BLACKROCK INCOME TRUST, INC.

N-CSRS 1 c48812_ncsrs.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: 811-05542

BlackRock Income Trust, Inc.

(Exact name of Registrant as specified in charter)

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

Robert S. Kapito, President
BlackRock Income Trust, Inc.
40 East 52nd Street, New York, NY 10022
(Name and address of agent for service)

Registrant's telephone number, including area code: 888-825-2257

Date of fiscal year end: October 31, 2007

Date of reporting period: April 30, 2007

Item 1. Reports to Shareholders.

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

ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES FIXED INCOME LIQUIDITY REAL ESTATE


SEMI-ANNUAL
REPORT \| APRIL 30, 2007 (UNAUDITED)
BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)
BlackRock Core Bond Trust (BHK)
BlackRock High Yield Trust (BHY)
BlackRock Income Opportunity Trust (BNA)
BlackRock Income Trust Inc. (BKT)
BlackRock Limited Duration Income Trust (BLW)
BlackRock Preferred and Equity Advantage Trust (BTZ)
BlackRock Strategic Bond Trust (BHD)

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

TABLE OF CONTENTS

Letter to Shareholders	1
Trusts Summaries	2
Financial Statements
Portfolios of Investments	10
Statements of Assets and Liabilities	54
Statements of Operations	56
Statements of Cash Flows	58
Statements of Changes in Net Assets	60
Financial Highlights	63
Notes to Financial Statements	71
Dividend Reinvestment Plans	86
Additional Information	87
Section 19 Notices	88

BlackRock Privacy Principles

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

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

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

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

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

LETTER TO SHAREHOLDERS

April 30, 2007

Dear Shareholder:

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

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

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

| Trust | | Market
Price | NAV |
| --- | --- | --- | --- |
| BlackRock Broad Investment
Grade 2009 Term Trust Inc. (BCT) | 5.94 % | $ 15.15 | $ 13.65 |
| BlackRock Core Bond Trust
(BHK) | 6.21 | 12.95 | 13.84 |
| BlackRock High Yield Trust
(BHY) | 7.36 | 8.32 | 8.28 |
| BlackRock Income
Opportunity Trust (BNA) | 6.17 | 10.70 | 11.17 |
| BlackRock Income Trust
Inc. (BKT) | 5.99 | 6.21 | 6.49 |
| BlackRock Limited Duration
Income Trust (BLW) | 7.66 | 19.57 | 19.32 |
| BlackRock Preferred and
Equity Advantage Trust (BTZ) | 8.00 | 23.43 | 23.79 |
| BlackRock Strategic Bond
Trust (BHD) | 7.01 | 13.19 | 14.16 |

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

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

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

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

TRUST SUMMARIES (unaudited) APRIL 30, 2007

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

Trust Information

| Symbol on American Stock
Exchange: | |
| --- | --- |
| Initial Offering Date: | June
17, 1993 |
| Termination Date (on or
about): | December
31, 2009 |
| Closing Market Price as of
4/30/07: | $ 15.15 |
| Net Asset Value as of
4/30/07: | $ 13.65 |
| Yield on Closing Market
Price as of 4/30/07 ($15.15): 1 | 5.94 % |
| Current Monthly
Distribution per Share: 2 | $ 0.075 |
| Current Annualized
Distribution per Share: 2 | $ 0.900 |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. A portion of the distribution may be
deemed a tax return of capital or net realized gain at fiscal year end. |

The table below summarizes the changes in the Trusts market price and NAV:

	4/30/07	10/31/06		High	Low
Market Price	$ 15.15	$ 15.08	0.46%	$ 15.65	$ 14.86
NAV	$ 13.65	$ 13.79	(1.02)%	$ 13.81	$ 13.63

The following chart shows the portfolio composition of the Trusts long-term investments:

Portfolio Composition

| Composition — Agency Multiple Class
Mortgage Pass-Through Securities | 37 % | 28 % |
| --- | --- | --- |
| U.S. Government and Agency
Securities | 19 | 30 |
| Taxable Municipal Bonds | 16 | 11 |
| Inverse Floating Rate
Mortgage Securities | 11 | 8 |
| Corporate Bond | 8 | 14 |
| Interest Only
Mortgage-Backed Securities | 6 | 7 |
| Mortgage Pass-Through
Securities | 3 | 2 |

TRUST SUMMARIES (unaudited) APRIL 30, 2007

BlackRock Core Bond Trust (BHK)

Trust Information

| Symbol on New York Stock
Exchange: | BHK |
| --- | --- |
| Initial Offering Date: | November
27, 2001 |
| Closing Market Price as of
4/30/07: | $ 12.95 |
| Net Asset Value as of
4/30/07: | $ 13.84 |
| Yield on Closing Market
Price as of 4/30/07 ($12.95): 1 | 6.21 % |
| Current Monthly
Distribution per Share: 2 | $ 0.067 |
| Current Annualized Distribution
per Share: 2 | $ 0.804 |
| Leverage as of 4/30/07: 3 | 9 % |

The table below summarizes the changes in the Trusts market price and NAV:

	4/30/07	10/31/06		High	Low
Market Price	$ 12.95	$ 12.86	0.70 %	$ 13.25	$ 12.58
NAV	$ 13.84	$ 13.82	0.14 %	$ 14.01	$ 13.59

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

Portfolio Composition

Composition — Corporate Bonds	55 %	58 %
Mortgage Pass-Through
Securities	11	10
U.S. Government and Agency
Securities	8	5
Agency Multiple Class Mortgage Pass-Through Securities	7	8
Asset-Backed Securities	7	8
Commercial Mortgage-Backed
Securities	6	6
Non-Agency Multiple Class Mortgage Pass-Through Securities	3	2
Foreign Government Bonds	2	1
Interest Only
Mortgage-Backed Securities	1	1
Interest Only Asset-Backed
Securities		1

Corporate Credit Quality Allocations 4

| Credit
Rating — AAA/Aaa | 6 % | 7 % |
| --- | --- | --- |
| AA/Aa | 27 | 26 |
| A | 11 | 10 |
| BBB/Baa | 20 | 17 |
| BB/Ba | 8 | 12 |
| B | 22 | 23 |
| CCC/Caa | 6 | 5 |

4 Using the highest of Standard & Poors (S&Ps), Moodys Investors Service (Moodys) or Fitch Rating (Fitchs) ratings. Corporate bonds represented approximately 58.2% and 58.3% of net assets on April 30, 2007 and October 31, 2006, respectively.

TRUST SUMMARIES (unaudited) APRIL 30, 2007

BlackRock High Yield Trust (BHY)

Trust Information

| Symbol on New York Stock
Exchange: | BHY |
| --- | --- |
| Initial Offering Date: | December
23, 1998 |
| Closing Market Price as of
4/30/07: | $ 8.32 |
| Net Asset Value as of
4/30/07: | $ 8.28 |
| Yield on Closing Market
Price as of 4/30/07 ($8.32): 1 | 7.36 % |
| Current Monthly Distribution
per Share: 2 | $ 0.051 |
| Current Annualized
Distribution per Share: 2 | $ 0.612 |
| Leverage as of 4/30/07: 3 | 28 % |

| 1 | Yield on closing market price is calculated by
dividing the current annualized distribution per share by the closing market
price. Past performance does not guarantee future results. |
| --- | --- |
| 2 | The distribution is not constant and is subject to
change. A portion of the distribution may be deemed a tax return of capital
or net realized gain at fiscal year end. |
| 3 | As a percentage of managed assets (as defined in Note
2 of the Notes to Financial Statements). |

The table below summarizes the changes in the Trusts market price and NAV:

	4/30/07	10/31/06		High	Low
Market Price	$ 8.32	$ 7.77	7.08 %	$ 8.60	$ 7.66
NAV	$ 8.28	$ 7.85	5.48 %	$ 8.28	$ 7.85

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

Corporate Portfolio Composition 4

Composition — Energy	15 %	16 %
Telecommunications	13	13
Media	13	11
Basic Materials	12	11
Financial Institutions	8	14
Consumer Products	7	6
Technology	6	5
Automotive	4	3
Entertainment &
Leisure	4	4
Industrials	4	3
Health Care	3	3
Aerospace & Defense	2	3
Transportation	2	2
Containers & Packaging	2	3
Real Estate	2
Building & Development	2	3
Ecological Services &
Equipment	1

Corporate Credit Quality Allocations 5

| Credit
Rating — BBB/Baa | 4 % | 3 % |
| --- | --- | --- |
| BB/Ba | 20 | 26 |
| B | 58 | 55 |
| CCC/Caa | 15 | 12 |
| C | | 2 |
| Not Rated | 3 | 2 |

| 4 | For Trust compliance purposes, the 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. |
| --- | --- |
| 5 | Using the highest of S&Ps, Moodys or Fitchs
rating. Corporate bonds represented approximately 123.2% and 128.9% of net
assets on April 30, 2007 and October 31, 2006, respectively. |

TRUST SUMMARIES (unaudited) APRIL 30, 2007

BlackRock Income Opportunity Trust (BNA)

Trust Information

| Symbol on New York Stock
Exchange: | BNA |
| --- | --- |
| Initial Offering Date: | December
20, 1991 |
| Closing Market Price as of
4/30/07: | $ 10.70 |
| Net Asset Value as of
4/30/07: | $ 11.17 |
| Yield on Closing Market
Price as of 4/30/07 ($10.70): 1 | 6.17 % |
| Current Monthly
Distribution per Share: 2 | $ 0.055 |
| Current Annualized Distribution
per Share: 2 | $ 0.660 |
| Leverage as of 4/30/07: 3 | 14 % |

| 1 | Yield on closing market price is calculated by
dividing the current annualized distribution per share by the closing market
price. Past performance does not guarantee future results. |
| --- | --- |
| 2 | The distribution is not constant and is subject to
change. A portion of the distribution may be deemed a tax return of capital
or net realized gain at fiscal year end. |
| 3 | As a percentage of managed assets (as defined in Note
2 of the Notes to Financial Statements). |

The table below summarizes the changes in the Trusts market price and NAV:

| Market
Price | $ 10.70 | $ 10.58 | 1.13 % | $ 10.76 | $ 10.27 |
| --- | --- | --- | --- | --- | --- |
| NAV | $ 11.17 | $ 11.17 | % | $ 11.33 | $ 10.95 |

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

Portfolio Composition

Composition	April 30, 2007	October 31, 2006
Corporate Bonds	47 %	48 %
Mortgage Pass-Through Securities	12	12
Asset-Backed Securities	11	13
U.S. Government and Agency
Securities	10	7
Agency Multiple Class Mortgage Pass-Through Securities	8	7
Commercial Mortgage-Backed
Securities	4	4
Non-Agency Multiple Class Mortgage Pass-Through Securities	4	6
Foreign Government Bonds	1
Federal Housing Administration
Securities	1	1
Interest Only
Mortgage-Backed Securities	1	1
Trust Preferred Stocks	1
Inverse Floating Rate
Mortgage Securities		1

Corporate Credit Quality Allocations 4

| Credit
Rating | April 30,
2007 | October
31, 2006 |
| --- | --- | --- |
| AAA/Aaa | 8 % | 9 % |
| AA/Aa | 18 | 17 |
| A | 11 | 10 |
| BBB/Baa | 21 | 19 |
| BB/Ba | 11 | 13 |
| B | 25 | 25 |
| CCC/Caa | 6 | 6 |
| Not Rated | | 1 |

4 Using the highest of S&Ps, Moodys or Fitchs rating. Corporate bonds represented approximately 54.2% and 52.1% of net assets on April 30, 2007 and October 31, 2006, respectively.

TRUST SUMMARIES (unaudited) APRIL 30, 2007

BlackRock Income Trust Inc. (BKT)

Trust Information

| Symbol on New York Stock
Exchange: | BKT |
| --- | --- |
| Initial Offering Date: | July
22, 1988 |
| Closing Market Price as of
4/30/07: | $ 6.21 |
| Net Asset Value as of
4/30/07: | $ 6.49 |
| Yield on Closing Market
Price as of 4/30/07 ($6.21): 1 | 5.99 % |
| Current Monthly
Distribution per Share: 2 | $ 0.031 |
| Current Annualized
Distribution per Share: 2 | $ 0.372 |
| Leverage as of 4/30/07: 3 | 8 % |

The table below summarizes the changes in the Trusts market price and NAV:

	4/30/07	10/31/06	Change	High	Low
Market
Price	$6.21	$6.07	2.31%	$6.33	$6.03
NAV	$6.49	$6.48	0.15%	$6.52	$6.41

The following chart shows the portfolio composition of the Trusts long-term investments:

Portfolio Composition

Composition	April 30, 2007	October 31, 2006
Agency Multiple Class Mortgage Pass-Through Securities	27 %	28 %
Mortgage Pass-Through
Securities	24	22
U.S. Government and Agency
Securities	18	20
Interest Only
Mortgage-Backed Securities	12	10
Non-Agency Multiple Class
Mortgage Pass-Through Securities	8	9
Principal Only
Mortgage-Backed Securities	5	5
Inverse Floating Rate
Mortgage Securities	3	3
Federal Housing
Administration Securities	2	2
Corporate Bonds	1	1

TRUST SUMMARIES (unaudited) APRIL 30, 2007

BlackRock Limited Duration Income Trust (BLW)

Trust Information

| Symbol on New York Stock
Exchange: | BLW |
| --- | --- |
| Initial Offering Date: | July
30, 2003 |
| Closing Market Price as of
4/30/07: | $ 19.57 |
| Net Asset Value as of
4/30/07: | $ 19.32 |
| Yield on Closing Market
Price as of 4/30/07 ($19.57): 1 | 7.66 % |
| Current Monthly
Distribution per Share: 2 | $ 0.125 |
| Current Annualized
Distribution per Share: 2 | $ 1.500 |
| Leverage as of 4/30/07: 3 | 20 % |

The table below summarizes the Trusts market price and NAV:

	4/30/07	10/31/06	Change	High	Low
Market
Price	$19.57	$18.85	3.82%	$19.89	$18.42
NAV	$19.32	$19.01	1.63%	$19.32	$18.93

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

Portfolio Composition

Composition — Corporate Bonds	42 %	43 %
Bank Loans	39	36
Mortgage Pass-Through
Securities	14	14
U.S. Government and Agency
Securities	3	4
Foreign Government Bonds	2	2
Non-Agency Multiple Class Mortgage Pass-Through Securities		1

Corporate Credit Quality Allocations 4

| Credit
Rating — AA/Aa | 1 % | 2 % |
| --- | --- | --- |
| A | 1 | 1 |
| BBB/Baa | 10 | 9 |
| BB/Ba | 24 | 24 |
| B | 49 | 51 |
| CCC/Caa | 13 | 11 |
| Not Rated | 2 | 2 |

4 Using the highest of S&Ps, Moodys or Fitchs rating. Corporate bonds represented approximately 59.0% and 64.3% of net assets on April 30, 2007 and October 31, 2006, respectively.

TRUST SUMMARIES (unaudited) APRIL 30, 2007

BlackRock Preferred and Equity Advantage Trust (BTZ)

Trust Information

| Symbol on New York Stock
Exchange: | BTZ |
| --- | --- |
| Initial Offering Date: | December
27, 2006 |
| Closing Market Price as of
4/30/07: | $ 23.43 |
| Net Asset Value as of
4/30/07: | $ 23.79 |
| Yield on Closing Market
Price as of 4/30/07 ($23.43): 1 | 8.00 % |
| Current Monthly
Distribution per Share: 2 | $ 0.15625 |
| Current Annualized Distribution
per Share: 2 | $ 1.87500 |
| Leverage as of 4/30/07: 3 | 38 % |

| 1 | Yield on closing market price is calculated by
dividing the current annualized distribution per share by the closing market
price. Past performance does not guarantee future results. |
| --- | --- |
| 2 | The distribution is not constant and is subject to
change. A portion of the distribution may be deemed a tax return of capital
or net realized gain at fiscal year end. |
| 3 | As a percentage of managed assets (as defined in Note
2 of the Notes to Financial Statements). |

The table below summarizes the changes in the Trusts market price and NAV:

Market Price	$ 23.43	$ 25.25	$ 22.90
NAV	$ 23.79	$ 24.35	$ 23.44

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

Portfolio Composition 4

Composition	April 30, 2007
Financial Institutions	64 %
Energy	8
Consumer Products	4
Technology	4
Real Estate	4
Health Care	4
Telecommunications	3
Industrials	3
Media	2
Automotive	1
Basic Materials	1
Building & Development	1
Entertainment &
Leisure	1

Credit Quality Allocations 5

| Credit
Rating | April 30, 2007 |
| --- | --- |
| AA/Aa | 18 % |
| A | 27 |
| BBB/Baa | 31 |
| BB/Ba | 2 |
| B | 20 |
| CCC/Caa | 1 |
| Not Rated | 1 |

| 4 | For Trust compliance purposes, the Trusts sector and
industry classification refer to any one or more of the Standard Industry
Codes as defined by the SEC. This definition may not apply for purposes of
this report, which may combine sector and industry sub-classification for
reporting ease. |
| --- | --- |
| 5 | Using the higher of S&P, Moodys or Fitch
ratings. |

TRUST SUMMARIES (unaudited) APRIL 30, 2007

BlackRock Strategic Bond Trust (BHD)

Trust Information

| Symbol on New York Stock
Exchange: | BHD |
| --- | --- |
| Initial Offering Date: | February
26, 2002 |
| Closing Market Price as of
4/30/07: | $ 13.19 |
| Net Asset Value as of
4/30/07: | $ 14.16 |
| Yield on Closing Market
Price as of 4/30/07 ($13.19): 1 | 7.01 % |
| Current Monthly
Distribution per Share: 2 | $ 0.077 |
| Current Annualized Distribution
per Share: 2 | $ 0.924 |
| Leverage as of 4/30/07: 3 | 9 % |

The table below summarizes the changes in the Trusts market price and NAV:

Market Price	$ 13.19	$ 12.85	2.65%	$ 13.29	$ 12.66
NAV	$ 14.16	$ 13.83	2.39%	$ 14.17	$ 13.83

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

Corporate Portfolio Composition 4

Composition — Financial Institutions	16 %	18 %
Media	16	14
Telecommunications	13	12
Energy	13	13
Basic Materials	7	6
Aerospace & Defense	7	6
Technology	6	5
Consumer Products	5	7
Automotive	4	2
Health Care	4	4
Ecological Services &
Equipment	2	2
Industrials	2	3
Transportation	2	1
Entertainment &
Leisure	1	3
Containers & Packaging	1	1
Building & Development	1	2
Real Estate		1

Corporate Credit Quality Allocations 5

| Credit
Rating — AAA/Aaa | 3 % | 3 % |
| --- | --- | --- |
| AA/Aa | 5 | 6 |
| A | 13 | 12 |
| BBB/Baa | 14 | 13 |
| BB/Ba | 14 | 16 |
| B | 39 | 40 |
| CCC/Caa | 10 | 9 |
| Not Rated | 2 | 1 |

| 4 | For Trust compliance purposes, the 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. |
| --- | --- |
| 5 | Using the highest of S&Ps, Moodys or Fitchs
rating. Corporate bonds represented approximately 97.7% and 107.6% of net
assets on April 30, 2007 and October 31, 2006, respectively. |

PORTFOLIO OF INVESTMENTS
APRIL 30, 2007 (unaudited)

