,092
875		DI
Finance/DynCorp Intl., Loan B, LIBOR + 2.25%, 1/31/11	840,082
973		Wesco
Aircraft Hardware Corp., First Lien Loan, LIBOR + 2.25%, 9/30/13	955,481
		Total
Aerospace & Defense	3,865,655
Automotive4.0%
983		GPX Intl.
Tire Corp., LIBOR + 2.50%, 3/31/12	707,400
1,132		IAP
Worldwide Services, Inc., First Lien Loan, LIBOR + 3.00%, 12/31/12	1,002,918
1,990		Kar
Holdings, Loan B, LIBOR + 2.25%, 10/30/13	1,866,692
1,733		Keystone
Automotive Industries, Inc., Loan B, LIBOR + 3.50%, 1/15/12	1,567,912
863		Mark IV
Industries, Inc., First Lien Loan, LIBOR + 2.50%, 6/30/11	816,718
		Metaldyne
Corp.,
104		LIBOR +
3.75%, 1/15/12	91,385
706		LIBOR +
3.75%, 1/15/14	621,415
		Navistar Intl. Corp.,
3,667		LIBOR +
3.25%, 1/30/12	3,523,667
1,333		Revolver
Loan, Unfunded, 1/30/12	1,281,333
1,378		Rent-A-Center, Inc., Loan B, LIBOR + 1.75%, 6/30/12	1,300,256
		Reynolds & Reynolds Co.,
1,250		LIBOR +
5.50%, 10/31/13	1,231,250
2,780		Second Lien
Loan, LIBOR + 2.00%, 10/31/12	2,685,763
		Total Automotive	16,696,709

Principal Amount (000)	Description	Value
Basic
Materials6.9%
$ 709	Algoma Steel, Inc., Loan B, LIBOR + 2.50%, 6/14/14	$ 669,638
	Brenntag Holdings,
393	Acquisition
Loan, EURIBOR + 2.50%, 1/18/14	373,746
1,607	Loan B2,
LIBOR + 2.50%, 12/31/13	1,529,588
500	Loan B6,
LIBOR + 2.00%, 9/15/14 (EUR)	697,520
1,000	Second Lien
Loan, EURIBOR + 2.50%, 12/31/12	951,667
1,000	Cognis Group, LIBOR + 2.00%, 11/17/13 (EUR)	1,370,672
784	Compass Minerals Group, Inc., LIBOR + 2.00%, 12/31/12	765,863
	Ineos Group Holdings Plc,
1,728	Loan A4,
LIBOR + 2.25%, 12/16/12	1,646,084
1,733	Loan B2,
LIBOR + 2.75%, 12/16/13	1,676,916
1,733	Loan C2,
LIBOR + 2.25%, 12/16/14	1,676,916
2,336	Innophos, Inc., LIBOR + 2.25%, 8/15/10	2,289,636
	Invista BV,
2,328	Loan
Tranche B1, LIBOR + 1.75%, 4/29/11	2,250,915
1,234	Loan
Tranche B2, LIBOR + 1.75%, 4/29/11	1,193,152
2,027	John
Maneely Co., Loan B, LIBOR + 3.25%, 12/15/13	1,794,236
193	Kraton
Polymers LLC, LIBOR + 2.50%, 5/15/13	182,433
1,858	MacDermid,
Inc., LIBOR + 2.75%, 4/15/14 (EUR)	2,573,468
1,629	Nalco Co.,
Loan B, LIBOR + 2.00%, 11/04/10	1,599,323
1,500	NewPage,
Loan B, LIBOR + 3.75%, 12/07/14	1,489,921
489	Pregis
Corp., Loan B2, EURIBOR + 2.75%, 10/15/12 (EUR)	689,567
2,790	Rockwood
Specialties Group, Inc., Loan E, LIBOR + 2.00%, 7/30/12	2,686,333
473	Solutia,
Loan B, LIBOR + 3.00%, 3/31/08	470,797
	Total Basic
Materials	28,578,391
Building
& Development4.0%
2,000	American
Residential Services, Inc., Second Lien Loan, LIBOR, 4/17/15	1,980,000
196	Armstrong
World Industries, Inc., LIBOR + 2.00%, 10/12/13	192,822
1,234	Beacon
Roofing Supply, Inc., Loan B, LIBOR + 2.00%, 10/31/13	1,110,938
	Brand
Energy & Infrastructure Services, Inc.,
496	First Lien
Loan B, LIBOR + 2.25%, 2/15/14	468,129
500	Second Lien
Loan, LIBOR + 6.00%, 2/15/15	460,000
500	Synthetic
Letter of Credit, LIBOR + 2.25%, 2/15/14	475,000
2,475	Building
Materials Holding Corp., PRIME + 2.50%, 3/15/14	2,070,240
1,500	Custom
Building Products, Inc., Second Lien Loan, LIBOR + 5.00%, 4/30/12	1,410,000
	Euramax
Intl., Inc.,
480	Second Lien
Loan, LIBOR + 7.00%, 6/29/13	385,980
734	Second Lien
Loan, LIBOR + 7.00%, 7/15/13	587,368
1,990	Hanley Wood
LLC, LIBOR + 2.25%, 3/07/14	1,587,025
	Lafarge
Roofing Holdings, Inc.,
600	Loan B1,
LIBOR + 2.13%, 2/28/14 (EUR)	737,361
245	Loan B2,
LIBOR + 2.13%, 2/28/14 (EUR)	301,089
230	Loan B4,
LIBOR, 2/28/14	192,417
556	Loan C1,
LIBOR + 2.38%, 2/28/15 (EUR)	686,449
286	Loan C2,
LIBOR + 2.38%, 2/28/15 (EUR)	353,101
230	Loan C4,
LIBOR, 2/28/15	193,569
493	Nacco
Industries, Inc., Unfunded, 3/31/13	474,031
968	Nortek,
Inc., Loan B, PRIME + 2.25%, 8/27/11	894,938
2,272	United
Subcontractors, Inc., First Lien Loan, LIBOR + 2.75%, 12/31/12	1,908,508
	Total
Building & Development	16,468,965
Conglomerates2.5%
500	Atlantis Plastics, Inc., Second Lien Loan,
	LIBOR + 9.00%, 9/30/11	400,000
605	Blount Intl., Loan B, PRIME + 1.75%, 8/15/10	588,739
3,604	Colfax Corp., LIBOR + 2.25%, 11/30/11 (EUR)	5,163,420
	Invensys Plc,
1,000	Loan A, LIBOR + 2.25%, 12/15/10	969,167
1,783	Loan B, LIBOR + 2.25%, 12/15/10 (GBP)	3,462,976
	Total Conglomerates	10,584,302

| See Notes to Financial Statements. — 6 | ANNUAL
REPORT | DECEMBER 31, 2007 |
| --- | --- | --- |

| Portfolio of
Investments as
of December 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description
Consumer
Products10.3%
$ 1,000		Aearo
Technologies, Inc., Second Lien Loan, LIBOR + 6.50%, 9/30/13	$ 990,625
983		24 Hour
Fitness Worldwide, Inc., Loan B, LIBOR + 2.50%, 6/08/12	943,200
750		American
Safety Razor Co., Second Lien Loan, LIBOR + 6.25%, 1/30/14	727,500
		ARAMARK
Corp.,
2,487		Letter of
Credit, LIBOR + 2.00%, 1/26/14	2,362,032
178		Loan B,
LIBOR + 2.13%, 1/26/14	168,817
446		Arbys
Restaurant Group, Inc., Loan B, LIBOR + 2.25%, 7/31/12	433,984
95	4	Berkline
BenchCraft, Loan B, PRIME + 3.00%, 10/31/11	56,821
1,042		Brickman
Group Ltd., LIBOR + 2.00%, 1/30/14	987,413
517		Burlington
Coat Factory Warehouse Corp., Loan B, LIBOR + 2.25%, 4/15/13	453,787
		Cenveo
Corp.,
32		Delayed
Draw Loan, LIBOR + 1.75%, 9/07/13	30,325
954		Loan C,
LIBOR + 1.75%, 9/07/13	910,073
434		Chiquita
Brands Intl., Inc., Loan C, LIBOR + 2.50%, 6/28/12	423,880
746		Claires
Stores, Inc., Loan B, LIBOR + 2.75%, 5/24/14	626,513
2,203		Cracker
Barrel, Loan B, LIBOR + 1.50%, 5/15/13	2,089,972
1,000		Culligan
Intl. Co., Second Lien Loan, LIBOR + 4.75%, 4/24/13 (EUR)	950,333
993		Davids
Bridal, Inc., LIBOR + 2.00%, 1/30/14	913,100
500		Deutsch
Connectors, Second Lien Loan, LIBOR + 4.50%, 2/11/16	452,500
		Dole Food
Co., Inc.,
139		Letter of
Credit, LIBOR + 1.75%, 4/12/13	128,276
308		LIBOR +
1.75%, 4/12/13	284,292
1,025		Loan C,
LIBOR + 1.75%, 3/31/13	947,640
1,000		DS Waters
Holdings, Inc., Loan B, LIBOR, 3/31/12	950,000
		Fresh Start
Bakeries, Inc.,
499		First Lien
Loan, LIBOR + 2.50%, 9/30/13	473,812
500		Second Lien
Loan, LIBOR + 6.00%, 3/30/14	470,000
447		FTD, Inc.,
LIBOR + 2.00%, 8/15/13	441,578
		Iglo Birds
Eye (EUR)
500		Loan B1,
EURIBOR + 2.50%, 10/27/14	708,311
500		Loan C1,
EURIBOR + 3.00%, 10/27/15	711,444
382		Mezzanine
Loan, EURIBOR + 8.00%, 10/27/16 (GBP)	759,617
1,453		JRD
Holdings, Inc., LIBOR + 2.50%, 5/11/14	1,409,531
639		Language
Line, Inc., Loan B1, LIBOR + 3.25%, 6/14/11	615,378
571		Latimer/Weetabix,
LIBOR + 8.00%, 7/26/16 (GBP)	1,108,696
1,000	4	Le-Natures,
Inc., Loan B, LIBOR + 3.00%, 9/30/11	517,500
882		Mapco
Express, Inc., LIBOR + 2.75%, 5/15/11	860,324
1,440		Neiman-Marcus
Group, Inc., LIBOR + 2.25%, 4/06/13	1,382,879
1,500		Orchard
Supply Hardware Stores Corp., Loan B2, LIBOR + 3.00%, 12/09/10	1,395,000
		Oriental
Trading Co.,
961		LIBOR +
2.75%, 7/30/13	898,170
500		Second Lien
Loan, LIBOR + 5.50%, 1/30/14	465,000
		OSI Food
Co.,
890		Loan B,
LIBOR + 2.25%, 5/15/14	813,164
75		Revolver
Loan, Unfunded, 5/15/14	68,734
750		OSI Foods
GmbH & Co., LIBOR + 2.25%, 9/15/11	720,326
1,688		OSI Group
LLC, Loan B, LIBOR + 2.25%, 9/15/11	1,620,733
938		OSI-Holland
Finance BV, LIBOR + 2.25%, 9/15/11	900,407
396		PETCO
Animal Supplies, Inc., LIBOR + 2.00%, 10/31/12	378,593
1,047		Pierre
Foods, Inc., Loan B, LIBOR + 2.00%, 7/15/10	1,019,086
750		Pivotal
Promontory LLC, Second Lien Loan, PRIME + 6.50%, 9/15/11	375,000
1,691		Prestige
Brands Holdings, Inc., Loan B, LIBOR + 2.25%, 4/07/11	1,654,409
500		Rite Aid
Corp., Loan 2, LIBOR + 1.75%, 6/04/14	466,875

Principal Amount (000)		Description
Consumer
Products(contd)
$ 1,470		Roundys
Supermarkets, Inc., LIBOR + 3.00%, 11/15/11	$ 1,438,451
		Sturm
Foods, Inc.,
1,365		LIBOR + 2.50%,
1/30/14	1,209,454
750		Second Lien
Loan, LIBOR + 6.00%, 6/30/14	642,187
829	4	Synventive
Acquisition, Inc., Mezzanine Loan, LIBOR, 2/17/14	372,875
1,995		Thomson
Learning, Loan B, LIBOR + 2.75%, 6/30/14	1,883,059
371		Warnaco, Inc.,
Loan B, LIBOR + 1.50%, 1/31/12	362,938
		Wastequip,
Inc.,
289		Delayed
Draw Loan, LIBOR + 2.50%, 2/15/13	266,161
687		Loan B,
LIBOR + 2.50%, 2/15/13	632,132
		Total
Consumer Products	42,872,907
Containers
& Packaging3.6%
		Bluegrass
Container Co. LLC,
364		Delayed
Draw Second Lien Loan, LIBOR + 5.00%, 12/30/13	363,864
340		First Lien
Loan, LIBOR + 2.25%, 6/30/13	336,728
1,137		Loan B,
LIBOR + 2.25%, 6/30/13	1,125,381
1,136		Second Lien
Loan, LIBOR + 5.00%, 12/30/13	1,137,074
		Consolidated
Container Co. LLC,
496		First Lien
Loan, LIBOR + 2.25%, 4/15/14	417,263
750		Second Lien
Loan, LIBOR + 5.50%, 10/15/14	385,000
2,450		Georgia-Pacific
Corp., First Lien Loan, LIBOR + 2.25%, 12/20/12	2,332,094
4,960		Graham
Packaging Co. LP, Loan B, LIBOR + 2.25%, 4/15/11	4,758,512
		Smurfit-Stone
Container Enterprises, Inc.,
140		Loan B,
LIBOR + 2.00%, 11/01/11	137,011
750		Loan B1,
EURIBOR + 1.88%, 2/18/14 (EUR)	1,030,745
750	3	Loan C1,
EURIBOR + 1.88%, 2/15/15 (EUR)	1,052,781
1,845		Solo Cup,
Inc., LIBOR + 2.00%, 2/27/11	1,822,631
		Total
Containers & Packaging	14,899,084
Ecological
Services & Equipment0.7%
2,000		Envirosolutions,
Inc., Initial Loan, LIBOR + 3.75%, 7/15/12	1,880,000
495		Global
Geophysical, First Lien Loan, LIBOR + 3.50%, 2/15/14	482,625
500		Synagro
Technologies, Inc., Second Lien Loan, LIBOR + 4.75%, 9/30/14	471,250
		Total
Ecological Services & Equipment	2,833,875
Energy9.7%
1,500		AES Corp.,
LIBOR + 2.25%, 4/30/08	1,479,375
498		Astoria
Generating Co. Acquisitions LLC, Loan B, LIBOR + 2.00%, 2/23/13	481,689
		Big West
Oil LLC,
550		Delayed
Draw Loan, LIBOR + 2.50%, 5/15/14	534,188
445		LIBOR +
2.50%, 5/15/14	432,206
		Coffeyville
Resources LLC,
1,058		Loan D,
PRIME + 3.00%, 12/21/13	1,022,697
324		Unfunded,
12/21/13	313,581
		Coleto
Creek Power,
127		Letter of
Credit, LIBOR + 4.00%, 7/31/13	121,975
1,822		Loan B,
LIBOR + 2.75%, 7/31/13	1,744,538
		Dresser,
Inc.,
982		Loan B,
LIBOR + 2.50%, 5/15/14	938,902
1,500		Second Lien
Loan, LIBOR + 5.75%, 5/15/15	1,417,500
		ElectricInvest
Holding Co. Ltd.,
1,800		Junior
Loan, LIBOR + 3.75%, 12/21/12 (GBP)	3,350,180
1,787		LIBOR +
6.50%, 12/21/12 (EUR)	2,482,480
		Flint,
833		Loan B7,
LIBOR + 2.25%, 12/20/14 (EUR)	1,139,485
1,000		Loan B9,
LIBOR + 2.25%, 12/20/14	935,250
833		Loan C7,
LIBOR + 3.00%, 12/20/15 (EUR)	1,144,968

| See Notes to Financial Statements. — ANNUAL
REPORT | DECEMBER 31, 2007 | 7 |
| --- | --- | --- |

| Portfolio of Investments as of December 31,
2007 |
| --- |
| (Percentages shown are based on Net Assets) |

	Description
Energy (contd)
	Generac
Power Systems, Inc.,
$ 750	First Lien
Loan, PRIME + 6.00%, 5/15/14	$ 606,250
990	Second Lien
Loan, PRIME + 2.50%, 11/15/13	883,928
	MACH Gen
LLC,
70	Letter of
Credit, Unfunded, 2/22/14	66,375
673	LIBOR +
2.00%, 2/22/14	635,209
990	McJunkin
Corp., Loan B, LIBOR + 3.25%, 1/30/14	979,481
491	MEG Energy
Corp., Loan B, LIBOR + 2.00%, 4/03/13	475,530
793	Mirant NA
LLC, Loan B, LIBOR + 1.75%, 1/05/13	757,476
	Northeast
Energy,
159	Letter of
Credit, LIBOR + 2.50%, 10/31/13	149,156
1,290	Loan B,
LIBOR + 2.50%, 10/31/13	1,214,142
750	Second Lien
Loan, LIBOR + 4.50%, 10/31/14	693,750
2,000	Safenet,
Inc., Second Lien Loan, LIBOR + 6.00%, 5/11/15	1,820,000
1,400	SandRidge
Energy, Inc., LIBOR + 4.50%, 3/01/14	1,393,000
	Texas
Competitive Electric Holdings Co., LLC,
1,746	Loan B2,
LIBOR + 3.50%, 10/10/14	1,712,896
6,983	Loan B3,
LIBOR + 3.50%, 10/10/14	6,851,585
	TPF
Generation Holdings LLC,
47	Letter of
Credit, LIBOR + 1.75%, 12/31/13	45,319
763	Loan B,
LIBOR + 2.00%, 12/31/13	732,693
151	Revolver,
Unfunded, 12/31/13	144,568
1,475	Trinidad
Energy Services Income Trust, LIBOR + 2.50%, 4/15/11	1,452,875
924	Western
Refining, LIBOR + 1.75%, 3/15/14	876,192
	Wolf Hollow
I LP,
469	Loan B,
LIBOR + 2.25%, 6/15/12	433,973
500	Second Lien
Loan, LIBOR + 4.50%, 12/15/12	472,500
400	Synthetic
Letter of Credit, LIBOR + 2.25%, 6/15/12	370,000
100	Synthetic
Revolver Loan, LIBOR + 2.50%, 6/22/12	92,500
	Total
Energy	40,398,412
Entertainment &
Leisure6.5%
571	Alpha III,
Loan B1, LIBOR + 2.38%, 12/31/13	547,551
429	Alpha III
Formula 1, Loan B2, LIBOR + 2.375%, 12/31/13	410,663
1,107	Cinemark,
Inc., Loan B, LIBOR + 1.75%, 10/05/13	1,045,223
995	Discovery
Channel, Loan B, LIBOR + 2.00%, 5/15/13	962,165
	Golden
Nugget, Inc.,
273	Delayed
Draw Loan, LIBOR + 2.25%, 5/21/14	256,364
477	First Lien
Loan, LIBOR + 2.25%, 5/30/14	448,636
1,000	Second Lien
Loan, LIBOR + 3.25%, 11/30/14	905,000
1,668	Greektown
Holdings LLC, Loan B, LIBOR + 2.50%, 12/15/12	1,584,331
	Green
Valley Ranch Gaming LLC,
478	First Lien
Loan, LIBOR + 2.00%, 2/28/14	450,579
1,000	Second Lien
Loan, LIBOR + 3.25%, 8/30/14	902,500
	HIT
Entertainment Ltd.,
1,470	LIBOR +
2.25%, 8/31/12	1,429,592
1,000	Second Lien
Loan, LIBOR + 5.50%, 2/26/13	950,000
	Hollywood
Theaters, Inc.,
1,689	First Lien
Loan, LIBOR + 3.25%, 8/01/09	1,654,975
2,500	Second Lien
Loan, LIBOR + 7.00%, 2/01/10	2,450,000
715	Kerasotes
Theatres, Inc., Loan B, LIBOR + 2.75%, 11/01/11	696,859
	Las Vegas
Sands LLC,
500	Delayed
Draw Loan, LIBOR + 1.75%, 5/04/14	467,955
1,990	Loan B,
LIBOR + 1.75%, 5/04/14	1,862,459
2,948	Metro-Goldwyn-Mayer
Studios, Inc., Loan B, LIBOR + 3.25%, 4/08/12	2,725,768
2,000	RHI
Entertainment, Inc., Second Lien Loan, LIBOR + 3.25%, 4/15/14	1,940,000
726	Riverside
Casino & Golf Resort LLC, Loan B, LIBOR + 3.50%, 11/15/12	719,022
743	Time
Warner, Inc., Loan B, LIBOR + 2.00%, 1/07/13	713,728
	Travelport,
Inc.,
47	Letter of
Credit, LIBOR + 3.00%, 8/31/13	44,360

	Description
Entertainment &
Leisure(contd)
$ 233	LIBOR +
3.00%, 8/31/13	$ 221,083
925	Universal
City Development Partners LP, Loan B, LIBOR + 2.00%, 6/09/11	905,789
	Wembley, Inc.,
975	First Lien
Loan, LIBOR + 2.00%, 8/31/11	906,774
1,500	Second Lien
Loan, LIBOR + 3.75%, 8/23/12	1,365,000
739	Yellowstone
Mountain Club, LIBOR + 2.38%, 10/15/10	659,777
	Total
Entertainment & Leisure	27,226,153
Financial
Institutions7.1%
981	Advantage
Sales & Marketing, Inc., LIBOR + 2.00%, 4/15/13	927,124
998	Alliant
Insurance Services, Loan B, LIBOR + 3.00%, 10/23/14	952,612
975	Avio,
Mezzanine Loan, LIBOR + 9.00%, 9/25/16	953,192
	Bankruptcy
Management,
988	LIBOR +
3.00%, 7/30/11	901,094
494	Second Lien
Loan, LIBOR + 6.25%, 7/30/12	407,344
929	BNY
Convergex Group LLC, First Lien Loan, LIBOR + 3.00%, 8/31/13	897,232
414	CCC
Information Services Group, Inc., Loan B, LIBOR + 2.75%, 2/15/13	406,282
741	Conseco,
Inc., LIBOR + 2.00%, 5/31/13	679,221
2,000	Enclave,
Loan B, LIBOR, 3/01/12	1,841,292
	GS Holdings
Corp.,
52	Delayed
Draw Loan, LIBOR + 1.75%, 5/15/13	49,412
78	LIBOR +
1.75%, 5/15/11	74,081
538	LIBOR +
1.75%, 5/15/13	513,778
3,500	J.G.
Wentworth LLC, First Lien Loan, LIBOR + 2.25%, 4/15/14	3,206,875
1,300	Jostens,
Inc., Loan C, LIBOR + 2.00%, 12/21/11	1,272,493
998	Lucite Intl.
Finance Plc, LIBOR + 9.85%, 7/14/14 (EUR)	1,362,059
500	Marsico TL,
LIBOR + 3.00%, 11/14/14	480,000
2,000	Moeller
Group, EURIBOR + 2.75%, 9/17/12 (EUR)	2,835,769
1,915	Owens
Illinois Group, Inc., Loan B, LIBOR + 1.50%, 6/30/13 (EUR)	2,628,337
752	Professional
Service, Inc., Loan B, LIBOR + 3.00%, 10/31/12	737,014
495	Renfro
Corp., Delayed Draw Loan, LIBOR + 3.25%, 9/30/13	464,989
250	RiskMetrics
Group Holdings, LLC, Second Lien Loan, LIBOR + 5.50%, 6/15/14	242,500
1,108	Sedgewick
Claims Management Services, Inc., Loan B, LIBOR + 2.00%, 2/28/13	1,073,234
500	Tegrant
Holding Corp., Second Lien Loan, LIBOR + 5.50%, 3/15/15	420,000
1,920	TPG Springs
Ltd., Mezzanine Loan, 3/22/15 (EUR)	2,603,638
	United
Biscuits (United Kingdom)
1,651	Loan B1,
LIBOR + 2.50%, 12/31/14 (GBP)	3,086,965
535	Loan B2,
LIBOR + 2.50%, 12/31/14 (EUR)	731,375
	Total
Financial Institutions	29,747,912
Health Care7.4%
2,898	Arizant,
Inc., LIBOR + 3.25%, 8/15/10	2,839,888
2,494	Cardinal
Health, Inc., Loan B, LIBOR + 2.25%, 4/15/14 (EUR)	3,387,732
734	CCS
Medical, Loan B, LIBOR + 13.0%, 10/31/12	711,626
	Community
Health Systems, Inc.,
186	Delayed
Draw Loan, Unfunded, 6/18/14	178,403
3,691	Loan B,
LIBOR + 2.25%, 6/18/14	3,547,246
500	Emdeon
Business Services, LLC, Second Lien Loan, LIBOR + 5.00%, 5/30/14	480,000
1,985	Health
Management Associates, Inc., PRIME + 1.75%, 2/15/14	1,848,255
2,525	HealthSouth
Corp., Loan B, LIBOR + 2.50%, 3/15/13	2,406,504
	Molnlycke
Health Care Ltd. (EUR)
1,500	Loan B,
EURIBOR + 2.00%, 3/30/15	2,065,754

| See Notes to Financial Statements. — 8 | ANNUAL
REPORT | DECEMBER
31, 2007 |
| --- | --- | --- |

| Portfolio of Investments as of December 31,
2007 |
| --- |
| (Percentages shown are based on Net Assets) |

		Description
Health
Care(contd)
$ 1,500		Loan C,
EURIBOR + 2.25%, 3/30/16	$ 2,075,502
500		Second Lien
Loan D, EURIBOR + 3.75%, 9/30/16	672,543
468		National
Renal Institutes, Inc., Loan B, LIBOR + 2.25%, 4/15/13	451,327
		Opica AB
(EUR)
1,187		Loan C1,
LIBOR + 2.38%, 3/20/16	1,708,033
171		Loan C2,
LIBOR + 2.38%, 3/20/16	246,327
142		Loan C4,
LIBOR + 2.38%, 3/20/16	204,905
		Quintiles
Transnational Corp.,
983		First Lien
Loan, LIBOR + 2.25%, 3/31/13	944,838
250		Second Lien
Loan, LIBOR + 4.50%, 3/31/14	236,875
973		Select
Medical Corp., Loan B, LIBOR + 1.75%, 2/28/12	915,366
2,966		US
Oncology, Inc., LIBOR + 2.75%, 6/30/11	2,880,926
978		Vanguard
Health Holding Co. II LLC, Replacement Loan, LIBOR + 2.25%, 9/30/11	943,503
		Warner
Chilcott Corp.,
1,494		Loan B,
LIBOR + 2.75%, 1/18/12	1,444,785
514		Loan C,
LIBOR + 2.75%, 1/18/11	496,946
		Total
Health Care	30,687,284
Industrials4.4%
1,481		Acosta,
Inc., LIBOR + 2.25%, 8/15/13	1,410,891
1,000	3	BAA
Ferrovial, Junior Loan 2, LIBOR + 4.00%, 9/30/11 (GBP)	1,879,127
		Bolthouse
Farms, Inc.,
983		First Lien
Loan, LIBOR + 2.50%, 12/01/12	954,253
500		Second Lien
Loan, LIBOR + 5.50%, 12/16/13	494,375
222		Chart
Industries, Inc., Loan B, LIBOR + 2.00%, 10/15/12	217,778
1,575		Drummond
Co., Inc., LIBOR + 1.50%, 2/15/12	1,543,500
1,493		Harland
Clarke Holdings Corp., Loan B, LIBOR + 2.50%, 3/12/13	1,334,295
		Kion Group,
250		Loan B,
LIBOR + 2.00%, 3/15/15	238,665
250		Loan C,
LIBOR + 2.50%, 3/15/16	239,915
500		Loan D,
EURIBOR + 3.75%, 9/15/16 (EUR)	685,336
		Lincoln
Industrial Corp.,
271		Delayed
Draw Loan B, LIBOR + 2.50%, 6/18/14	265,936
724		First Lien
Loan, LIBOR + 2.50%, 6/18/14	709,609
		Mivisa
Envases S.A.U. (EUR)
826		Loan B1,
LIBOR, 5/03/15	1,147,596
174		Loan B2,
LIBOR, 5/03/15	241,352
2,469		Oshkosh
Truck Corp., Loan B, LIBOR + 1.75%, 11/30/13	2,366,633
		Standard
Steel LLC,
83		Delayed
Draw Loan, Unfunded, 7/15/12	80,015
410		Loan B,
LIBOR + 2.50%, 7/15/12	396,052
990		Stolle
Machinery Co. LLC, First Lien Loan, LIBOR + 2.75%, 9/29/13	970,200
1,199		Thermo
Fluids, Inc., Loan B, LIBOR + 3.00%, 8/15/11	1,030,827
2,076		Tinnerman
Palnut Engineered Products, Inc., LIBOR + 7.25%, 11/01/11	1,826,573
		Trimas
Corp.,
94		Letter of
Credit, LIBOR, 7/31/11	91,875
401		Loan B,
LIBOR + 2.75%, 7/31/13	393,148
		Total
Industrials	18,517,951
Media27.2%
475		Affinion
Group, Inc., LIBOR + 6.25%, 3/01/12	437,396
1,000		American
Media Operations, Inc., Loan B, LIBOR + 2.75%, 1/31/13	977,500
1,970		Atlantic
Broadband Finance LLC, Loan B2, LIBOR + 2.50%, 8/15/11	1,901,984
1,000		Audio
Visual Services Corp., Loan Second Lien, LIBOR + 5.50%, 9/15/14	950,000
250		Bresnan
Communications Group LLC, Second Lien Loan, LIBOR + 4.50%, 4/15/14	242,500
3,930		Cablevision
Systems Corp., Incremental Loan, LIBOR + 1.75%, 3/28/13	3,708,588

	Description
Media(contd)
$ 750	Casema
Bidco, Loan C, EURIBOR + 3.00%, 9/30/15 (EUR)	$ 1,082,009
	Casema Kabelcom
(EUR)
750	Loan B,
LIBOR + 2.50%, 9/30/14	1,076,891
576	Loan B1,
EURIBOR + 2.50%, 9/30/14	826,619
299	Loan B2,
EURIBOR + 2.50%, 9/30/14	429,388
875	Loan C,
LIBOR + 3.00%, 9/30/15	1,262,003
6,948	Cequel
Communications LLC, First Lien Loan, LIBOR + 2.00%, 11/05/13	6,487,228
7,000	Charter
Communications Holdings LLC, LIBOR + 2.00%, 4/30/14	6,534,234
1,493	Cumulus
Media, Inc., LIBOR + 1.75%, 5/21/14	1,430,312
	Dex Media
West LLC/Dex Media Finance Co.,
618	Loan B1,
LIBOR + 1.75%, 3/09/10	601,715
1,114	Loan B2,
LIBOR + 1.50%, 3/09/10	1,087,136
483	Emmis
Communications Corp., LIBOR + 2.00%, 10/31/13	445,632
	Gatehouse
Media Operating, Inc.,
592	Delayed
Draw Loan, LIBOR + 1.75%, 9/15/14	503,508
1,386	Loan B,
LIBOR + 2.00%, 9/15/14	1,179,375
2,000	Gray
Television, Inc., Delayed Draw Loan, LIBOR + 1.50%, 9/18/14	1,857,500
	HMH
Publishing,
364	Bridge
Loan, LIBOR + 4.00%, 5/15/09	347,727
2,636	Loan A, LIBOR
+ 4.00%, 11/14/14	2,521,023
6,750	Mezzanine
Loan, LIBOR + 8.50%, 11/14/14	6,412,500
4,950	Idearc,
Inc., Loan B, LIBOR + 2.00%, 11/15/14	4,709,252
4,000	KDG Media
Technologies AG, Loan A, LIBOR + 2.00%, 3/31/12 (EUR)	5,589,681
498	Knology,
First Lien Loan, LIBOR + 2.25%, 3/15/12	475,113
1,493	Liberty
Cablevision of Puerto Rico Ltd., LIBOR + 2.25%, 5/21/14	1,412,278
1,485	Mediacom
Broadband LLC, Loan D1, LIBOR + 1.75%, 1/31/15	1,370,973
1,289	Mediacom
Communications Corp., Loan A, LIBOR + 1.50%, 3/31/10	1,212,030
1,955	Mediacom
Illinois LLC, Loan C, LIBOR + 1.75%, 1/15/15	1,818,382
1,902	Mission
Broadcasting, Inc., Loan B, LIBOR + 1.75%, 8/14/12	1,816,536
356	Multicultural
Radio Broadcasting, Inc., LIBOR + 2.50%, 12/15/12	348,880
1,000	National
CineMedia, Inc., Loan B, LIBOR + 1.75%, 2/28/15	937,188
	New Wave
Communications,
936	Loan A,
LIBOR + 3.25%, 6/20/13	921,714
237	Loan Z,
LIBOR + 3.25%, 6/20/13	233,445
1,801	Nexstar
Finance, Inc., Loan B, LIBOR + 1.75%, 8/14/12	1,720,017
3,456	Nielsen
Finance LLC/Nielsen Finance Co., Loan B, LIBOR + 2.25%, 8/15/13	3,272,408
	NTL
Investment Holding Ltd. (GBP)
1,116	Loan B1,
LIBOR + 2.13%, 9/03/12	2,102,798
1,169	Loan B2,
LIBOR + 2.13%, 9/03/12	2,202,929
1,500	Loan C,
LIBOR + 2.75%, 3/03/13	2,814,211
1,500	NV
Broadcasting, Second Lien Loan, LIBOR + 6.50%, 10/26/14	1,402,500
	PagesJaunes
Groupe SA (EUR)
1,000	Loan B2,
EURIBOR + 2.75%, 1/11/15	1,395,445
1,000	Loan C,
EURIBOR + 2.75%, 1/11/16	1,395,445
500	Loan D,
EURIBOR + 4.25%, 1/11/17	690,819
	Penton
Media, Inc.,
1,117	First Lien
Loan, LIBOR + 2.25%, 2/15/13	1,007,698
1,000	Second Lien
Loan, LIBOR + 5.00%, 2/15/14	850,000
	ProSieben
(EUR)
500	Loan B1,
LIBOR + 2.38%, 6/30/15	642,693
1,000	Loan C1,
LIBOR + 2.88%, 6/30/16	1,292,697
750	Puerto Rico
Cable Acquisition Co., Second Lien Loan, LIBOR + 6.25%, 7/31/11	690,000
737	Quebecor
Media, Inc., Loan B, LIBOR + 2.00%, 1/12/13	716,611

| See Notes to Financial Statements. — ANNUAL
REPORT | DECEMBER
31, 2007 | 9 |
| --- | --- | --- |

| Portfolio of Investments as of December 31,
2007 |
| --- |
| (Percentages shown are based on Net Assets) |

	Description
Media(contd)
$ 1,769	R.H.
Donnelley, Inc., Loan D2, LIBOR + 1.50%, 6/30/11	$ 1,710,358
995	RCN Corp.,
Loan B, LIBOR + 2.25%, 5/24/14	940,897
	TDC (EUR)
912	Loan B,
EURIBOR + 2.75%, 11/12/14	1,302,236
1,092	Loan C2,
EURIBOR + 3.25%, 11/12/15	1,566,628
	Univision
Communications, Inc.,
5,933	LIBOR +
2.25%, 9/30/14	5,401,400
1,000	Loan B,
LIBOR + 2.50%, 3/31/16	975,000
309	Second Lien
Loan, Unfunded, 9/30/14	281,068
	UPC
Broadband Holding BV (EUR)
3,767	Loan M1,
LIBOR + 2.00%, 12/31/14	5,191,166
4,069	Loan M2,
LIBOR + 2.00%, 12/31/14	5,607,552
1,885	WMG
Acquisition Corp., LIBOR + 2.00%, 4/08/11	1,798,790
2,500	Yell Group
Plc, Loan B, LIBOR + 1.75%, 2/15/13 (EUR)	3,502,393
	Total Media	113,621,999
Real Estate1.2%
2,000	Georgian
Towers, Loan B5, LIBOR + 2.50%, 3/01/12	1,766,218
1,313	Headwaters,
Inc., LIBOR + 3.25%, 4/30/11	1,260,000
	Masonite
Intl. Corp.,
243	LIBOR +
2.00%, 3/31/13	220,195
243	Loan B,
LIBOR + 2.00%, 3/31/13	220,570
1,990	Realogy
Corp., LIBOR + 3.00%, 9/22/14	1,732,407
	Total Real
Estate	5,199,390
Technology5.1%
465	Activant
Solutions, Inc., Loan B, LIBOR + 2.00%, 4/30/13	434,613
735	Affiliated
Computer Services, Inc., Loan B, LIBOR + 2.00%, 3/31/13	713,409
3,000	Alliance
Data, First Lien Loan B2, Unfunded, 12/15/14	2,790,000
1,460	ClientLogic
Corp., LIBOR + 2.50%, 1/30/14	1,303,220
500	Electrical
Components Intl. Holdings Co., Second Lien Loan, LIBOR + 2.50%, 5/01/14	430,000
1,746	First Data
Corp., Loan B1, LIBOR + 2.75%, 9/24/14	1,654,962
	Flextronics
Intl. Ltd.,
557	Delayed
Draw Loan A, LIBOR + 2.25%, 10/01/14	542,725
1,942	Loan B,
LIBOR + 2.25%, 10/01/14	1,893,415
	Intergraph
Corp.,
419	First Lien
Loan, LIBOR + 2.50%, 5/15/14	401,943
750	Second Lien
Loan, LIBOR + 6.00%, 11/15/14	736,406
987	Marvell
Technology Group Ltd., Loan B, LIBOR + 2.00%, 11/15/09	957,269
	RedPrairie
Corp.,
985	Loan B,
PRIME + 3.25%, 7/31/12	960,375
1,250	Second Lien
Loan, LIBOR + 6.75%, 1/31/13	1,200,000
1,592	San Juan
Cable, LIBOR + 2.25%, 3/15/13	1,479,198
	Sensata
Technologies BV,
1,478	EURIBOR +
2.00%, 4/30/13 (EUR)	2,042,065
978	Loan B,
LIBOR + 1.75%, 4/30/13	926,584
2,438	SunGard
Data Systems, Inc., Loan B, LIBOR + 2.00%, 2/11/13	2,351,279
244	Wire Rope
Corp., LIBOR + 2.25%, 1/30/14	236,584
	Total
Technology	21,054,047
Telecommunications8.0%
393	Cavalier
Telephone Corp., Loan B, LIBOR + 4.75%, 11/30/12	341,923
2,169	Centennial
Cellular Operating Co., LIBOR + 2.00%, 2/09/11	2,109,012
500	Country
Road Communications LLC, Second Lien Loan, LIBOR + 7.75%, 6/30/13	492,500
	Eircom
Group Plc (EUR)
3,000	Loan B,
LIBOR + 2.50%, 9/15/14	4,194,112
3,000	Loan C,
LIBOR + 3.00%, 9/15/15	4,216,578
1,000	Loan D,
EURIBOR + 4.25%, 3/15/16	1,408,848
500	Hargray
Communications, Inc., Second Lien Loan, LIBOR + 5.25%, 12/31/14	480,000

		Description
Telecommunications(contd)
$ 4,000		Insight
Midwest Holdings LLC, Loan B, Unfunded, 4/03/14	$ 3,855,000
2,000		Iowa
Telecommunications Services, Inc., Loan B, LIBOR + 1.75%, 11/30/11	1,936,250
1,000		IPC
Systems, Inc., Second Lien Loan, LIBOR + 5.50%, 5/25/15	790,000
		NG
Wireless,
140		Delayed
Draw Loan, Unfunded, 7/31/14	138,269
610		First Lien
Loan, PRIME + 2.75%, 7/31/14	600,481
1,695		NTELOS,
Inc., First Lien Loan, LIBOR + 2.25%, 2/24/10	1,670,901
441		Triton PCS,
Inc., LIBOR + 3.25%, 11/18/09	439,182
2,970		West Corp.,
Loan B2, LIBOR + 2.38%, 10/31/13	2,824,152
		Wind
Acquisition Finance S.A. (EUR)
1,029		Loan A1,
LIBOR + 2.25%, 6/17/12	1,474,836
279		Loan A2,
LIBOR + 2.25%, 6/17/12	399,603
2,000		Loan B1,
EURIBOR + 2.75%, 7/31/12	2,882,859
2,000		Loan C1,
EURIBOR + 3.25%, 7/31/13	2,895,652
		Total
Telecommunications	33,150,158
Transportation3.0%
		Dockwise
Transport N.V.,
1,000		Loan B1,
LIBOR + 2.38%, 4/15/15	960,000
733		Loan B2,
LIBOR + 2.38%, 4/15/15	703,812
1,000		Loan C,
LIBOR + 2.88%, 4/15/16	965,000
733		Loan C2,
LIBOR + 2.88%, 4/15/16	707,478
650		Loan D,
LIBOR + 4.50%, 1/11/17	621,563
1,000		Loan D2,
LIBOR + 4.50%, 1/11/17	956,250
		Hawker
Beechraft Acquisition Co.,
78		Letter of
Credit, Unfunded + 2.00%, 3/31/14	74,016
915		LIBOR +
2.00%, 3/31/14	868,174
1,000		Jacobson
Holding Co., Second Lien Loan, LIBOR + 5.50%, 12/31/14	770,000
1,750		RailAmerica,
Inc., Loan B, LIBOR + 2.25%, 10/15/08	1,710,625
322		Sirva
Worldwide, Inc., LIBOR + 2.50%, 12/01/10	204,388
1,477		Swift
Transportation Co., Inc., LIBOR + 3.00%, 5/15/14	1,207,238
2,000		U.S.
Airways, Loan B, LIBOR + 2.50%, 3/31/14	1,838,056
1,076		United Air
Lines, Inc., Loan B, LIBOR + 2.00%, 1/30/14	1,002,616
		Total
Transportation	12,589,216
		Total Bank
Loans	468,992,410
Foreign Government
Bonds17.6%
3,840		Argentina
Republic, 4.005%, 8/03/12	2,169,600
		Federative
Republic of Brazil,
475		10.25%,
6/17/13	584,250
9,435	1	10.58%,
6/29/09	10,119,038
1,600		Islamic
Republic of Pakistan, 6.75%, 2/19/09	1,550,443
800		Malaysia,
8.75%, 6/01/09	842,759
2,400		Republic of
Chile, 6.875%, 4/28/09	2,488,560
1,200	1	Republic of
Colombia, 8.541%, 3/17/13	1,296,000
3,200		Republic of
Costa Rica, 9.335%, 5/15/09	3,355,200
2,000		Republic of
Panama, 8.25%, 4/22/08	2,022,500
		Republic of
Peru,
5,152	1	6.44%,
3/07/17	5,100,480
2,400		9.125%,
1/15/08	2,400,000
2,400		Republic of
South Africa, 7.375%, 4/25/12	2,598,000
2,400		Republic of
the Philippines, 8.875%, 4/15/08	2,429,659
950		Republic of
Uruguay, 6.875%, 1/19/16 (EUR)	1,435,825
		Republic of
Venezuela,
4,000	1	6.18%,
4/20/11	3,612,000
2,000		11.00%,
3/05/08 (EUR)	2,943,107
2,735		Turkey,
7.00%, 9/26/16	2,892,263
		Ukraine,
2,800	2	6.875%,
3/04/11	2,849,000
16,100	1,2	8.693%,
8/05/09	16,542,750
		United
Mexican States,
4,800	1	5.943%,
1/13/09	4,809,600
13,520		9.00%,
12/22/11 (MXN)	1,282,754
		Total
Foreign Government Bonds	73,323,788

| See Notes to Financial Statements. — 10 | ANNUAL
REPORT | DECEMBER
31, 2007 |
| --- | --- | --- |

| Portfolio of
Investments as of December 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Shares		Description	Value
Common Stocks0.1%
6,155	3,4,6	Berkline BenchCraft, Class B	$
947	3	Critical Care Systems Intl., Inc.	318
121,011		E*Trade Financial Corp.	429,589
		Total Common Stocks	429,907
Preferred Stock0.0%
100	2	Marsico Parent Superholdco LLC, 16.75%,	94,758
		Total Long-Term Investments (cost $644,394,541)	630,939,378
Principal Amount (000)
SHORT-TERM
INVESTMENT2.0%
U.S. Government and
Agency Discount Notes2.0%
$ 8,500	5	Federal
Home Loan Bank Disc. Note, 3.254%, 1/14/08 (cost $8,490,024)	8,490,024
Contracts
OUTSTANDING OPTION
PURCHASED0.0%
26	6,7	Marsico Parent
Superholdco LLC, expires 12/14/19, strike price $942.86 (cost $25,422)	25,549
Total Investments153.3% (cost
$652,909,987 8 )			$ 639,454,951
Other assets in excess of
liabilities5.1%			21,255,627
Auction Preferred Shares at redemption value,
including dividends payable(58.4)%			(243,624,472	)
Net Assets Applicable to Common
Shareholders100%			$ 417,086,106

| 1 | Variable rate security. Rate shown is interest rate as of
December 31, 2007. |
| --- | --- |
| 2 | 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 December 31,
2007, the Trust held 9.3% of its net assets, with a current market value of
$38,728,208 in securities restricted as to resale. |
| 3 | Security is fair valued. |
| 4 | Issuer is in default and/or bankruptcy. |
| 5 | Rate shown is the yield to maturity as of the date of
purchase. |
| 6 | Non-income producing security. |
| 7 | Illiquid security. As of December 31, 2007, the Trust held
0.0% of its net assets, with a current market value of $25,549, in these
securities. |
| 8 | Cost for federal income tax purposes is $652,979,919. The
net unrealized depreciation on a tax basis is $13,524,968, consisting of
$12,149,631 gross unrealized appreciation and $25,674,599 gross unrealized
depreciation. |
| | For Trust compliance purposes, the Trusts 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. |

| See Notes to Financial Statements. — ANNUAL
REPORT | DECEMBER 31, 2007 | 11 |
| --- | --- | --- |