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

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		LONG-TERM
INVESTMENTS32.5%
		Mortgage Pass-Through Securities0.9%
		Federal National
Mortgage Assoc.,
$ 345		5.50%,
1/01/17-2/01/17	$ 346,937
15		6.50%, 7/01/29	15,174
		Total Mortgage
Pass-Through Securities	362,111
		Agency Multiple Class Mortgage Pass-Through
Securities12.0%
		Federal Home Loan
Mortgage Corp.,
1,945		Ser. 1510, Class
G, 7.05%, 5/15/13	1,955,819
2,000		Ser. 1598, Class
J, 6.50%, 10/15/08	1,994,320
81		Ser. 2564, Class
NC, 5.00%, 2/15/33	77,065
792		Federal National
Mortgage Assoc., Ser. 49, Class H, 7.00%, 4/25/13	812,832
26	1	Government
National Mortgage Assoc., REMIC Trust 2000, Ser. 16, Class FD, 5.97%,
12/16/27	25,698
		Total Agency
Multiple Class Mortgage Pass-Through Securities	4,865,734
		Inverse Floating Rate Mortgage Securities3.6%
144	1	Citicorp Mortgage
Securities, Inc., Ser. 14, Class A-4, 4.19%, 11/25/23	143,754
		Federal Home Loan
Mortgage Corp.,
45	1	Ser. 1425, Class
SB, 8.155%, 12/15/07	44,518
11	1	Ser. 1506, Class
S, 9.727%, 5/15/08	11,209
59	1	Ser. 1515, Class
S, 8.776%, 5/15/08	59,324
44	1	Ser. 1600, Class
SC, 8.60%, 10/15/08	43,656
181	1	Ser. 1618, Class
SA, 8.25%, 11/15/08	183,323
14	1	Ser. 1661, Class
SB, 8.853%, 1/15/09	13,743
51	1	Ser. 1688, Class
S, 9.549%, 12/15/13	51,769
123	1	Ser. 2412, Class
SE, 5.016%, 2/15/09	121,941
310	1	Ser. 2517, Class
SE, 2.95%, 10/15/09	298,543
		Federal National
Mortgage Assoc.,
15	1	Ser. 13, Class
SJ, 8.75%, 2/25/09	15,486
102	1	Ser. 179, Class
SB, 7.437%, 10/25/07	102,314
21	1	Ser. 187, Class
SB, 11.814%, 10/25/07	21,322
183	1	Ser. 192, Class
SC, 6.844%, 10/25/08	183,906
61	1	Ser. 214, Class
SH, 4.359%, 12/25/08	60,707
84	1	Ser. 214, Class
SK, 10.00%, 12/25/08	85,909
		Total Inverse
Floating Rate Mortgage Securities	1,441,424
		Interest Only Mortgage-Backed Securities2.1%
		Federal Home Loan
Mortgage Corp.,
1		Ser. 65, Class I,
918.03%, 8/15/20	1,199
		Ser. 141, Class
H, 1,060.00%, 5/15/21	248
1,787		Ser. 2523, Class
EH, 5.50%, 4/15/20	109,362
378		Ser. 2633, Class
PI, 4.50%, 3/15/12	5,384
4,909		Ser. 2739, Class
PI, 5.00%, 3/15/22	195,428
587		Ser. 2775, Class
UB, 5.00%, 12/15/17	5,669
1,893		Ser. 2976, Class
KI, 5.50%, 11/15/34	228,906
		Federal National
Mortgage Assoc.,
		Ser. 8, Class HA,
1,199.999%, 1/25/08	1,434
1,218		Ser. 13, Class
IG, 5.00%, 10/25/22	47,200
66	1	Ser. 20, Class
SL, 10.143%, 9/25/08	3,732
3		Ser. 49, Class L,
444.917%, 4/25/13	21,828
7,391		Ser. 70, Class
ID, 5.00%, 4/25/22	195,935
3	1	Ser. 174, Class
S, 97.356%, 9/25/22	11,019
		Ser. G-21, Class
L, 949.50%, 7/25/21	8,549
13,546	1	Vendee Mortgage
Trust, Ser. 1, 0.043%, 10/15/31	30,160
		Total Interest Only Mortgage-Backed Securities	866,053

Principal Amount (000)		Description	Value
		Principal Only Mortgage-Backed Security0.0%
$ 17	2	Salomon Brothers
Mortgage Securities, Inc. VI, Ser. 3, Class A, 12.50%, 10/23/17	$ 16,202
		Asset-Backed Securities0.0%
234	1,3,4,5	Global Rated
Eligible Asset Trust, Ser. A, Class 1, 7.33%, 9/15/07	23
568	1,3,5	Structured
Mortgage Asset Residential Trust, Ser. 2, 8.24%, 12/15/07	57
		Total
Asset-Backed Securities	80
		Corporate Bond2.6%
1,000		Morgan Stanley
Group, Inc., 10.00%, 6/15/08	1,050,311
		U.S. Government and Agency Securities6.1%
		U.S. Treasury
Notes,
2,000		6.00%, 8/15/09	2,061,172
385		6.625%, 5/15/07	385,211
		Total U.S.
Government and Agency Securities	2,446,383
		Taxable Municipal Bonds5.2%
500		Fresno California
Pension Oblig., 7.80%, 6/01/14	547,130
500		Kern County
California Pension Oblig., 6.98%, 8/15/09	521,830
500		Los Angeles
County California Pension Oblig., Ser. D, 6.97%, 6/30/08	510,735
500		Orleans Parish Louisiana
School Board, Ser. A, 6.60%, 2/01/08	505,430
		Total Taxable
Municipal Bonds	2,085,125
		Total Long-Term Investments (cost
$13,313,002)	13,133,423
		SHORT-TERM INVESTMENT66.7%
		U.S. Government and Agency Discount
Notes66.7%
26,900	6	Federal Home Loan
Bank Disc. Notes, 5.061%, 5/01/07 (cost $26,900,000)	26,900,000
		Total Investments99.2% (cost
$40,213,002 7 )	$ 40,033,423
		Other assets in
excess of liabilities0.8%	316,243
		Net Assets100%	$ 40,349,666

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

KEY TO ABBREVIATIONS — REMIC		Real Estate Mortgage Investment Conduit

See Notes to Financial Statements.

PO RTFOLIO OF INVESTMENTS APRIL 30, 2007 (unaudited)

BlackRock Core Bond Trust (BHK)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		LONG-TERM
INVESTMENTS106.3%
		Mortgage
Pass-Through Securities11.2%
		Federal Home Loan Mortgage Corp.,
$ 79		5.00%, 8/01/33	$ 76,310
5,544		5.50%, 11/01/18-5/01/36	5,489,162
1,580	1	5.50%, 11/01/18	1,585,578
2,757		6.00%,
2/01/13-12/01/18	2,807,575
25		7.00%, 9/01/31	25,998
69	2	7.436%, 5/01/32	70,009
		Federal National Mortgage Assoc.,
46		4.50%, 2/01/20	44,209
10,575		5.00%,
11/01/17-5/01/21	10,442,466
3,910		5.50%,
1/01/18-4/01/36	3,877,511
2,825		5.97%, 8/01/16	2,977,098
5,670	1	6.00%,
2/01/36-11/01/36	5,715,486
4,786		6.00%,
8/01/29-10/01/36	4,823,571
329		7.00%,
1/01/31-7/01/32	344,660
1,200		Federal National
Mortgage Assoc. TBA, 5.00%, 5/14/37	1,159,126
231		Government
National Mortgage Assoc.,
		5.50%, 8/15/33	230,117
		Small Business
Administration,
833		Ser. P10B, Class
1, 4.754%, 8/01/14	813,910
1,505		Ser. P10B, Class
1, 5.136%, 8/01/13	1,509,870
		Total Mortgage
Pass-Through Securities	41,992,656
		Federal Housing Administration Security0.3%
1,040		FHA Hebre Home
Hospital, 6.25%, 9/01/28	1,082,458
		Agency Multiple Class Mortgage Pass-Through
Securities7.9%
		Federal Home Loan
Mortgage Corp.,
2,258		Ser. 82, Class
HJ, 5.50%, 9/25/32	2,267,746
1,200		Ser. 2562, Class
PG, 5.00%, 1/15/18	1,185,404
2,170		Ser. 2775, Class
OE, 4.50%, 4/15/19	2,064,232
3,041		Ser. 2806, Class
VC, 6.00%, 12/15/19	3,125,052
1,374		Ser. 2825, Class
VP, 5.50%, 6/15/15	1,388,885
1,300		Ser. 2883, Class
DR, 5.00%, 11/15/19	1,266,923
3,196		Ser. 2922, Class
GA, 5.50%, 5/15/34	3,221,500
1,713		Ser. 2927, Class
BA, 5.50%, 10/15/33	1,727,801
1,641		Ser. 2933, Class
HD, 5.50%, 2/15/35	1,657,248
1,600		Ser. 2968, Class
EG, 6.00%, 10/15/34	1,640,371
		Federal National
Mortgage Assoc.,
1,453		Ser. 3 Class AP,
5.50%, 2/25/35	1,465,862
2,962		Ser. 5, Class PK,
5.00%, 12/25/34	2,942,087
1,923		Ser. 27, Class
PC, 5.50%, 5/25/34	1,934,803
1,883		Ser. 70, Class
NA, 5.50%, 8/25/35	1,898,632
1,716	2	Ser. 118, Class
FD, 5.72%, 12/25/33	1,728,631
		Total Agency
Multiple Class Mortgage Pass-Through
Securities	29,515,177
		Asset-Backed Securities6.9%
2,800		Chase Manhattan
Auto Owner Trust, Ser. B, Class A4, 4.88%, 6/15/12	2,791,693
2,825		Citibank Credit
Card Issuance Trust, Ser. A2, Class A2, 4.85%, 2/10/11	2,816,390
		Countrywide
Asset-Backed Certificates,
181	2	Ser. 15, Class
2AV1, 5.42%, 4/25/36	181,273
852	2	Ser. 16, Class
4AV1, 5.42%, 1/25/35	852,368

Principal Amount (000)		Description
		Asset-Backed Securities(contd)
$ 2,825		DaimlerChrysler
Auto Trust, Ser. A, Class A3, 5.00%, 5/08/10	$ 2,819,264
2,850		Ford Credit Auto
Owner Trust, Ser. A, Class A4, 5.08%, 12/15/10	2,850,324
2,300		Harley-Davidson Motorcycle
Trust, Ser. 2, Class A2, 4.07%, 2/15/12	2,268,627
2,495		Maryland Trust,
Ser. 1, Class A, 5.55%, 12/10/65	2,473,645
2,825		MBNA Credit Card
Master Note Trust, Ser. A1, Class A, 4.90%, 7/15/11	2,821,463
891	2,3	Merrill Lynch
Mortgage Investors, Inc., Ser. HE2, Class A2A, 5.43%, 9/25/36	890,858
634	2	New Century Home
Equity Loan Trust, Ser. C, Class A2A, 5.40%, 1/25/36	633,687
867	2	SLM Student Loan
Trust, Ser. 5, Class A1, 5.355%, 1/25/18	867,287
932	2	Structured Asset
Investment Loan Trust, Ser. 1, Class A1, 5.40%, 1/25/36	931,858
2,725		USAA Auto Owner
Trust, Ser. 1 Class A4, 5.04%, 12/15/11	2,729,118
		Total
Asset-Backed Securities	25,927,855
		Interest Only Asset-Backed Securities0.2%
		Sterling Coofs
Trust,
16,255		Ser. 1, 2.362%,
4/15/29	487,653
13,677		Ser. 2, 2.126%,
3/30/30	376,119
		Total Interest
Only Asset-Backed Securities	863,772
		Interest Only Mortgage-Backed Securities1.0%
		Federal Home Loan
Mortgage Corp.,
2,358		Ser. 2579, Class
HI, 5.00%, 8/15/17	289,344
6,219		Ser. 2611, Class
QI, 5.50%, 9/15/32	1,090,195
		Federal National
Mortgage Assoc.,
26,413	2	Ser. 90, Class
JH, 1.38%, 11/25/34	1,295,928
4,240		Ser. 378, Class
5, 5.00%, 7/01/36	952,774
		Total Interest
Only Mortgage-Backed Securities	3,628,241
		Commercial Mortgage-Backed Securities6.8%
2,180	2	Banc of America
Commerical Mortgage, Inc., Ser. 1, Class A4, 5.039%, 11/10/42	2,170,815
984		Commercial
Mortgage Acceptance Corp., Ser. C2, Class A2, 6.03%, 9/15/30	985,698
2,720		Credit Suisse
First Boston Mortgage Securities Corp., Ser. CP5, Class A2, 4.94%, 12/15/35	2,676,114
2,170	2	Credit Suisse
Mortgage Capital Certificates, Ser. C2, Class A3, 5.542%, 1/15/49	2,190,598
1,551		General Motor
Acceptance Corp. Commercial Mortgage Securities, Inc., Ser. C3, Class A2,
7.179%, 8/15/36	1,602,182
2,116		Goldman Sachs
Mortgage Securities Corp. II, Ser. C1, Class A3, 6.135%, 10/18/30	2,126,466
1,541		Heller Financial
Commercial Mortgage Asset Co., Ser. PH1, Class A2, 6.847%, 5/15/31	1,568,008

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Commercial
Mortgage-Backed Securities(contd)
		JPMorgan Chase Commercial Mortgage Securities Corp.,
$ 2,140		Ser. C1, Class
A3, 5.857%, 10/12/35	$ 2,190,955
2,180		Ser. CBX, Class
A4, 4.529%, 1/12/37	2,126,379
1,673		JPMorgan Commercial Mortgage Finance Corp., Ser. C10,
Class A2, 7.371%, 8/15/32	1,750,259
2,216		Morgan Stanley Capital Trust I, Ser. HF2, Class A2,
6.48%, 11/15/30	2,232,582
3,500		Salomon Brothers Mortgage Securities VII, Ser. C1,
Class A2, 7.52%, 12/18/09	3,660,970
		Total Commercial Mortgage-Backed Securities	25,281,026
		Corporate
Bonds58.2%
		Aerospace
& Defense1.1%
150	4	Bombardier, Inc., 8.00%, 11/15/14 (Canada)	157,687
1,305		DI Finance/DynCorp Intl., Ser. B, 9.50%, 2/15/13	1,402,875
		DRS Technologies, Inc.,
70		6.875%, 11/01/13	70,700
80		7.625%, 2/01/18	83,800
960		Northrop Grumman Corp., 7.875%, 3/01/26	1,178,892
15		Sequa Corp., 9.00%, 8/01/09	15,863
120	4	TransDigm, Inc., 7.75%, 7/15/14	124,500
1,125		United Technologies Corp., 4.875%, 5/01/15	1,093,454
		Total Aerospace & Defense	4,127,771
		Automotive1.3%
265		Accuride Corp., 8.50%, 2/01/15	273,612
		AutoNation, Inc.,
150		7.00%, 4/15/14	150,750
150	2	7.356%, 4/15/13	151,313
30	2,4	Avis Budget Car Rental LLC/Avis Budget Finance, Inc.,
7.86%, 5/15/14	30,825
660		DaimlerChrysler NA Holding Corp., 7.45%, 3/01/27	756,624
600		Ford Capital BV, 9.50%, 6/01/10 (Netherlands)	603,000
485		Lear Corp., Ser. B, 8.75%, 12/01/16	472,269
250		Metaldyne Corp., 10.00%, 11/01/13	257,500
2,100		Sonic Automotive, Inc., Ser. B, 8.625%, 8/15/13	2,189,250
		Total Automotive	4,885,143
		Basic
Materials4.6%
625		Abitibi-Consolidated, Inc., 6.00%, 6/20/13 (Canada)	540,625
995		AK Steel Corp., 7.75%, 6/15/12	1,027,337
250	4	American Pacific Corp., 9.00%, 2/01/15	251,250
80	2	Bowater, Inc., 8.355%, 3/15/10	80,400
30		Chemtura Corp., 6.875%, 6/01/16	29,550
200		CPG Intl. I, Inc., 10.50%, 7/01/13	210,000
60		Domtar, Inc., 7.125%, 8/15/15 (Canada)	61,125
150		Donohue Forest Products, 7.625%, 5/15/07 (Canada)	150,000
		Freeport-McMoRan Copper & Gold, Inc.,
920		8.375%, 4/01/17	1,006,250
330	2	8.564%, 4/01/15	347,738

Principal Amount (000)		Description	Value
		Basic
Materials(contd)
$ 66		Huntsman LLC, 12.00%, 7/15/12	$ 73,590
		Ineos Group Holdings Plc (United Kingdom)
1,330	4	8.50%, 2/15/16	1,286,775
285		(EUR), 7.875%,
2/07/16	367,534
885		Innophos, Inc., 8.875%, 8/15/14	927,037
130		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)	144,774
515	4	Key Plastics LLC/Key Plastics Finance Corp., 11.75%,
3/15/13	520,150
		Lyondell Chemical Co.,
240		8.00%, 9/15/14	251,400
385		8.25%, 9/15/16	411,950
1,705		NewPage Corp., 10.00%, 5/01/12	1,884,025
		Noranda, Inc. (Canada)
825		6.00%, 10/15/15	853,678
1,250		6.20%, 6/15/35	1,257,539
610	2	Nova Chemicals Corp., 8.502%, 11/15/13 (Canada)	620,675
545	4	Pregis Corp., 12.375%, 10/15/13	599,500
1,430		Teck Cominco Ltd., 6.125%, 10/01/35 (Canada)	1,394,416
430	4	Terra Capital, Inc., 7.00%, 2/01/17	421,400
2,150		Vale Overseas Ltd., 6.875%, 11/21/36 (Cayman Islands)	2,273,625
30 4		Verso Paper Holdings LLC/Verson Paper, Inc., 11.375%, 8/01/16	32,100
		Total Basic Materials	17,024,443
		Building
& Development0.2%
440		Goodman Global Holding Co., Inc., 7.875%, 12/15/12	443,300
190		Nortek, Inc., 8.50%, 9/01/14	188,100
85		North American Energy Partners, Inc., 8.75%, 12/01/11
(Canada)	87,550
		Total Building & Development	718,950
		Commercial
Services0.1%
100		FTI Consulting, Inc., 7.75%, 10/01/16	104,375
200	4	Quebecor World, Inc., 9.75%, 1/15/15 (Canada)	211,000
		Total Commercial Services	315,375
		Consumer
Products2.1%
650	2	Ames True Temper, Inc., 9.356%, 1/15/12	663,000
530		Federated Department Stores, Inc., 6.79%, 7/15/27	524,762
1,125		Federated Retail Holdings, Inc., 5.90%, 12/01/16	1,126,713
		General Nutrition Centers, Inc.,
500	4	9.796%, 3/15/14	489,375
400	4	10.75%, 3/15/15	399,000
320		Lazy Days RV Center, Inc., 11.75%, 5/15/12	331,200
30		May Deptartment Stores Co., 6.65%, 7/15/24	29,784
		Michaels Stores, Inc.,
470	4	10.00%, 11/01/14	515,825
600	4	11.375%, 11/01/16	661,500
50	2,4	Nutro Products, Inc., 9.37%, 10/15/13	51,125
1,000		Pantry, Inc. (The), 7.75%, 2/15/14	1,007,500
200		Quiksilver, Inc., 6.875%, 4/15/15	195,000
250		Reynolds American, Inc., 7.625%, 6/01/16	273,523
710		Rite Aid Corp., 7.50%, 3/01/17	708,225
390	4	Sally Holdings LLC, 10.50%, 11/15/16	405,600

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Consumer Products(contd)
$ 120		Spectrum Brands,
Inc., 7.375%, 2/01/15	$ 95,100
555		United Rentals
NA, Inc., 7.00%, 2/15/14	566,100
		Total Consumer
Products	8,043,332
		Containers & Packaging0.7%
		Berry Plastics
Holding Corp.,
270		8.875%, 9/15/14	278,100
180	2	9.23%, 9/15/14	184,050
150		Crown Americas
LLC/Crown Americas Capital Corp.,
7.75%, 11/15/15	158,625
75		Graham Packaging
Co., Inc., 8.50%, 10/15/12	76,500
300	2,4	Impress Holdings
BV, 8.481%, 9/15/13 (Netherlands)	307,117
1,500		Owens Brockway,
8.25%, 5/15/13	1,582,500
		Total Containers
& Packaging	2,586,892
		Ecological Services & Equipment0.2%
590		Waste Services,
Inc., 9.50%, 4/15/14	622,450
		Energy6.0%
425		Amerada Hess
Corp., 7.125%, 3/15/33	466,528
2,350		Anadarko
Petroleum Corp., 6.45%, 9/15/36	2,355,936
140		Berry Petroleum
Co., 8.25%, 11/01/16	140,525
320		Chaparral Energy,
Inc., 8.50%, 12/01/15	324,800
		Chesapeake Energy Corp.,
150		6.375%, 6/15/15	150,188
20		6.875%, 11/15/20	20,150
500		Cleveland
Electric Illuminating Co., 5.95%, 12/15/36	482,185
		Compagnie
Generale de Geophysique-Veritas (France)
55		7.50%, 5/15/15	57,750
90		7.75%, 5/15/17	95,400
235		Compton Petroleum
Finance Corp., 7.625%, 12/01/13 (Canada)	233,237
360		ConocoPhillips
Funding Co., 5.95%, 10/15/36 (Canada)	367,624
725		DTE Energy Co.,
6.35%, 6/01/16	757,474
115		Edison Mission
Energy, 7.50%, 6/15/13	119,600
100		El Paso Corp.,
7.80%, 8/01/31	111,500
		El Paso Natural
Gas Co.,
265		8.625%, 1/15/22	325,373
225		8.875%, 6/15/32	281,000
126		Elwood Energy
LLC, 8.159%, 7/05/26	133,242
1,000		EnCana Corp.,
6.50%, 8/15/34 (Canada)	1,048,070
		Encore
Acquisition Co.,
40		6.00%, 7/15/15	36,600
60		7.25%, 12/01/17	58,050
1,500		Energy East
Corp., 6.75%, 7/15/36	1,596,973
130		Exco Resources,
Inc., 7.25%, 1/15/11	130,325
950		Florida Power
& Light Co., 4.95%, 6/01/35	845,414
80		Grant Prideco, Inc.,
Ser. B, 6.125%, 8/15/15	79,400
175	4	Halliburton Co.,
7.60%, 8/15/96	202,018
210		KCS Energy, Inc.,
7.125%, 4/01/12	207,900
700		Midamerican
Energy Co., 5.80%, 10/15/36	693,727
75		Midwest Generation LLC,
Ser. B, 8.56%, 1/02/16	82,833
155		Mirant Americas
Generation LLC, 8.30%, 5/01/11	163,913