Portfolio of Investments as of December 31, 2007
(Percentages
shown are based on Net Assets)

Principal Amount (000)		Description
LONG-TERM
INVESTMENTS131.9%
Corporate
Bonds122.0%
Aerospace &
Defense2.0%
$ 1,820		DI
Finance/DynCorp Intl., 9.50%, 2/15/13	$ 1,904,175
		DRS
Technologies, Inc.,
170		6.875%,
11/01/13	169,150
170		7.625%,
2/01/18	172,125
140		L-3
Communications Corp., 5.875%, 1/15/15	135,100
300		TransDigm,
Inc., 7.75%, 7/15/14	304,500
		Total
Aerospace & Defense	2,685,050
Automotive6.1%
340		Accuride
Corp., 8.50%, 2/01/15	275,400
550	1	Allison
Transmission, Inc., 11.25%, 11/01/15	485,375
240		Asbury
Automotive Group, Inc., 7.625%, 3/15/17	212,400
		AutoNation,
Inc.,
360		7.00%,
4/15/14	341,100
360	2	7.243%,
4/15/13	332,100
1,330		Ford
Capital BV, 9.50%, 6/01/10 (Netherlands)	1,253,525
300		Ford Motor
Co., 8.90%, 1/15/32	232,500
		Goodyear
Tire & Rubber Co. (The),
150		7.857%,
8/15/11	151,875
512		8.625%,
12/01/11	533,760
400		Group 1
Automotive, Inc., 2.25%, 6/15/36	265,000
540		Lear Corp.,
8.75%, 12/01/16	491,400
22		Meritor Automotive,
Inc., 6.80%, 2/15/09	21,340
935		Metaldyne
Corp., 10.00%, 11/01/13	771,375
710		Penske Auto
Group, Inc., 7.75%, 12/15/16	663,850
1,910		Rent-A-Center,
Inc., 7.50%, 5/01/10	1,781,075
525		Stanadyne
Corp., 10.00%, 8/15/14	506,625
		Total
Automotive	8,318,700
Basic Materials12.0%
		Abitibi-Consolidated,
Inc. (Canada)
485		6.00%,
6/20/13	330,406
80		8.85%,
8/01/30	54,800
350	2	AbitibiBowater,
Inc., 7.991%, 3/15/10	304,938
665		AK Steel
Corp., 7.75%, 6/15/12	668,325
1,200		Alpha
Natural Resources LLC/Alpha Natural Resources Capital Corp., 10.00%, 6/01/12	1,269,000
400		American
Pacific Corp., 9.00%, 2/01/15	401,000
85		Bowater
Finance Corp., 7.95%, 11/15/11 (Canada)	68,638
175		Catalyst
Paper Corp., 7.375%, 3/01/14 (Canada)	132,125
60		Chemtura
Corp., 6.875%, 6/01/16	56,400
540		CPG Intl.
I, Inc., 10.50%, 7/01/13	510,300
1,010		Del Monte
Corp., 8.625%, 12/15/12	1,017,575
		Domtar Corp.,
160		7.125%,
8/15/15	156,800
100		7.875%,
10/15/11	102,125
		FMG Finance
Property Ltd. (Australia)
240	1	10.00%,
9/01/13	262,800
735	1	10.625%,
9/01/16	841,575
		Freeport-McMoRan
Copper & Gold, Inc.,
1,820		8.375%,
4/01/17	1,951,950
550	2	8.394%,
4/01/15	558,250
500		Huntsman
Intl. LLC, 7.375%, 1/01/15	525,000
1,450		Huntsman
LLC, 11.625%, 10/15/10	1,537,000
475	1	Ineos Group
Holdings Plc, 8.50%, 2/15/16 (United Kingdom)	422,750
1,170		Innophos,
Inc., 8.875%, 8/15/14	1,164,150
205	1	Key
Plastics LLC/Key Plastics Finance Corp., 11.75%, 3/15/13	164,000
755	1	MacDermid,
Inc., 9.50%, 4/15/17	709,700
		NewPage
Corp.,
1,010		10.00%,
5/01/12	1,015,050
435		12.00%,
5/01/13	449,137
200	2	NOVA
Chemicals Corp., 7.863%, 11/15/13 (Canada)	187,000
		Ryerson,
Inc.,
300	1	12.00%,
11/01/15	296,250
180	1,2	12.574%,
11/01/14	172,800

Principal Amount (000)		Description
Basic
Materials(contd)
$ 230	1	Steel
Dynamics, Inc., 7.375%, 11/01/12	$ 231,150
385		Terra
Capital, Inc., 7.00%, 2/01/17	376,337
325		Verso Paper
Holdings LLC/Verson Paper, Inc., 9.125%, 8/01/14	328,250
		Total Basic
Materials	16,265,581
Building &
Development2.2%
450		Goodman
Global Holding Co., Inc., 7.875%, 12/15/12	463,500
1,000		K Hovnanian
Enterprises, Inc., 7.75%, 5/15/13	560,000
185		Masonite
Intl. Corp., 11.00%, 4/06/15 (Canada)	144,300
345		Nortek,
Inc., 8.50%, 9/01/14	276,000
1,560		North
American Energy Partners, Inc., 8.75%, 12/01/11 (Canada)	1,540,500
		Total
Building & Development	2,984,300
Commercial Services0.4%
275		FTI Consulting,
Inc., 7.75%, 10/01/16	286,000
270	1	Quebecor
World, Inc., 9.75%, 1/15/15 (Canada)	202,838
		Total
Commercial Services	488,838
Consumer Products8.9%
1,070	2	Ames True
Temper, Inc., 9.243%, 1/15/12	909,500
70	2	Avis Budget
Car Rental LLC/Avis Budget Finance, Inc., 7.369%, 5/15/14	64,400
210	1	Beverages
& More, Inc., 9.25%, 3/01/12	212,625
290		Buffets,
Inc., 12.50%, 11/01/14	110,200
		General
Nutrition Centers, Inc.,
1,000	2	10.01%,
3/15/14	945,000
990		10.75%,
3/15/15	920,700
690		Jarden
Corp., 7.50%, 5/01/17	593,400
2,307		Lazy Days
RV Center, Inc., 11.75%, 5/15/12	1,984,020
		Michaels
Stores, Inc.,
1,160		10.00%,
11/01/14	1,102,000
1,470		11.375%,
11/01/16	1,348,725
175		Neiman-Marcus
Group, Inc., 9.00%, 10/15/15	180,469
350		Quiksilver,
Inc., 6.875%, 4/15/15	300,125
350		Reynolds
American, Inc., 7.625%, 6/01/16	372,048
		Rite Aid
Corp.,
1,755		7.50%,
3/01/17	1,546,594
250		8.125%,
5/01/10	245,000
		Sally
Holdings LLC,
90		9.25%,
11/15/14	89,100
769		10.50%,
11/15/16	757,465
365		Yankee
Acquisition Corp., 9.75%, 2/15/17	333,975
		Total
Consumer Products	12,015,346
Containers &
Packaging6.0%
		Berry
Plastics Holding Corp.,
375	2	8.866%,
9/15/14	350,625
695		8.875%,
9/15/14	660,250
255		Crown
Americas LLC/Crown Americas Capital Corp.,
		7.75%,
11/15/15	262,650
125		Graham
Packaging Co., Inc., 8.50%, 10/15/12	116,875
65		Graphic
Packaging Intl. Corp., 9.50%, 8/15/13	64,187
775	1,2	Impress
Holdings BV, 8.368%, 9/15/13 (Netherlands)	751,750
1,000		Jefferson
Smurfit Corp., 7.50%, 6/01/13	957,500
2,600		Owens
Brockway, 8.25%, 5/15/13	2,697,500
1,034		Pregis
Corp., 12.375%, 10/15/13	1,096,040
1,140		Smurfit-Stone
Container Enterprises, Inc., 8.00%, 3/15/17	1,101,525
		Total
Containers & Packaging	8,058,902
Ecological Services &
Equipment1.1%
445		Aleris
Intl., Inc., 9.00%, 12/15/14	371,575
400		Casella
Waste Systems, Inc., 9.75%, 2/01/13	408,000
800		Waste
Services, Inc., 9.50%, 4/15/14	780,000
		Total
Ecological Services & Equipment	1,559,575
Energy13.3%
250		AES Corp.,
9.50%, 6/01/09	258,750
275		Berry
Petroleum Co., 8.25%, 11/01/16	281,187
515		Chaparral
Energy, Inc., 8.50%, 12/01/15	463,500

| See Notes to Financial Statements. — 12 | ANNUAL
REPORT | DECEMBER 31, 2007 |
| --- | --- | --- |

Portfolio of Investments as of December 31, 2007
(Percentages
shown are based on Net Assets)

Principal Amount (000)		Description	Value
Energy(contd)
		Chesapeake Energy Corp.,
$ 350		6.375%,
6/15/15	$ 338,625
235		6.625%,
1/15/16	229,712
		Compagnie Generale de Geophysique-Veritas (France)
135		7.50%,
5/15/15	136,688
220		7.75%,
5/15/17	222,200
245		Compton Petroleum Finance Corp.,
		7.625%,
12/01/13 (Canada)	227,850
1,120	1,2	Corral
Finans AB, 10.24%, 4/15/10 (Sweden)	1,019,182
75		Denbury
Resources, Inc., 7.50%, 12/15/15	75,750
740	3	East
Cameron Gas Co., 11.25%, 7/09/19 (Cayman Islands)	540,200
35		Edison
Mission Energy, 7.50%, 6/15/13	35,875
50		El Paso
Natural Gas Co., 8.375%, 6/15/32	58,570
484		Elwood
Energy LLC, 8.159%, 7/05/26	484,126
		Encore
Acquisition Co.,
130		6.00%,
7/15/15	117,000
140		7.25%,
12/01/17	133,350
1,350	1	Energy
Future Holdings Corp., 11.25%, 11/01/17	1,366,875
1,115		Exco
Resources, Inc., 7.25%, 1/15/11	1,073,187
550	1	Forest Oil
Corp., 7.25%, 6/15/19	552,750
100		Grant
Prideco, Inc., 6.125%, 8/15/15	104,500
150		Homer City
Funding LLC, 8.734%, 10/01/26	163,882
900		KCS Energy,
Inc., 7.125%, 4/01/12	866,250
154		Midwest
Generation LLC, 8.56%, 1/02/16	164,863
810		Mirant
Americas Generation LLC, 8.30%, 5/01/11	812,025
		NRG Energy,
Inc.,
100		7.25%,
2/01/14	97,500
570		7.375%,
2/01/16	555,750
980	1	OPTI
Canada, Inc., 8.25%, 12/15/14 (Canada)	970,200
1,000		Orion Power
Holdings, Inc., 12.00%, 5/01/10	1,090,000
420		Sabine Pass
LNG LP, 7.50%, 11/30/16	401,100
656		Salton Sea
Funding, 8.30%, 5/30/11	728,125
615	1	SemGroup
LP, 8.75%, 11/15/15	584,250
305		Southern
Natural Gas Co., 8.00%, 3/01/32	339,799
345	1	Targa
Resources, Inc., 8.50%, 11/01/13	332,925
		Texas
Competitive Electric Holdings Co. LLC,
1,400	1	10.25%,
11/01/15	1,386,000
430	1	10.50%,
11/01/16	424,625
1,305		Whiting
Petroleum Corp., 7.25%, 5/01/12-5/01/13	1,285,425
		Total
Energy	17,922,596
Entertainment &
Leisure5.5%
470		AMC Entertainment, Inc., 11.00%, 2/01/16	494,675
500		Caesars Entertainment, Inc., 7.875%, 3/15/10	470,000
440	1	French Lick
Resorts & Casino LLC/French Lick Resorts & Casino Corp., 10.75%, 4/15/14	321,200
		Gaylord Entertainment Co.,
450		6.75%,
11/15/14	424,125
1,000		8.00%,
11/15/13	995,000
1,390	1	Great
Canadian Gaming Corp., 7.25%, 2/15/15 (Canada)	1,376,100
690	1	Greektown
Holdings LLC, 10.75%, 12/01/13	671,025
610	1	Pinnacle
Entertainment, Inc., 7.50%, 6/15/15	553,575
430		Riddell
Bell Holdings, Inc., 8.375%, 10/01/12	387,000
630		Seneca
Gaming Corp., 7.25%, 5/01/12	634,725
410	1	Shingle
Springs Tribal Gaming Authority, 9.375%, 6/15/15	397,700
30		Station
Casinos, Inc., 6.625%, 3/15/18	20,550
170	2	Travelport
LLC, 9.749%, 9/01/14	164,475
500		Virgin
River Casino, 9.00%, 1/15/12	425,000
100		Wynn Las
Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14	98,250
		Total
Entertainment & Leisure	7,433,400
Financial
Institutions9.1%
1,250		AES Red Oak
LLC, 9.20%, 11/30/29	1,387,500
800	1	Alliant
Holdings I, Inc., 11.00%, 5/01/15	760,000
85		American
Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13	79,900

Principal Amount (000)		Description	Value
Financial
Institutions(contd)
$ 319	1,2	BMS Holdings, Inc., 12.40%, 2/15/12	$ 309,540
		Ford Motor Credit Co. LLC,
1,500		7.80%, 6/01/12	1,314,993
290	2	7.993%,
1/13/12	243,589
140		8.625%,
11/01/10	129,913
		General
Motors Acceptance Corp. LLC,
710		6.875%,
8/28/12	594,954
300		8.00%,
11/01/31	251,663
140	1	Hawker
Beechcraft Acquisition Co. LLC/Hawker Beechcraft Notes Co., 8.875%, 4/01/15	138,600
		Hexion U.S.
Finance Corp./Hexion Nova Scotia Finance ULC,
275	2	9.369%,
11/15/14	280,500
250		9.75%,
11/15/14	270,000
1,331	1	iPayment
Investors LP, 11.625%, 7/15/14	1,397,927
335		iPayment,
Inc., 9.75%, 5/15/14	313,225
		Momentive
Performance Materials, Inc.,
470	1	9.75%,
12/01/14	432,400
945	1	11.50%,
12/01/16	817,425
290	1	NSG
Holdings LLC/NSG Holdings, Inc., 7.75%, 12/15/25	290,725
625	1,2	PNA Intermediate
Holding Corp., 12.36%, 2/15/13	565,625
1,653	1	Rainbow
National Services LLC, 10.375%, 9/01/14	1,791,439
915		Tropicana
Entertainment LLC, 9.625%, 12/15/14	581,025
110	2	Universal
City Florida Holding Co. I/II, 9.661%, 5/01/10	110,000
310	1,2	USI
Holdings Corp., 8.744%, 11/15/14	265,050
		Total
Financial Institutions	12,325,993
Health Care6.6%
460		Accellent,
Inc., 10.50%, 12/01/13	386,400
500	2	Angiotech
Pharmaceuticals, Inc., 8.874%, 12/01/13 (Canada)	475,000
375		Comunity
Health Systems, Inc., 8.875%, 7/15/15	382,031
370		Cooper
Cos., Inc. (The), 7.125%, 2/15/15	359,825
900		Norcross
Safety Products LLC/Norcross Capital Corp., 9.875%, 8/15/11	927,000
360		Omnicare,
Inc., 3.25%, 12/15/35	262,350
610	1	PTS
Acquisition Corp., 9.50%, 4/15/15	565,775
2,400	1	ReAble
Therapeutics Finance LLC/ReAble Therapeutics Finance Corp., 10.875%, 11/15/14	2,358,000
		Tenet
Healthcare Corp.,
1,735		6.50%,
6/01/12	1,544,150
655		9.875%,
7/01/14	623,888
700		United
Surgical Partners Intl., Inc., 8.875%, 5/01/17	691,250
		Universal
Hospital Services, Inc.,
140	2	8.288%,
6/01/15	140,000
150		8.50%,
6/01/15	151,500
		Total
Health Care	8,867,169
Industrials5.7%
890	1	AGY Holding
Corp., 11.00%, 11/15/14	863,300
90	1	Blaze
Recycling & Metals LLC/Blaze Finance Corp., 10.875%, 7/15/12	82,800
		Harland
Clarke Holdings Corp.,
190		9.50%,
5/15/15	164,350
160	2	9.619%,
5/15/15	134,000
405		Hexcel
Corp., 6.75%, 2/01/15	396,900
600		Leucadia
National Corp., 8.125%, 9/15/15	600,000
		RBS Global,
Inc./Rexnord Corp.,
370		8.875%,
9/01/16	351,500
1,510		9.50%,
8/01/14	1,494,900
880		11.75%,
8/01/16	860,200
1,720	1	Sunstate
Equipment Co. LLC, 10.50%, 4/01/13	1,530,800
		Terex
Corp.,
175		7.375%,
1/15/14	177,187
1,010		8.00%,
11/15/17	1,022,625
		Total
Industrials	7,678,562
Media13.6%
		Affinion
Group, Inc.,
730		10.125%,
10/15/13	738,213

| See Notes to Financial Statements. — ANNUAL
REPORT | DECEMBER 31, 2007 | 13 |
| --- | --- | --- |

Portfolio of Investments as of December 31, 2007
(Percentages
shown are based on Net Assets)

Principal Amount (000)		Description	Value
Media(contd)
$ 315		11.50%,
10/15/15	$ 309,094
160		American
Media Operations, Inc., 10.25%, 5/01/09	136,600
230	1	Bonten
Media Acquisition Co., 9.00%, 6/01/15	200,675
750	2	Cablevision
Systems Corp., 9.644%, 4/01/09	758,438
1,220		CCH I
Holdings LLC/CCH I Holdings Capital Corp., 11.00%, 10/01/15	991,925
2,580		Charter
Communications Holdings II LLC/Charter Communications Holdings II Capital Corp., 10.25%, 9/15/10	2,525,825
500	1	Charter
Communications Operating LLC/Charter Communications Operating Capital, 8.375%, 4/30/14	483,750
865		CMP
Susquehanna Corp., 9.875%, 5/15/14	648,750
1,213		Dex Media
West LLC/Dex Media Finance Co., 9.875%, 8/15/13	1,261,520
300		DirecTV
Holdings LLC/DirecTV Financing Co., 8.375%, 3/15/13	312,000
		EchoStar
DBS Corp.,
1,415		7.00%,
10/01/13	1,429,150
325		7.125%,
2/01/16	331,500
975		Idearc,
Inc., 8.00%, 11/15/16	894,562
575	1,2	ION Media
Networks, Inc., 8.493%, 1/15/12	559,906
945		Network
Communications, Inc., 10.75%, 12/01/13	926,100
1,405		Nielsen
Finance LLC/Nielsen Finance Co., 10.00%, 8/01/14	1,436,612
		R.H.
Donnelley Corp.,
1,080		8.875%,
1/15/16	1,009,800
300	1	Ser. A,
8.875%, 10/15/17	277,500
225		Sinclair
Broadcast Group, Inc., 4.875%, 7/15/18	205,594
90		Sirius
Satellite Radio, Inc., 9.625%, 8/01/13	85,050
1,570	1	TL
Acquisitions, Inc., 10.50%, 1/15/15	1,509,162
1,020		Vertis,
Inc., 9.75%, 4/01/09	938,400
550		Young
Broadcasting, Inc., 10.00%, 3/01/11	429,688
		Total Media	18,399,814
Real Estate1.6%
		Realogy
Corp.,
800	1	10.50%,
4/15/14	598,000
1,580	1	11.00%,
4/15/14	1,098,100
675	1	12.375%,
4/15/15	425,250
		Total Real
Estate	2,121,350
Technology6.2%
		Amkor
Technology, Inc.,
160		7.75%,
5/15/13	150,800
295		9.25%,
6/01/16	295,738
270		Belden,
Inc., 7.00%, 3/15/17	263,250
1,235		Celestica,
Inc., 7.625%, 7/01/13 (Canada)	1,151,637
400		Coleman
Cable, Inc., 9.875%, 10/01/12	375,000
730	1	First Data
Corp., 9.875%, 9/24/15	678,900
1,330		Freescale
Semiconductor, Inc., 9.125%, 12/15/14	1,130,500
		NXP BV/NXP
Funding LLC (Netherlands)
440	2	7.993%,
10/15/13	404,800
210		9.50%,
10/15/15	192,413
		Sanmina-SCI
Corp.,
80		6.75%,
3/01/13	69,600
645		8.125%,
3/01/16	571,631
550	1,2	Spansion,
Inc., 8.249%, 6/01/13	495,000
		SunGard
Data Systems, Inc.,
210		9.125%,
8/15/13	213,675
1,600		10.25%,
8/15/15	1,636,000
830		Superior
Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12	796,800
		Total
Technology	8,425,744
Telecommunications19.7%
1,000		American
Tower Corp., 7.125%, 10/15/12	1,027,500
		Centennial
Communications Corp.,
645		8.125%,
2/01/14	635,325

Principal Amount (000)		Description	Value
Telecommunications(contd)
$ 650	2	10.98%,
1/01/13	$ 664,625
2,085		Cincinnati
Bell, Inc., 7.25%, 7/15/13	2,090,212
		Cricket
Communications, Inc.,
480		9.375%,
11/01/14	450,000
690	1	9.375%,
11/01/14	646,875
		Digicel
Group Ltd. (Bermuda)
590	1	8.875%,
1/15/15	539,850
1,520	1	9.125%,
1/15/15	1,387,417
300		Fibertower
Corp., 9.00%, 11/15/12	268,875
1,025		Intelsat
Corp., 9.00%, 6/15/16	1,032,688
100		Intelsat
Intermediate Holding Co. Ltd., 9.25%, 2/01/15 (Bermuda)	81,750
		Intelsat
Ltd. (Bermuda)
330	2	8.886%,
1/15/15	330,825
420		9.25%,
6/15/16	422,100
925	2	10.829%, 6/15/13	948,125
550		11.25%,
6/15/16	567,875
855		Intelsat
Subsidiary Holding Co. Ltd., 8.625%, 1/15/15 (Bermuda)	859,275
280	2	iPCS, Inc.,
7.036%, 5/01/13	263,900
1,675		MetroPCS
Wireless, Inc., 9.25%, 11/01/14	1,574,500
1,980	1	Nordic
Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)	2,029,500
945	1,2	Nortel
Networks Ltd., 9.493%, 7/15/11 (Canada)	921,375
150		Orascom
Telecom Finiance SCA, 7.875%, 2/08/14 (Luxembourg)	141,000
1,517		PanAmSat
Corp., 9.00%, 8/15/14	1,524,585
1,358	1,2	ProtoStar I
Ltd., 12.50%, 10/15/12 (Bermuda)	1,426,377
230		Qwest
Capital Funding, Inc., 7.00%, 8/03/09	229,425
850	2	Qwest
Corp., 8.241%, 6/15/13	867,000
1,000		Rural
Cellular Corp., 8.25%, 3/15/12	1,037,500
		West Corp.,
375		9.50%,
10/15/14	367,500
1,195		11.00%,
10/15/16	1,186,037
1,100	1	Wind
Acquisition Finance S.A.,
		10.75%,
12/01/15 (Luxembourg)	1,199,000
		Windstream
Corp.,
855		8.125%,
8/01/13	884,925
645		8.625%,
8/01/16	677,250
304	1	Windstream
Regatta Holdings, Inc., 11.00%, 12/01/17	300,960
		Total
Telecommunications	26,584,151
Transportation2.0%
280		American
Airlines, Inc., 7.324%, 4/15/11	276,500
680		CHC
Helicopter Corp., 7.375%, 5/01/14 (Canada)	642,600
820		Navios
Maritime Holdings, Inc., 9.50%, 12/15/14 (Marshall Islands)	838,450
660		Overseas
Shipholding Group, Inc., 8.25%, 3/15/13	669,900
570	1	St.
Acquisition Corp., 12.50%, 5/15/17	294,262
		Total
Transportation	2,721,712
		Total
Corporate Bonds	164,856,783
Bank Loans7.3%
Basic Materials0.7%
940		Verso Paper
Finance Holdings LLC/Verson Paper, Inc., LIBOR + 6.25%, 2/01/13	897,112
Consumer Products0.2%
		Spectrum
Brands,
273		First Lien
Loan B, LIBOR + 4.00%, 4/15/13	263,820
14		First Lien
Loan C, LIBOR + 4.00%, 4/15/13	13,221
		Total
Consumer Products	277,041
Energy1.3%
		Texas
Competitive Electric Holdings Co., LLC,
249		Loan B2,
LIBOR + 3.50%, 10/10/14	244,699
1,496		Loan B3,
LIBOR + 3.50%, 10/10/14	1,468,197
		Total
Energy	1,712,896

| See Notes to Financial Statements. — 14 | ANNUAL
REPORT | DECEMBER 31, 2007 |
| --- | --- | --- |

Portfolio of Investments as of December 31, 2007 BlackRock High Income Shares (HIS) (concluded) (Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
Health Care0.5%
$ 748		Rotech Healthcare, LIBOR + 6.00%, 9/26/11	$ 705,206
Industrials0.1%
176		Rexnord Holdings, Inc., LIBOR + 7.00%, 3/02/13	148,227
Media2.6%
		HMH Publishing,
152		Bridge Loan, LIBOR +4.00%, 5/15/09	144,886
1,098		Loan A, LIBOR + 4.00%, 11/14/14	1,050,426
2,500		Mezzanine Loan, LIBOR + 8.50%, 11/14/14	2,375,000
		Total Media	3,570,312
Technology0.7%
1,000		Alliance
Data, First Lien Loan B2, Unfunded 12/15/14	930,000
Transportation1.2%
1,672		Travelport Holdco, LIBOR + 7.00%, 3/22/12	1,560,488
		Total Bank Loans	9,801,282
Trust Preferred Stock0.4%
500	2	Citigroup Capital XXI, 8.30%, 12/21/57	522,096
Shares
Common Stocks0.0%
4,737	3,4	Critical Care Systems Intl., Inc.	1,591
495	4	Crown Castle Intl. Corp.	20,592
64,467	3,4	Goss Holdings, Inc.	1
		Total Common Stocks	22,184
Preferred Stocks2.2%
10,000		Crown Castle Intl. Corp., 6.25%	606,250
10,300		Emmis Communications Corp., 6.25%	350,200
500	1	NRG Energy, Inc., 4.00%	1,108,313
5,000		Owens Illinois, Inc., 4.75%	249,375
30,000		Smurfit-Stone Container Corp., 7.00%	600,000
60,000		Superior Essex Holding Corp., 9.50%	42,000
		Total Preferred Stocks	2,956,138
Units
Warrants0.0%
18	3,4	Pliant Corp., expires 6/01/10, strike price $0.001
		Total Long-Term Investments
		(cost $186,438,857)	178,158,483

		Description	Value
SHORT-TERM INVESTMENT1.2%
U.S. Government and Agency Discount
Notes1.2%
$ 1,600	5	Federal
Home Loan Bank Disc. Note, 3.251%, 1/02/08 (cost $1,599,856)	$ 1,599,856
Total Investments133.1% (cost
$188,038,713 6 )			$ 179,758,339
Liabilities in excess of other
assets(33.1)%			(44,660,203	)
Net Assets100%			$ 135,098,136

| 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 December 31,
2007, the Trust held 31.9% of its net assets, with a current market value of
$43,059,598, in securities restricted as to resale. |
| --- | --- |
| 2 | Variable rate security. Rate shown is interest rate as of
December 31, 2007. |
| 3 | Security is fair valued. |
| 4 | Non-income producing security. |
| 5 | Rate shown is the yield to maturity as of the date of
purchase. |
| 6 | Cost for federal income tax purposes is $188,576,521. The
net unrealized depreciation on a tax basis is $8,818,182, consisting of
$2,232,730 gross unrealized appreciation and $11,050,912 gross unrealized
depreciation. |
| | For Trust compliance purposes, the Trusts 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. |

| See Notes to Financial Statements. — ANNUAL
REPORT | DECEMBER 31, 2007 | 15 |
| --- | --- | --- |

Portfolio of Investments as of December 31, 2007 BlackRock Preferred Opportunity Trust (BPP) (Percentages shown are based on Net Assets)

		Description	Value
LONG-TERM INVESTMENTS153.4%
Preferred Stocks34.0%
Energy0.5%
$ 50,000		Alabama Power Co., 6.50%	$ 1,320,217
5,000		Devon Energy Corp., 6.49%	505,469
		Total Energy	1,825,686
Financial Institutions29.6%
298,400		ACE Ltd., 7.80%	7,131,760
117,414		Arch Capital Group Ltd., 8.00%	2,934,176
115,000	1	Aspen Insurance Holdings Ltd., 7.401%	2,512,750
30,000	2	Banesto Holdings Ltd., 10.50%	922,500
		Bank of America Corp.,
192,000		6.625%	4,536,000
50,000		7.25%	1,282,500
75,000		Bear Stearns Cos., Inc. (The), 6.15%	3,000,000
60,000		Chevy Chase Capital Corp., 10.375%	3,015,000
172,400		Endurance Specialty Holdings Ltd., 7.75%	3,591,092
		Federal Home Loan Mortgage Corp.,
202,000	1	5.16%	6,874,323
85,300		6.55%,	1,983,225
180,000		8.375%	4,707,000
265,000		Federal National Mortgage Assoc., 8.25%	6,744,250
120,000		First Republic Preferred Capital Corp., 7.25%	2,355,000
50,000		HSBC Bank, Inc., 6.50%	1,115,000
76,700		ING Groep N.V., 7.05%	1,677,813
31,100		Lehman Brothers Holdings, Inc., 5.67%	1,119,600
274,500		MetLife, Inc., 6.50%	6,004,687
209,400		PartnerRE Ltd., 6.75%	4,030,950
62,000		Prudential Plc, 6.50%	1,252,400
235,000		RenaissanceRe Holdings Ltd., 6.60%	4,328,700
30		Roslyn Real Estate Asset Corp., 8.95%	2,975,625
398,000	2	Santander Finance Preferred S.A. Unipersonal, 6.50%	8,283,375
140,000		Santander Finance S.A., 6.80%	3,087,000
60	2	Union Planter Preferred Funding Corp., 7.75%	6,800,625
321,800		Wachovia Corp., 8.00%	8,141,540
150,000		Wachovia Funding Corp., 7.25%	3,464,070
2,000	1,2	Zurich RegCaPS Funding Trust, 6.58%	1,996,250
		Total Financial Institutions	105,867,211
Industrials0.1%
787,326		Superior Essex Holding Corp., 9.50%	551,128
Media1.3%
110,000		Comcast Corp., 2.00%	4,680,500
Real Estate2.5%
255,200		NB Capital Corp., 8.35%	5,553,152
30	2	Sun Trust Real Estate Investment Trust (REIT), 9.00%	3,272,100
		Total Real Estate	8,825,252
		Total Preferred Stocks	121,749,777
Trust Preferred Stocks80.4%
Building & Development0.5%
1,945	1,2,3	C8 Capital SPV Ltd., 6.64% (British Virgin Islands)	1,843,160
Energy4.2%
4,655		KN Capital Trust III, 7.63%, 4/15/28	4,198,810
155	3	Nexen, Inc., 7.35%, (Canada)	3,594,450
2,675	1	PPL Capital Funding, Inc., 6.70%, 3/30/67	2,461,262
925	1	Puget Sound Energy, Inc., 6.974%, 6/01/67	849,998
4,325	1	TransCanada Pipelines Ltd., 6.35%, 5/15/67 (Canada)	4,053,736
		Total Energy	15,158,256
Financial Institutions71.5%
1,425	1,3	Abbey National Capital Trust I, 8.963%	1,673,895
4,500		AFC Capital Trust I, 8.207%, 2/03/27	4,289,872
		Allstate Corp. (The),
5,200	1	6.125%,
5/15/37	5,017,054
6,350	1	6.50%,
5/15/57	5,909,799

		Description	Value
Financial Institutions(contd)
$ 6,155		American
Intl. Group, Inc., 6.25%, 3/15/37	$ 5,505,149
9,900	1,2,3	AXA S.A.,
6.379% (France)	8,531,830
		Barclays
Bank Plc (United Kingdom)
3,185	2,3	5.926%	2,963,588
2,000	3	6.278%	1,705,573
2,600	1,2,3	7.434%	2,701,793
9,150	1,	BB&T
Capital Trust IV, 6.82%, 6/12/37	8,608,064
12,175	1,2,3,4	BNP
Paribas, 7.195% (France)	12,003,454
4,015	1,2,3	BOI Capital
Funding No. 2 LP, 5.571% (Ireland)	3,468,077
4,275	1,2,3	BOI Capital
Funding No. 3, 6.107% (Ireland)	3,689,282
2,000		Capital One
Capital III, 7.686%, 8/15/36	1,626,326
5,000	2,3	CBA Capital
Trust I, 5.805%	4,903,500
9,025	1	Chubb
Corp., 6.375%, 4/15/17	8,803,093
5,600	1	Citigroup
Capital XXI, 8.30%, 12/21/57	5,847,470
80		Colonial
Capital Trust IV, 7.875%	1,772,000
16,385	1,2,3	Credit
Agricole S.A., 6.637% (France)	15,201,200
11		Credit
Suisse First Boston (SATURNS), 6.25%	242,868
3,880	1,3	Credit
Suisse Guernsey Ltd., 5.86% (Guernsey)	3,473,368
5,950	2	Dresdner
Funding Trust I, 8.151%, 6/30/31	6,068,572
30		Everest RE
Capital Trust, 6.20%	556,875
7,135	1	Everest
Reinsurance Holdings, Inc., 6.60%, 5/15/37	6,319,455
1,100		FCB/NC
Capital Trust I, 8.05%, 3/01/28	1,148,344
15		Financial
Security Assurance Holdings Ltd., 5.60%	244,416
103		Goldman
Sachs Group, Inc. (The), 6.00%	2,099,808
1,925	1	Huntington
Capital III, 6.65%, 5/15/37	1,644,243
3,000	1,2,3	ICICI Bank
Ltd., 7.25% (India)	2,715,144
117		KeyCorp
Capital V, 5.875%	2,062,720
25	3	KeyCorp
Capital IX, 6.75%,	473,750
100		Kraft
Foods, Inc. (CORTS), 5.875%	2,093,750
5,025	1,2	Liberty
Mutual Group, Inc., 7.00%, 3/15/37	4,555,303
		Lincoln
National Corp.,
2,500	1	6.05%,
4/20/67	2,333,898
3,370	1	7.00%,
5/17/66	3,383,558
5,000	1,2	Mangrove
Bay Pass-Through Trust, 6.102%, 7/15/33	4,489,550
26	3	National
City Capital Trust II, 6.625%,	435,811
4,850		Nationwide
Financial Services, 6.75%, 5/15/37	4,467,350
2,000	3	NBP Capital
Trust III, 7.375%	1,880,000
40		New York
Community Capital Trust V, 6.00%	1,916,000
7		News
Holdings Ltd. (CORTS), 8.125%	181,575
79		Phoenix
Cos., Inc., 7.45%	1,616,279
18		PLC Capital
Trust IV, 7.25%	409,400
5,775	1	Progressive
Corp., 6.70%, 6/15/37	5,361,331
4,250	1,2,3	QBE Capital
Funding II LP, 6.797% (Jersey Channel Islands)	4,069,660
4,280	3	RBS Capital
Trust, 6.80% (United Kingdom)	4,108,800
10,960	1,2,3	Resona
Preferred Global Securities Cayman Ltd.,
		7.191%
(Cayman Islands)	10,874,928
		Royal Bank
of Scotland Group Plc (United Kingdom)
2,775	1,2,3	6.99%	2,766,653
3,700	1,3	7.64%	3,803,944
1,960	1,3	7.648%	2,022,201
10,575	1,2,3	Societe
Generale, 5.922% (France)	9,785,597
4,925	1,2,3	Standard
Chartered Plc, 7.014% (United Kingdom)	4,663,162
6,725	1	State
Street Capital Trust IV, 5.991%, 6/15/37	5,217,275
103		Structured
Repackaged Asset-Backed Trust Securities, 6.50%	1,771,910
2,050	1	SunTrust
Preferred Capital I, 5.853%, 12/15/11	1,809,125
9,425	1,2,3	Swiss Re
Capital I LP, 6.854%	9,260,835
11,350	1	Travelers
Cos., Inc. (The), 6.25%, 3/15/67	10,643,882
11		Valero
Energy Corp. (PPLUS), 7.25%	269,175
84	3	Wachovia
Capital Trust IX, 6.375%,	1,667,820
1,925	1	Webster
Capital Trust IV, 7.65%, 6/15/37	1,629,124
3,000	1,2,3	Westpac
Capital Trust IV, 5.256%	2,636,820
2,600	1,2,3	White
Mountains Re Group Ltd., 7.506% (Bermuda)	2,319,990
4,225	1,2	Woori Bank,
6.208%, 5/02/17 (South Korea)	3,667,638

| See Notes to Financial Statements. — 16 | ANNUAL
REPORT | DECEMBER 31, 2007 |
| --- | --- | --- |

Portfolio of Investments as of December 31, 2007 BlackRock Preferred Opportunity Trust (BPP) (continued) (Percentages shown are based on Net Assets)

		Description	Value
Financial Institutions(contd)
		ZFS Finance USA Trust I,
$ 8,765	1,2	6.50%,
5/09/37	$ 8,091,743
650	1,2	Ser. IV,
5.875%, 5/09/32	605,885
		Total Financial Institutions	256,080,554
Media3.0%
		Comcast Corp.,
470		6.625%	9,677,300
50		7.00%	1,093,750
		Total Media	10,771,050
Real Estate1.2%
3,180	2,3	Sovereign Real Estate Investment Corp. (REIT), 12.00%	4,149,900
		Total Trust Preferred Stocks	288,002,920
Corporate Bonds39.0%
Aerospace & Defense0.5%
1,480		DI Finance/DynCorp Intl., 9.50%, 2/15/13	1,548,450
160		TransDigm, Inc., 7.75%, 7/15/14	162,400
		Total Aerospace & Defense	1,710,850
Automotive0.2%
		AutoNation, Inc.,
190		7.00%,
4/15/14	180,025
190	1	7.243%, 4/15/13	175,275
350		Lear Corp., 8.75%, 12/01/16	318,500
125		Metaldyne Corp., 10.00%, 11/01/13	103,125
		Total Automotive	776,925
Basic Materials1.7%
940		AK Steel Corp., 7.75%, 6/15/12	944,700
200		American Pacific Corp., 9.00%, 2/01/15	200,500
30		Chemtura Corp., 6.875%, 6/01/16	28,200
260		CPG Intl. I, Inc., 10.50%, 7/01/13	245,700
80		Domtar Corp., 7.125%, 8/15/15	78,400
		Freeport-McMoRan Copper & Gold, Inc.,
1,450		8.375%,
4/01/17	1,555,125
200	1	8.394%,
4/01/15	203,000
1,730	2	Ineos Group Holdings Plc,
		8.50%, 2/15/16 (United Kingdom)	1,539,700
630	2	Key Plastics LLC/Key Plastics Finance Corp.,
		11.75%,
3/15/13	504,000
270		NewPage Corp., 10.00%, 5/01/12	271,350
170	1	NOVA Chemicals Corp., 7.863%, 11/15/13 (Canada)	158,950
205		Terra Capital, Inc., 7.00%, 2/01/17	200,387
		Total Basic Materials	5,930,012
Building & Development0.1%
495		Goodman Global Holding Co., Inc., 7.875%, 12/15/12	509,850
Commercial Services0.0%
100		FTI Consulting, Inc., 7.75%, 10/01/16	104,000
Consumer Products0.5%
30	1	Avis Budget
Car Rental LLC/Avis Budget Finance, Inc., 7.369%, 5/15/14	27,600
1,199		Lazy Days RV Center, Inc., 11.75%, 5/15/12	1,031,140
610		Michaels Stores, Inc., 10.00%, 11/01/14	579,500
250		Quiksilver, Inc., 6.875%, 4/15/15	214,375
		Total Consumer Products	1,852,615
Containers & Packaging0.3%
		Berry Plastics Holding Corp.,
195	1	8.866%,
9/15/14	182,325
340		8.875%,
9/15/14	323,000
385		Crown Americas LLC/Crown Americas Capital Corp.,
		7.75%, 11/15/15	396,550
240	1,2	Impress Holdings BV, 8.368%, 9/15/13 (Netherlands)	232,800
		Total Containers & Packaging	1,134,675