Principal Amount (000)		Description	Value
		Energy(contd)
$ 590		Mission Energy
Holdings Co., 13.50%, 7/15/08	$ 644,575
1,050	4	Nakilat, Inc.,
6.067%, 12/31/33 (Qatar)	1,034,878
		NRG Energy, Inc.,
50		7.25%, 2/01/14	51,750
285		7.375%, 2/01/16	296,044
1,000		Ohio Edison Co.,
6.875%, 7/15/36	1,095,628
425		ONEOK Partners
LP, 6.65%, 10/01/36	442,201
450	4	OPTI, Inc.,
8.25%, 12/15/14 (Canada)	475,875
130		Orion Power
Holdings, Inc., 12.00%, 5/01/10	150,150
1,650		Pemex Project
Funding Master Trust, 9.625%, 12/02/08	1,749,000
		Reliant Energy,
Inc.,
210		6.75%, 12/15/14	219,975
50		9.25%, 7/15/10	52,438
330	4	Sabine Pass LNG
LP, 7.50%, 11/30/16	339,075
700		Scottish Power
Plc, 5.375%, 3/15/15 (United Kingdom)	698,841
315	4	SemGroup LP,
8.75%, 11/15/15	325,237
460	2,4	Stone Energy
Corp., 8.106%, 7/15/10	460,000
295		Suncor Energy, Inc.,
5.95%, 12/01/34 (Canada)	297,624
320	4	Targa Resources,
Inc., 8.50%, 11/01/13	329,600
1,050		Texaco Capital,
Inc., 8.875%, 9/01/21	1,393,841
550		Trans-Canada
Pipelines Ltd., 5.85%, 3/15/36 (Canada)	539,883
375		Whiting Petroleum
Corp., 7.25%, 5/01/12-5/01/13	367,600
		Total Energy	22,531,950
		Entertainment & Leisure0.8%
185		AMC
Entertainment, Inc., 11.00%, 2/01/16	212,288
80		Cinemark, Inc.,
Zero Coupon, 3/15/14	73,600
1,000		Circus &
Eldorado Joint Venture, 10.125%, 3/01/12	1,050,000
150		Gaylord
Entertainment Co., 6.75%, 11/15/14	148,875
335	4	Greektown
Holdings LLC, 10.75%, 12/01/13	359,287
500		Harrahs
Operating Co., Inc., 5.75%, 10/01/17	415,000
110		Poster Financial
Group, Inc., 8.75%, 12/01/11	114,400
260		Seneca Gaming
Corp., Ser. B, 7.25%, 5/01/12	264,550
215	4	TDS Investor,
9.875%, 9/01/14	230,050
40		Wynn Las Vegas
LLC/Wynn Las Vegas Capital Corp.,
6.625%, 12/01/14	40,100
		Total
Entertainment & Leisure	2,908,150
		Financial Institutions20.5%
		American Real Estate
Partners LP/American Real Estate Finance Corp.,
320		7.125%, 2/15/13	314,800
3,165		8.125%, 6/01/11	3,228,300
325		Bank One Corp.,
3.70%, 1/15/08	321,553
1,400		BankBoston NA,
6.375%, 3/25/08-4/15/08	1,412,490
4,970	2	Barclays Bank Plc
NY, 5.35%, 3/13/09	4,973,534
350	4	Belvoir Land LLC,
Ser. A1, 5.27%, 12/15/47	326,182
		Berkshire
Hathaway Finance Corp.,
1,200		3.40%, 7/02/07	1,196,389
1,075		4.75%, 5/15/12	1,061,293
170	2,4	BMS Holdings,
Inc., 12.40%, 2/15/12	170,425
110		Britannia Bulk
Plc, 11.00%, 12/01/11 (United
Kingdom)	111,100

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)

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

Principal Amount (000)		Description	Value
		Financial
Institutions(contd)
$ 375		U.S. Bancorp, Ser. N, 3.95%, 8/23/07	$ 373,341
50	2	Universal City Florida Holding Co. I/II, 10.106%,
5/01/10	51,312
2,790		US Bank NA, 6.50%, 2/01/08	2,804,536
495	4	USAA Capital Corp., 4.00%, 12/10/07	490,610
		Wells Fargo & Co.,
1,031		3.12%, 8/15/08	1,001,356
355		4.20%, 1/15/10	348,340
1,665		4.625%, 8/09/10	1,647,313
435		4.875%, 1/12/11	432,985
1,150		Wells Fargo Bank NA, 5.95%, 8/26/36	1,169,734
630	4	Wimar Opco LLC/Wimar Opco Finance Corp., 9.625%,
12/15/14	639,450
1,775	4	Xstrata Finance Ltd., 5.80%, 11/15/16 (Canada)	1,797,220
		Total Financial Institutions	76,553,677
		Health
Care2.2%
1,030		Bristol-Myers Squibb Co., 5.875%, 11/15/36	1,019,442
2,275		Eli Lilly & Co., 5.55%, 3/15/37	2,207,430
		HealthSouth Corp.,
120	4	10.75%, 6/15/16	130,800
260	2,4	11.354%, 6/15/14	282,750
52,000		Pfizer, Inc. (JPY), 0.80%, 3/18/08	434,907
410		Tenet Healthcare Corp., 6.875%, 11/15/31	328,000
995		Teva Pharmaceutical Finance LLC, 6.15%, 2/01/36	969,507
870		UnitedHealth Group, Inc., 5.80%, 3/15/36	839,261
410		Universal Hospital Services, Inc., 10.125%, 11/01/11	439,252
		WellPoint, Inc.,
955		5.85%, 1/15/36	922,736
85		5.95%, 12/15/34	84,310
675		Wyeth, 6.00%, 2/15/36	680,481
		Total Health Care	8,338,876
		Industrials1.2%
1,575		3M Co., Ser. MTN, 5.70%, 3/15/37	1,570,462
360	4	AGY Holding Corp., 11.00%, 11/15/14	378,450
140		Hexcel Corp., 6.75%, 2/01/15	140,350
120		Park-Ohio Industries, Inc., 8.375%, 11/15/14	118,800
		RBS Global, Inc./Rexnord Corp.,
480		9.50%, 8/01/14	513,600
505		11.75%, 8/01/16	560,550
950	4	Sunstate Equipment Co. LLC, 10.50%, 4/01/13	1,016,500
200		Trimas Corp., 9.875%, 6/15/12	207,500
		Total Industrials	4,506,212
		Media6.3%
		Affinion Group, Inc.,
515		10.125%, 10/15/13	561,350
180		11.50%, 10/15/15	198,000
100		American Media Operations, Inc., Ser. B, 10.25%,
5/01/09	94,250
		AOL Time Warner, Inc.,
90		6.625%, 5/15/29	91,687
3,040		7.57%, 2/01/24	3,387,071
205	5	7.625%, 4/15/31	231,879
85		7.70%, 5/01/32	97,127

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Media(contd)
$ 55	4	BSKYB Finance
Plc, 6.50%, 10/15/35 (United Kingdom)	$ 55,111
180	2	Cablevision
Systems Corp., Ser. B, 9.82%, 4/01/09	190,800
110		CanWest
MediaWorks, Inc., 8.00%, 9/15/12 (Canada)	114,125
200		CCH I Holdings
LLC/CCH I Holdings Capital Corp., 11.00%, 10/01/15	212,500
		Charter
Communications Holdings II LLC/Charter Communications Holdings II Capital
Corp.,
1,210		10.25%, 9/15/10	1,288,650
130		Ser. B, 10.25%,
9/15/10	138,125
645	4	CMP Susquehanna
Corp., 9.875%, 5/15/14	657,900
		Comcast Corp.,
790		6.45%, 3/15/37	798,955
2,375		6.50%,
1/15/17-11/15/35	2,494,489
75		Dex Media West
LLC/Dex Media Finance Co., Ser. B, 9.875%, 8/15/13	81,656
125		DirecTV Holdings
LLC/DirecTV Financing Co., 8.375%, 3/15/13	131,875
		EchoStar DBS
Corp.,
175		5.75%, 10/01/08	175,219
290		7.00%, 10/01/13	301,237
75		7.125%, 2/01/16	78,094
620	4	Idearc, Inc.,
8.00%, 11/15/16	647,125
100	4	Iesy Repository
GMBH, 10.375%, 2/15/15 (Germany)	105,750
450		LIN Television
Corp., 6.50%, 5/15/13	443,250
180		MediaNews Group,
Inc., 6.875%, 10/01/13	163,800
485		Network
Communications, Inc., 10.75%, 12/01/13	497,125
		News America
Holdings, Inc.,
985		7.625%, 11/30/28	1,111,140
825		7.70%, 10/30/25	942,745
625		8.45%, 8/01/34	786,476
560		Nexstar Finance,
Inc., 7.00%, 1/15/14	544,600
		Nielsen Finance
LLC/Nielsen Finance Co.,
300	4	Zero Coupon,
8/01/16	216,750
965	4	10.00%, 8/01/14	1,054,262
600	2,4	Paxson
Communications Corp., 8.606%, 1/15/12	612,000
400		Primedia, Inc.,
8.00%, 5/15/13	416,000
865		RH Donnelley
Corp., Ser. A-3, 8.875%, 1/15/16	938,525
70		Sirius Satellite
Radio, Inc., 9.625%, 8/01/13	70,000
		TCI
Communications, Inc.,
200		7.125%, 2/15/28	215,068
620		7.875%,
8/01/13-2/15/26	716,455
70		Time Warner Cos.,
Inc., 6.95%, 1/15/28	73,679
500	4	Umbrella
Acquisition, Inc., 9.75%, 3/15/15	503,750
		Vertis, Inc.,
645		9.75%, 4/01/09	659,512
225		Ser. B, 10.875%,
6/15/09	223,031
1,230		Young Broadcasting,
Inc., 10.00%, 3/01/11	1,251,525
		Total Media	23,572,668

Principal Amount (000)		Description	Value
		Real Estate1.0%
		AvalonBay
Communities, Inc.,
$ 350		6.625%, 9/15/11	$ 369,570
775		8.25%, 7/15/08	798,961
		Rouse Co.,
895		3.625%, 3/15/09	862,139
1,650		5.375%, 11/26/13	1,555,368
		Total Real Estate	3,586,038
		Technology1.6%
		Amkor Technology,
Inc.,
80		7.75%, 5/15/13	79,200
145		9.25%, 6/01/16	153,700
250		Celestica, Inc.,
7.625%, 7/01/13 (Canada)	238,125
		Freescale
Semiconductor, Inc.,
1,175	4	9.125%, 12/15/14	1,169,125
140	2,4	9.23%, 12/15/14	140,000
740	4	NXP BV/NXP
Funding LLC, 9.50%, 10/15/15 (Netherlands)	777,000
		Sanmina-SCI
Corp.,
65		6.75%, 3/01/13	61,750
565		8.125%, 3/01/16	552,994
450		Sensata
Technologies, 8.00%, 5/01/14 (Netherlands)	451,125
		SunGard Data
Systems, Inc.,
105		9.125%, 8/15/13	112,613
610		10.25%, 8/15/15	671,000
945		Superior Essex
Communications LLC/Essex Group, Inc., 9.00%, 4/15/12	982,800
189	4	UGS Capital Corp.
II, 10.38%, 6/01/11	194,754
410		UGS Corp.,
10.00%, 6/01/12	446,900
		Total Technology	6,031,086
		Telecommunications7.9%
1,700		BellSouth
Telecommunications, Zero Coupon, 12/15/95	896,113
210		Cincinnati Bell,
Inc., 7.25%, 7/15/13	218,400
415	4	Cricket
Communications, Inc., 9.375%, 11/01/14	443,531
		Deutsche Telekom
Intl. Finance BV (Netherlands)
3,000		5.75%, 3/23/16	3,012,213
25		8.75%, 6/15/30	31,378
		Digicel Group
Ltd. (Bermuda)
240	1,4	8.875%, 1/15/15	235,500
540	4	9.125%, 1/15/15	523,800
190	2	Hawaiian Telcom
Communications, Inc., Ser. B, 10.86%, 5/01/13	194,275
475		Intelsat Corp.,
9.00%, 6/15/16	520,719
		Intelsat Ltd.
(Bermuda)
95	2	8.872%, 1/15/15	97,193
500		9.25%, 6/15/16	550,000
200		11.25%, 6/15/16	228,250
870	2	11.354%, 6/15/13	930,900
295		Intelsat
Subsidiary Holding Co. Ltd., 8.625%, 1/15/15 (Bermuda)	315,281
770	4	Nordic Telephone
Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)	827,750
		Nortel Networks
Ltd. (Canada)
530	2,4	9.606%, 7/15/11	567,100
185	4	10.125%, 7/15/13	203,963

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Telecommunications(contd)
$ 155		PanAmSat Corp.,
9.00%, 8/15/14	$ 167,400
		Qwest Corp.,
200		7.875%, 9/01/11	213,000
470	2	8.605%, 6/15/13	514,063
780		SBC
Communications, Inc., 6.45%, 6/15/34	809,145
1,715		Sprint Capital
Corp., 6.875%, 11/15/28	1,701,815
675		Sprint Nextel
Corp., 6.00%, 12/01/16	663,491
		Telecom Italia
Capital S.A. (Luxembourg)
1,075		4.95%, 9/30/14	1,024,276
1,550		6.00%, 9/30/34	1,444,958
1,975		Telefonica
Emisones SAU, 7.045%, 6/20/36 (Spain)	2,119,033
725		Telefonica Europe
BV, 7.75%, 9/15/10 (Netherlands)	780,988
70		Verizon Global
Funding Corp., 7.75%, 12/01/30	81,950
125		Verizon Maryland,
Inc., 5.125%, 6/15/33	105,116
		Verizon New
Jersey, Inc.,
230		7.85%, 11/15/29	263,942
335		Ser. A, 5.875%,
1/17/12	341,977
3,150		Verizon Virginia,
Inc., 4.625%, 3/15/13	2,999,531
		Vodafone Group
Plc (United Kingdom)
1,465	2	5.44%, 12/28/07	1,465,674
2,504		7.75%, 2/15/10	2,668,923
1,100	4	West Corp.,
11.00%, 10/15/16	1,201,750
350	4	Wind Acquisition
Finance S.A.,
		10.75%, 12/01/15
(Luxembourg)	404,250
		Windstream Corp.,
500		8.125%, 8/01/13	542,500
280		8.625%, 8/01/16	307,300
		Total
Telecommunications	29,617,448
		Transportation0.4%
115		American
Airlines, Inc., Ser. 99-1, 7.324%, 4/15/11	116,725
350		Canadian National
Railway Co., 6.25%, 8/01/34 (Canada)	363,841
405		CHC Helicopter
Corp., 7.375%, 5/01/14 (Canada)	395,888
47		Horizon Lines
LLC, 9.00%, 11/01/12	49,468
500	4	Navios Maritime
Holdings, Inc., 9.50%, 12/15/14 (Marshall Islands)	526,250
		Total
Transportation	1,452,172
		Total Corporate
Bonds	217,422,633
		U.S. Government and Agency Securities8.9%
1,670		Aid to Israel,
5.50%, 4/26/24-9/18/33	1,733,937
1,050	1	Resolution
Funding Corp., Zero Coupon, 7/15/18-10/15/18	603,037
1,655		Tennessee Valley
Authority, Ser. C, 5.88%, 4/01/36	1,813,270
9,285	1	U.S. Treasury
Bonds, 4.75%, 2/15/37	9,184,898
5,126	1	U.S. Treasury
Inflation Protected Bond, 2.00%, 1/15/26	4,866,805
		U.S. Treasury
Notes,
3,125	1	4.50%, 3/31/12	3,122,438
11,965	1	4.625%, 2/15/17	11,959,388
		Total U.S.
Government and Agency Securities	33,283,773

Principal Amount (000)		Description	Value
		Foreign Government Bonds1.9%
$ 133,000		Kreditanstalt
Fuer Wiederaufbau (JPY), 0.325%, 8/08/11	$ 1,112,854
110,900		Republic of
Finland (JPY), 0.30%, 10/18/07	925,412
		United Mexican
States,
2,000		5.625%, 1/15/17	2,031,000
2,647		6.75%, 9/27/34	2,951,405
		Total Foreign
Government Bonds	7,020,671
		Non-Agency Multiple Class Mortgage Pass-Through
Securities2.7%
		First Union
National Bank Commercial Mortgage,
3,121		Ser. C3, Class
A3, 6.423%, 8/15/33	3,239,991
2,265		Ser. C4, Class
A2, 6.223%, 12/12/33	2,349,343
2,350		General Motor
Acceptance Corp. Commercial Mortgage Securities, Inc., Ser. C4, Class A2,
4.93%, 7/10/39	2,315,684
2,440		Structured Asset
Securities Corp., Ser. AL1, Class A2, 3.45%, 2/25/32	2,167,306
		Total Non-Agency
Multiple Class Mortgage Pass-Through Securities	10,072,324
		Trust Preferred Stocks0.3%
545		BAC Capital Trust
XI, 6.625%, 5/23/36	584,161
790		Peco Energy
Capital Trust IV, 5.75%, 6/15/33	699,366
		Total Trust
Preferred Stocks	1,283,527
Shares
		Common Stocks0.0%
1,895	7	Critical Care
Systems Intl., Inc.	11,844
		Preferred Stock0.0%
45,000		Superior Essex
Holding Corp., Ser. A, 9.50%,	45,000
		Total Long-Term Investments (cost
$399,120,729)	397,430,957
Contracts/ Notional Amount (000)
		OUTSTANDING OPTIONS PURCHASED0.3%
		Interest Rate
Swaps,
6,600		Trust pays
3-month LIBOR, Trust receives 5.39%, expires 3/19/12	229,878
4,900		Trust pays
3-month LIBOR, Trust receives 5.52%, expires 9/21/36	247,274
6,600		Trust pays 5.39%,
Trust receives 3-month LIBOR, expires 3/19/12	283,800
7,300		Trust pays 5.40%,
Trust receives 3-month LIBOR, expires 7/27/07	23,130
4,900		Trust pays 5.52%,
Trust receives 3-month LIBOR, expires 9/21/36	286,068
55		U.S. Treasury
Notes Future, expiring 6/16/07	859
		Total Outstanding Options Purchased (cost
$1,193,525)	1,071,009
		Total investments
before outstanding options written (cost $400,314,254 8 )	398,501,966

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

(Percentages shown are based on Net Assets)

Notional Amount (000)		Description	Value
		OUTSTANDING OPTIONS WRITTEN(0.4)%
		Interest Rate
Swaps,
(5,300	)	Trust pays
3-month LIBOR, Trust receives 5.135%, expires 4/21/08	$ (97,299	)
(6,600	)	Trust pays
3-month LIBOR, Trust receives 5.148%, expires 3/19/08	(146,322	)
(4,500	)	Trust pays
3-month LIBOR, Trust receives 5.485%, expires 10/28/19	(117,354	)
(11,500	)	Trust pays
3-month LIBOR, Trust receives 5.67%, expires 1/04/10	(256,622	)
(6,600	)	Trust pays
5.115%, Trust receives 3-month LIBOR, expires 3/19/08	(106,392	)
(5,300	)	Trust pays
5.135%, Trust receives 3-month LIBOR, expires 4/21/08	(97,299	)
(4,500	)	Trust pays
5.485%, Trust receives 3-month LIBOR, expires 10/28/19	(164,215	)
(11,500	)	Trust pays 5.67%,
Trust receives 3-month LIBOR, expires 1/04/10	(504,816	)
		Total Outstanding Options Written (premium
received $2,261,545)	(1,490,319	)
		Total investments net of outstanding options
written106.2%	$ 397,011,647
		Liabilities in
excess of other assets(6.2)%	(23,191,094	)
		Net Assets100%	$ 373,820,553

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

For Trust compliance purposes, the 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.

| EUR | | KEY TO
ABBREVIATIONS — Euro |
| --- | --- | --- |
| JPY | | Japanese Yen |
| LIBOR | | London Interbank Offered Rate |
| TBA | | To Be Announced |

See Notes to Financial Statements.