		Description	Value
Energy2.7%
$ 180		Berry Petroleum Co., 8.25%, 11/01/16	$ 184,050
220		Chaparral Energy, Inc., 8.50%, 12/01/15	198,000
30		Chesapeake Energy Corp., 6.875%, 11/15/20	28,800
3,750		CMS Energy Corp., 6.55%, 7/17/17	3,676,129
70		Compagnie
Generale de Geophysique-Veritas, 7.50%, 5/15/15 (France)	70,875
80		Compton
Petroleum Finance Corp., 7.625%, 12/01/13 (Canada)	74,400
175		Edison Mission Energy, 7.50%, 6/15/13	179,375
75		Exco Resources, Inc., 7.25%, 1/15/11	72,188
100		Grant Prideco, Inc., 6.125%, 8/15/15	104,500
50		KCS Energy, Inc., 7.125%, 4/01/12	48,125
17		Midwest Generation LLC, 8.56%, 1/02/16	17,823
75		Mirant Americas Generation LLC, 8.30%, 5/01/11	75,187
550	2	OPTI Canada, Inc., 8.25%, 12/15/14 (Canada)	544,500
2,950		Orion Power Holdings, Inc., 12.00%, 5/01/10	3,215,500
350		Sabine Pass LNG LP, 7.50%, 11/30/16	334,250
350	2	SemGroup LP, 8.75%, 11/15/15	332,500
420	2	Targa Resources, Inc., 8.50%, 11/01/13	405,300
55		Whiting Petroleum Corp., 7.25%, 5/01/13	54,175
		Total Energy	9,615,677
Entertainment & Leisure0.1%
385	2	Greektown Holdings LLC, 10.75%, 12/01/13	374,413
40		Wynn Las
Vegas LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14	39,300
		Total Entertainment & Leisure	413,713
Financial Institutions26.6%
5,000	1	American Express Co., 6.80%, 9/01/66	5,069,820
9,605	2	American General Institute Capital A, 7.57%, 12/01/45	10,602,671
415		American
Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13	390,100
		Bear Stearns Cos., Inc. (The),
1,850		6.40%,
10/02/17	1,787,396
2,000		6.95%,
8/10/12	2,056,400
1,475	1	Genworth Financial, Inc., 6.15%, 11/15/66	1,340,113
7,730	1	JPMorgan Chase Capital XXI, 5.844%, 2/02/37	6,078,810
2,670	1	JPMorgan Chase Capital XXIII, 5.869%, 5/15/47	2,081,601
11,125		JPMorgan Chase Capital XXV, 6.80%, 10/01/37	10,696,365
9,000		Kingsway America, Inc., 7.50%, 2/01/14	9,496,944
		Lehman Brothers Holdings, Inc.,
650	1	6.691%,
9/15/22	648,486
3,875		6.875%,
7/17/37	3,788,529
7,399	3	Lloyds Bank Ltd., 6.90% (United Kingdom)	7,143,735
7,900		MetLife, Inc., 6.40%, 12/15/36	7,240,279
260	2	Momentive
Performance Materials, Inc., 10.125%, 12/01/14	237,900
2,850	1	PartnerRe Finance II, 6.44%, 12/01/66	2,506,826
6,000	3	Prudential Plc, 6.50% (United Kingdom)	5,370,000
1,300	1	Reinsurance Group of America, Inc., 6.75%, 12/15/65	1,168,032
4,000	3	Resparcs Funding Ltd., 8.00% (Hong Kong)	3,720,000
		Skandinaviska Enskilda Banken AB (Sweden)
3,185	1,2,3	4.958%	2,856,448
5,000	1,2,3	5.471%	4,511,265
5,000	1,2,3	Sumitomo Mitsui Banking Corp., 5.625% (Japan)	4,668,690
60	1	Universal City Florida Holding Co. I/II, 9.661%, 5/01/10	60,000
1,800	2	Zenith National Insurance Capital Trust I, 8.55%, 8/01/28	1,800,000
		Total Financial Institutions	95,320,410
Industrials0.2%
460	2	AGY Holding Corp., 11.00%, 11/15/14	446,200
170		Hexcel Corp., 6.75%, 2/01/15	166,600
		Total Industrials	612,800

| See Notes to Financial Statements. — ANNUAL
REPORT | DECEMBER 31, 2007 | 17 |
| --- | --- | --- |

| Portfolio of
Investments as of
December 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

		Description	Value
Media2.0%
		Affinion
Group, Inc.,
$ 475		10.125%,
10/15/13	$ 480,344
230		11.50%,
10/15/15	225,688
230	1	Cablevision
Systems Corp., 9.644%, 4/01/09	232,588
110		CMP
Susquehanna Corp., 9.875%, 5/15/14	82,500
2,050		Dex Media
West LLC/Dex Media Finance Co., 9.875%, 8/15/13	2,132,000
175		DirecTV
Holdings LLC/DirecTV Financing Co., 8.375%, 3/15/13	182,000
		EchoStar
DBS Corp.,
200		5.75%,
10/01/08	199,750
360		7.00%,
10/01/13	363,600
75		7.125%, 2/01/16	76,500
725		Idearc,
Inc., 8.00%, 11/15/16	665,187
350	1,2	ION Media
Networks, Inc., 8.493%, 1/15/12	340,812
260		Network
Communications, Inc., 10.75%, 12/01/13	254,800
1,195		Nielsen
Finance LLC/Nielsen Finance Co., 10.00%, 8/01/14	1,221,887
240		R.H.
Donnelley Corp., 8.875%, 1/15/16	224,400
650		Vertis,
Inc., 9.75%, 4/01/09	598,000
		Total Media	7,280,056
Real Estate0.5%
2,000		Rouse Co.,
5.375%, 11/26/13	1,727,292
Technology0.9%
210		Celestica,
Inc., 7.625%, 7/01/13 (Canada)	195,825
		Freescale
Semiconductor, Inc.,
180	1	8.866%,
12/15/14	153,000
785		9.125%,
12/15/14	667,250
245		NXP BV/NXP
Funding LLC, 9.50%, 10/15/15 (Netherlands)	224,481
		Sanmina-SCI
Corp.,
140		6.75%,
3/01/13	121,800
1,155		8.125%,
3/01/16	1,023,619
		SunGard
Data Systems, Inc.,
100		9.125%,
8/15/13	101,750
370		10.25%,
8/15/15	378,325
425		Superior
Essex Communications LLC/Essex Group, Inc.,
		9.00%,
4/15/12	408,000
		Total
Technology	3,274,050
Telecommunications2.4%
290		Cincinnati
Bell, Inc., 7.25%, 7/15/13	290,725
590		Intelsat
Corp., 9.00%, 6/15/16	594,425
		Intelsat
Ltd. (Bermuda)
500		9.25%,
6/15/16	502,500
670	1	10.829%,
6/15/13 (Bermuda)	686,750
165		11.25%,
6/15/16	170,363
230		Intelsat
Subsidiary Holding Co. Ltd., 8.625%, 1/15/15 (Bermuda)	231,150
845	2	Nordic
Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)	866,125
125		PanAmSat
Corp., 9.00%, 8/15/14	125,625
1,705		Qwest
Communications Intl., Inc., 7.50%, 2/15/14	1,700,737
460	1	Qwest
Corp., 8.241%, 6/15/13	469,200
735		West Corp.,
11.00%, 10/15/16	729,487
420	2	Wind
Acquisition Finance S.A., 10.75%, 12/01/15 (Luxembourg)	457,800
		Windstream
Corp.,
640		8.125%,
8/01/13	662,400
290		8.625%,
8/01/16	304,500
902	2	Windstream
Regatta Holdings, Inc., 11.00%, 12/01/17	892,980
		Total
Telecommunications	8,684,767

		Description	Value
Transportation0.3%
$ 140		Britannia
Bulk Plc, 11.00%, 12/01/11 (United Kingdom)	$ 144,725
90		CHC
Helicopter Corp., 7.375%, 5/01/14 (Canada)	85,050
627		Navios
Maritime Holdings, Inc., 9.50%, 12/15/14 (Marshall Islands)	641,108
		Total
Transportation	870,883
		Total
Corporate Bonds	139,818,575
		Total Long-Term Investments
		(cost $593,693,914)	549,571,272
SHORT-TERM INVESTMENT7.0%
U.S. Government and Agency Discount
Notes7.0%
24,900	5	Federal Home Loan Bank Disc. Note,
		3.251%, 1/02/08 (cost $24,897,752)	24,897,752
Total Investments160.4% (cost
$618,591,666 6 )			$ 574,469,024
Other assets in excess of
liabilities1.3%			4,500,604
Auction Preferred Shares at redemption value,
including dividends payable(61.7)%			(220,952,637	)
Net Assets Applicable to Common
Shareholders100%			$ 358,016,991

| 1 | Variable rate security. Rate shown is interest rate as of
December 31, 2007. |
| --- | --- |
| 2 | 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 December 31,
2007, the Trust held 52.8% of its net assets, with a current market value of
$188,916,218, in securities restricted as to resale. |
| 3 | The security is a perpetual bond and has no stated
maturity date. |
| 4 | Security, or a portion thereof, pledged as collateral with
a value of $5,028,270 on 50 long U.S. Treasury Note futures contracts
expiring March 2008 and 239 short U.S. Treasury Note futures contracts
expiring March 2008. The notional value of such contracts on December 31,
2007 was $21,586,297, with an unrealized gain of $10,322. |
| 5 | Rate shown is the yield to maturity as of the date of
purchase. |
| 6 | Cost for federal income tax purposes is $618,849,567. The
net unrealized depreciation on a tax basis is $44,380,543, consisting of
$5,213,280 gross unrealized appreciation and $49,593,823 gross unrealized
depreciation. |
| | For Trust compliance purposes, the Trusts 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. |

| See Notes to Financial Statements. — 18 | ANNUAL
REPORT | DECEMBER 31, 2007 |
| --- | --- | --- |

Statements of Assets and Liabilities

December 31, 2007	BlackRock Global Floating Rate Income Trust (BGT)
Assets
Investments
at value, unaffiliated 1	$ 639,454,951	$	179,758,339	$	574,469,024
Investments
in affiliates	35,318		5,438		74,029
Cash	7,982,948		43,427		1,124,246
Foreign
currency at value 2	24,071,371		878
Receivable
from investments sold	3,557,478		4,375
Unrealized
gain on foreign exchange contracts	456,169
Unrealized
appreciation on credit default swaps					118,870
Interest
receivable	8,102,073		3,692,914		6,146,568
Other
assets	99,355		22,164		74,194
	683,759,663		183,527,535		582,006,931
Liabilities
Payable for
investments purchased	8,646,405		930,000
Variation
margin payable					99,359
Unrealized
loss on foreign currency exchange contracts	3,838,889
Loans
payable			46,000,000
Unrealized
depreciation on credit default swaps	181,909
Interest
payable			207,726
Foreign
currency payable due to broker	6,811,787
Dividends
payable - common shares	2,943,175		994,143		2,298,243
Investment
advisory fees payable	310,316		114,456		320,243
Deferred
Trustees fees	35,318		5,438		74,029
Trustees
fees	8,657		3,771		3,727
Other
accrued expenses	272,629		173,865		241,702
	23,049,085		48,429,399		3,037,303
Auction Preferred Shares at Redemption Value
$0.001 par
value per share and $25,000 liquidation value per share, including dividends
payable 3	243,624,472				220,952,637
Net Assets
Applicable to Common Shareholders	$ 417,086,106	$	135,098,136	$	358,016,991
Composition
of Net Assets Applicable to Common Shareholders:
Par value 4	$ 23,545	$		$	18,386
Paid-in
capital in excess of par	437,531,709		378,596,310		432,672,444
Undistributed
(distributions in excess of) net investment income	219,332		(33,209	)	(2,571,328	)
Accumulated
net realized loss	(3,720,091	)	(235,184,737	)	(28,109,122	)
Net
unrealized depreciation	(16,968,389	)	(8,280,228	)	(43,993,389	)
Net assets
applicable to common shareholders, December 31, 2007	$ 417,086,106	$	135,098,136	$	358,016,991
Net asset
value per common share 5	$ 17.71	$	2.47	$	19.47
1 Investments
at cost	$ 652,909,987	$	188,038,713	$	618,591,666
2 Foreign
currency at cost	$ 23,995,726	$	732	$
3 Auction
Preferred Shares outstanding	9,738				8,832
4 Par value
per share	$ 0.001	$		$	0.001
5 Common
shares outstanding	23,545,239		54,620,873		18,385,837

See Notes to Financial Statements. — ANNUAL REPORT	DECEMBER 31, 2007	19

Statements of Operations

For the Year Ended December 31, 2007	BlackRock Global Floating Rate Income Trust (BGT)
Investment Income
Interest
income	$ 53,782,920	$	17,866,586	$	32,038,522
Dividend
income	1,657		161,798		11.823,544
Income from
affiliates	2,771		558		3,663
Total
investment income	53,787,348		18,028,942		43,865,729
Expenses
Investment
advisory	5,251,233		1,488,955		4,197,634
Transfer
agent	13,163		29,569		14,742
Custodian	366,457		100,935		154,734
Reports to
shareholders	86,329		74,406		111,996
Directors/Trustees	41,033		16,726		41,934
Registration	9,455		19,503		9,551
Independent
accountants	50,954		45,613		46,959
Legal	70,331		50,421		70,188
Insurance	22,120		5,884		19,522
Officers
fees	10,447		3,402		9,844
Auction
agent	634,659				576,730
Miscellaneous	63,232		22,096		64,658
Total
expenses excluding interest expense	6,619,413		1,857,510		5,318,492
Interest
expense	751,568		3,303,478		858,588
Total
expenses	7,370,981		5,160,988		6,177,080
Less
advisory fees waived	(1,400,329	)
Less fees
paid indirectly	(87,076	)	(16,764	)	(40,628	)
Net
expenses	5,883,576		5,144,224		6,136,452
Net
investment income	47,903,772		12,884,718		37,729,277
Realized and Unrealized Gain (Loss)
Net
realized gain (loss) on:
Investments	(3,143,302	)	(1,962,158	)	(357,711	)
Foreign
currency	(7,353,263	)
Futures and
swaps	170,043				(26,951,570	)
Short sales					2,619,060
	(10,326,522	)	(1,962,158	)	(24,690,221	)
Net change
in unrealized appreciation/depreciation on:
Investments	(21,995,085	)	(9,438,821	)	(58,862,909	)
Foreign
currency	(168,662	)	85
Futures and
swaps	(181,909	)			(3,549,673	)
Short sales					523,568
	(22,345,656	)	(9,438,736	)	(61,889,014	)
Net loss	(32,672,178	)	(11,400,894	)	(86,579,235	)
Dividends and Distributions to Auction Preferred Shareholders:
Net
Investment income	(12,723,631	)			(11,458,715	)
Net
realized gains					(87,490	)
	(12,723,631	)			(11,546,205	)
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders
Resulting from Operations	$ 2,507,963	$	1,483,824	$	(60,396,163	)

See Notes to Financial Statements. — 20	ANNUAL REPORT	DECEMBER 31, 2007

Statement of Cash Flows

For the Year Ended December 31, 2007	BlackRock High Income Shares (HIS)
Cash Flows Provided by Operating
Activities
Net
increase in net assets resulting from operations	$ 1,483,824
Adjustments to Reconcile Net Increase in Net Assets
Resulting from Operations to Net Cash Provided by Operating
Activities
Purchases
of long-term investments	(134,872,800	)
Proceeds
from sales of long-term investments	144,181,920
Net
proceeds of short-term investments	2,671,169
Amortization
of premium and discount on investments	82,397
Net
realized loss on investments	1,962,158
Decrease in
unrealized appreciation/depreciation on investments	9,438,821
Increase in
investments in affiliates	(558	)
Increase in
receivable for investments sold	(4,375	)
Decrease in
interest receivable	304,016
Increase in
other assets	(12,524	)
Increase in
payable for investments purchased	930,000
Decrease in
interest payable	(19,151	)
Decrease in
investment advisory fee payable	(16,891	)
Increase in
Deferred Directors/Trustees fees	558
Decrease in
payable to affiliates	(11,952	)
Increase in
Officers & Trustees fees payable	3,771
Increase in
accrued expenses	958
Total adjustments	24,637,517
Net cash
provided by operating activities	$ 26,121,341
Cash flows used for financing
activities:
Draws on
loan	21,000,000
Payments on
loan	(37,000,000	)
Cash
dividends paid	(12,923,256	)
Net cash
used for financing activities:	$ (28,923,256	)
Net
decrease in cash	(2,801,915	)
Cash and
foreign currency at beginning of year	2,846,220
Cash and
foreign currency at end of year	$ 44,305
Cash paid
during the period for interest	$ 3,322,629

| See Notes to Financial Statements. — ANNUAL
REPORT | DECEMBER 31, 2007 | 21 |
| --- | --- | --- |

Statements of Changes in Net Assets For the years ended December 31, 2007 and 2006

| Increase (Decrease) in Net Assets Applicable to Common
Shareholders | BlackRock Global Floating Rate Income Trust (BGT) — 2007 | 2006 | | | BlackRock High Income Shares (HIS) — 2007 | | 2006 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations | | | | | | | | |
| Net
investment income | $ 47,903,772 | $ | 46,780,264 | | $ 12,884,718 | | $ 12,046,246 | |
| Net
realized loss | (10,326,522 | ) | (1,913,866 | ) | (1,962,158 | ) | (1,735,666 | ) |
| Net change
in unrealized appreciation/depreciation | (22,345,656 | ) | 338,090 | | (9,438,736 | ) | 6,228,859 | |
| Dividends
and distributions to Auction Preferred Shareholders from: | | | | | | | | |
| Net
investment income | (12,723,631 | ) | (11,316,620 | ) | | | | |
| Net
realized gains | | | (160,710 | ) | | | | |
| Net
increase in net assets applicable to common shareholders resulting from
operations | 2,507,963 | | 33,727,158 | | 1,483,824 | | 16,539,439 | |
| Dividends and Distributions to Common
Shareholders from: | | | | | | | | |
| Net
investment income | (26,833,571 | ) | (33,813,977 | ) | (12,923,299 | ) | (12,792,689 | ) |
| Net realized
gains | | | (480,136 | ) | | | | |
| Tax return
of capital | (8,473,282 | ) | | | | | | |
| Total
dividends and distributions | (35,306,853 | ) | (34,294,113 | ) | (12,923,299 | ) | (12,792,689 | ) |
| Capital Share
Transactions: | | | | | | | | |
| Reinvestment
of common dividends | 820,433 | | 412,654 | | | | 333,553 | |
| Total increase (decrease) | (31,978,457 | ) | (154,301 | ) | (11,439,475 | ) | 4,080,303 | |
| Net Assets Applicable to Common
Shareholders | | | | | | | | |
| Beginning
of year | 449,064,563 | | 449,218,864 | | 146,537,611 | | 142,457,308 | |
| End of year | $ 417,086,106 | $ | 449,064,563 | | $ 135,098,136 | | $ 146,537,611 | |
| End of year
undistributed (distribution in excess of) net investment income | $ 219,332 | $ | (855,008 | ) | $ (33,209 | ) | $ (827,376 | ) |

| Increase (Decrease) in Net Assets
Applicable to Common Shareholders | BlackRock Preferred Opportunity Trust (BPP) — 2007 | | 2006 | |
| --- | --- | --- | --- | --- |
| Operations | | | | |
| Net
investment income | $ 37,729,277 | | $ 37,628,296 | |
| Net
realized gain (loss) | (24,690,221 | ) | 5,460,212 | |
| Net change
in unrealized appreciation/depreciation | (61,889,014 | ) | 5,741,786 | |
| Dividends
and distributions to Auction Preferred Shareholders from: | | | | |
| Net
investment income | (11,458,715 | ) | (8,388,298 | ) |
| Net
realized gains | (87,490 | ) | (2,162,948 | ) |
| Net
increase (decrease) in net assets applicable to common shareholders resulting
from operations | (60,396,163 | ) | 38,279,048 | |
| Dividends and Distributions to Common
Shareholders from: | | | | |
| Net
investment income | (29,219,599 | ) | (28,950,629 | ) |
| Net realized
gains | (312,510 | ) | (7,716,405 | ) |
| Tax return
of capital | (2,820,986 | ) | | |
| Total
dividends and distributions | (32,353,095 | ) | (36,667,034 | ) |
| Capital Share
Transactions: | | | | |
| Reinvestment
of common dividends | 770,755 | | 1,193,538 | |
| Total increase (decrease) | (91,978,503 | ) | 2,805,552 | |
| Net Assets Applicable to Common
Shareholders | | | | |
| Beginning
of year | 449,995,494 | | 447,189,942 | |
| End of year | $ 358,016,991 | | $ 449,995,494 | |
| End of year
undistributed (distribution in excess of) net investment income | $ (2,571,328 | ) | $ 372,887 | |

| See Notes to Financial Statements. — 22 | ANNUAL
REPORT | DECEMBER 31, 2007 |
| --- | --- | --- |

Financial Highlights BlackRock Global Floating Rate Income Trust (BGT)


	Year Ended December 31,
	2007	2006		2005
Per Common
Share Operating Performance:
Net asset
value, beginning of period	$ 19.11	$	19.13	$	19.21	$	19.10	2
Investment
operations:
Net
investment income	2.03		1.99		1.64		0.33
Net
realized and unrealized gain (loss)	(1.39	)	(0.06	)	(0.17	)	0.35
Dividends
and distributions to Auction Preferred Shareholders from:
Net
investment income	(0.54	)	(0.48	)	(0.33	)	(0.04	)
Net
realized gains			(0.01	)		3
Net
increase from investment operations	0.10		1.44		1.14		0.64
Dividends
and distributions to common shareholders from:
Net
investment income	(1.14	)	(1.44	)	(1.22	)	(0.37	)
Net
realized gains			(0.02	)		3
Tax return
of capital	(0.36	)
Total
dividends and distributions	(1.50	)	(1.46	)	(1.22	)	(0.37	)
Capital
charges with respect to issuance of:
Common
shares							(0.04	)
Auction
Preferred Shares							(0.12	)
Total
capital charges							(0.16	)
Net asset
value, end of period	$ 17.71	$	19.11	$	19.13	$	19.21
Market
price, end of period	$ 15.78	$	19.27	$	17.16	$	18.63
Total
Investment Returns 4
At net
asset price	0.98	%	7.93	%	6.63	%	2.57	%
At market
price	(10.92	)%	21.31	%	(1.34	)%	(5.00	)%
Ratios to
Average Net Assets of Common Shareholders: 5
Total
expenses	1.67	%	1.75	%	1.56	%	1.26	% 6
Net
expenses	1.33	%	1.43	%	1.23	%	0.97	% 6
Net
expenses excluding interest expense	1.16	%	1.19	%	1.15	%	0.97	% 6
Net
investment income before Auction Preferred Share dividends	10.83	%	10.38	%	8.52	%	5.04	% 6
Auction
Preferred Share dividends	2.88	%	2.51	%	1.71	%	0.62	% 6
Net
investment income available to common shareholders	7.95	%	7.87	%	6.81	%	4.42	% 6
Supplemental
Data
Portfolio
turnover	41	%	50	%	46	%	11	%
Net assets
applicable to common shareholders, end of period (000)	$ 417,086	$	449,065	$	449,219	$	451,126
Auction
Preferred Shares value outstanding, end of period (000)	$ 243,450	$	243,450	$	243,450	$	243,450
Reverse
repurchase agreements outstanding, end of period (000)	$	$	26,108	$		$
Reverse
repurchase agreements average daily balance (000)	$ 10,524	$	19,562	$	10,722	$	114
Reverse
repurchase agreements weighted average interest rate	5.48	%	5.38	%	3.27	%	2.24	%
Asset
coverage per Auction Preferred Share, end of period	$ 67,849	$	73,810	$	71,139	$	71,330

| 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 | Amounted to less than $0.01 per common share outstanding. |
| 4 | Total investment return 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 | Ratios are calculated on the basis of income and expenses
applicable to both the common and Auction Preferred Shares relative to the
average net assets of the common shareholders. |
| 6 | Annualized. |

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 Trusts common shares.

See Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2007 23

Financial Highlights BlackRock High Income Shares (HIS)

	Year Ended December 31, — 2007	2006		2005		2004 1		2003 1
Per
Share Operating Performance:
Net asset
value, beginning of year	$ 2.68	$	2.61	$	2.87	$	2.86	$	2.42
Investment
operations:
Net
investment income	0.24		0.22		0.24		0.28	2	0.32	2
Net
realized and unrealized gain (loss)	(0.21	)	0.08		(0.23	)	0.03		0.40
Net
increase from investment operations	0.03		0.30		0.01		0.31		0.72
Dividends
and distributions from net investment income	(0.24	)	(0.23	)	(0.27	)	(0.30	)	(0.28	)
Net asset
value, end of year	$ 2.47	$	2.68	$	2.61	$	2.87	$	2.86
Market
price, end of year	$ 2.14	$	2.55	$	2.33	$	2.90	$	2.87
Total
Investment Return 3
At net
asset price	1.58	%	12.32	%	0.43	%	11.46	%	31.10	%
At market
price	(7.51	)%	19.70	%	(11.28	)%	12.24	%	37.23	%
Ratios to Average Net
Assets:
Total
expenses	3.56	%	3.78	%	3.04	%	2.23	%	2.21	%
Net
expenses	3.55	%	3.77	%	3.04	%	2.23	%	2.21	%
Net
expenses excluding interest expense	1.27	%	1.34	%	1.37	%	1.39	%	1.46	%
Net
investment income	8.89	%	8.42	%	8.82	%	9.70	%	11.99	%
Supplemental
Data:
Portfolio
turnover	69	%	83	%	115	%	56	%	93	%
Net assets,
end of year (000)	$ 135,098	$	146,538	$	142,457	$	155,298	$	154,298
Loan
outstanding, end of year (000)	$ 46,000	$	62,000	$	66,000	$	69,000	$	68,000
Asset
coverage, end of year 4	$ 3,937	$	3,364	$	3,158	$	3,251	$	3,269
Loan
average daily balance (000)	$ 55,868	$	62,838	$	65,992	$	64,081	$	60,604
Loan
weighted average interest rate	5.57	%	4.96	%	3.37	%	2.01	%	1.72	%

| 1 | Audited by other Independent Registered Public Accounting
Firm. |
| --- | --- |
| 2 | Net investment income per share has been recalculated in
accordance with SEC requirements, with the exception that end-of-the-year
accumulated undistributed/(overdistributed) net investment income has not
been adjusted to reflect current-year permanent differences between financial
and tax accounting. |
| 3 | Total investment return 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. Past performance is not a guarantee of future
results. |
| 4 | Per $1,000 of loan 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 year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trusts shares. The performance set forth in this table is the financial data of BlackRock High Income Shares. BlackRock Advisors, LLC began managing the Trust on March 2, 2005.

| See Notes to Financial
Statements. — 24 | ANNUAL REPORT | DECEMBER
31, 2007 |
| --- | --- | --- |

Financial Highlights BlackRock Preferred Opportunity Trust (BPP)


	Year Ended December 31,
	2007	2006		2005		2004
Per Common Share Operating
Performance:
Net asset
value, beginning of period	$ 24.52	$	24.43	$	25.88	$	25.58	$	23.88	2
Investment
operations:
Net
investment income	2.05		2.05		2.11		2.22		1.72
Net
realized and unrealized gain (loss)	(4.72	)	0.62		(0.82	)	0.33		1.93
Dividends
and distributions to Auction Preferred Shareholders from:
Net
investment income	(0.62	)	(0.46	)	(0.26	)	(0.16	)	(0.10	)
Net
realized gains			(0.12	)	(0.13	)	(0.02	)
Net
increase (decrease) from investment operations	(3.29	)	2.09		0.90		2.37		3.55
Dividends
and distributions to common shareholders from:
Net
investment income	(1.59	)	(1.58	)	(1.74	)	(2.00	)	(1.66	)
Net
realized gains	(0.02	)	(0.42	)	(0.61	)	(0.07	)
Tax return
of capital	(0.15	)
Total
dividends and distributions	(1.76	)	(2.00	)	(2.35	)	(2.07	)	(1.66	)
Capital
charges with respect to issuance of:
Common
shares									(0.05	)
Auction
Preferred Shares									(0.14	)
Total
capital charges									(0.19	)
Net asset
value, end of period	$ 19.47	$	24.52	$	24.43	$	25.88	$	25.58
Market
price, end of period	$ 17.31	$	26.31	$	24.20	$	25.39	$	24.83
Total
Investment Return 3
At net
asset price	(13.86	)%	8.89	%	3.81	%	10.15	%	14.65	%
At market
price	(28.62	)%	17.98	%	4.83	%	11.01	%	6.28	%
Ratios to Average Net
Assets of Common Shareholders: 4
Total
expenses	1.46	%	1.62	%	1.51	%	1.44	%	1.52	% 5
Net
expenses	1.45	%	1.62	%	1.51	%	1.44	%	1.52	% 5
Net expenses
excluding interest expense	1.24	%	1.25	%	1.22	%	1.19	%	1.16	% 5
Net
investment income before Auction Preferred Share dividends	8.90	%	8.46	%	8.37	%	8.66	%	8.35	% 5
Auction
Preferred Share dividends	2.70	%	1.89	%	1.27	%	0.62	%	0.48	% 5
Net
investment income available to common shareholders	6.20	%	6.58	%	7.10	%	8.04	%	7.87	% 5
Supplemental
Data:
Portfolio
turnover	97	%	91	%	77	%	88	%	98	%
Net assets
applicable to common shareholders, end of period (000)	$ 358,017	$	449,995	$	447,190	$	473,809	$	468,243
Auction
Preferred Shares value outstanding, end of period (000)	$ 220,800	$	220,800	$	220,800	$	220,800	$	220,841
Reverse
repurchase agreements outstanding, end of period (000)	$	$		$		$		$	3,486
Reverse
repurchase agreements average daily balance (000)	$ 903	$	1,303	$	2,904	$	782	$	19,822
Reverse
repurchase agreements weighted average interest rate	5.48	%	4.74	%	3.07	%	1.50	%	1.44	%
Asset
coverage per Auction Preferred Share, end of period	$ 65,554	$	75,965	$	75,642	$	78,650	$	78,021

| 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 $1.12 per share sales charge from the initial offering price of $25.00 per
share. |
| 3 | Total investment return 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. |
| 4 | Ratios are calculated on the basis of income and expenses
applicable to both the common and Auction Preferred Shares relative to the
average net assets of the common shareholders. |
| 5 | Annualized. |

| See Notes to Financial Statements. — ANNUAL
REPORT | DECEMBER
31, 2007 | 25 |
| --- | --- | --- |

Notes to Financial Statements

1. Significant Accounting Policies:

BlackRock High Income Shares (High Income), a Massachusetts business trust, is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the 1940 Act). BlackRock Global Floating Rate Income Trust (Global) and BlackRock Preferred Opportunity Trust (Preferred Opportunity) are organized as Delaware statutory trusts and are registered as non-diversified and diversified, respectively, closed-end management investment companies under the 1940 Act. Global, High Income and Preferred Opportunity are individually referred to as a Trust and collectively as the Trusts. The Trusts financial statements are prepared in conformity with accounting prin ciples generally accepted in the United States of America.

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

Valuation of Investments: The Trusts value most of their investments on the basis of last available bid price or current market quotations provided by dealers or pricing services selected under the supervision of each Trusts Board of Trustees (the Trustees or a Board). 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. Trust preferred securities are valued at the evaluated bid price. Options purchased are valued at the last bid price in the case of options traded in the OTC market. Swap quotations are provided by dealers selected under supervision of the Board. Financial futures contracts are traded on exchanges and are valued at their last sale price. Short-term securities may be valued at amortized cost.

Bank loans (loan interests) are valued in accordance with guidelines established by the Board. Loan interests are valued at the average between the last available bid prices from one or more brokers or dealers, as obtained from Loan Pricing Corporation (LPC). If no reliable price quotes are available, LPC values such interests through the use of pricing matrixes. If the pricing service does not provide a value for the loan interests, BlackRock Advisors, LLC (the Advisor), an indirect, wholly owned subsidiary of BlackRock, Inc., will value the loan interests at fair value under methods approved by the Trusts Board.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by, under the direction of, or in accordance with, a method approved by the Board as reflecting fair value (Fair Value Assets). When determining the price for Fair Value Assets, the investment advisor and/or sub-advisor shall seek to determine the price that the Trusts might reasonably expect to receive from the current sale of that asset in an arms-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets shall be subsequently reported to the Board or a committee thereof.

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. The impact on the Trusts financial statement disclosures, if any, is currently being assessed.

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. The impact on the Trusts financial statement disclosures, if any, is currently being assessed.

Derivative Financial Instruments: The Trusts may engage in various portfolio investment strategies to increase the return of the Trusts and to hedge, or protect, its exposure to interest rate movements and movements in the securities markets. Losses may arise due to changes in the value of the contract due to an unfavorable change in the price of the underlying security, or if the counterparty does not perform under the contract.

| | Options: The
Trusts may purchase call and put options. When a security is purchased or
sold through an exercise of an option, the related premium paid (or received)
is added to (or deducted from) the basis of the security acquired or deducted
from (or added to) the proceeds of the security sold. When an option expires
(or the Trust enters into a closing transaction), the Trust realizes a gain
or loss on the option to the extent of the premiums received or paid (or gain
or loss to the extent the cost of the closing transaction exceeds the premium
paid or received). Purchased options are non-income producing investments. |
| --- | --- |
| | Credit Default
Swaps: Credit default swaps are agreements in which one
party pays fixed periodic payments to a counterparty for protection against
the loss in value of an underlying debt instrument in the event of a defined
credit event (such as payment default or bankruptcy). Under the terms of the
swap, one party acts as a guarantor receiving a periodic payment that is a
fixed percentage applied to a notional principal amount. In return the party
agrees to purchase the notional amount of the underlying instrument, at par,
if a credit event occurs during the term of the swap. The Trust may enter
into credit default swaps in which either it or its counterparty act as
guarantors. By acting as the guarantor of a swap, a fund assumes the market
and credit risk of the underlying instrument including liquidity and loss of
value. |

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

26 ANNUAL REPORT DECEMBER 31, 2007

Notes to Financial Statements (continued)

a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts 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.

| |
| --- |
| The Trusts may utilize futures
for the purpose of reducing the interest rate sensitivity of the portfolio
and decreasing the Trusts exposure to interest rate risk. |

Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Trusts have determined the ex-dividend date. Interest income is recognized on the accrual basis. The Trusts amortize all premiums and discounts on debt securities.

Reverse Repurchase Agreements: The Trusts may enter into reverse repurchase agreements with qualified third party broker-dealers. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance and is included within the related liability on the Statements of Assets and Liabilities. At the time the Trusts enter into a reverse repurchase agreement, it identifies for segregation certain liquid securities having a value not less than the repurchase price, including accrued interest, of the reverse repurchase agreement. The Trusts may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction.

Loan Payable: High Income has an $80 million revolving credit agreement (the Agreement), which expires on March 15, 2008. Prior to expiration of the Agreement, principal is repayable in whole or in part at the option of the Trust. Borrowings under the Agreement bear interest at a variable rate tied to the lenders average daily cost of funds, or at fixed rates, as may be agreed to between the Trust and the lender. The Trust may borrow up to 33 1 / 3 % of its total assets up to the committed amount or 100% of the borrowing base eligible assets, as determined under the terms of the Agreement. In accordance with the terms of the Agreement, the Trust has granted a security interest in certain portfolio assets as collateral for the borrowing. The Trust plans to renew the Agreement before expiration.

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 premium 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.

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 in 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 the foreign currency and, in doing so, better help the Trusts achieve their objectives.

Foreign Currency Transactions: 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 expensesat the rates of exchange prevailing on the respective dates of such transactions. For equity income securities, the Trusts do not isolate the 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 and sold during the period. For fixed income securities, 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 fluc-

ANNUAL REPORT DECEMBER 31, 2007 27

Notes to Financial Statements (continued)

tuations arising from changes in the market prices of portfolio securities sold during the period.

Short sales: When the Trusts engage in a short sale, an amount equal to the proceeds received by the Trusts is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Trusts maintain a segregated account of securities as collateral for the short sales. The Trusts are exposed to market risk based on the amount, if any, that the market value of the stock exceeds the market value of the securities in the segregated account. The Trusts are required to repay the counterparty any dividends or interest received on the security sold short.

A gain, limited to the price at which the Trusts sold the security short, or a loss, unlimited as to the 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.

Trust Preferred Stock: These securities are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured as either fixed or adjustable coupon securities that can have either a perpetual or stated maturity date. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. Payments on these securities are treated as interest rather than dividends for Federal income tax purposes. These securities can have a rating that is slightly below that of the issuing companys senior debt securities.

Credit Risk: Preferred Opportunity invests a significant portion of its assets in securities issued by financial institutions that may have exposure to commercial or residential mortgage loans and/or securities of issuers that hold mortgage and other asset-backed securities. Changes in economic conditions, including delinquencies and/or defaults of these loans and other underlying securities held by these financial institutions, may affect the value, income and/or liquidity of Preferred Opportunitys investments. Please see the Schedule of Investments for these securities.

Segregation: In cases in which the 1940 Act, and the interpretive positions of the Securities and Exchange Commission (the 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.

Income Taxes: It is each Trusts policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. Under the applicable foreign tax law, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

Effective June 29, 2007, the Trusts implemented Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No. 109 (FIN 48). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. Management has evaluated the application of FIN 48 to the Trusts, and has determined that the adoption of FIN 48 does not have a material impact on the Trusts financial statements. The Trusts file U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trusts U.S. federal tax returns remains open for the years ended December 31, 2004 through December 31, 2006. The statute of limitations on the Trusts state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Dividends and Distributions: Dividends to common shareholders from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 5. 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 return of capital. For the year ended December 31, 2007, a portion of the dividends and distributions were characterized as a tax return of capital.

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 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 Trusts Board, non-interested Trustees/Directors (Independent Trustees) 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 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

28 ANNUAL REPORT DECEMBER 31, 2007

Notes to Financial Statements (continued)

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.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

Each Trust has an Investment Advisory Agreement (the Agreements) with the Advisor. BlackRock Financial Management, Inc. (BFM), a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to the Trusts. Merrill Lynch & Co., Inc. (Merrill Lynch) and The PNC Financial Services Group, Inc. are principal owners of BlackRock, Inc. The Agreements for the Trusts cover both investment advisory and administration services.

The investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate equal to 0.75% of Globals and 0.65% of Preferred Opportunitys average weekly managed assets. 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 investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate equal to 0.75% of the first $200 million of High Incomes average weekly managed assets and 0.50% thereafter. The Advisor has voluntarily agreed to waive a portion of the investment advisory fees or other expenses on Global as a percentage of its average weekly managed assets as follows: 0.20% for the first five years of the Trusts operations (through August 30, 2009), 0.15% in year six (through August 30, 2010), 0.10% in year seven (through August 30, 2011) and 0.05% in year eight (through August 30, 2012).

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

Pursuant to the Investment Management Agreements, the Advisor provides continuous supervision of each Trusts 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 employee costs related to pricing and secondary market support. These expenses are generally pro-rated to the Trusts on the basis of the relative net assets of certain BlackRock Closed-End Funds. For the year ended December 31, 2007, the Trusts reimbursed the Advisor in the following amounts, which are included in miscellaneous expenses in the Statements of Operations:

Trust
Global	$ 23,362
High Income	6,766
Preferred Opportunity	21,589

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.

Merrill Lynch, through its affiliated broker dealer Merrill Lynch, Pierce, Fenner & Smith Incorporated, earned $41,662 in commissions on the execution of portfolio security transactions from Preferred Opportunity for the year ended December 31, 2007.

Certain officers and/or directors of the Trusts are officers and/or directors of BlackRock, Inc. or its affiliates.

3. Investments:

Purchases and sales of investments, excluding short-term securities, dollar rolls and U.S. government securities, for the year ended December 31, 2007 were as follows:

Trust — Global	$ 283,515,242	$ 341,552,426
High Income	134,872,800	144,181,920
Preferred Opportunity	580,275,382	624,971,089

ANNUAL REPORT DECEMBER 31, 2007 29

Notes to Financial Statements (continued)

Details of open forward currency contracts held in Global at December 31, 2007 were as follows:

| Foreign Currency | | Contract
to Purchase/ Receive | Value
at Settlement Date | Value
at December 31, 2007 | Unrealized Appreciation (Depreciation) | |
| --- | --- | --- | --- | --- | --- | --- |
| Bought: | | | | | | |
| Euro | 1/23/08 | $ 1,285,000 | $ 1,877,688 | $ 1,879,516 | $ 1,828 | |
| Sold: | | | | | | |
| British Pound | 1/23/08 | $ 10,507,500 | $ 21,347,389 | $ 20,902,119 | $ 445,270 | |
| Euro | 1/23/08 | 84,078,132 | 119,138,713 | 122,977,602 | (3,838,889 | ) |
| Mexican Peso | 1/23/08 | 18,666,417 | 1,716,673 | 1,707,602 | 9,071 | |
| | | | | | $ (3,384,548 | ) |

Details of open credit default swap agreements at December 31, 2007 were as follows:

Trust — Global	Notional Amount (000) — $ 1,800	2.000% (a)	Deutsche Bank	03/01/07	03/20/12	$ (119,977	)
	$ 2,000	2.100% (b)	Lehman Brothers	03/03/07	03/20/12	(61,932	)
						$ (181,909	)
Preferred	$ 1,900	3.200% (c)	Goldman Sachs	12/12/07	12/20/12	$ 59,435
Opportunity	$ 1,900	3.200% (c)	Citibank	12/12/07	12/20/12	59,435
						$ 118,870

| (a) | The terms were to receive the quarterly notional amount
multiplied by the fixed rate and to pay the counterparty, upon an event of
default of BAA Ferovial Junior Loan, the par value of the notional amount of
BAA Ferovial. |
| --- | --- |
| (b) | The terms were to receive the quarterly notional amount
multiplied by the fixed rate and to pay the counterparty, upon an event of
default of PagesJaunes Second Lien Loan, the par value of the notional amount
of PagesJaunes Groupe SA. |
| (c) | The terms were to pay the quarterly notional amount
multiplied by the fixed rate and to receive from the counterparty, upon an
event of default of Washington Mutual, Inc., the par value of the notional
amount of Washington Mutual, Inc. |

30 ANNUAL REPORT DECEMBER 31, 2007

Notes to Financial Statements (continued)

4. Income Tax Information:

It is each Trusts policy to comply with requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

Dividends from net investment income and distributions from net capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined under accounting principles generally accepted in the United States. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital, undistributed net investment income, or accumulated net realized gain, as appropriate, in the period the difference arise.

Reclassification of Capital Accounts: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. Accordingly, the table below summarizes the amounts reclassified per Trust during the current year between undistributed (distributions in excess of) net investment income, accumulated net realized gain/(loss) and paid-in capital in excess of par as a result of permanent differences attributable to amortization methods of premiums and discounts on fixed income securities, accounting for swap agreements, transactions involving foreign securities and currencies, expiration of capital loss carryfor-wards and other differences between financial reporting and tax accounting were classified to the following accounts. These reclassifications have no effect on net assets or net asset values per share.

Trust — Global	$ (7,272,230	$ 7,272,230	$
High Income	832,748	23,305,589		(24,138,337	)
Preferred Opportunity	4,822	(4,822	)

The tax character of distributions paid during the year ended December 31, 2007 and 2006 were as follows:

| Distributions Paid From: | December
31, 2007 — Ordinary Income | Non-taxable Return of Capital | Long-Term Capital Gains | Total Distributions |
| --- | --- | --- | --- | --- |
| Global | $ 39,557,202 | $ 8,473,282 | $ | $ 48,030,484 |
| High Income | 12,923,299 | | | 12,923,299 |
| Preferred Opportunity | 40,678,314 | 2,820,986 | 400,000 | 43,899,300 |

| Distributions Paid From: | December
31, 2006 — Ordinary Income | Long-Term Capital Gains | Total Distributions |
| --- | --- | --- | --- |
| Global | $ 45,130,597 | $ 640,846 | $ 45,771,443 |
| High Income | 12,792,689 | | 12,792,689 |
| Preferred Opportunity | 42,381,795 | 4,836,485 | 47,218,280 |

As of December 31, 2007, the components of distributable earnings on a tax basis were as follows:

Trust	Undistributed Ordinary Income	Unrealized Net Losses
Global	$	$ (17,200,344	)
High Income	469,701	(12,299,388	)
Preferred Opportunity		(54,038,067	)

The difference between book-basis and tax-basis unrealized gains/losses is attributable primarily to amortization methods of premiums and discounts on fixed income securities, the deferral of post-October capital losses for tax purposes, the tax deferral of losses on wash sales, accounting for swap agreements, the realization for tax purposes of unrealized gains/losses on certain future and foreign currency contracts, book/tax differences in the accrual of income on securities in default, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies, deferred compensation to trustees and other temporary differences.

For federal income tax purposes, the following Trusts had capital loss carry-forwards at December 31, 2007. These amounts may be used to offset future realized capital gains, if any:

| Trust | Capital
Loss Carryforward Amount | |
| --- | --- | --- |
| Global | $ 3,268,804 | 2015 |
| High Income | $ 35,363,213 | 2008 |
| | 55,878,284 | 2009 |
| | 102,576,339 | 2010 |
| | 28,467,396 | 2011 |
| | 2,339,279 | 2012 |
| | 7,043,976 | 2014 |
| | $ 231,668,487 | |
| Preferred Opportunity | $ 18,184,893 | 2015 |

5. Capital:

There are an unlimited number of $0.001 par value common shares authorized for Global and Preferred Opportunity. There are an unlimited number of no par value shares authorized for High Income. At December 31, 2007, the shares owned by affiliates of the Advisor of Global were 7,551.