PO RTFOLIO OF INVESTMENTS APRIL 30, 2007 (unaudited)

BlackRock High Yield Trust (BHY)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		LONG-TERM INVESTMENTS129.6%
		Corporate Bonds123.2%
		Aerospace & Defense3.0%
		AAR Corp.,
$ 330		6.875%, 12/15/07	$ 330,000
350		Ser. A2, 8.39%,
5/15/11	353,500
100	1	Bombardier, Inc.,
8.00%, 11/15/14 (Canada)	105,125
450		DI
Finance/DynCorp Intl., Ser. B, 9.50%, 2/15/13	483,750
		DRS Technologies,
Inc.,
40		6.875%, 11/01/13	40,400
100		7.625%, 2/01/18	104,750
20		L-3
Communications Corp., 5.875%, 1/15/15	19,475
40		Sequa Corp.,
9.00%, 8/01/09	42,300
100	1	TransDigm, Inc.,
7.75%, 7/15/14	103,750
		Total Aerospace
& Defense	1,583,050
		Automotive5.3%
85		Accuride Corp.,
8.50%, 2/01/15	87,762
60	1	Asbury Automotive
Group, Inc., 7.625%, 3/15/17	60,300
		AutoNation, Inc.,
90		7.00%, 4/15/14	90,450
80	2	7.356%, 4/15/13	80,700
20	1,2	Avis Budget Car
Rental LLC/Avis Budget Finance, Inc., 7.86%, 5/15/14	20,550
520		Ford Capital BV,
9.50%, 6/01/10 (Netherlands)	522,600
		Ford Motor Co.,
55		7.45%, 7/16/31	43,725
125		8.90%, 1/15/32	107,500
		Goodyear Tire
& Rubber Co.,
10		7.857%, 8/15/11	10,500
225	1	8.625%, 12/01/11	243,000
150		Keystone
Automotive Operations, Inc., 9.75%, 11/01/13	142,500
345		Lear Corp., Ser.
B, 8.75%, 12/01/16	335,944
255		Metaldyne Corp.,
10.00%, 11/01/13	262,650
250		Rent-A-Center,
Inc., 7.50%, 5/01/10	252,500
350		Stanadyne Corp.,
10.00%, 8/15/14	374,500
180	1	United Auto
Group, Inc., 7.75%, 12/15/16	182,700
		Total Automotive	2,817,881
		Basic Materials15.2%
		Abitibi-Consolidated,
Inc. (Canada)
215		6.00%, 6/20/13	185,975
35		8.85%, 8/01/30	30,975
185		AK Steel Corp.,
7.75%, 6/15/12	191,013
205		Alpha Natural
Resources LLC/Alpha Natural Resources Capital Corp., 10.00%, 6/01/12	221,400
140	1	American Pacific
Corp., 9.00%, 2/01/15	140,700
190		Bowater Finance
Corp., 7.95%, 11/15/11 (Canada)	186,200
130	2	Bowater, Inc.,
8.355%, 3/15/10	130,650
175		Cascades, Inc.,
7.25%, 2/15/13 (Canada)	177,625
170		Catalyst Paper
Corp., 7.375%, 3/01/14 (Canada)	161,925
50		Chemtura Corp.,
6.875%, 6/01/16	49,250

Principal Amount (000)		Description	Value
		Basic
Materials(contd)
$ 150		CPG Intl. I, Inc., 10.50%, 7/01/13	$ 157,500
40		Domtar, Inc., 7.125%, 8/15/15 (Canada)	40,750
90		Donohue Forest Products, 7.625%, 5/15/07 (Canada)	90,000
		Equistar Chemicals LP/Equistar Funding Corp.,
50		8.75%, 2/15/09	52,188
115		10.125%, 9/01/08	121,325
100		10.625%, 5/01/11	105,500
		FMG Finance Ltd. (Australia)
85	1	10.00%, 9/01/13	93,075
120	1	10.625%, 9/01/16	140,400
		Freeport-McMoRan Copper & Gold, Inc.,
550		8.375%, 4/01/17	601,562
180	2	8.564%, 4/01/15	189,675
50		Hercules, Inc., 6.60%, 8/01/27	50,000
		Hexion US Finance Corp./Hexion Nova Scotia Finance
ULC,
75	1	9.75%, 11/15/14	81,000
100	1,2	9.86%, 11/15/14	103,500
		Huntsman LLC,
365		11.625%, 10/15/10	393,287
95		12.00%, 7/15/12	105,925
205	1	Ineos Group Holdings Plc, 8.50%, 2/15/16 (United
Kingdom)	198,338
100	1	Innophos Holdings, Inc., 9.50%, 4/15/12	101,500
545		Innophos, Inc., 8.875%, 8/15/14	570,887
366		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)	407,595
70	1	Key Plastics LLC/Key Plastics Finance Corp., 11.75%,
3/15/13	70,700
		Lyondell Chemical Co.,
130		8.00%, 9/15/14	136,175
225		8.25%, 9/15/16	240,750
260		10.50%, 6/01/13	285,025
265	1	MacDermid, Inc., 9.50%, 4/15/17	275,600
340		Nalco Co., 8.875%, 11/15/13	363,800
		NewPage Corp.,
450		10.00%, 5/01/12	497,250
210		12.00%, 5/01/13	233,363
310	2	Nova Chemicals Corp., 8.502%, 11/15/13 (Canada)	315,425
310	1	Pregis Corp., 12.375%, 10/15/13	341,000
125		Russel Metals, Inc., 6.375%, 3/01/14 (Canada)	120,000
85	1	Terra Capital, Inc., 7.00%, 2/01/17	83,300
10	1	Verso Paper Holdings LLC/Verson Paper, Inc., 11.375%,
8/01/16	10,700
		Total Basic Materials	8,052,808
		Building
& Development1.9%
40	2	Ainsworth Lumber Co. Ltd., 9.10%, 10/01/10 (Canada)	30,850
		Goodman Global Holding Co., Inc.,
160		7.875%, 12/15/12	161,200
32	2	8.36%, 6/15/12	32,480
250		K Hovnanian Enterprises, Inc., 6.25%, 1/15/15	226,875

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Building & Development(contd)
$ 85	1	Masonite Corp.,
11.00%, 4/06/15	$ 78,200
135		Nortek, Inc.,
8.50%, 9/01/14	133,650
335		North American
Energy Partners, Inc., 8.75%, 12/01/11 (Canada)	345,050
		Total Building
& Development	1,008,305
		Commercial Services0.5%
100		FTI Consulting,
Inc., 7.75%, 10/01/16	104,375
145	1	Quebecor World,
Inc., 9.75%, 1/15/15 (Canada)	152,975
		Total Commercial
Services	257,350
		Consumer Products9.0%
265	2	Ames True Temper,
Inc., 9.356%, 1/15/12	270,300
50	1	Beverages &
More, Inc., 9.25%, 3/01/12	50,625
180		Buffets, Inc.,
12.50%, 11/01/14	189,000
165		Burlington Coat
Factory Warehouse Corp., 11.125%, 4/15/14	175,725
		General Nutrition
Centers, Inc.,
280	1	9.797%, 3/15/14	274,050
250	1	10.75%, 3/15/15	249,375
270		Jarden Corp.,
7.50%, 5/01/17	276,412
485		Lazy Days RV
Center, Inc., 11.75%, 5/15/12	501,975
		Michaels Stores,
Inc.,
260	1	10.00%, 11/01/14	285,350
330	1	11.375%, 11/01/16	363,825
70		Neiman-Marcus
Group, Inc., 9.00%, 10/15/15	77,175
60	1,2	Nutro Products,
Inc., 9.37%, 10/15/13	61,350
100	1,3	OSI Restaurant
Partners, Inc., 9.625%, 5/15/15	102,875
265		Pantry, Inc.
(The), 7.75%, 2/15/14	266,987
100		Quiksilver, Inc.,
6.875%, 4/15/15	97,500
500	1	Rare Restaurant
Group LLC, 9.25%, 5/15/14	50,000
120		Reynolds
American, Inc., 7.625%, 6/01/16	131,291
390		Rite Aid Corp.,
7.50%, 3/01/17	389,025
		Sally Holdings
LLC,
85	1	9.25%, 11/15/14	88,400
270	1	10.50%, 11/15/16	280,800
25		Spectrum Brands,
Inc., 7.375%, 2/01/15	19,813
90		Swift & Co.,
12.50%, 1/01/10	93,600
390		United Rentals
NA, Inc., 7.00%, 2/15/14	397,800
		Yankee
Acquisition Corp.,
20	1	8.50%, 2/15/15	20,500
85	1	9.75%, 12/15/17	87,125
		Total Consumer
Products	4,800,878
		Containers & Packaging2.5%
		Berry Plastics
Holding Corp.,
340		8.875%, 9/15/14	350,200
100	2	9.23%, 9/15/14	102,250
85		Crown Americas
LLC/Crown Americas Capital Corp., 7.75%, 11/15/15	89,888
110		Graham Packaging
Co., Inc., 8.50%, 10/15/12	112,200
30		Graphic Packaging
Intl. Corp., 9.50%, 8/15/13	32,100
270	1,2	Impress Holdings
BV, 8.481%, 9/15/13 (Netherlands)	276,405

Principal Amount (000)		Description	Value
		Containers & Packaging(contd)
$ 375	1	Smurfit-Stone
Container Enterprises, Inc., 8.00%, 3/15/17	$ 373,125
		Total Containers
& Packaging	1,336,168
		Ecological Services & Equipment0.9%
270	1	Aleris Intl.,
Inc., 9.00%, 12/15/14	286,538
185		Waste Services,
Inc., 9.50%, 4/15/14	195,175
		Total Ecological
Services & Equipment	481,713
		Energy18.2%
132		AES Red Oak LLC,
Ser. A, 8.54%, 11/30/19	143,331
80		Berry Petroleum
Co., 8.25%, 11/01/16	80,300
100		Chaparral Energy,
Inc., 8.50%, 12/01/15	101,500
		Chesapeake Energy
Corp.,
90		6.375%, 6/15/15	90,113
250		6.625%, 1/15/16	253,750
20		6.875%, 11/15/20	20,150
40		Colorado
Interstate Gas Co., 6.80%, 11/15/15	42,661
		Compagnie
Generale de Geophysique-Veritas (France)
50		7.50%, 5/15/15	52,500
80		7.75%, 5/15/17	84,800
115		Compton Petroleum
Finance Corp., 7.625%, 12/01/13 (Canada)	114,138
70		Copano Energy
LLC, 8.125%, 3/01/16	72,975
400	1,3	Corral Finans AB,
6.855%, 4/15/10 (Sweden)	401,577
30		Denbury
Resources, Inc., 7.50%, 12/15/15	30,525
260		East Cameron Gas
Co., 11.25%, 7/09/19 (Cayman Islands)	249,600
488		Elwood Energy
LLC, 8.159%, 7/05/26	516,311
		Encore
Acquisition Co.,
40		6.00%, 7/15/15	36,600
30		7.25%, 12/01/17	29,025
370		Exco Resources,
Inc., 7.25%, 1/15/11	370,925
65		Frontier Oil
Corp., 6.625%, 10/01/11	65,163
50		Grant Prideco,
Inc., Ser. B, 6.125%, 8/15/15	49,625
195		Hanover
Compressor Co., 8.625%, 12/15/10	203,287
97		Homer City
Funding LLC, 8.734%, 10/01/26	112,225
5		Hornbeck Offshore
Services, Inc., 6.125%, 12/01/14	4,813
440		KCS Energy, Inc.,
7.125%, 4/01/12	435,600
		Midwest
Generation LLC,
95		8.75%, 5/01/34	104,975
96		Ser. B, 8.56%,
1/02/16	105,843
350		Mirant Americas
Generation LLC, 8.30%, 5/01/11	370,125
610		Mission Energy
Holdings Co., 13.50%, 7/15/08	666,425
30		Newfield
Exploration Co., 6.625%, 9/01/14	30,150
		NRG Energy, Inc.,
130		7.25%, 2/01/14	134,550
385		7.375%, 2/01/16	399,919
440	1	OPTI, Inc.,
8.25%, 12/15/14 (Canada)	465,300
345		Orion Power
Holdings, Inc., 12.00%, 5/01/10	398,475
210		Pride Intl.,
Inc., 7.375%, 7/15/14	215,512
185		Range Resources
Corp., 7.375%, 7/15/13	191,012

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Energy(contd)
		Reliant Energy,
Inc.,
$ 390		6.75%, 12/15/14	$ 408,525
180		9.25%, 7/15/10	188,775
130	1	Sabine Pass LNG
LP, 7.50%, 11/30/16	133,575
210	1	SemGroup LP,
8.75%, 11/15/15	216,825
40		Sithe
Independence Funding, Ser. A, 9.00%, 12/30/13	43,937
315	1,2	Stone Energy
Corp., 8.106%, 7/15/10	315,000
200	1	Targa Resources,
Inc., 8.50%, 11/01/13	206,000
160		Tennessee Gas
Pipeline Co., 8.375%, 6/15/32	199,822
400		Transcontinental
Gas Pipe Line Corp., Ser. B, 8.875%, 7/15/12	454,000
495		Whiting Petroleum
Corp., 7.25%, 5/01/12-5/01/13	485,413
355		Williams Cos.,
Inc., 7.625%, 7/15/19	386,950
		Total Energy	9,682,602
		Entertainment & Leisure5.0%
150		AMC
Entertainment, Inc., 11.00%, 2/01/16	172,125
40		Cinemark, Inc.,
Zero Coupon, 3/15/14	36,800
125	1	French Lick
Resorts & Casino LLC/French Lick Resorts & Casino Corp., 10.75%,
4/15/14	108,750
		Gaylord
Entertainment Co.,
280		6.75%, 11/15/14	277,900
40		8.00%, 11/15/13	41,600
320	1	Great Canadian
Gaming Corp., 7.25%, 2/15/15 (Canada)	324,800
185	1	Greektown
Holdings LLC, 10.75%, 12/01/13	198,412
100		Harrahs
Operating Co., Inc., 5.75%, 10/01/17	83,000
60		MGM Mirage,
6.75%, 9/01/12	60,075
305		Poster Financial
Group, Inc., 8.75%, 12/01/11	317,200
185		Riddell Bell
Holdings, Inc., 8.375%, 10/01/12	184,075
140		Seneca Gaming
Corp., Ser. B, 7.25%, 5/01/12	142,450
50		Station Casinos,
Inc., 6.625%, 3/15/18	45,750
75	1	TDS Investor,
9.875%, 9/01/14	80,250
60	1,2	Travelport Ltd.,
9.985%, 9/01/14	61,950
435		Virgin River
Casino, 9.00%, 1/15/12	454,575
70		Wynn Las Vegas
LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14	70,175
		Total
Entertainment & Leisure	2,659,887
		Financial Institutions10.4%
500		AES Red Oak LLC,
Ser. B, 9.20%, 11/30/29	570,000
		American Real
Estate Partners LP/American Real Estate Finance Corp.,
185		7.125%, 2/15/13	181,994
300		8.125%, 6/01/11	306,000
105	1,2	BMS Holdings,
Inc., 12.40%, 2/15/12	105,263
60		Britannia Bulk
Plc, 11.00%, 12/01/11 (United Kingdom)	60,600
500	1	Dow Jones CDX HY,
Ser. 6-T1, 8.625%, 6/29/11	527,800
110	2	Ford Motor Credit
Co., 8.105%, 1/13/12	108,494
415	1	iPayment
Investors LP, 11.625%, 7/15/14	432,032
120		iPayment, Inc., 9.75%,
5/15/14	124,950

Principal Amount (000)		Description	Value
		Financial
Institutions(contd)
$ 200		K&F Acquisition, Inc., 7.75%, 11/15/14	$ 214,000
		Momentive Performance Materials, Inc.,
175	1	9.75%, 12/01/14	185,062
380	1	10.125%, 12/01/14	402,800
160	1	11.50%, 12/01/16	171,200
70	1	NSG Holdings LLC/NSG Holdings, Inc., 7.75%, 12/15/25	73,675
220	1,2	PNA Intermediate Holding Corp., 12.36%, 2/15/13	226,600
		Rainbow National Services LLC,
310	1	8.75%, 9/01/12	330,925
490	1	10.375%, 9/01/14	551,862
415		Standard Aero Holdings, Inc., 8.25%, 9/01/14	449,237
30	2	Universal City Florida Holding Co. I/II, 10.106%,
5/01/10	30,788
100	1,2	USI Holdings Corp., 9.23%, 11/15/14	101,000
350	1	Wimar Opco LLC/Wimar Opco Finance Corp., 9.625%,
12/15/14	355,250
		Total Financial Institutions	5,509,532
		Health
Care3.0%
50		Accellent, Inc., 10.50%, 12/01/13	51,375
180	1,2	Angiotech Pharmaceuticals, Inc., 9.11%, 12/01/13
(Canada)	184,725
100	1	Cooper Cos., Inc., 7.875%, 2/15/15	102,000
		HealthSouth Corp.,
50	1	10.75%, 6/15/16	54,500
120	1,2	11.354%, 6/15/14	130,500
135		Norcross Safety Products LLC/Norcross Capital Corp.,
9.875%, 8/15/11	142,594
150	1	PTS Acquisition Corp., 9.50%, 4/15/15	150,188
		Tenet Healthcare Corp.,
85		6.875%, 11/15/31	68,000
50		9.875%, 7/01/14	51,125
230	1	United Surgical Partners Intl., Inc., 8.875%, 5/01/17	236,612
405		Universal Hospital Services, Inc., 10.125%, 11/01/11	433,895
		Total Health Care	1,605,514
		Industrials4.2%
200	1	AGY Holding Corp., 11.00%, 11/15/14	210,250
		Clarke American Corp.,
60	1	9.50%, 5/15/15	60,600
50	1,2	10.105%, 5/15/15	50,000
195		Concentra Operating Corp., 9.125%, 6/01/12	208,163
80		Hexcel Corp., 6.75%, 2/01/15	80,200
85		Park-Ohio Industries, Inc., 8.375%, 11/15/14	84,150
		RBS Global, Inc./Rexnord Corp.,
85		8.875%, 9/01/16	88,400
340		9.50%, 8/01/14	363,800
280		11.75%, 8/01/16	310,800
510	1	Sunstate Equipment Co. LLC, 10.50%, 4/01/13	545,700
55		Terex Corp., 7.375%, 1/15/14	57,475
190		Trimas Corp., 9.875%, 6/15/12	197,125
		Total Industrials	2,256,663

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Media15.4%
		Affinion Group, Inc.,
$ 215		10.125%, 10/15/13	$ 234,350
160		11.50%, 10/15/15	176,000
35		American Media Operations, Inc., Ser. B, 10.25%,
5/01/09	32,988
175	2	Cablevision Systems Corp., Ser. B, 9.82%, 4/01/09	185,500
60		CanWest MediaWorks, Inc., 8.00%, 9/15/12 (Canada)	62,250
60		CBD Media Holdings LLC/CBD Holdings Finance, Inc.,
9.25%, 7/15/12	63,000
240		CCH I Holdings LLC/CCH I Holdings Capital Corp.,
11.00%, 10/01/15	254,675
		Charter Communications Holdings II LLC/Charter
Communications Holdings II Capital Corp.,
765		10.25%, 9/15/10	814,725
75		Ser. B, 10.25%, 9/15/10	79,688
290	1	CMP Susquehanna Corp., 9.875%, 5/15/14	295,800
45		CSC Holdings, Inc., Ser. B, 7.625%, 4/01/11	46,406
50		Dex Media West LLC/Dex Media Finance Co., Ser. B,
9.875%, 8/15/13	54,438
125		DirecTV Holdings LLC/DirecTV Financing Co., 8.375%,
3/15/13	131,875
		EchoStar DBS Corp.,
200		7.00%, 10/01/13	207,750
260		7.125%, 2/01/16	270,725
320	1	Idearc, Inc., 8.00%, 11/15/16	334,000
75	1	Iesy Repository GMBH, 10.375%, 2/15/15 (Germany)	79,313
325		LIN Television Corp., 6.50%, 5/15/13	320,125
165		MediaNews Group, Inc., 6.875%, 10/01/13	150,150
290		Network Communications, Inc., 10.75%, 12/01/13	297,250
325		Nexstar Finance, Inc., 7.00%, 1/15/14	316,062
		Nielsen Finance LLC/Nielsen Finance Co.,
170	1	Zero Coupon, 8/01/16	122,825
445	1	10.00%, 8/01/14	486,162
125	1,2	Paxson Communications Corp., 8.606%, 1/15/12	127,500
605		Primedia, Inc., 8.00%, 5/15/13	629,200
1,035		RH Donnelley Corp., Ser. A-3, 8.875%, 1/15/16	1,122,975
230	1	Umbrella Acquisition, Inc., 9.75%, 3/15/15	231,725
		Vertis, Inc.,
280		9.75%, 4/01/09	286,300
145		Ser. B, 10.875%, 6/15/09	143,731
595		Young Broadcasting, Inc., 10.00%, 3/01/11	605,412
		Total Media	8,162,900
		Real
Estate2.2%
		Realogy Corp.,
240	1	10.50%, 4/15/14	240,600
380	1	11.00%, 4/15/14	378,100
540	1	12.375%, 4/15/15	540,000
		Total Real Estate	1,158,700