During the year ended December 31, 2007 and 2006, the Trusts issued the following additional shares under their respective dividend reinvestment plans:

| Trust | December
31, 2007 | December
31, 2006 |
| --- | --- | --- |
| Global | 42,574 | 21,644 |
| High Income | | 127,532 |
| Preferred Opportunity | 30,981 | 49,079 |

As of December 31, 2007, Global and Preferred Opportunity have the following series of Auction Preferred Shares outstanding as listed in the table below. The Auction Preferred Shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.

Series — T7	Shares — 3,246	Preferred	T7	2,944
W7	3,246	Opportunity	W7	2,944
R7	3,246		R7	2,944

ANNUAL REPORT DECEMBER 31, 2007 31

Notes to Financial Statements (concluded)

Dividends on seven-day Auction Preferred Shares are cumulative at a rate which is reset every seven days based on the results of an auction. If the Auction Preferred Shares are unable to be remarketed on the remarketing date as part of the auction process, the Trusts would be required to pay the maximum applicable rate on the Auction Preferred Shares to holders of such shares for successive dividend periods until such time as the shares are successfully remarketed. The maximum applicable rate on Auction Preferred Shares for Global is the higher of 125% of the 7-day Telerate/BBA LIBOR rate or 125% over the 7-day Telerate/BBA LIBOR rate and for Preferred Opportunity is 150% of the Interest Equivalent of the 30-day commercial paper rate. During the year ended December 31, 2007, Auction Preferred Shares of the Trusts were successfully remarketed at each remarketing date. The dividend ranges on the Auction Preferred Shares for Global and Preferred Opportunity for the year ended December 31, 2007 were as follows:

Trust		Low	High	Average
Global	T7	4.15 %	6.75 %	5.16 %
	W7	4.75	6.45	5.16
	R7	4.80	6.40	5.16
Preferred Opportunity	T7	4.80	6.30	5.19
	W7	4.80	6.40	5.18
	R7	4.88	6.25	5.21

Global and Preferred Opportunity 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 Auction Preferred Shares and any other borrowings would be less than 200%.

The Auction Preferred Shares are redeemable at the option of Global and Preferred Opportunity, 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 Auction 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 Global and Preferred Opportunity, as set forth in Globals and Preferred Opportunitys Declaration of Trust, are not satisfied.

The holders of Auction 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 Auction Preferred Shares, voting as a separate class, are also entitled to elect two Trustees for Global and Preferred Opportunity, respectively. 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 Auction Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Auction Preferred Shares, (b) change a Trusts sub-classification as a closed-end investment company or change its fundamental investment restrictions and (c) change its business so as to cease to be an investment company.

6. Subsequent Events:

During the period February 13, 2008 to February 29, 2008, the Auction Preferred Shares of each Trust were not successfully remarketed. As a result, the Auction Preferred Share dividend rates were reset to the maximum applicable rate which ranged from 4.37% to 4.65% for the Trusts during the period. Unsuccessful remarketing during the auction process is not an event of default or credit but rather a liquidity event for the holders of the Auction Preferred Shares.

Each Trust paid a monthly distribution to holders of Common Shares on February 29, 2008 to shareholders of record on February 15, 2008. The per share amounts were as follows:

| Trust | Common
Dividend Per Share |
| --- | --- |
| Global | $ 0.1250 |
| High Income | 0.0182 |
| Preferred Opportunity | 0.1250 |

The dividends declared on Auction Preferred Shares for the period January 1, 2008 to January 31, 2008 for Global and Preferred Opportunity were as follows:

T7	Dividends Declared — $ 277,565	Preferred	T7	Dividends Declared — $ 263,252
W7	358,196	Opportunity	W7	327,491
R7	354,268		R7	322,221

32 ANNUAL REPORT DECEMBER 31, 2007

Report of Independent Registered Public Accounting Firm

| To the Directors/Trustees and
Shareholders of |
| --- |
| BlackRock Global Floating Rate
Income Trust |
| BlackRock High Income Shares |
| BlackRock Preferred Opportunity
Trust |
| (collectively the Trusts): |

We have audited the accompanying statements of assets and liabilities of the Trusts, including the portfolios of investments, as of December 31, 2007, and the related statements of operations and cash flows (for BlackRock High Income Shares) for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The Financial Highlights of BlackRock High Income Shares for each of the two years in the period ended December 31, 2004 were audited by other auditors whose report, dated February 22, 2005, expressed an unqualified opinion on the financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Trusts as of December 31, 2007, the results of their operations and cash flows (for BlackRock High Income Shares) for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts February 29, 2008

ANNUAL REPORT DECEMBER 31, 2007 33

The Benefits and Risks of Leveraging (unaudited)

The Trusts may utilize leveraging through borrowings or issuance of short-term debt securities or shares of Auction Preferred Stock. The concept of leveraging is based on the premise that the cost of assets to be obtained from leverage will be based on short-term interest rates on borrowings or dividend rates on the Auction Preferred Stock, which normally will be lower than the income earned by each Trust on its longer-term portfolio investments. To the extent that the total assets of each Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Trusts Common Stock shareholders will be the beneficiaries of the incremental yield.

As of December 31, 2007, the Trusts had the following leverage amounts to total net assets before the deduction of leverage of:

Trust
Global	37%
High Income	25%
Preferred Opportunity	38%

Leverage creates risks for holders of Common Stock including the likelihood of greater net asset value and market price volatility. In addition, there is the risk that fluctuations in interest rates on borrowings or in the dividend rates on any Auction Preferred Stock may reduce the Common Stocks yield and negatively impact its net asset value and market price. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, each Trusts net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Trusts net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Stock shareholders will be reduced.

34 ANNUAL REPORT DECEMBER 31, 2007

Dividend Reinvestment Plans (unaudited)

Pursuant to each Trusts respective Dividend Reinvestment Plan (the Plan), shareholders of High Income may elect, while shareholders of Global and Preferred Opportunity 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 Trusts 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 each Trust 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 participants 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.

Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Plan Agents 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 Agents 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.

Other Information

From time to time in the future, the Trusts may effect redemptions and/or repurchases of its Auction Preferred Shares as provided in the applicable constituent instruments or as agreed upon by the Trust and holders of Auction Preferred Shares. The Trusts would generally effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements.

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 nonpublic 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 nonpublic 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 Web sites.

BlackRock does not sell or disclose to nonaffiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to service Client accounts. These nonaffiliated 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 nonpublic 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 nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

ANNUAL REPORT DECEMBER 31, 2007 35

Additional Information (unaudited)

TAX NOTICE

The following information is provided with respect to the distributions paid by the BlackRock Closed-End Funds for the fiscal year ended December 31, 2007:

| | Share
Class (Common/ Preferred) | Payable Date | Federal Obligation Interest 1,2 | Qualifying Dividend Income for Individuals 2 | Dividends Qualifying for the Dividends Received Deduction for Corporations 2 | Interest Related Dividends for Non-U.S. Residents 2,3 | Long-Term Capital Gains Per Share ($) |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Global Floating Rate Income Trust (BGT) | Common | 1/31/07
12/18/07 | | | | 85.39 % | |
| | Series T7 | 1/4/07
1/2/08 | | | | 83.97 % | |
| | Series W7 | 1/4/07
12/27/07 | | | | 83.97 % | |
| | Series R7 | 1/5/07
12/28/07 | | | | 83.97 % | |
| High Income
Shares (HIS) | Common | 2/28/07
1/8/08 | | | | 92.82 % | |
| Preferred Opportunity Trust (BPP) | Common | 2/28/07 | 3.49 % | 16.15 % | 4.96 % | 41.35 % | 0.017017 |
| | Common | 3/30/07
12/18/07 | 3.49 % | 10.33 % | 6.52 % | 54.39 % | |
| | Series T7 | 1/4/07 | | | | | 9.875340 |
| | Series T7 | 1/4/07
1/2/08 | 3.49 % | 10.32 % | 6.52 % | 54.39 % | |
| | Series W7 | 1/4/07 | | | | | 9.886209 |
| | Series W7 | 1/4/07
12/27/07 | 3.49 % | 10.32 % | 6.52 % | 54.39 % | |
| | Series R7 | 1/5/07 | | | | | 9.956182 |
| | Series R7 | 1/5/07
12/28/07 | 3.49 % | 10.32 % | 6.52 % | 54.39 % | |

| 1 | The law varies in each state as to whether and what
percentage of dividend income attributable to Federal Obligations is exempt
from state income tax. We recommend that you consult your tax advisor to
determine if any portion of the dividends you received is exempt from state
income taxes. |
| --- | --- |
| 2 | Expressed as a percentage of the ordinary income
distributions paid. |
| 3 | Represents the portion of the ordinary distributions paid
that are exempt from U.S withholding tax for nonresident aliens and foreign
corporations. |

Shareholder Meetings

The Joint Annual Meeting of Shareholders was held on August 16, 2007 for shareholders of record as of June 20, 2007, to elect director or trustee nominees of each Trust. This proposal was part of the reorganization of the Trusts Boards of Trustees (the Boards) to take effect on or about November 1, 2007. Each Board is organized into three classes, one class of which is elected annually. Each Trustee serves a three-year term concurrent with the class into which he or she is elected.

Approved the Class I Directors/Trustees as follows:

| | G.
Nicholas Beckwith, III — Votes
For | Votes Withheld | Kent
Dixon — Votes
For | Votes Withheld | R.
Glenn Hubbard — Votes
For | Votes Withheld |
| --- | --- | --- | --- | --- | --- | --- |
| Global | 19,824,634 | 167,865 | 19,828,588 | 163,911 | 19,827,918 | 164,581 |
| High Income | 40,224,388 | 1,077,478 | 40,183,462 | 1,118,404 | 40,193,783 | 1,108,083 |
| Preferred Opportunity | 16,847,821 | 207,618 | 16,832,503 | 222,936 | 16,842,548 | 212,891 |

| | W.
Carl Kester 1 — Votes
For | Votes Withheld | Robert
S. Salomon, Jr. — Votes
For | Votes Withheld |
| --- | --- | --- | --- | --- |
| Global | 7,930 | 2 | 19,824,194 | 168,305 |
| High Income | 40,226,915 | 1,074,951 | 40,220,179 | 1,081,687 |
| Preferred Opportunity | 8,107 | 6 | 16,829,133 | 226,306 |

1 Voted on by holders of Auction Preferred Shares only for Global and Preferred Opportunity.

36 ANNUAL REPORT DECEMBER 31, 2007

Additional Information (unaudited) (concluded)

Approved the Class II Directors/Trustees as follows:

| Votes
For | Votes Withheld | Votes
For | Votes Withheld | Votes
For | Votes Withheld | |
| --- | --- | --- | --- | --- | --- | --- |
| Global | 19,816,678 | 175,821 | 7,930 | 2 | 19,832,108 | 160,391 |
| High Income | 40,220,386 | 1,081,480 | 40,227,915 | 1,073,951 | 40,218,280 | 1,083,586 |
| Preferred Opportunity | 16,846,273 | 209,166 | 8,106 | 7 | 16,833,348 | 222,091 |
| Karen
P. Robards | | | | | | |
| Votes
For | Votes Withheld | | | | | |
| Global | 19,824,257 | 168,242 | | | | |
| High Income | 40,245,111 | 1,056,755 | | | | |
| Preferred Opportunity | 16,845,457 | 209,982 | | | | |
| Approved the Class III
Directors/Trustees as follows: | | | | | | |
| Richard
E. Cavanagh | | Kathleen
F. Feldstein | | Henry
Gabbay | | |
| Votes
For | Votes Withheld | Votes
For | Votes Withheld | Votes
For | Votes Withheld | |
| Global | 19,826,048 | 166,451 | 19,824,109 | 168,390 | 19,812,193 | 180,306 |
| High Income | 40,221,463 | 1,080,403 | 40,201,928 | 1,099,938 | 40,219,458 | 1,082,408 |
| Preferred Opportunity | 16,844,904 | 210,535 | 16,843,094 | 212,345 | 16,845,523 | 209,916 |
| Jerrold
B. Harris | | | | | | |
| Votes
For | Votes Withheld | | | | | |
| Global | 19,829,473 | 163,026 | | | | |
| High Income | 40,215,627 | 1,086,239 | | | | |
| Preferred Opportunity | 16,835,521 | 219,918 | | | | |

Certain Trusts had an additional proposal (Proposal #2) to amend its respective Declaration of Trust to increase the maximum number of Board Members to 15:

Global	19,452,738	374,971	164,790
Preferred Opportunity	16,639,156	313,207	103,075

1 Voted on by holders of Auction Preferred Shares only for Global and Preferred Opportunity.

Each Trust listed for trading on the New York Stock Exchange (NYSE) has filed with the NYSE its chief executive officer certification regarding compliance with the NYSEs listing standards and 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 Trusts offering and the information contained in each Trusts Statement of Additional Information may have become outdated.

During the period, there were no material changes in any Trusts investment objective or policies or to any Trusts charters or by-laws that were not approved by the shareholders or in the principal 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 portfolio.

Quarterly performance and other information regarding the Trusts may be found on BlackRocks website, which can be accessed at http://www.blackrock.com. This reference to BlackRocks website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRocks website into this report.

ANNUAL REPORT DECEMBER 31, 2007 37

Section 19 Notices (unaudited)

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 Trusts 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.

| Trust | Total
Fiscal Year to Date Cumulative Distributions by Character — Net Investment Income | Net Realized Capital Gains | Return of Capital | Total
Per Common Share | Percentage
of Fiscal Year to Date Cumulative Distributions by Character — Net Investment Income | Net Realized Capital Gains | Return of Capital | Total
Per Common Share |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Preferred Opportunity | $ 1.34 | $ | $ 0.30 | $ 1.64 | 82 % | 0 % | 18 % | 100 % |

The Trust estimates that it has distributed more than its income and net realized gains; therefore, a portion of the 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 the shareholder. A return of capital does not necessarily reflect the Trusts investment performance and should not be confused with yield or income.

38 ANNUAL REPORT DECEMBER 31, 2007

Officers and Directors/Trustees (unaudited)

Name, Address and Year of Birth	Position(s) Held with Fund	Length of Time Served	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Funds and Portfolios Overseen	Public Directorships
Non-Interested
Directors 1
G. Nicholas Beckwith, III 40 East 52nd Street New York, NY 10022 1945	Director	2007 to present	Chairman and Chief Executive Officer, Arch Street Management,
LLC since 2005; Chairman and CEO, Beckwith Blawnox Property LLC since 2005;
Chairman and CEO, Beckwith Clearfield Property LLC since 2005; Chairman and
CEO, Beckwith Delmont Property LLC since 2005; Chairman and CEO, Beckwith
Erie Property LLC since 2005; Chairman, Penn West Industrial Trucks LLC since
2005; Chairman, President and Chief Executive Officer, Beckwith Machinery
Company from 1969 to 2005; Chairman of the Board of Directors, University of
Pittsburgh Medical Center since 2002; Board of Directors, Shady Side Hospital
Foundation since 1977; Beckwith Institute for Innovation In Patient Care
since 1991; Member, Advisory Council on Biology and Medicine, Brown
University since 2002; Trustee, Claude Worthington Benedum Foundation since
1977; Board of Trustees, Chatham College, University of Pittsburgh since
2003; Emeritus Trustee, Shady Side Academy since 1977.	111 Funds 108 Portfolios	None
Richard E. Cavanagh 40 East 52nd Street New York, NY 10022 1946	Director and Chairman of the Board of Directors	1994 to present	Trustee, Aircraft Finance Trust (AFT) since 1999;
Director, The Guardian Life Insurance Company of America since 1998; Chairman
and Trustee, Educational Testing Service (ETS) since 1997; Director, the
Fremont Group since 1996; President and Chief Executive Officer of The
Conferences Board, Inc. (global business research) from 1995 to 2007.	112 Funds 109 Portfolios	Arch Chemical (chemicals and allied Products)
Kent Dixon 40 East 52nd Street New York, NY 10022 1937	Director and Member of the Audit Committee	1988 to present	Consultant/Investor since 1988.	112 Funds 109 Portfolios	None
Frank J. Fabozzi 40 East 52nd Street New York, NY 10022 1948	Director and Member of the Audit Committee	1988 to present	Consultant/Editor of The Journal of Portfolio Management;
Yale University, School of Management, Professor in the Practice of Finance
and Becton Fellow since 2006; Adjunct Professor of Finance and Becton Fellow
from 2005 to 2006; Professor in the practice of Finance from 2003 to 2005;
Adjunct Professor of Finance from 1994 to 2003; Author and Editor.	112 Funds 109 Portfolios	None
Kathleen F. Feldstein 40 East 52nd Street New York, NY 10022 1941	Director	2005 to present	President of Economic Studies, Inc. (a Belmont MA-based
private economic consulting firm) since 1987; Chair, Board of Trustees,
McLean Hospital since 2000. Member of the Board of Partners Community
Healthcare, Inc. since 2005; Member of the Board of Partners HealthCare and
Sherrill House since 1990; Trustee, Museum of Fine Arts, Boston since 1992
and a Member of the Visiting Committee to the Harvard University Art Museum
since 2003; Trustee, The Committee for Economic Development (research
organization of business leaders and educators) since 1990; Member of the
Advisory Board to the International School of Business, Brandeis University
since 2002.	112 Funds 109 Portfolios	The McClatchy Company

1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

ANNUAL REPORT DECEMBER 31, 2007 39

Officers and Directors/Trustees (unaudited) (continued)

| Name,
Address and Year of Birth | Position(s)
Held with Fund | Length
of Time Served | Principal
Occupation(s) During Past Five Years | Number
of BlackRock- Advised Funds and Portfolios Overseen | Public
Directorships |
| --- | --- | --- | --- | --- | --- |
| Non-Interested
Directors 1 | | | | | |
| James
T. Flynn 40 East 52nd Street New York, NY 10022 1939 | Director and
Member of the Audit Committee | 2007 to present | Chief Financial
Officer of JP Morgan & Co., Inc. from 1990 to 1995 and an employee of JP
Morgan in various capacities from 1967 to 1995. | 111 Funds 108
Portfolios | None |
| Jerrold
B. Harris 40 East 52nd Street New York, NY 10022 1942 | Director | 2007 to present | President and
Chief Executive Officer, VWR Scientific Products Corporation from 1989 to
1999; Trustee, Ursinus College (education) since 2000; Director, Troemner
LLC (scientific equipment) since 2000. | 111 Funds 108
Portfolios | BlackRock Kelso
Capital Corp. |
| R.
Glenn Hubbard 40 East 52nd Street New York, NY 10022 1958 | Director | 2004 to present | Dean of Columbia
Business School since 2004; Columbia faculty member since 1988; Co-director
of Columbia Business Schools Entrepreneurship Program 1997 to 2004; Visiting
Professor at the John F. Kennedy School of Government at Harvard University
and the Harvard Business School since 1985, as well as the University of
Chicago since 1994; Deputy Assistant Secretary of the U.S. Treasury
Department for Tax Policy from 1991 to 1993; Chairman of the U.S. Council of
Economic Advisers under the President of the United States from 2001 to 2003. | 112 Funds 109
Portfolios | ADP (data and
information services), KKR Financial Corporation, Duke Realty, Metropolitan
Life Insurance Company. |
| W.
Carl Kester 40 East 52nd Street New York, NY 10022 1951 | Director and
Member of the Audit Committee | 2007 to present | Deputy Dean for
Academic Affairs, Harvard Business School since 2006; Mizuho Financial Group,
Professor of Finance, Harvard Business School; Unit Head, Finance from 2005
to 2006; Senior Associate Dean and Chairman of the MBA Program of Harvard
Business School from 1999 to 2005, Member of the faculty of Harvard Business
School since 1981. Independent Consultant since 1978. | 111 Funds 108
Portfolios | None |
| Karen
P. Robards 40 East 52nd Street New York, NY 10022 1950 | Director and
Chairperson of the Audit Committee | 2007 to present | Partner of Robards
& Company, LLC (financial advisory firm) since 1987; Formerly an
investment banker with Morgan Stanley for more than ten years; Director of
Enable Medical Corp. from 1996 to 2005; Director of AtriCure, Inc. (medical
devices) since 2000; Director of Care Investment Trust, Inc. (healthcare
REIT) since 2007; Co-founder and Director of the Cooke Center for Learning
and Development (not-for-profit organization) since 1987. | 111 Funds 108
Portfolios | AtriCure Inc.
(medical devices) Care Investment Trust, Inc. (healthcare REIT) |
| Robert
S. Salomon, Jr. 40 East 52nd Street New York, NY 10022 1936 | Director and
Member of the Audit Committee | 2007 to present | Principal of STI
Management (investment adviser) from 1994 to 2005; Chairman and CEO of
Salomon Brothers Asset Management Inc. from 1992 to 1995; Chairman of Salomon
Brothers Equity Mutual Funds from 1992 to 1995; regular columnist with
Forbes Magazine from 1992 to 2002; Director of Stock Research and U.S. Equity
Strategist at Salomon Brothers Inc. from 1975 to 1991; Trustee, Commonfund
from 1980 to 2001. | 111 Funds 108 Portfolios | None |
| Interested
Directors 2 | | | | | |
| Richard S. Davis 40 East 52nd Street New York, NY 10022 1945 | Director | 2007 to present | Managing Director, BlackRock, Inc. since 2005; Chief
Executive Officer, State Street Research & Management Company from 2000
to 2005; Chairman of the Board of Trustees, State Street Research mutual
funds (SSR Funds) from 2000 to 2005; Senior Vice President, Metropolitan
Life Insurance Company from 1999 to 2000; Chairman SSR Realty from 2000 to
2004. | 184 Funds 289 Portfolios | None |

| 1 | Directors serve until their resignation, removal or death,
or until December 31 of the year in which they turn 72. |
| --- | --- |
| 2 | Messrs. Davis and Gabbay are both interested persons, as
defined in the Investment Company Act of 1940, of the Fund based on their
positions with BlackRock, Inc. and its affiliates. Directors serve until
their resignation, removal or death, or until December 31 of the year in
which they turn 72. |

40 ANNUAL REPORT DECEMBER 31, 2007

Officers and Directors/Trustees (unaudited) (concluded)