Principal Amount (000)		Description	Value
		Technology7.7%
		Amkor Technology, Inc.,
$ 40		7.75%, 5/15/13	$ 39,600
235		9.25%, 6/01/16	249,100
60	1	Belden CDT, Inc., 7.00%, 3/15/17	61,350
350		Celestica, Inc., 7.625%, 7/01/13 (Canada)	333,375
180	1	Coleman Cable, Inc., 9.875%, 10/01/12	187,650
		Freescale Semiconductor, Inc.,
815	1	9.125%, 12/15/14	810,925
80	1,2	9.23%, 12/15/14	80,000
60	1	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South
Korea)	66,900
		NXP BV/NXP Funding LLC,
50	1,2	8.106%, 10/15/13	51,625
480	1	9.50%, 10/15/15	504,000
		Sanmina-SCI Corp.,
10		6.75%, 3/01/13	9,500
180		8.125%, 3/01/16	176,175
175		Sensata Technologies, 8.00%, 5/01/14 (Netherlands)	175,437
		SunGard Data Systems, Inc.,
85		9.125%, 8/15/13	91,163
465		10.25%, 8/15/15	511,500
305		Superior Essex Communications LLC/Essex Group, Inc.,
9.00%, 4/15/12	317,200
105	1	UGS Capital Corp. II, 10.348%, 6/01/11	108,197
305		UGS Corp., 10.00%, 6/01/12	332,450
		Total Technology	4,106,147
		Telecommunications16.2%
2,000	4	Asia Global Crossing Ltd., 13.375%, 10/15/10 (Bermuda)	170,000
		Centennial Communications Corp.,
455		8.125%, 2/01/14	471,494
220	2	11.099%, 1/01/13	232,100
405		Cincinnati Bell, Inc., 7.25%, 7/15/13	421,200
215	1	Cricket Communications, Inc., 9.375%, 11/01/14	229,781
		Digicel Group Ltd. (Bermuda)
130	1	8.875%, 1/15/15	127,563
380	1	9.125%, 1/15/15	368,600
260		Dobson Cellular Systems, Inc., 8.375%, 11/01/11	277,225
100	2	Hawaiian Telcom Communications, Inc., Ser. B, 10.86%,
5/01/13	102,250
320		Intelsat Corp., 9.00%, 6/15/16	350,800
40		Intelsat Intermediate Holding Co. Ltd., 9.25%,
2/01/15 (Bermuda)	33,600
		Intelsat Ltd. (Bermuda)
60		6.50%, 11/01/13	51,600
295	2	8.872%, 1/15/15	301,810
150		9.25%, 6/15/16	165,000
70		11.25%, 6/15/16	79,888
320	2	11.354%, 6/15/13	342,400
245		Intelsat Subsidiary Holding Co. Ltd., 8.625%, 1/15/15
(Bermuda)	261,844
90	1,2	iPCS, Inc., 7.48%, 5/01/13	90,450
380	1	MetroPCS Wireless, Inc., 9.25%, 11/01/14	405,650

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Telecommunications(contd)
$ 445	1	Nordic Telephone
Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)	$ 478,375
		Nortel Networks
Ltd. (Canada)
245	1,2	9.606%, 7/15/11	262,150
95	1	10.125%, 7/15/13	104,738
		PanAmSat Corp.,
210		6.875%, 1/15/28	197,662
270		9.00%, 8/15/14	291,600
387	1,2	ProtoStar I Ltd.,
12.50%, 10/15/12 (Bermuda)	414,387
		Qwest Corp.,
600		7.875%, 9/01/11	639,000
230	2	8.605%, 6/15/13	251,562
125		9.125%, 3/15/12	138,125
475	1	West Corp.,
11.00%, 10/15/16	518,937
375	1	Wind Acquisition
Finance S.A., 10.75%, 12/01/15 (Luxembourg)	433,125
		Windstream Corp.,
200		8.125%, 8/01/13	217,000
145		8.625%, 8/01/16	159,137
		Total
Telecommunications	8,589,053
		Transportation2.6%
95		American
Airlines, Inc., Ser. 99-1, 7.324%, 4/15/11	96,425
170		CHC Helicopter
Corp., 7.375%, 5/01/14 (Canada)	166,175
430		Horizon Lines
LLC, 9.00%, 11/01/12	452,575
320	1	Navios Maritime
Holdings, Inc., 9.50%, 12/15/14 (Marshall Islands)	336,800
350		Overseas
Shipholding Group, Inc., 7.50%, 2/15/24	357,000
		Total
Transportation	1,408,975
		Total Corporate
Bonds	65,478,126
		Bank Loans3.0%
325		Affinion Group,
Inc., LIBOR, 3/01/12	320,667
90		Riverdeep
Interactive Learning, Inc., LIBOR + 6.20%, 12/21/07	89,775
250		Rotech
Healthcare, LIBOR+6.00%, 9/26/11	250,000
		Spectrum Brands
81		Loan B, LIBOR +
4.00%, 4/15/13	82,153
14		Loan B2, LIBOR +
4.00%, 4/15/13	14,535
4		Loan C, LIBOR +
4.00%, 4/15/13	4,061
600		Travelport LLC,
LIBOR + 7.00%, 3/22/12	584,250
250		Verso Paper
Finance Holdings LLC, LIBOR + 6.25%, 2/01/13	250,937
		Total Bank Loans	1,596,378
		Asset-Backed Security2.6%
2,000	1,3	Zais Investment
Grade Ltd., Class C, 9.95%, 9/23/14 (Cayman Islands)	1,400,760

Shares		Description	Value
		Common Stocks0.7%
4,737	5	Critical Care
Systems Intl., Inc.	$ 29,606
14,991	5	Mattress
Discounters Corp.
68,358	5	Neon
Communications Group, Inc.	334,954
		Total Common
Stocks	364,560
		Preferred Stock0.1%
40,000		Superior Essex
Holding Corp., Ser. A, 9.50%,	40,000
Units (000)
		Warrants0.0%
1	1,5,6	Mattress
Discounters Corp., expires 7/15/07, strike price $0.01, 4.85 shares for 1
warrant
54	5,6	Neon
Communications, Inc., expires 12/02/12	1
1	1,5,6	PF. Net
Communications, Inc., expires 5/15/10, strike price $0.01, 36.87243 shares
for 1 warrant
		Total Warrants	1
		Total
Long-Term Investments (cost $69,712,156)	68,879,825
Principal Amount (000)
		SHORT-TERM INVESTMENT6.8%
		U.S. Government and Agency Discount Notes6.8%
$ 3,600	7	Federal Home Loan
Bank Disc. Notes, 5.061%, 5/01/07 (cost $3,600,000)	3,600,000
		Total
Investments136.4% (cost $73,312,156 8 )	$ 72,479,825
		Liabilities in
excess of other assets(36.4)%	(19,347,956	)
		Net Assets100%	$ 53,131,869

KEY TO ABBREVIATIONS
LIBOR London
Interbank Offered Rate

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS APRIL 30, 2007 (unaudited)

BlackRock Income Opportunity Trust (BNA)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		LONG-TERM
INVESTMENTS116.5%
		Mortgage
Pass-Through Securities14.2%
		Federal Home Loan Mortgage Corp.,
$ 1,058	1	4.368%, 1/01/35	$ 1,072,560
1,456	1	5.067%, 1/01/35	1,439,434
		Federal National Mortgage Assoc.,
8,241		5.50%,
12/01/13-1/01/33	8,203,553
22,657	2,3	5.50%,
7/01/16-6/01/36	22,593,758
7,635	3	5.50%,
12/01/32-1/01/33	7,570,133
3,125		5.97%, 8/01/16	3,293,250
797		6.00%,
3/01/16-7/01/17	812,724
971	2	6.00%, 1/01/37	978,824
126		7.00%,
2/01/24-8/01/36	130,304
300		TBA, 5.50%, 5/14/37	296,625
8,000		TBA, 6.00%,
5/14/37	8,060,000
101		Government National Mortgage Assoc., 8.00%,
4/15/24-11/15/25	107,875
		Total Mortgage Pass-Through Securities	54,559,040
		Federal
Housing Administration Securities1.0%
		General Motors Acceptance Corp. Projects,
195		Ser. 37, 7.43%,
5/01/22	197,333
78		Ser. 44, 7.43%,
8/01/22	79,407
		Merrill Projects,
149	4	Ser. 29, 7.43%,
10/01/20	151,214
50	4	Ser. 42, 7.43%,
9/01/22	50,965
1,754		Reilly Project, Ser. B-11, 7.40%, 4/01/21	1,773,209
1,753		Westmore Project, 7.25%, 4/01/21	1,763,938
		Total Federal Housing Administration Securities	4,016,066
		Agency
Multiple Class Mortgage Pass-Through Securities9.7%
		Federal Home Loan Mortgage Corp.,
3,159		Ser. 82, Class
HJ, 5.50%, 9/25/32	3,173,152
	1	Ser. 192, Class
U, 1009.033%, 2/15/22	4
		Ser. 1057, Class
J, 1008.001%, 3/15/21	802
3,243		Ser. 2806, Class
VC, 6.00%, 12/15/19	3,332,787
6,000		Ser. 2874, Class
BC, 5.00%, 10/15/19	5,859,356
1,390		Ser. 2883, Class
DR, 5.00%, 11/15/19	1,354,633
3,364		Ser. 2922, Class
GA, 5.50%, 5/15/34	3,391,053
1,845		Ser. 2927, Class
BA, 5.50%, 10/15/33	1,860,708
1,793		Ser. 2933, Class
HD, 5.50%, 2/15/35	1,810,225
1,725		Ser. 2968, Class
EG, 6.00%, 10/15/34	1,768,525
7,005		Ser. 3174, Class
PZ, 5.00%, 1/15/36	6,295,678
		Federal National Mortgage Assoc.,
3,146		Ser. 5, Class PK,
5.00%, 12/25/34	3,124,072
2,051		Ser. 27, Class
PC, 5.50%, 5/25/34	2,062,653
1,613	1	Ser. 118, Class
FD, 5.72%, 12/25/33	1,624,317
1,603		Government National Mortgage Assoc., Ser. 65, Class
VA, 6.00%, 6/20/15	1,637,929
		Total Agency Multiple Class Mortgage Pass-Through
Securities	37,295,894
		Non-Agency
Multiple Class Mortgage Pass-Through Securities4.8%
2,443		Donaldson, Lufkin & Jenrette Commercial Mortgage
Corp., Class A 1B, 7.18%, 11/10/33	2,569,052

Principal Amount (000)		Description
		Non-Agency Multiple Class Mortgage Pass-Through
Securities(contd)
$ 2,630		First
Union-Lehman Brothers-Bank of America, Ser. C2, Class D, 6.778%, 11/18/35	$ 2,815,942
2,310		GE Capital
Commercial Mortgage Corp., Ser. 1A, Class A3, 6.269%, 12/10/35	2,409,277
2,580		General Motor
Acceptance Corp. Commercial Mortgage Securities, Inc., Ser. C4, Class A2,
4.93%, 7/10/39	2,542,325
7,536		Residential
Funding Securities Corp., Ser. RM2, Class AI5, 8.50%, 5/25/33	8,126,867
3	1,5	Summit Mortgage
Trust, Ser. 1, Class B1, 6.596%, 12/28/12	3,173
		Total Non-Agency
Multiple Class Mortgage Pass-Through Securities	18,466,636
		Inverse Floating Rate Mortgage Securities0.5%
500	1	Federal Home Loan
Mortgage Corp., Ser. 1611, Class JC, 10.00%, 8/15/23	520,558
		Federal National
Mortgage Assoc.,
	1	Ser. 7, Class S,
541.833%, 3/25/21	3,201
	1	Ser. 17, Class S,
531.967%, 6/25/21	4,793
1,238	1	Ser. 23, Class
PS, 9.36%, 4/25/23	1,290,634
	1	Ser. 46, Class S,
1295.281%, 5/25/21	3,722
	1	Ser. 49, Class S,
479.05%, 12/25/21	1,693
62	1	Ser. 87, Class S,
12.522%, 8/25/21	74,591
		Total Inverse
Floating Rate Mortgage Securities	1,899,192
		Asset-Backed Securities12.6%
1,658	1	Ameriquest
Mortgage Securities, Inc., Ser. R11, Class A1, 5.622%, 11/25/34	1,660,826
3,025		Capital Auto
Receivables Asset Trust, Ser. 1, Class A3, 5.03%, 10/15/09	3,017,702
2,650	1	Chase Issuance
Trust, Ser. A3, 5.31%, 7/15/11	2,649,465
3,100		Chase Manhattan
Auto Owner Trust, Ser. B, Class A4, 4.88%, 6/15/12	3,090,803
3,125		Citibank Credit
Card Issuance Trust, Ser. A2, Class A2, 4.85%, 2/10/11	3,115,476
		Countrywide
Asset-Backed Certificates,
199	1	Ser. 15, Class
2AV1, 5.42%, 4/25/36	198,612
932	1	Ser. 16, Class
4AV1, 5.42%, 1/25/35	932,505
3,150		DaimlerChrysler
Auto Trust, Ser. A, Class A3, 5.00%, 5/08/10	3,143,604
2,575	1	Discover Card
Master Trust I, Ser. 1, Class A, 5.33%, 9/16/10	2,575,493
3,400		Ford Credit Auto
Owner Trust, Ser. A, Class A3, 5.07%, 11/15/09	3,393,211
2,550		Harley-Davidson
Motorcycle Trust, Ser. 2, Class A2, 4.07%, 2/15/12	2,515,217
2,483		Maryland Trust,
Ser. 1, Class A, 5.55%, 12/10/65	2,461,757
		MBNA Credit Card
Master Note Trust,
3,075		Ser. A1, Class A,
4.90%, 7/15/11	3,071,150
4,050	1	Ser. A4, 5.31%,
9/15/11	4,049,212

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description
		Asset-Backed Securities(contd)
$ 974	1	Merrill Lynch
Mortgage Investors, Inc., Ser. HE2, Class A2A, 5.43%, 9/25/36	$ 974,614
		Morgan Stanley
ABS Capital I,
2,202	1	Ser. HE5, Class
A2A, 5.39%, 8/25/36	2,201,853
1,796	1	Ser. NC4, Class
A2A, 5.35%, 6/25/36	1,795,621
695	1	New Century Home
Equity Loan Trust, Ser. C, Class A2A, 5.40%, 1/25/36	695,011
1,029	1	Structured Asset
Investment Loan Trust, Ser. 1, Class A1, 5.40%, 1/25/36	1,029,095
3,075		USAA Auto Owner
Trust, Ser. 1, Class A3, 5.01%, 9/15/10	3,069,540
2,925		Wachovia Auto
Owner Trust, Ser. A, Class A4, 5.38%, 3/20/13	2,953,588
		Total
Asset-Backed Securities	48,594,355
		Interest Only Asset-Backed Securities0.2%
169	1,5	Morgan Stanley
Capital Trust I, Ser. HF1, Class X, 1.915%, 6/15/17	377
		Sterling Coofs
Trust,
16,255		Ser. 1, 2.362%,
4/15/29	487,653
14,846		Ser. 2, 2.126%,
3/30/30	408,278
		Total Interest
Only Asset-Backed Securities	896,308
		Interest Only Mortgage-Backed Securities0.9%
		Federal Home Loan
Mortgage Corp.,
		Ser. 176, Class
M, 1,010.00%, 7/15/21	37
		Ser. 200, Class
R, 93,522.906%, 12/15/22	181
7	1	Ser. 1043, Class
H, 20.813%, 2/15/21	7,238
	1	Ser. 1054, Class
I, 413.56%, 3/15/21	106
		Ser. 1056, Class KD,
1,084.50%, 3/15/21	704
	1	Ser. 1148, Class
E, 563.074%, 10/15/21	287
		Ser. 1179, Class
O, 1,009.389%, 11/15/21	50
167		Ser. 1254, Class
Z, 8.50%, 4/15/22	46
277		Ser. 1831, Class
PG, 6.50%, 3/15/11	22,826
6,219		Ser. 2611, Class
QI, 5.50%, 9/15/32	1,090,195
		Federal National
Mortgage Assoc.,
88		Ser. 5, Class H,
9.00%, 1/25/22	21,194
6		Ser. 7, Class 2,
8.50%, 4/01/17	1,153
1	1	Ser. 10, Class S,
524.318%, 5/25/21	9,678
	1	Ser. 12, Class S,
553.577%, 5/25/21	7,988
		Ser. 33, Class
PV, 1,078.42%, 10/25/21	11,321
		Ser. 38, Class N,
1,008.50%, 4/25/21	294
3		Ser. 46, Class H,
1,042.50%, 12/25/09	26,769
375	1	Ser. 50, Class
SI, 1.20%, 4/25/23	13,538
11		Ser. 89, Class 2,
8.00%, 6/01/18	2,495
26,413	1	Ser. 90, Class
JH, 1.38%, 11/25/34	1,295,928
3		Ser. 94, Class 2,
9.50%, 8/01/21	747
		Ser. 99, Class L,
930.00%, 8/25/21	3,505
		Ser. 123, Class
M, 1,009.50%, 10/25/20	610
13	1	Ser. 136, Class
S, 14.746%, 11/25/20	15,783
		Ser. 139, Class
PT, 648.35%, 10/25/21	3,957
	1	Ser. 141, Class
SA, 13.625%, 8/25/07	4
4,619		Ser. 378, Class
19, 5.00%, 6/01/35	1,011,122
4,475	1,5	Goldman Sachs
Mortgage Securities Corp., Ser. 5, 0.988%, 2/19/25	94,687

Principal Amount (000)		Description
		Interest Only Mortgage-Backed
Securities(contd)
$ 1,539	1	Salomon Brothers
Mortgage Securities VII, Ser. 1, 0.537%, 3/25/22	$ 27
		Total Interest
Only Mortgage-Backed Securities	3,642,470
		Principal Only Mortgage-Backed Securities0.1%
92	3,6	Federal Home Loan
Mortgage Corp., Ser. 1739, Class B, 7.50%, 2/15/24	82,953
		Federal National
Mortgage Assoc.,
72	6	Ser. 51, Class E,
8.00%, 2/25/23	61,186
13	6	Ser. 70, Class A,
7.00%, 5/25/23	10,439
29	6	Ser. 167, Class
D, 8.50%, 10/25/17	27,308
22	6	Ser. 203, Class
1, 8.00%, 2/01/23	19,214
15	6	Ser. 228, Class
1, 7.00%, 5/01/23	12,396
		Total Principal
Only Mortgage-Backed Securities	213,496
		Commercial Mortgage-Backed Securities5.0%
2,320		Bear Stearns
Commercial Mortgage Services, Ser. PWR7, Class A2, 4.945%, 2/11/41	2,294,719
2,970	2	Credit Suisse
First Boston Mortgage Securities Corp., Ser. CP5, Class A2, 4.94%, 12/15/35	2,922,081
2,400	1	Credit Suisse
Mortgage Capital Certificates, Ser. C2, Class A3, 5.542%, 1/15/49	2,422,781
2,090		First Union
National Bank Commercial Mortgage Trust, Ser. C2, Class A2, 7.202%, 10/15/32	2,204,825
2,475		General Motors
Acceptance Corp. Commercial Mortgage Securities, Inc., Ser. C3, Class A4,
4.547%, 12/10/41	2,410,023
		JPMorgan Chase
Commercial Mortgage Securities Corp.,
1,990		Ser. C1, Class
A3, 5.857%, 10/12/35	2,037,384
2,380		Ser. CBX, Class
A4, 4.529%, 1/12/37	2,321,460
2,530	1	Lehman
Brothers-UBS Commercial Mortgage Trust, Ser. C4, Class A3, 5.153%, 6/15/29	2,538,708
		Total Commercial
Mortgage-Backed Securities	19,151,981
		Collateralized Mortgage Obligation Residual
Securities0.0%
		Collateralized
Mortgage Obligation Trust,
		Ser. 40, Class R,
580.50%, 4/01/18	162
		Ser. 42, Class R,
6,000.00%, 10/01/14	2,019
		Federal Home Loan
Mortgage Corp.,
		Ser. 19, Class R,
9,427.227%, 3/15/20	1,557
		Ser. 75, Class R,
9.50%, 1/15/21	2
		Ser. 75, Class
RS, 17.018%, 1/15/21	2
		Ser. 173, Class
R, 9.00%, 11/15/21	11
		Ser. 173, Class
RS, 9.113%, 11/15/21	11
6		Painewebber CMO
Trust, Ser. 88 M, Class 6, 13.80%, 9/01/18
		Total
Collateralized Mortgage Obligation Residual Securities	3,764

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Corporate Bonds54.2%
		Aerospace & Defense0.8%
$ 170	5	Bombardier, Inc.,
8.00%, 11/15/14 (Canada)	$ 178,712
1,488		DI Finance/DynCorp
Intl., Ser. B, 9.50%, 2/15/13	1,599,600
		DRS Technologies,
Inc.,
80		6.875%, 11/01/13	80,800
80		7.625%, 2/01/18	83,800
15		Sequa Corp.,
9.00%, 8/01/09	15,863
140	5	TransDigm, Inc.,
7.75%, 7/15/14	145,250
1,250		United
Technologies Corp., 4.875%, 5/01/15	1,214,949
		Total Aerospace
& Defense	3,318,974
		Automotive0.4%
305		Accuride Corp.,
8.50%, 2/01/15	314,913
		AutoNation, Inc.,
170		7.00%, 4/15/14	170,850
160	1	7.356%, 4/15/13	161,400
30	1,5	Avis Budget Car
Rental LLC/Avis Budget Finance, Inc., 7.86%, 5/15/14	30,825
560		Lear Corp., Ser.
B, 8.75%, 12/01/16	545,300
295		Metaldyne Corp.,
10.00%, 11/01/13	303,850
		Total Automotive	1,527,138
		Basic Materials5.0%
585		Abitibi-Consolidated,
Inc., 6.00%, 6/20/13 (Canada)	506,025
1,115		AK Steel Corp.,
7.75%, 6/15/12	1,151,237
280	5	American Pacific
Corp., 9.00%, 2/01/15	281,400
90	1	Bowater, Inc.,
8.355%, 3/15/10	90,450
30		Chemtura Corp.,
6.875%, 6/01/16	29,550
230		CPG Intl. I,
Inc., 10.50%, 7/01/13	241,500
80		Domtar, Inc.,
7.125%, 8/15/15 (Canada)	81,500
170		Donohue Forest
Products, 7.625%, 5/15/07 (Canada)	170,000
300		Equistar
Chemicals LP/Equistar Funding Corp., 10.625%, 5/01/11	316,500
		Freeport-McMoRan
Copper & Gold, Inc.,
1,020		8.375%, 4/01/17	1,115,625
360	1	8.564%, 4/01/15	379,350
		Huntsman LLC,
230		11.625%, 10/15/10	247,825
72		12.00%, 7/15/12	80,280
1,500	5	Ineos Group
Holdings Plc, 8.50%, 2/15/16 (United Kingdom)	1,451,250
975		Innophos, Inc.,
8.875%, 8/15/14	1,021,313
135		Ispat Inland ULC,
9.75%, 4/01/14 (Canada)	150,342
565	5	Key Plastics
LLC/Key Plastics Finance Corp., 11.75%, 3/15/13	570,650
		Lyondell Chemical
Co.,
260		8.00%, 9/15/14	272,350
515		8.25%, 9/15/16	551,050
130		10.50%, 6/01/13	142,513
1,785		11.125%, 7/15/12	1,901,025
60		Nalco Co.,
8.875%, 11/15/13	64,200
575		NewPage Corp.,
10.00%, 5/01/12	635,375
		Noranda, Inc.
(Canada)
600		6.00%, 10/15/15	620,857
1,550		6.20%, 6/15/35	1,559,348

Principal Amount (000)		Description	Value
		Basic Materials(contd)
$ 630	1	Nova Chemicals
Corp., 8.502%, 11/15/13 (Canada)	$ 641,025
535	5	Pregis Corp.,
12.375%, 10/15/13	588,500
1,570		Teck Cominco
Ltd., 6.125%, 10/01/35 (Canada)	1,530,932
360	5	Terra Capital,
Inc., 7.00%, 2/01/17	352,800
2,325		Vale Overseas
Ltd., 6.875%, 11/21/36 (Cayman Islands)	2,458,687
25	5	Verso Paper
Holdings LLC/Verson Paper, Inc., 11.375%, 8/01/16	26,750
		Total Basic
Materials	19,230,209
		Building & Development0.2%
495		Goodman Global Holding
Co., Inc., 7.875%, 12/15/12	498,713
210		Nortek, Inc.,
8.50%, 9/01/14	207,900
85		North American
Energy Partners, Inc., 8.75%, 12/01/11 (Canada)	87,550
		Total Building
& Development	794,163
		Commercial Services0.1%
125		FTI Consulting,
Inc., 7.75%, 10/01/16	130,469
225	5	Quebecor World,
Inc., 9.75%, 1/15/15 (Canada)	237,375
		Total Commercial
Services	367,844
		Consumer Products2.0%
720	1	Ames True Temper,
Inc., 9.356%, 1/15/12	734,400
560		Federated
Department Stores, Inc., 6.79%, 7/15/27	554,466
1,325		Federated Retail
Holdings, Inc., 5.90%, 12/01/16	1,327,018
		General Nutrition
Centers, Inc.,
500	5	9.796%, 3/15/14	489,375
450	5	10.75%, 3/15/15	448,875
369		Lazy Days RV
Center, Inc., 11.75%, 5/15/12	381,915
		Michaels Stores,
Inc.,
530	5	10.00%, 11/01/14	581,675
670	5	11.375%, 11/01/16	738,675
50	1,5	Nutro Products,
Inc., 9.37%, 10/15/13	51,125
300		Quiksilver, Inc.,
6.875%, 4/15/15	292,500
250		Reynolds
American, Inc., 7.625%, 6/01/16	273,522
790		Rite Aid Corp.,
7.50%, 3/01/17	788,025
190	5	Sally Holdings
LLC, 10.50%, 11/15/16	197,600
125		Spectrum Brands,
Inc., 7.375%, 2/01/15	99,062
670		United Rentals
NA, Inc., 7.00%, 2/15/14	683,400
		Total Consumer
Products	7,641,633
		Containers & Packaging0.7%
		Berry Plastics
Holding Corp.,
290		8.875%, 9/15/14	298,700
190	1	9.23%, 9/15/14	194,275
150		Crown Americas
LLC/Crown Americas Capital Corp., 7.75%, 11/15/15	158,625
330	1,5	Impress Holdings
BV, 8.481%, 9/15/13 (Netherlands)	337,829
1,626		Owens-Brockway
Glass Container, Inc., 8.875%, 2/15/09	1,658,520
		Total Containers
& Packaging	2,647,949

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Ecological Services & Equipment0.8%
$ 2,250		Casella Waste
Systems, Inc., 9.75%, 2/01/13	$ 2,379,375
600		Waste Services,
Inc., 9.50%, 4/15/14	633,000
		Total Ecological
Services & Equipment	3,012,375
		Energy5.9%
2,625		Anadarko
Petroleum Corp., 6.45%, 9/15/36	2,631,631
160		Berry Petroleum
Co., 8.25%, 11/01/16	160,600
380		Chaparral Energy,
Inc., 8.50%, 12/01/15	385,700
		Chesapeake Energy
Corp.,
175		6.375%, 6/15/15	175,219
20		6.875%, 11/15/20	20,150
1,300		Cleveland
Electric Illuminating Co., 5.95%, 12/15/36	1,253,681
		Compagnie
Generale de Geophysique-Veritas (France)
60		7.50%, 5/15/15	63,000
100		7.75%, 5/15/17	106,000
225		Compton Petroleum
Finance Corp., 7.625%, 12/01/13 (Canada)	223,313
1,970	1	ConocoPhillips
Australia Funding Co., 5.45%, 4/09/09	1,970,904
450		DTE Energy Co.,
6.35%, 6/01/16	470,156
130		Edison Mission
Energy, 7.50%, 6/15/13	135,200
120		El Paso Corp.,
7.80%, 8/01/31	133,800
150		El Paso Natural
Gas Co., 8.875%, 6/15/32	187,334
185		Elwood Energy
LLC, 8.159%, 7/05/26	195,698
425		EnCana Corp.,
6.50%, 8/15/34 (Canada)	445,430
		Encore
Acquisition Co.,
50		6.00%, 7/15/15	45,750
60		7.25%, 12/01/17	58,050
1,675		Energy East
Corp., 6.75%, 7/15/36	1,783,287
435		Exco Resources,
Inc., 7.25%, 1/15/11	436,087
480		FirstEnergy
Corp., Ser. B, 6.45%, 11/15/11	503,432
575		Florida Power
& Light Co., 4.95%, 6/01/35	511,698
90		Grant Prideco,
Inc., Ser. B, 6.125%, 8/15/15	89,325
190	5	Halliburton Co.,
7.60%, 8/15/96	219,333
255		KCS Energy, Inc.,
7.125%, 4/01/12	252,450
1,250		Kinder Morgan
Energy Partners LP, 7.30%, 8/15/33	1,364,975
800		Midamerican
Energy Co., 5.80%, 10/15/36	792,830
83		Midwest
Generation LLC, Ser. B, 8.56%, 1/02/16	92,037
175		Mirant Americas
Generation LLC, 8.30%, 5/01/11	185,063
1,020		Mission Energy
Holdings Co., 13.50%, 7/15/08	1,114,350
1,100	5	Nakilat, Inc.,
6.067%, 12/31/33 (Qatar)	1,084,158
		NRG Energy, Inc.,
50		7.25%, 2/01/14	51,750
285		7.375%, 2/01/16	296,044
350		Ohio Edison Co.,
6.875%, 7/15/36	383,470
500		ONEOK Partners
LP, 6.65%, 10/01/36	520,237
490	5	OPTI, Inc.,
8.25%, 12/15/14 (Canada)	518,175
140		Orion Power
Holdings, Inc., 12.00%, 5/01/10	161,700
		Reliant Energy,
Inc.,
325		6.75%, 12/15/14	340,438
40		9.25%, 7/15/10	41,950
350	5	Sabine Pass LNG
LP, 7.50%, 11/30/16	359,625

Principal Amount (000)		Description	Value
		Energy(contd)
$ 175		Scottish Power Plc, 5.375%, 3/15/15 (United Kingdom)	$ 174,710
350	5	SemGroup LP, 8.75%, 11/15/15	361,375
500	1,5	Stone Energy Corp., 8.106%, 7/15/10	500,000
360	5	Targa Resources, Inc., 8.50%, 11/01/13	370,800
325		Texaco Capital, Inc., 8.875%, 9/01/21	431,427
600		Trans-Canada Pipelines Ltd., 5.85%, 3/15/36 (Canada)	588,963
415		Whiting Petroleum Corp., 7.25%, 5/01/12-5/01/13	406,800
		Total Energy	22,598,105
		Entertainment
& Leisure1.3%
185		AMC Entertainment, Inc., 11.00%, 2/01/16	212,287
90		Cinemark, Inc., Zero Coupon, 3/15/14	82,800
250		Gaylord Entertainment Co., 6.75%, 11/15/14	248,125
325	5	Greektown Holdings LLC, 10.75%, 12/01/13	348,562
600		Harrahs Operating Co., Inc., 5.75%, 10/01/17	498,000
800		MGM Mirage, 9.75%, 6/01/07	803,000
2,000		Park Place Entertainment Corp., 8.875%, 9/15/08	2,077,500
205		Poster Financial Group, Inc., 8.75%, 12/01/11	213,200
290		Seneca Gaming Corp., Ser. B, 7.25%, 5/01/12	295,075
245	5	TDS Investor, 9.875%, 9/01/14	262,150
25		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
6.625%, 12/01/14	25,063
		Total Entertainment & Leisure	5,065,762
		Financial
Institutions15.2%
350		American Real Estate Partners LP/American Real Estate
Finance Corp., 7.125%, 2/15/13	344,312
2,450	2	Bank of America Corp., 7.80%, 2/15/10	2,622,095
5,465	1	Barclays Bank Plc NY, 5.35%, 3/13/09	5,468,886
2,525	2	Berkshire Hathaway Finance Corp., 3.375%, 10/15/08	2,463,524
190	1,5	BMS Holdings, Inc., 12.40%, 2/15/12	190,475
120		Britannia Bulk Plc, 11.00%, 12/01/11 (United Kingdom)	121,200
		Citigroup, Inc.,
5,975	3	4.125%, 2/22/10	5,843,789
1,350	2	6.125%, 8/25/36	1,391,977
550		6.875%, 2/15/98	599,000
		Credit Suisse First Boston, Inc.,
700	3	6.125%, 11/15/11	728,311
1,000		7.125%, 7/15/32	1,187,400
1,200	5	Depfa ACS Bank, 5.125%, 3/16/37 (Ireland)	1,148,854
1,900		Eksportfinans A/S, 5.50%, 5/25/16 (Norway)	1,965,677
220	1	Ford Motor Credit Co., 8.105%, 1/13/12	216,989
		Fort Irwin Land LLC,
780	5	Ser. A, Class II,
5.30%, 12/15/35	740,189
575	5	Ser. A-1, 5.03%,
12/15/25	542,489
3,000	2	General Electric Capital Corp., 6.75%, 3/15/32	3,415,746
1,000		Goldman Sachs Group, Inc. (The), 6.60%, 1/15/12	1,055,917
1,275		HSBC Holdings Plc, 6.50%, 5/02/36 (United Kingdom)	1,365,986
826	5	iPayment Investors LP, 11.625%, 7/15/14	858,524

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Financial
Institutions(contd)
$ 270		iPayment, Inc.,
9.75%, 5/15/14	$ 281,137
360		K&F
Acquisition, Inc., 7.75%, 11/15/14	385,200
1,500		Lehman Brothers
Holdings, Inc., 6.625%, 1/18/12	1,584,978
1,200		MetLife, Inc.,
5.70%, 6/15/35	1,163,147
		Momentive
Performance Materials, Inc.,
50	5	9.75%, 12/01/14	52,875
830	5	10.125%, 12/01/14	879,800
390	5	11.50%, 12/01/16	417,300
		Morgan Stanley,
3,620	1	5.60%, 1/09/12	3,619,805
2,100		6.25%, 8/09/26	2,171,161
6,100	1,5	Rabobank
Nederland Global, 5.35%, 4/06/09 (Netherlands)	6,102,397
		Rainbow National
Services LLC,
225	5	8.75%, 9/01/12	240,188
1,650	5	10.375%, 9/01/14	1,858,312
520		Standard Aero
Holdings, Inc., 8.25%, 9/01/14	562,900
50	1	Universal City
Florida Holding Co. I/II,
		10.106%, 5/01/10	51,313
1,000		Wells Fargo &
Co., 4.625%, 8/09/10	989,377
		Wells Fargo Bank
NA,
1,375		5.95%, 8/26/36	1,398,595
2,000		7.55%, 6/21/10	2,136,574
700	5	Wimar Opco
LLC/Wimar Opco Finance Corp., 9.625%, 12/15/14	710,500
1,875	5	Xstrata Finance
Ltd., 5.80%, 11/15/16 (Canada)	1,898,472
		Total Financial
Institutions	58,775,371
		Health Care1.7%
1,135		Bristol-Myers
Squibb Co., 5.875%, 11/15/36	1,123,366
2,495		Eli Lilly &
Co., 5.55%, 3/15/37	2,420,895
		HealthSouth
Corp.,
145	5	10.75%, 6/15/16	158,050
335	1,5	11.354%, 6/15/14	364,312
375		Tenet Healthcare
Corp., 6.875%, 11/15/31	300,000
1,175		Teva
Pharmaceutical Finance LLC, 6.15%, 2/01/36	1,144,895
450		Universal
Hospital Services, Inc., 10.125%, 11/01/11	482,106
595		WellPoint, Inc.,
5.85%, 1/15/36	574,899
		Total Health Care	6,568,523
		Industrials2.4%
1,700		3M Co., Ser. MTN,
5.70%, 3/15/37	1,695,102
400	5	AGY Holding
Corp., 11.00%, 11/15/14	420,500
2,000		Briggs &
Stratton Corp., 8.875%, 3/15/11	2,151,454
150		Hexcel Corp.,
6.75%, 2/01/15	150,375
915		Honeywell Intl.,
Inc., 5.70%, 3/15/37	883,154
1,306		Manitowoc, Inc.,
10.50%, 8/01/12	1,387,625
165		Park-Ohio
Industries, Inc., 8.375%, 11/15/14	163,350
		RBS Global,
Inc./Rexnord Corp.,
540		9.50%, 8/01/14	577,800
555		11.75%, 8/01/16	616,050
1,050	5	Sunstate Equipment Co. LLC,
10.50%, 4/01/13	1,123,500
150		Trimas Corp.,
9.875%, 6/15/12	155,625
		Total Industrials	9,324,535

Principal Amount (000)		Description	Value
		Media7.0%
		Affinion Group,
Inc.,
$ 540		10.125%, 10/15/13	$ 588,600
200		11.50%, 10/15/15	220,000
125		American Media
Operations, Inc., Ser. B, 10.25%, 5/01/09	117,813
		AOL Time Warner,
Inc.,
1,635		7.57%, 2/01/24	1,821,665
3,000		9.125%, 1/15/13	3,520,734
1,415		AT&T
Broadband Corp., 8.375%, 3/15/13	1,622,593
55	5	BSKYB Finance
Plc, 6.50%, 10/15/35 (United Kingdom)	55,111
161	1	Cablevision
Systems Corp., Ser. B, 9.82%, 4/01/09	170,660
120		CanWest
MediaWorks, Inc., 8.00%, 9/15/12 (Canada)	124,500
230		CCH I Holdings
LLC/CCH I Holdings Capital Corp., 11.00%, 10/01/15	244,375
		Charter
Communications Holdings II LLC/Charter Communications Holdings II Capital
Corp.,
955		10.25%, 9/15/10	1,017,075
180		Ser. B, 10.25%,
9/15/10	191,250
690	5	CMP Susquehanna
Corp., 9.875%, 5/15/14	703,800
1,000		Comcast Cable
Communications, Inc., 6.75%, 1/30/11	1,053,511
85		Dex Media West
LLC/Dex Media Finance Co., Ser. B, 9.875%, 8/15/13	92,544
140		DirecTV Holdings
LLC/DirecTV Financing Co., 8.375%, 3/15/13	147,700
		EchoStar DBS
Corp.,
180		5.75%, 10/01/08	180,225
320		7.00%, 10/01/13	332,400
75		7.125%, 2/01/16	78,094
665	5	Idearc, Inc.,
8.00%, 11/15/16	694,094
90	5	Iesy Repository
GMBH, 10.375%, 2/15/15 (Germany)	95,175
460		LIN Television
Corp., 6.50%, 5/15/13	453,100
200		MediaNews Group,
Inc., 6.875%, 10/01/13	182,000
535		Network
Communications, Inc., 10.75%, 12/01/13	548,375
		News America
Holdings, Inc.,
145		8.15%, 10/17/36	174,335
2,475		8.45%, 8/01/34	3,114,443
660		Nexstar Finance,
Inc., 7.00%, 1/15/14	641,850
		Nielsen Finance
LLC/Nielsen Finance Co.,
330	5	Zero Coupon,
8/01/16	238,425
1,100	5	10.00%, 8/01/14	1,201,750
500	1,5	Paxson
Communications Corp., 8.606%, 1/15/12	510,000
450		Primedia, Inc.,
8.00%, 5/15/13	468,000
950		RH Donnelley
Corp., Ser. A-3, 8.875%, 1/15/16	1,030,750
70		Sirius Satellite
Radio, Inc., 9.625%, 8/01/13	70,000
1,495		TCI
Communications, Inc., 8.75%, 8/01/15	1,794,139
800	5	Time Warner
Cable, Inc., 6.55%, 5/01/37	809,060
475	5	Umbrella
Acquisition, Inc., 9.75%, 3/15/15	478,562
		Vertis, Inc.,
570		9.75%, 4/01/09	582,825
255		Ser. B, 10.875%,
6/15/09	252,769

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)