Name, Address and Year of Birth	Position(s) Held with Fund	Length of Time Served	Principal Occupation(s) During Past Five Years
Advisory Board Member:
Henry Gabbay 40 East 52nd Street New York, NY 10022 1947	Director	2007 to present	Consultant, BlackRock since 2007; Managing Director,
BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock
Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock
Bond Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end
funds in the Fund complex from 1989 to 2006.	183 Funds 288 Portfolios	None
Advisory Board Member:
Roscoe S. Suddarth 3 40 East 52nd Street New York, NY 10022 1935	Member of the Advisory Board	2007	President, Middle East Institute from 1995 to 2001;
Foreign Service Officer, United States Foreign Service from 1961 to 1995 and
Career Minister from 1989 to 1995; Deputy Inspector General, U.S. Department
of State from 1991 to 1994; U.S. Ambassador to the Hashemite Kingdom of
Jordan from 1987 to 1990.	111 Funds 108 Portfolios	None

Name, Address and Year of Birth	Position(s) Held with Fund	Length of Time Served	Principal Occupation(s) During Past Five Years
Fund Officers 4
Donald C. Burke 40 East 52nd Street New York, NY 10022 1960	Fund President and Chief Executive Officer	2007 to present	Managing Director of BlackRock, Inc. since 2006; Formerly
Managing Director of Merrill Lynch Investment (MLIM) and Fund Asset
Management, L.P. (FAM) in 2006; First Vice President thereof from 1997 to
2005; Treasurer thereof from 1999 to 2006 and Vice President thereof from
1990 to 1997.
Anne F. Ackerley 40 East 52nd Street New York, NY 10022 1962	Vice President	2007 to present	Managing Director of BlackRock, Inc. since 2000 and First
Vice President and Chief Operating Officer of Mergers and Acquisitions Group
from 1997 to 2000; First Vice President and Chief Operating Officer of Public
Finance Group thereof from 1995 to 1997; Formerly First Vice President of
Emerging Markets Fixed Income Research of Merrill Lynch & Co., Inc. from
1994 to 1995.
Neal J. Andrews 40 East 52nd Street New York, NY 10022 1966	Chief Financial Officer	2007 to present	Managing Director of BlackRock, Inc., since 2006; Formerly
Senior Vice President and Line of Business Head of Fund Accounting and
Administration at PFPC Inc. from 1992 to 2006.
Jay M. Fife 40 East 52nd Street New York, NY 10022 1970	Treasurer	2007 to present	Managing Director of BlackRock, Inc. since 2007 and
Director in 2006; Formerly Assistant Treasurer of the MLIM/FAM advised funds
from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
Brian P. Kindelan 40 East 52nd Street New York, NY 10022 1959	Chief Compliance Officer	2007 to present	Chief Compliance Officer of the Funds since 2007; Managing
Director and Senior Counsel thereof since January 2005; Director and Senior
Counsel of BlackRock Advisors, Inc. from 2001 to 2004 and Vice President and
Senior Counsel, thereof, from 1998 to 2000; Senior Counsel of PNC Bank Corp.
from 1995 to 1998.
Howard Surloff 40 East 52nd Street New York, NY 10022 1965	Secretary	2007 to present	Managing Director of BlackRock, Inc. and General Counsel of U.S.
Funds at BlackRock, Inc. since 2006; Formerly General Counsel (U.S.)
of Goldman Sachs Asset Management, L.P. from 1993 to 2006.

| 2 | Messrs. Davis and Gabbay are both interested persons, as
defined in the Investment Company Act of 1940, of the Fund based on their
positions with BlackRock, Inc. and its affiliates. Directors serve until
their resignation, removal or death, or until December 31 of the year in
which they turn 72. |
| --- | --- |
| 3 | Roscoe Suddarth resigned from the Advisory Board of the
Fund, effective December 31, 2007. |
| 4 | Officers of the Fund serve at the pleasure of the Board of
Directors. |

ANNUAL REPORT DECEMBER 31, 2007 41

[This Page Intentionally Left Blank]

BlackRock Closed-End Funds
Investment
Advisor BlackRock Advisors, LLC Wilmington, DE 19809 (800) 227-7BFM
Sub-Advisor 1 BlackRock Financial Management, Inc. New York, NY 10022
Accounting
Agent and Custodian State Street Bank and Trust Company Boston, MA 02111
Transfer
Agent Computershare Trust Company, N.A. Canton, MA 02021 (800) 699-1BFM
Auction
Agent 1 Bank of New York New York, NY 10286
Independent
Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116
Legal
Counsel Skadden, Arps, Slate, Meagher & Flom LLP New York, NY 10036
Legal
Counsel Independent Directors/Trustees Debevoise & Plimpton LLP New York, NY 10022

1 For Global and Preferred Opportunity.

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

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.

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free 1-(800)-699-1BFM; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commissions Web site at http://www.sec.gov.

Information about how the Trusts vote proxies relating to securities held in the Trusts portfolios during the most recent 12-month period ended June 30 is available (1) at www.blackrock.com and (2) on the Securities and Exchange Commissions website at http://www.sec.gov.

The Trusts file their complete schedules of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The Trusts Forms N-Q are available on the SECs Web site at http://www.sec.gov. The Trusts Forms N-Q may also be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Trusts Form N-Q, may also be obtained upon request and without charge by calling 1-(800)-699-1BFM.

ANNUAL REPORT DECEMBER 31, 2007

| 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-ANN-5-1207 | ● |

Item 2 Code of Ethics The registrant (or the Fund) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant's principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.

Item 3 Audit Committee Financial Expert The registrant's board of directors or trustees, as applicable (the board of directors) has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent: Kent Dixon Frank J. Fabozzi Robert S. Salomon, Jr. (term began effective November 1, 2007) W. Carl Kester (term began effective November 1, 2007) James T. Flynn (term began effective November 1, 2007) Karen P. Robards (term began effective November 1, 2007)

The registrant's board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kesters financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrants financial statements.

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an expert for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.

Item 4 Principal Accountant Fees and Services

	(a) Audit Fees — Current	Previous	(b) Audit-Related Fees 1 — Current	Previous	(c) Tax Fees 2 — Current	Previous	(d) All Other Fees 3 — Current	Previous
	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year
Entity Name	End	End	End	End	End	End	End	End
BlackRock Global
Floating Rate	$37,000	$37,000	$1,975	$1,975	$6,100	$8,000	$1,042	$3,400
Income Trust

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. 2 The nature of the services include tax compliance, tax advice and tax planning. 3 The nature of the services include a review of compliance procedures and attestation thereto.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The registrant has polices and procedures (the "Policy") for the pre-approval by the registrant's audit committee of Audit, Audit-Related, Tax and Other Services (as each is defined in the Policy) provided by the Fund's independent auditor (the "Independent Auditor") to the registrant and other "Covered Entities" (as defined below). The term of any such pre-approval is 12 months from the date of pre-approval, unless the audit committee specifically provides for a different period. The amount of any such pre-approval is set forth in the appendices to the Policy (the "Service Pre-Approval Documents"). At its first meeting of each calendar year, the audit committee will review and re-approve the Policy and approve or re-approve the Service Pre-Approval Documents for that year, together with any changes deemed necessary or desirable by the audit committee. The audit committee may, from time to time, modify the nature of the services pre-approved, the aggregate level of fees pre-approved or both.

For the purposes of the Policy, "Covered Services" means (A) all engagements for audit and non-audit services to be provided by the Independent Auditor to the Fund and (B) all engagements for non-audit services related directly to the operations and financial reporting or the Fund to be provided by the Independent Auditor to any Covered Entity, "Covered Entities" means (1) the Advisor or (2) any entity controlling, controlled by or under common control with the Advisor that provides ongoing services to the Fund.

In the intervals between the scheduled meetings of the audit committee, the audit committee delegates pre-approval authority under this Policy to the Chairman of the audit committee (the "Chairman"). The Chairman shall report any pre-approval decisions under this Policy to the audit committee at its next scheduled meeting. At each scheduled meeting, the audit committee will review with the Independent Auditor the Covered Services pre-approved by the Chairman pursuant to delegated authority, if any, and the fees related thereto. Based on these reviews, the audit committee can modify, at its discretion, the pre-approval originally granted by the Chairman pursuant to delegated authority. This modification can be to the nature of services pre-approved, the aggregate level of fees approved, or both. Pre-approval of Covered Services by the Chairman pursuant to delegated authority is expected to be the exception rather than the rule and the audit committee may modify or withdraw this delegated authority at any time the audit committee determines that it is appropriate to do so.

Fee levels for all Covered Services to be provided by the Independent Auditor and pre-approved under this Policy will be established annually by the audit committee and set forth in the Service Pre-Approval Documents. Any increase in pre-approved fee levels will require specific pre-approval by the audit committee (or the Chairman pursuant to delegated authority).

The terms and fees of the annual Audit services engagement for the Fund are subject to the specific pre-approval of the audit committee. The audit committee (or the Chairman pursuant to delegated authority) will approve, if necessary, any changes in terms, conditions or fees resulting from changes in audit scope, Fund structure or other matters.

In addition to the annual Audit services engagement specifically approved by the audit committee, any other Audit services for the Fund not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the audit committee (or the Chairman pursuant to delegated authority).

Audit-Related services are assurance and related services that are not required for the audit, but are reasonably related to the performance of the audit or review of the financial statements of the registrant and, to the extent they are Covered Services, the other Covered Entities (as defined in the Joint Audit Committee Charter) or that are traditionally performed by the Independent Auditor. Audit-Related services that are Covered Services and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the audit committee (or the Chairman pursuant to delegated authority).

The audit committee believes that the Independent Auditor can provide Tax services to the Covered Entities such as tax compliance, tax planning and tax advice without impairing the auditors independence. However, the audit committee will not permit the retention of the Independent Auditor in connection with a transaction initially recommended by the Independent Auditor, the sole business purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. Tax services that are Covered Services and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the audit committee (or the Chairman pursuant to delegated authority).

All Other services that are covered and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the audit committee (or the Chairman pursuant to delegated authority).

Requests or applications to provide Covered Services that require approval by the audit committee (or the Chairman pursuant to delegated authority) must be submitted to the audit committee or the Chairman, as the case may be, by both the Independent Auditor and the Chief Financial Officer of the respective Covered Entity, and must include a joint statement as to whether, in their view, (a) the request or application is consistent with the rules of the Securities and Exchange Commission ("SEC") on auditor independence and (b) the requested service is or is not a non-audit service prohibited by the SEC. A request or application submitted to the Chairman between scheduled meetings of the audit committee should include a discussion as to why approval is being sought prior to the next regularly scheduled meeting of the audit committee.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) Affiliates Aggregate Non-Audit Fees:

	Current Fiscal Year	Previous Fiscal Year
Entity Name	End	End
BlackRock Global Floating
Rate Income Trust	$293,617	$299,575

(h) The registrants audit committee has considered and determined that the provision of non-audit services that were rendered to the registrants investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrants investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence.

Regulation S-X Rule 2-01(c)(7)(ii) $284,500, 0%

Item 5 Audit Committee of Listed Registrants The following individuals are members of the registrants separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)):

Richard E. Cavanagh (not reappointed to audit committee as of November 1, 2007) Kent Dixon Frank J. Fabozzi Robert S. Salomon, Jr. (term began effective November 1, 2007) W. Carl Kester (term began effective November 1, 2007) James T. Flynn (term began effective November 1, 2007) Karen P. Robards (term began effective November 1, 2007)

Item 6 Schedule of Investments The registrants Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

Item 7 Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies The registrant has delegated the voting of proxies relating to Fund portfolio securities to its investment adviser, BlackRock Advisors, LLC and its sub-adviser, as applicable. The Proxy Voting Policies and Procedures of the adviser and sub-adviser are attached hereto as Exhibit 99.PROXYPOL.

Information about how the Fund voted proxies relating to securities held in the Funds portfolio during the most recent 12 month period ended June 30 is available without charge (1) at www.blackrock.com and (2) on the Commissions web site at http://www.sec.gov .

Item 8 Portfolio Managers of Closed-End Management Investment Companies as of December 31, 2007.

(a)(1) BlackRock Global Floating Rate Income Trust is managed by a team of investment professionals comprised of Jeffrey Gary, CPA, Managing Director at BlackRock, Mark J. Williams, Managing Director at BlackRock, Kevin J. Booth, CFA, Managing Director at BlackRock and James E. Keenan, CFA, Managing Director at BlackRock. Each is a member of BlackRocks fixed income portfolio management group. Mr. Williams is responsible for setting overall investment strategy and overseeing management of the Fund. Mr. Gary is responsible for setting the Funds overall credit strategy. Messrs. Booth and Keenan are the Funds co-portfolio managers and are responsible for the day-to-day management of the Funds portfolio and the selection of its investments. Messrs. Gary and Williams have been members of the Funds management team since 2004. Messrs. Booth and Keenan have been the Funds co-portfolio managers since 2007.

Jeffrey Gary is the head of BlackRocks high yield team within the Fixed Income Portfolio Management Group. Prior to joining BlackRock in 2003, Mr. Gary was a Managing Director and portfolio manager with AIG (American General) Investment Group.

Mr. Williams is the head of BlackRocks bank loan group and a member of the Investment Strategy Group. His primary responsibility is originating and evaluating bank loan investments for the firm's collateralized bond obligations. He is also involved in the evaluation and sourcing of mezzanine investments. Prior to joining BlackRock in 1998, Mr. Williams spent eight years with PNC Bank's New York office and was a founding member of the bank's Leveraged Finance Group. In that capacity he was responsible for structuring proprietary middle market leveraged deals and sourcing and evaluating broadly syndicated leveraged loans in the primary and secondary markets for PNC Bank's investment portfolio. From 1984 until 1990, Mr. Williams worked in PNC Bank's Philadelphia office in a variety of marketing and corporate finance positions.

Kevin Booth is co-head of the high yield team within BlackRocks Fixed Income Portfolio Management Group. His primary responsibilities are managing portfolios and directing investment strategy. He specializes in hybrid high yield portfolios, consisting of leveraged bank loans, high yield bonds, and distressed obligations. Prior to joining BlackRock, Mr. Booth was a Managing Director (Global Fixed Income) of Merrill Lynch Investment Managers (MLIM) in 2006, a Director from 1998 to 2006 and was a Vice President of MLIM from 1991 to 1998. He has been a portfolio manager with BlackRock or MLIM since 1992, and was a member of MLIMs bank loan group from 2000 to 2006.

James Keenan is a high yield portfolio manager and trader within BlackRocks Fixed Income Portfolio Management Group. His primary responsibilities are managing client portfolios, executing trades and ensuring consistency across high yield portfolios. Mr. Keenan has been with BlackRock since 2004. Prior to joining BlackRock, he was a senior high yield trader at Columbia Management Group. Mr. Keenan began his investment career at UBS Global Asset Management where he held roles as a trader, research analyst and a portfolio analyst from 1998 through 2003.

(a)(2) As of December 31, 2007:

| | | | | (iii) Number of Other
Accounts and | | |
| --- | --- | --- | --- | --- | --- | --- |
| | (ii) Number of Other Accounts
Managed | | | Assets for Which Advisory
Fee is | | |
| | and
Assets by Account Type | | | Performance-Based | | |
| | Other | | | Other | | |
| (i) Name of | Registered | Other Pooled | | Registered | Other Pooled | |
| Portfolio | Investment | Investment | Other | Investment | Investment | Other |
| Manager | Companies | Vehicles | Accounts | Companies | Vehicles | Accounts |
| Jeffrey Gary | 17 | 11 | 16 | 0 | 5 | 6 |
| | $7,941,859,722 | $2,908,411,244 | $7,108,699,022 | $0 | $1,973,455,813 | $853,445,417 |
| Mark Williams | 10 | 17 | 1 | 0 | 13 | 0 |
| | $3,889,876,371 | $6,453,430,339 | $13,849,251,312 | $0 | $4,955,550,282 | $0 |
| Kevin Booth | 23 | 10 | 8 | $0 | 4 | 3 |
| | $10,752,055,924 | $3,889,384,429 | $1,995,850,607 | 0 | $1,808,637,274 | $447,035,476 |
| James Keenan | 18 | 10 | 15 | $0 | 4 | 7 |
| | $7,941,859,722 | $3,345,144,920 | $2,820,625,013 | 0 | $2,199,236,230 | $1,568,481,863 |

(iv) Potential Material Conflicts of Interest

BlackRock, Inc. and its affiliates (collectively, herein BlackRock) has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, its affiliates and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or any of its affiliates, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRocks (or its affiliates) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for the Fund. In this connection, it should be noted that certain portfolio managers, including Messrs. Booth, Gary, Keenan and Williams, currently manage certain accounts that are subject to performance fees. In addition, certain portfolio managers, including Mr. Keenan, assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time. This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base.

(a)(3) As of December 31, 2007:

Portfolio Manager Compensation Overview

BlackRocks financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a

number of factors. The principal components of compensation include a base salary, a discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock such as its Long-Term Retention and Incentive Plan and Restricted Stock Program.

Base compensation. Generally, portfolio managers receive base compensation based on their seniority and/or their position with the firm. Senior portfolio managers who perform additional management functions within the portfolio management group or within BlackRock may receive additional compensation for serving in these other capacities.

Discretionary Incentive Compensation

Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio managers group within BlackRock, the investment performance, including risk-adjusted returns, of the firms assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individuals seniority, role within the portfolio management team, teamwork and contribution to the overall performance of these portfolios and BlackRock. In most cases, including for the portfolio managers of the Fund, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. BlackRocks Chief Investment Officers determine the benchmarks against which to compare the performance of funds and other accounts managed by each portfolio manager and the period of time over which performance is evaluated. With respect to the Funds portfolio managers, such benchmarks include the following:

Portfolio Manager	Benchmarks Applicable to Each Manager
Jeffrey Gary	A combination of market-based indices (e.g., The Lehman
Brothers U.S. Corporate High Yield 2% Issuer Cap Index), certain customized indices
and certain fund industry peer groups.
Mark Williams	A combination of market-based indices (e.g., Credit
Suisse Leveraged Loan Index, LIBOR), certain customized indices and certain fund
industry peer groups.
Kevin Booth	A combination of market-based indices (e.g., The Lehman
Brothers U.S. Corporate High Yield 2% Issuer Cap Index), certain customized indices
and certain fund industry peer groups.
James Keenan	A combination of market-based indices (e.g., The Lehman
Brothers U.S. Corporate High Yield 2% Issuer Cap Index), certain customized indices
and certain fund industry peer groups.

BlackRocks Chief Investment Officers make a subjective determination with respect to the portfolio managers compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks noted above. Performance is measured on both a pre-tax and after-tax basis over various time periods including 1, 3, 5 and 10-year periods, as applicable.

Distribution of Discretionary Incentive Compensation

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year at risk based on the Companys ability to sustain and improve its performance over future periods.

Other compensation benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

Long-Term Retention and Incentive Plan (LTIP)  The LTIP is a long-term incentive plan that seeks to reward certain key employees. Prior to 2006, the plan provided for the grant of awards that were expressed as an amount of cash that, if properly vested and subject to the attainment of certain performance goals, will be settled in cash and/or in BlackRock, Inc. common stock. Beginning in 2006, awards are granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the attainment of certain performance goals, will be settled in BlackRock, Inc. common stock. Each portfolio manager has received awards under the LTIP.

Deferred Compensation Program  A portion of the compensation paid to each portfolio manager may be voluntarily deferred by the portfolio manager into an account that tracks the performance of certain of the firms investment products. Each portfolio manager is permitted to allocate his deferred amounts among various options, including to certain of the firms hedge funds and other unregistered products. In addition, prior to 2005, a portion of the annual compensation of certain senior managers, including Mr. Williams, was mandatorily deferred in a similar manner for a number of years. Every portfolio manager is eligible to participate in the deferred compensation program.

Options and Restricted Stock Awards  Prior to mandatorily deferring a portion of a portfolio managers annual bonus in BlackRock, Inc. restricted stock units, the Company granted stock options to key employees, including certain portfolio managers who may still hold unexercised or unvested options. BlackRock, Inc. also granted restricted stock awards designed to reward certain key employees as an incentive to contribute to the long-term success of BlackRock. These awards vest over a period of years. Mr. Williams has been granted stock options and/or restricted stock in prior years.

Incentive Savings Plans  BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP) and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3% of eligible compensation, plus an additional contribution of 2% for any year in which BlackRock has positive net operating income. The RSP offers a range of

investment options, including registered investment companies managed by the firm. Company contributions follow the investment direction set by participants for their own contributions or absent, employee investment direction, are invested into a balanced portfolio. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000. Each portfolio manager is eligible to participate in these plans.

(a)(4) Beneficial Ownership of Securities. As of December 31, 2007, none of Messrs. Gary, Booth or Keenan beneficially owned any stock issued by the Fund. As of December 31, 2007, Mr. Williams beneficially owned stock issued by the Fund in the range of $1 to $10,000.

Item 9 Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not Applicable due to no such purchases during the period covered by this report.

Item 10 Submission of Matters to a Vote of Security Holders The registrants Nominating and Governance Committee will consider nominees to the Board recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and set forth the qualifications of the proposed nominee to the registrants Secretary. There have been no material changes to these procedures.

Item 11 Controls and Procedures

11 (a) The registrants principal executive and principal financial officers or persons performing similar functions have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

11 (b) There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting.

Item 12 Exhibits attached hereto

12(a)(1) Code of Ethics See Item 2

12(a)(2) Certifications Attached hereto

12(a)(3) Not Applicable

12(b) Certifications Attached hereto

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.

BlackRock Global Floating Rate Income Trust
By:	/s/ Donald C. Burke
	Donald C. Burke
	Chief Executive Officer of
	BlackRock Global Floating Rate Income Trust
Date: February 21, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:
Donald C. Burke
Chief Executive Officer (principal executive
officer) of
BlackRock Global Floating Rate Income Trust
Date: February 21, 2008

By:
Neal J. Andrews
Chief Financial Officer (principal financial
officer) of
BlackRock Global Floating Rate Income Trust
Date: February 21, 2008

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