Principal
Amount
(000)		Description	Value
		Media(contd)
$ 1,319		Young
Broadcasting, Inc., 10.00%, 3/01/11	$ 1,342,082
		Total Media	26,964,384
		Real Estate0.9%
1,000		AvalonBay
Communities, Inc., 6.625%, 9/15/11	1,055,915
		Rouse Co.,
725		3.625%, 3/15/09	698,381
1,715		5.375%, 11/26/13	1,616,639
		Total Real Estate	3,370,935
		Technology1.8%
		Amkor Technology,
Inc.,
90		7.75%, 5/15/13	89,100
135		9.25%, 6/01/16	143,100
555		Celestica, Inc.,
7.625%, 7/01/13 (Canada)	528,637
		Freescale
Semiconductor, Inc.,
1,260	5	9.125%, 12/15/14	1,253,700
160	1,5	9.23%, 12/15/14	160,000
100	5	Hynix
Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)	111,500
805	5	NXP BV/NXP
Funding LLC, 9.50%, 10/15/15 (Netherlands)	845,250
		Sanmina-SCI
Corp.,
70		6.75%, 3/01/13	66,500
590		8.125%, 3/01/16	577,462
495		Sensata
Technologies, 8.00%, 5/01/14 (Netherlands)	496,238
		SunGard Data
Systems, Inc.,
95		9.125%, 8/15/13	101,888
675		10.25%, 8/15/15	742,500
950		Superior Essex
Communications LLC/Essex Group, Inc., 9.00%, 4/15/12	988,000
210	5	UGS Capital Corp.
II, 10.38%, 6/01/11	216,395
480		UGS Corp.,
10.00%, 6/01/12	523,200
		Total Technology	6,843,470
		Telecommunications7.4%
1,700		BellSouth
Telecommunications, Zero Coupon, 12/15/95	896,112
470		Cincinnati Bell,
Inc., 7.25%, 7/15/13	488,800
460	5	Cricket
Communications, Inc., 9.375%, 11/01/14	491,625
325		Deutsche Telekom
Intl. Finance BV, 5.75%, 3/23/16 (Netherlands)	326,323
270	5	Digicel Group
Ltd., 8.875%, 1/15/15 (Bermuda)	264,938
170	1	Hawaiian Telcom
Communications, Inc., Ser. B, 10.86%, 5/01/13	173,825
515		Intelsat Corp.,
9.00%, 6/15/16	564,569
		Intelsat Ltd.
(Bermuda)
120	1	8.872%, 1/15/15	122,770
450		9.25%, 6/15/16	495,000
210		11.25%, 6/15/16	239,663
920	1	11.354%, 6/15/13	984,400
300		Intelsat
Subsidiary Holding Co. Ltd., 8.625%, 1/15/15 (Bermuda)	320,625
935	5	Nordic Telephone
Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)	1,005,125

Principal
Amount
(000)		Description	Value
		Telecommunications(contd)
		Nortel Networks
Ltd. (Canada)
$ 585	1,5	9.606%, 7/15/11	$ 625,950
200	5	10.125%, 7/15/13	220,500
160		PanAmSat Corp.,
9.00%, 8/15/14	172,800
		Qwest Corp.,
55		7.875%, 9/01/11	58,575
375	1	8.605%, 6/15/13	410,156
2,500	5	SBC
Communications, Inc., 4.214%, 6/05/07	2,497,075
		Sprint Capital
Corp.,
1,205		6.875%, 11/15/28	1,195,736
1,250		8.75%, 3/15/32	1,475,182
4,375		Telecom Italia
Capital S.A., 4.95%, 9/30/14 (Luxembourg)	4,168,566
1,000		Telefonica
Emisones SAU, 7.045%, 6/20/36 (Spain)	1,072,928
575		Verizon Global
Funding Corp.,
7.75%, 6/15/32	673,395
		Verizon Maryland,
Inc.,
540		5.125%, 6/15/33	454,099
1,355		Ser. A, 6.125%,
3/01/12	1,397,531
750		Verizon Virginia,
Inc., 4.625%, 3/15/13	714,174
		Vodafone Group
Plc (United Kingdom)
1,700	1	5.41%, 6/29/07	1,700,008
1,615	1	5.44%, 12/28/07	1,615,743
1,000		7.75%, 2/15/10	1,065,864
1,210	5	West Corp.,
11.00%, 10/15/16	1,321,925
360	5	Wind Acquisition
Finance S.A., 10.75%, 12/01/15 (Luxembourg)	415,800
		Windstream Corp.,
410		8.125%, 8/01/13	444,850
325		8.625%, 8/01/16	356,687
		Total
Telecommunications	28,431,319
		Transportation0.6%
120		American
Airlines, Inc., Ser. 99-1, 7.324%, 4/15/11	121,800
1,000		Canadian National
Railway Co., 6.375%, 10/15/11 (Canada)	1,044,659
450		CHC Helicopter
Corp., 7.375%, 5/01/14 (Canada)	439,875
47		Horizon Lines
LLC, 9.00%, 11/01/12	49,467
600	5	Navios Maritime
Holdings, Inc., 9.50%, 12/15/14 (Marshall Islands)	631,500
		Total
Transportation	2,287,301
		Total Corporate
Bonds	208,769,990
		U.S. Government and Agency Securities11.5%
		Overseas Private
Investment Corp.,
350		4.09%, 5/29/12	332,033
979	1	4.30%, 5/29/12	954,286
734		4.64%, 5/29/12	725,611
415		4.68%, 5/29/12	397,943
3,144		4.87%, 5/29/12	3,135,478
3,909	1	5.40%, 5/29/12	4,100,245
6,055		Resolution
Funding Corp., Ser. B, Zero Coupon, 4/15/30	1,934,809

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		U.S.
Government and Agency Securities(contd)
$ 884		Small Business
Administration, Ser. 20K-1,
6.95%, 11/01/16	$ 913,202
1,800		Tennessee Valley
Authority, Ser. C, 5.88%, 4/01/36	1,972,181
8,770	2	U.S. Treasury
Bonds, 4.75%, 2/15/37	8,675,456
8,678	2	U.S. Treasury
Inflation Protected Bond, 2.00%, 1/15/26	8,238,779
12,805	2	U.S. Treasury
Notes, 4.625%, 2/15/17	12,798,994
		Total U.S.
Government and Agency Securities	44,179,017
		Trust Preferred Stock0.6%
2,000	1,7	UBS Preferred
Funding Trust I, 8.622%	2,207,582
		Foreign Government Bond1.2%
4,228		United Mexican
States, 6.75%, 9/27/34	4,714,220
Shares
		Common Stocks0.0%
1,895	8	Critical Care
Systems Intl., Inc.	11,844
		Total Long-Term Investments (cost $449,354,125)	448,621,855

Contracts/
Notional
Amount
(000)
	OUTSTANDING OPTIONS PURCHASED0.3%
	Interest Rate
Swaps,
7,300	Trust pays 5.39%,
Trust receives 3-month LIBOR, expires 3/19/12	313,900
7,300	Trust pays
3-month LIBOR, Trust receives 5.39%, expires 3/19/12	254,259
8,000	Trust pays 5.40%,
Trust receives 3-month LIBOR, expires 7/27/07	25,348
5,500	Trust pays 5.52%,
Trust receives 3-month LIBOR, expires 9/21/36	321,097
5,500	Trust pays
3-month LIBOR, Trust receives 5.52%, expires 9/21/36	277,552
61	U.S. Treasury
Notes Future, expiring 6/16/07	953
	Total Outstanding
Options Purchased (cost $1,329,528)	1,193,109
	Total investments
before TBA sale commitment and outstanding options written (cost $450,683,653 9 )	449,814,964

Principal
Amount
(000)
		TBA SALE COMMITMENT(6.4)%
$ (24,900	)	Federal National
Mortgage Assoc., TBA, 5.50%, 5/14/37 (proceeds $24,627,656)	(24,619,875	)

Notional Amount (000)		Description	Value
		OUTSTANDING
OPTIONS WRITTEN(0.4)%
		Interest Rate
Swaps,
(7,300	)	Trust pays
3-month LIBOR, Trust receives 5.148%, expires 3/19/08	$ (161,841	)
(7,300	)	Trust pays
5.115%, Trust receives 3-month LIBOR, expires 3/19/08	(117,676	)
(5,700	)	Trust pays
5.135%, Trust receives 3-month LIBOR, expires 4/21/08	(104,642	)
(5,700	)	Trust pays
3-month LIBOR, Trust receives 5.135%, expires 4/21/08	(104,642	)
(12,400	)	Trust pays
3-month LIBOR, Trust receives 5.67%, expires 1/04/10	(276,706	)
(12,400	)	Trust pays 5.67%,
Trust receives 3-month LIBOR, expires 1/04/10	(544,323	)
(5,300	)	Trust pays
5.485%, Trust receives 3-month LIBOR, expires 10/28/19	(193,409	)
(5,300	)	Trust pays
3-month LIBOR, Trust receives 5.485%, expires 10/28/19	(138,217	)
		Total Outstanding Options Written (premium received $2,478,560)	(1,641,456	)
		Total
investments net of TBA sale commitment and outstanding options written110.0%	$ 423,553,633
		Liabilities in
excess of other assets(10.0)%	(38,642,762	)
		Net Assets100%	$ 384,910,871

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

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

See Notes to Financial Statements.

PO RTFOLIO OF INVESTMENTS APRIL 30, 2007 (unaudited)

BlackRock Income Trust Inc. (BKT)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		LONG-TERM
INVESTMENTS105.6%
		Mortgage
Pass-Through Securities25.3%
		Federal Home Loan Mortgage Corp.,
$ 775	1	4.019%, 1/01/35	$ 769,431
809	1	4.934%, 10/01/34	800,931
9,723		5.50%,
12/01/21-3/01/22	9,736,029
28	1	6.01%, 11/01/17	28,353
70		6.50%,
5/01/29-5/01/30	72,657
22		8.00%, 11/01/15	22,432
		8.50%, 3/01/08	87
142		9.00%, 9/01/20	152,318
		Federal National Mortgage Assoc.,
18,754		5.00%,
6/01/33-7/01/34	18,160,894
48,113		5.50%,
6/01/21-3/01/37	47,925,680
3,125		5.97%, 8/01/16	3,293,250
6,517		6.00%,
11/01/31-10/01/36	6,587,712
16,073		6.50%,
2/01/26-11/01/36	16,435,008
		7.50%, 2/01/22	249
75		8.00%,
5/01/08-5/01/22	75,384
4		9.50%,
1/01/19-9/01/19	4,283
		Government National Mortgage Assoc.,
49		7.00%, 10/15/17	50,620
437		7.50%,
8/15/21-12/15/23	453,520
226		8.00%,
10/15/22-2/15/29	241,799
21		9.00%,
6/15/18-9/15/21	22,864
		Total Mortgage Pass-Through Securities	104,833,501
		Federal
Housing Administration Securities2.0%
397		General Motors
Acceptance Corp. Colonial, 7.40%, 12/01/22	401,404
		General Motors Acceptance Corp. Projects,
292	2	Ser. 51, 7.43%,
2/01/23	295,534
491		Ser. 56, 7.43%,
11/01/22	497,297
50	3	Merrill Projects, Ser. 54, 7.43%, 5/15/23	51,029
782		Reilly Project, Ser. 41, 8.28%, 3/01/20	789,563
		USGI Projects,
108		Ser. 87, 7.43%,
12/01/22	109,441
336		Ser. 99,7.43%,
10/01/23	340,144
5,562		Ser. 6094, 7.43%,
6/01/21	5,628,445
		Total Federal Housing Administration Securities	8,112,857
		Agency
Multiple Class Mortgage Pass-Through Securities28.1%
		Federal Home Loan Mortgage Corp.,
4,472	1	Ser. 11, Class
A9, 2.319%, 1/25/28	3,264,598
203		Ser. 19, Class F,
8.50%, 3/15/20	202,269
814		Ser. 40, Class K,
6.50%, 8/17/24	835,949
	1	Ser. 192, Class
U, 1,009.033%, 2/15/22	9
		Ser. 1057, Class
J, 1,008.001%, 3/15/21	1,722
3,000		Ser. 1598, Class
J, 6.50%, 10/15/08	2,991,480
437		Ser. 1961, Class
H, 6.50%, 5/15/12	441,843
9,110		Ser. 2218, Class
Z, 8.50%, 3/15/30	9,983,777
14,295		Ser. 2461, Class
Z, 6.50%, 6/15/32	14,788,518
10,200		Ser. 2542, Class
UC, 6.00%, 12/15/22	10,572,439
2,475		Ser. 2562, Class
PG, 5.00%, 1/15/18	2,444,896
928		Ser. 2564, Class
NC, 5.00%, 2/15/33	886,408
2,050		Ser. 2750, Class
TC, 5.25%, 2/15/34	2,028,606

Principal Amount (000)		Description
		Agency
Multiple Class Mortgage Pass-Through Securities(contd)
$ 11,689		Ser. 2758, Class
KV, 5.50%, 5/15/23	$ 11,734,831
1,573		Ser. 2765, Class
UA, 4.00%, 3/15/11	1,519,738
3,301		Ser. 2806, Class
VC, 6.00%, 12/15/19	3,392,397
2,337		Ser. 2927, Class
BZ, 5.50%, 2/15/35	2,277,669
2,667		Ser. 2996, Class
MK, 5.50%, 6/15/35	2,692,501
		Federal National Mortgage Assoc.,
1,256	1	Ser. 2, Class KP,
1.133%, 2/25/35	1,174,544
4,996		Ser. 28, Class
PB, 6.00%, 8/25/28	5,014,496
2,307		Ser. 29, Class
HC, 7.50%, 7/25/30	2,445,614
2,294		Ser. 31, Class
ZG, 7.50%, 5/25/34	2,783,937
7,503		Ser. 32, Class
VT, 6.00%, 9/25/15	7,636,928
61	1	Ser. 38, Class F,
8.325%, 4/25/21	63,380
4,395		Ser. 38, Class Z,
5.00%, 5/25/36	4,369,279
2,891		Ser. 68, Class
PC, 5.50%, 7/25/35	2,912,592
12,264		Ser. 135, Class
PB, 6.00%, 1/25/34	12,483,816
		Government National Mortgage Assoc.,
1,151		Ser. 5, Class Z,
7.00%, 5/16/26	1,197,628
1,932		Ser. 33, Class
PB, 6.50%, 7/20/31	1,970,018
4,357		Ser. 89, Class
PE, 6.00%, 10/20/34	4,473,538
		Total Agency Multiple Class Mortgage Pass-Through
Securities	116,585,420
		Non-Agency
Multiple Class Mortgage Pass-Through Securities8.2%
6,570		CWALT, Inc., Ser.
28CB, Class 1A5, 5.50%, 8/25/35	6,576,806
1,726		MASTR Alternative
Loan Trust, Ser. 7, Class 4A3, 8.00%, 11/25/18	1,828,877
7,928		MASTR Asset
Securitization Trust, Ser. 12, Class 3A5, 5.25%, 10/25/14	7,815,210
6,211	1	Residential Asset
Securitization Trust, Ser. A8, Class A2, 5.67%, 10/25/18	6,193,591
10,551		Residential
Funding Securities Corp., Ser. RM2, Class AI5, 8.50%, 5/25/33	11,377,614
22	1,4	Summit Mortgage
Trust, Ser. 1, Class B1, 6.596%, 12/28/12	21,828
		Total Non-Agency Multiple Class Mortgage Pass-Through
Securities	33,813,926
		Inverse
Floating Rate Mortgage Securities3.1%
		Federal Home Loan Mortgage Corp.,
34	1	Ser. 1160, Class
F, 17.319%, 10/15/21	34,629
163	1,5	Ser. 1616, Class
SB, 8.50%, 11/15/08	163,008
459	1	Ser. 1688, Class
S, 9.549%, 12/15/13	465,917
3,957	1	Ser. 3167, Class
SX, 5.58%, 6/15/36	3,933,489
		Federal National Mortgage Assoc.,
	1	Ser. 7, Class S,
541.833%, 3/25/21	6,872
1	1	Ser. 17, Class S,
531.967%, 6/25/21	10,291
62	1	Ser. 38, Class
SA, 10.186%, 4/25/21	65,891
	1	Ser. 46, Class S,
1,295.281%, 5/25/21	7,980
	1	Ser. 49, Class S,
479.05%, 12/25/21	3,636
196	1	Ser. 72, Class S,
8.75%, 5/25/08	198,990
6,307	1	Ser. 73, Class
DS, 3.718%, 8/25/35	6,039,926
136	1	Ser. 87, Class S,
12.522%, 8/25/21	162,980
71	1	Ser. 93, Class S,
8.50%, 5/25/08	71,391
27	1	Ser. 170, Class
SC, 9.00%, 9/25/08	27,740

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Inverse
Floating Rate Mortgage Securities(contd)
$ 407	1	Ser. 196, Class
SC, 8.124%, 10/25/08	$ 412,088
182	1	Ser. 214, Class
SH, 4.359%, 12/25/08	182,122
984	1	Ser. 247, Class
SN, 10.00%, 12/25/23	1,074,407
118	1	Kidder Peabody
Acceptance Corp., Ser. 1, Class A6, 6.741%, 8/25/23	117,867
		Total Inverse Floating Rate Mortgage Securities	12,979,224
		Interest
Only Asset-Backed Securities0.2%
563	1,4	Morgan Stanley
Capital Trust I, Ser. HF1, Class X, 1.915%, 6/15/17	1,253
		Sterling Coofs Trust,
20,229		Ser. 1, 2.362%,
4/15/29	606,857
15,189		Ser. 2, 2.126%,
3/30/30	417,697
		Total Interest Only Asset-Backed Securities	1,025,807
		Interest
Only Mortgage-Backed Securities12.6%
1,635		ABN Amro Mortgage
Corp., Ser. 4, Class A2, 5.50%, 3/25/33	60,810
241,128	1	Banc of America
Mortgage Securities, Inc., Ser. 3, Class 1A, 0.285%, 5/25/18	1,587,542
70,676	1	Commercial
Mortgage Acceptance Corp., Ser. ML1, 0.922%, 11/15/17	826,169
7,564	1,4	Credit Suisse
First Boston Mortgage Securities Corp., Ser. C1, Class AX, 1.791%, 6/20/29	312,273
153,396	1	CWALT, Inc., Ser.
79CB, Class A2, Zero Coupon, 1/25/36	829,106
		Federal Home Loan Mortgage Corp.,
3,330	1	Ser. 60, Class
HS, 0.625%, 4/25/24	20,608
		Ser. 176, Class
M, 1,010.00%, 7/15/21	80
		Ser. 200, Class
R, 93,522.906%, 12/15/22	387
1,874		Ser. 204, Class
IO, 6.00%, 5/01/29	400,890
15	1	Ser. 1043, Class
H, 20.813%, 2/15/21	15,539
	1	Ser. 1054, Class
I, 413.56%, 3/15/21	228
		Ser. 1056, Class
KD, 1,084.50%, 3/15/21	1,511
	1	Ser. 1148, Class
E, 563.074%, 10/15/21	615
		Ser. 1179, Class
O, 1,009.389%, 11/15/21	107
232		Ser. 1706, Class
IA, 7.00%, 10/15/23	11,541
79		Ser. 1720, Class
PK, 7.50%, 1/15/24	5,567
3,330		Ser. 1914, Class
PC, 0.75%, 12/15/11	38,390
839	1	Ser. 2296, Class
SA, 2.43%, 3/15/16	45,861
442	1	Ser. 2444, Class
ST, 2.65%, 9/15/29	14,349
132		Ser. 2513, Class
BI, 5.50%, 12/15/15	1,361
1,543		Ser. 2542, Class
MX, 5.50%, 5/15/22	276,320
2,888		Ser. 2545, Class
NI, 5.50%, 3/15/22	417,661
764	1	Ser. 2559, Class
IO, 0.768%, 8/15/30	6,180
4,674		Ser. 2561, Class
EW, 5.00%, 9/15/16	427,071
11,350		Ser. 2611, Class
QI, 5.50%, 9/15/32	1,989,755
2,753		Ser. 2633, Class
PI, 4.50%, 3/15/12	39,224
16,760	1	Ser. 2647, Class
IV, 0.45%, 7/15/33	959,003
3,539		Ser. 2653, Class
MI, 5.00%, 4/15/26	322,832
5,425		Ser. 2658, Class
PI, 4.50%, 6/15/13	176,153
4,033		Ser. 2672, Class
TQ, 5.00%, 3/15/23	134,618
601		Ser. 2676, Class
JI, 5.50%, 8/15/13	884

Principal Amount (000)		Description
		Interest
Only Mortgage-Backed Securities(contd)
$ 3,633		Ser. 2687, Class
IL, 5.00%, 9/15/18	$ 424,775
4,783		Ser. 2687, Class
IQ, 5.50%, 9/15/22	79,703
4,729		Ser. 2693, Class
IB, 4.50%, 6/15/13	162,090
2,761		Ser. 2694, Class
LI, 4.50%, 7/15/19	196,659
5,121		Ser. 2773, Class
OX, 5.00%, 2/15/18	619,871
16,985	1	Ser. 2780, Class
SM, 0.68%, 4/15/34	152,022
13		Ser. 2786, Class
PI, 4.50%, 10/15/10	2
6,727		Ser. 2825, Class
NI, 5.50%, 3/15/30	1,533,733
18,066	1	Ser. 2865, Class
SR, 0.405%, 10/15/33	668,563
12,235	1	Ser. 2865, Class
SV, 0.584%, 10/15/33	659,232
1,922		Ser. 2949, Class
IO, 5.50%, 3/15/35	202,382
35,670	1	Ser. 2990, Class
WR, 1.306%, 6/15/35	1,863,631
101,782	1	Ser. 3122, Class
IS, 1.38%, 3/15/36	4,878,743
95,868	1	Ser. 3225, Class
EY, 0.97%, 10/15/36	4,125,727
		Federal National Mortgage Assoc.,
226		Ser. 5, Class H,
9.00%, 1/25/22	54,499
13		Ser. 7, Class 2,
8.50%, 4/01/17	2,477
4,411		Ser. 9, Class BI,
5.50%, 10/25/22	622,097
1	1	Ser. 10, Class S,
524.318%, 5/25/21	20,778
1		Ser. 12, Class C,
1,016.897%, 2/25/22	16,815
1	1	Ser. 12, Class S,
553.577%, 5/25/21	17,151
4,888		Ser. 13, Class
IG, 5.00%, 10/25/22	189,381
2,520		Ser. 16, Class
PI, 5.00%, 11/25/12	21,325
1		Ser. 33, Class
PV, 1,078.42%, 10/25/21	24,302
1,159	1	Ser. 33, Class
SG, 2.756%, 3/25/09	27,233
53,218	1	Ser. 36, Class
SP, 1.38%, 5/25/36	3,175,209
		Ser. 38, Class N,
1,008.50%, 4/25/21	630
1,045		Ser. 43, Class
LC, 6.00%, 3/25/34	262,562
1		Ser. 50, Class G,
1,158.628%, 12/25/21	11,674
749	1	Ser. 50, Class
SI, 1.20%, 4/25/23	27,076
4,625		Ser. 51, Class
IE, 5.50%, 4/25/26	147,643
6,044		Ser. 55, Class
GI, 5.00%, 7/25/19	595,390
13,278	1	Ser. 55, Class
SB, 0.83%, 7/25/35	473,776
4,077	1	Ser. 59, Class S,
4.924%, 10/25/22	632,270
650	1	Ser. 60, Class
SB, 1.60%, 10/25/22	31,478
322		Ser. 62, Class
IC, 5.50%, 7/25/15	7,533
5,899		Ser. 66, Class
CI, 5.00%, 7/25/33	1,237,708
2,265	1	Ser. 68, Class
SC, 2.756%, 1/25/24	122,500
14,882	1	Ser. 73, Class
ST, 0.81%, 8/25/35	508,238
6,389		Ser. 88, Class
TI, 4.50%, 11/25/13	201,442
24		Ser. 89, Class 2,
8.00%, 6/01/18	5,357
32,838	1	Ser. 90, Class
JH, 1.38%, 11/25/34	1,611,153
14,206		Ser. 90, Class M,
6.00%, 1/25/28	2,910,406
7		Ser. 94, Class 2,
9.50%, 8/01/21	1,605
		Ser. 99, Class L,
930.00%, 8/25/21	7,527
3,741		Ser. 122, Class
IC, 5.00%, 9/25/18	449,495
		Ser. 123, Class
M, 1,009.50%, 10/25/20	1,306
28	1	Ser. 136, Class
S, 14.746%, 11/25/20	33,887
		Ser. 139, Class
PT, 648.35%, 10/25/21	8,495
	1	Ser. 141, Class
SA, 13.625%, 8/25/07	8
2,411	1	Ser. 199, Class
SB, 2.156%, 10/25/23	147,759
689		Ser. W4, Class
IO, 6.50%, 12/25/28	156,552
98		First Boston
Mortgage Securities Corp., Ser. C, Class I, 10.965%, 4/25/17	25,381

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Interest
Only Mortgage-Backed Securities(contd)
		First Horizon Alternative Mortgage Securities,
$ 49,865	1	Ser. FA2, Class
1A4, 0.18%, 5/25/36	$ 231,100
78,150	1	Ser. FA7, Class
1A7, Zero Coupon, 10/25/35	863,521
195,278	1	Ser. FA9, Class
A2, Zero Coupon, 12/25/35	550,215
14,599	1	General Motors Acceptance Corp., Commercial Mortgage
Securities, Inc., Ser. C1, Class X, 1.513%, 7/15/27	390,066
8,896	1,4	Goldman Sachs
Mortgage Securities Corp., Ser. 5, 0.988%, 2/19/25	188,230
		Government National Mortgage Assoc.,
1,890		Ser. 39, Class
ID, 5.00%, 5/20/33	476,041
2,228		Ser. 58, Class
IT, 5.50%, 7/20/33	303,186
4,732		Ser. 75, Class
IJ, 5.50%, 7/20/25	94,837
18,701	1	Ser. 89, Classl
SA, 0.58%, 10/16/33	609,117
161,549		Indymac Index
Mortgage Loan Trust, Ser. AR33, Class 4AX, 0.165%, 1/25/37	656,293
77		Kidder Peabody
Acceptance Corp., Ser. B, Class A2, 9.50%, 4/22/18	16,105
26,661		MASTR Adjustable
Rate Mortgages Trust, Ser. 3, Class 3AX, 0.977%, 4/25/34	492,696
1,470		MASTR Alternative
Loan Trust, Ser. 9, Class 15X2, 6.00%, 1/25/19	251,512
1,856		Morgan Stanley
Capital Trust I, Ser. 3, Class 1AX, 5.00%, 5/25/19	277,205
156,526	1	Residential
Accredit Loans, Inc., Ser. QS16, Class A2, Zero Coupon, 11/25/35	311,424
83,758	1	Sequoia Mortgage
Trust, Ser. 2, Class XA, 1.021%, 3/20/35	601,947
8,970	2	Small Business
Administration, Ser. 1, 1.381%, 4/01/15	1
		Structured Adjustable Rate Mortgage Loan Trust,
5,680	1	Ser. 18, Class
7AX, 5.50%, 9/25/35	1,006,068
16,283	1	Ser. 2, Class
4AX, 5.50%, 3/25/36	2,758,290
4,706		Ser. 20, Class
3AX, 5.50%, 10/25/35	764,702
47,983	1	Ser. 7, Class
3AS, 6.441%, 8/25/36	2,938,966
93,800	1	Vendee Mortgage
Trust, Ser. 2, Class 1, 0.052%, 5/15/29	237,567
		Total Interest Only Mortgage-Backed Securities	52,298,975
		Principal
Only Mortgage-Backed Securities5.4%
		Countrywide Home Loans, Inc.,
5,730	6	Ser. 26, 4.944%,
8/25/33	4,517,145
1,092	6	Ser. J4, 5.142%,
6/25/33	832,319
1,575	6	Ser. J5, 4.911%,
7/25/33	1,270,076
1,220	6	Ser. J8, 4.787%,
9/25/23	994,394
		Drexel Burnham Lambert, Inc.,
27	6	Ser. K, Class 1,
11.50%, 9/23/17	26,413
325	6	Ser. V, Class 1,
11.50%, 9/01/18	300,724
		Federal Home Loan Mortgage Corp.,
254	6	Ser. 8, Class
A10, 6.737%, 11/15/28	213,394
166	6	Ser. 1418, Class
M, 7.50%, 11/15/22	155,068
577	6	Ser. 1571, Class
G, 7.50%, 8/15/23	528,334
2,202	6	Ser. 1691, Class
B, 7.50%, 3/15/24	1,911,323
205	6	Ser. 1739, Class
B, 7.50%, 2/15/24	185,895

Principal Amount (000)		Description
		Principal
Only Mortgage-Backed Securities(contd)
		Federal National Mortgage Assoc.,
$ 321	6	Ser. 2, Class KB,
8.00%, 1/25/23	$ 268,714
46	6	Ser. 7, Class J,
10.00%, 2/25/21	38,824
980	6	Ser. 13, Class
PR, 6.50%, 3/25/32	773,744
154	6	Ser. 51, Class E,
8.00%, 2/25/23	131,366
27	6	Ser. 70, Class A,
7.00%, 5/25/23	22,412
62	6	Ser. 167, Class
D, 8.50%, 10/25/17	58,630
48	6	Ser. 203, Class
1, 8.00%, 2/01/23	41,252
33	6	Ser. 228, Class
1, 7.00%, 5/01/23	26,614
2,030	6	Ser. 249, Class
B, 7.50%, 11/25/23	1,639,440
255	6	Ser. 273, Class
1, 7.00%, 7/01/26	208,354
4,775	6	Ser. 328, Class
1, 6.00%, 11/01/32	3,743,792
3,831	6	Ser. 338, Class
1, 5.50%, 6/01/33	2,924,391
361	6	Ser. W4, Class
PO, 5.985%, 2/25/29	283,408
314	6	MASTR Asset
Securitization Trust, Ser. 3, Class 4A15, 5.634%, 3/25/34	173,896
983	6	Residential Asset
Securitization Trust, Ser. A15, Class 1A8, 5.713%, 2/25/36	525,701
14	2,6	Structured
Mortgage Asset Residential Trust, Ser. 3C, Class CX, 7.031%, 4/25/24	13,351
999	6	Washington
Mutual, Ser. 9, Class CP, 5.112%, 11/25/35	760,472
		Total Principal Only Mortgage-Backed Securities	22,569,446
		Collateralized
Mortgage Obligation Residual Securities0.0%
		Collateralized Mortgage Obligation Trust,
		Ser. 40, Class R,
580.50%, 4/01/18	347
		Ser. 42, Class R,
6,000.00%, 10/01/14	4,335
		Federal Home Loan Mortgage Corp.,
		Ser. 19, Class R,
9,427.227%, 3/15/20	3,344
		Ser. 75, Class R,
9.50%, 1/15/21	5
		Ser. 75, Class
RS, 17.018%, 1/15/21	5
		Ser. 173, Class
R, 9.00%, 11/15/21	24
		Ser. 173, Class
RS, 9.113%, 11/15/21	25
13		Painewebber CMO
Trust, Ser. 88 M, Class 6, 13.80%, 9/01/18
		Total Collateralized Mortgage Obligation Residual
Securities	8,085
		U.S.
Government and Agency Securities19.4%
		Overseas Private Investment Corp.,
318		4.09%, 5/29/12	301,848
890	1	4.30%, 5/29/12	867,533
668		4.64%, 5/29/12	659,646
377		4.68%, 5/29/12	361,766
2,858		4.87%, 5/29/12	2,850,435
3,554	1	5.40%, 5/29/12	3,727,495
13,000		Resolution
Funding Corp., Ser. B, Zero Coupon, 4/15/30	4,154,007
		Small Business Administration,
688		Ser. 20C-1,
7.15%, 3/01/17	714,377
742		Ser. 20E-1,
7.60%, 5/01/16	773,193
1,011		Ser. 20F-1,
7.55%, 6/01/16	1,052,745
613		Ser. 20G-1,
7.70%, 7/01/16	640,302
1,010		Ser. 20H-1,
7.25%, 8/01/16	1,049,248
1,673		Ser. 20K-1,
6.95%, 11/01/16	1,729,081

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		U.S.
Government and Agency Securities(contd)
$ 19,400	5,7	U.S. Treasury Notes, 4.00%, 8/31/07	$ 19,334,835
100,000	5,7	U.S. Treasury Strip, Zero Coupon, 11/15/24	42,200,400
		Total U.S. Government and Agency Securities	80,416,911
		Corporate
Bond0.7%
2,857	2	Structured Asset
Receivable Trust,
5.114%, 1/21/10	2,855,424
		Commercial
Mortgage-Backed Security0.6%
2,420	1	Credit Suisse
Mortgage Capital Certificates, Ser. C2, Class A3, 5.542%, 1/15/49	2,442,976
		Total
Long-Term Investments (cost $455,226,074)	437,942,552

Notional Amount (000)
	OUTSTANDING
OPTIONS PURCHASED0.3%
	Interest Rate Swaps,
7,300	Trust pays
3-month LIBOR, Trust receives 5.39%, expires 3/19/12	254,259
5,500	Trust pays
3-month LIBOR, Trust receives 5.52%, expires 9/21/36	277,552
7,300	Trust pays 5.39%,
Trust receives 3-month LIBOR, expires 3/19/12	313,900
8,200	Trust pays 5.40%,
Trust receives 3-month LIBOR, expires 7/27/07	25,982
5,500	Trust pays 5.52%,
Trust receives 3-month LIBOR, expires 9/21/36	321,096
`	Total
Outstanding Options Purchased (cost $1,303,850)	1,192,789
	Total
investments before borrowed bonds, investments sold short, TBA sale
commitments, and outstanding options written (cost $456,529,924 8 )	439,135,341

Principal Amount (000)
		BORROWED
BONDS14.9%
$ 32,808	9	U.S. Treasury Bonds, 5.00%, TBD	32,808,000
29,060	9	U.S. Treasury Notes, 5.00%, TBD	29,059,750
		Total
Borrowed Bonds (cost $61,867,750)	61,867,750

Principal Amount (000)		Description	Value
		INVESTMENTS
SOLD SHORT(11.8)%
		U.S. Treasury Bonds,
$ (12,930	)	5.375%, 2/15/31	$ (13,849,245	)
(15,750	)	6.25%, 8/15/23	(18,160,490	)
		U.S. Treasury Notes,
(14,900	)	4.00%, 2/15/15	(14,322,625	)
(2,500	)	5.125%, 5/15/16	(2,591,113	)
		Total
Investments Sold Short (proceeds $49,629,126)	(48,923,473	)
		TBA SALE
COMMITMENTS(4.8)%
		Federal National Mortgage Assoc.,
(5,200	)	5.00%, 5/14/37	(5,022,877	)
(15,000	)	5.50%, 5/14/37	(14,831,250	)
		Total
TBA Sale Commitments (proceeds $19,885,469)	(19,854,127	)

Notional Amount (000)
		OUTSTANDING
OPTIONS WRITTEN(0.4)%
		Interest Rate Swaps,
(5,700	)	Trust pays
3-month LIBOR, Trust receives 5.135%, expires 4/21/08	(104,642	)
(7,300	)	Trust pays
3-month LIBOR, Trust receives 5.148%, expires 3/19/08	(161,841	)
(5,400	)	Trust pays
3-month LIBOR, Trust receives 5.485%, expires 10/28/19	(140,825	)
(12,400	)	Trust pays
3-month LIBOR, Trust receives 5.67%, expires 1/04/10	(276,706	)
(7,300	)	Trust pays
5.115%, Trust receives 3-month LIBOR, expires 3/19/08	(117,676	)
(5,700	)	Trust pays
5.135%, Trust receives 3-month LIBOR, expires 4/21/08	(104,642	)
(5,400	)	Trust pays
5.485%, Trust receives 3-month LIBOR, expires 10/28/19	(197,058	)
(12,400	)	Trust pays 5.67%,
Trust receives 3-month LIBOR, expires 1/04/10	(544,323	)
		Total
Outstanding Options Written (premium received $2,486,055)	(1,647,713	)
		Total
investments net of borrowed bonds, investments sold short, TBA sale
commitments and outstanding options written103.8%	$ 430,577,778
		Liabilities in
excess of other assets(3.8)%	(15,685,340	)
		Net
Assets100%	$ 414,892,438

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

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

| KEY TO ABBREVIATIONS — LIBOR | | London Interbank Offered
Rate |
| --- | --- | --- |
| TBA | | To Be
Announced |
| TBD | | To Be
Determined |

See Notes to Financial Statements.

PO RTFOLIO OF INVESTMENTS APRIL 30, 2007 (unaudited)

BlackRock Limited Duration Income Trust (BLW)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		LONG-TERM INVESTMENTS141.9%
		Corporate Bonds59.0%
		Aerospace & Defense1.5%
$ 1,560		AAR Corp., Ser.
A2, 8.39%, 5/15/11	$ 1,575,600
745	1	Bombardier, Inc.,
8.00%, 11/15/14 (Canada)	783,181
5,676		DI
Finance/DynCorp Intl., Ser. B, 9.50%, 2/15/13	6,101,700
		DRS Technologies,
Inc.,
330		6.875%, 11/01/13	333,300
310		7.625%, 2/01/18	324,725
755		Sequa Corp.,
9.00%, 8/01/09	798,413
570	1	TransDigm, Inc.,
7.75%, 7/15/14	591,375
		Total Aerospace
& Defense	10,508,294
		Automotive2.4%
850		Accuride Corp.,
8.50%, 2/01/15	877,625
		AutoNation, Inc.,
690		7.00%, 4/15/14	693,450
690	2	7.356%, 4/15/13	696,037
130	1,2	Avis Budget Car
Rental LLC/Avis Budget Finance, Inc., 7.86%, 5/15/14	133,575
7,500	3	DaimlerChrysler
NA Holding Corp., 4.05%, 6/04/08	7,395,345
500		Ford Capital BV,
9.50%, 6/01/10 (Netherlands)	502,500
2,225		Lear Corp., Ser.
B, 8.75%, 12/01/16	2,166,594
1,000	3	Metaldyne Corp.,
11.00%, 11/01/13	1,030,000
3,500		Sonic Automotive,
Inc., Ser. B, 8.625%, 8/15/13	3,648,750
		Total Automotive	17,143,876
		Basic Materials5.5%
1,630		Abitibi-Consolidated,
Inc., 6.00%, 6/20/13 (Canada)	1,409,950
2,200		AK Steel Corp.,
7.75%, 6/15/12	2,271,500
1,100	1	American Pacific
Corp., 9.00%, 2/01/15	1,105,500
670	2	Bowater, Inc.,
8.355%, 3/15/10	673,350
120		Chemtura Corp.,
6.875%, 6/01/16	118,200
750		CPG Intl. I,
Inc., 10.50%, 7/01/13	787,500
		Domtar, Inc. (Canada)
300		7.125%, 8/15/15	305,625
140		7.875%, 10/15/11	148,225
740		Donohue Forest
Products, 7.625%, 5/15/07 (Canada)	740,000
		Freeport-McMoRan
Copper & Gold, Inc.,
4,280	3	8.375%, 4/01/17	4,681,250
750	2	8.564%, 4/01/15	790,313
		Huntsman LLC,
1,950	3	11.625%, 10/15/10	2,101,125
310		12.00%, 7/15/12	345,650
		Ineos Group
Holdings Plc (United Kingdom)
2,885	1	8.50%, 2/15/16	2,791,237
1,490		(EUR), 7.875%,
2/07/16	1,921,494
2,225		Innophos, Inc.,
8.875%, 8/15/14	2,330,688
980	1	Key Plastics
LLC/Key Plastics Finance Corp., 11.75%, 3/15/13	989,800
		Lyondell Chemical
Co.,
1,100		8.00%, 9/15/14	1,152,250

		Description
		Basic Materials(contd)
$ 1,835		8.25%, 9/15/16	$ 1,963,450
560		10.50%, 6/01/13	613,900
3,020	3	11.125%, 7/15/12	3,216,300
215		Nalco Co., 8.875%, 11/15/13	230,050
		NewPage Corp.,
810		10.00%, 5/01/12	895,050
1,500	2,3	11.606%, 5/01/12	1,663,125
300		12.00%, 5/01/13	333,375
2,690	2	Nova Chemicals Corp., 8.502%, 11/15/13 (Canada)	2,737,075
2,020	1	Pregis Corp., 12.375%, 10/15/13	2,222,000
730	1	Terra Capital, Inc., 7.00%, 2/01/17	715,400
60	1	Verso Paper Holdings LLC/Verson Paper, Inc., 11.375%, 8/01/16	64,200
		Total Basic Materials	39,317,582
		Building
& Development0.9%
3,000	3	DR Horton, Inc., 5.875%, 7/01/13	2,924,886
		Goodman Global Holding Co., Inc.,
2,000		7.875%, 12/15/12	2,015,000
269	2	8.36%, 6/15/12	273,035
890		Nortek, Inc., 8.50%, 9/01/14	881,100
270		North American Energy Partners, Inc., 8.75%, 12/01/11
(Canada)	278,100
		Total Building
& Development	6,372,121
		Commercial
Services0.2%
350		FTI Consulting, Inc., 7.75%, 10/01/16	365,313
875	1	Quebecor World, Inc., 9.75%, 1/15/15 (Canada)	923,125
		Total Commercial Services	1,288,438
		Conglomerates1.1%
7,500	3	Tyco Intl. Group S.A., 6.125%, 11/01/08 (Luxembourg)	7,609,560
		Consumer
Products5.3%
2,085	2	Ames True Temper, Inc., 9.356%, 1/15/12	2,126,700
		General Nutrition Centers, Inc.,
2,250	1	9.796%, 3/15/14	2,202,187
1,880	1	10.75%, 3/15/15	1,875,300
5,000	3	Group 1 Automotive, Inc., 8.25%, 8/15/13	5,175,000
4,400	3	JC Penney Co., Inc., 8.00%, 3/01/10	4,708,902
1,505		Lazy Days RV Center, Inc., 11.75%, 5/15/12	1,557,675
		Michaels Stores, Inc.,
2,210	1	10.00%, 11/01/14	2,425,475
2,496	1	11.375%, 11/01/16	2,751,564
173		Neiman-Marcus Group, Inc., 9.00%, 10/15/15	190,733
210	1,2	Nutro Products, Inc., 9.37%, 10/15/13	214,725
600		Quiksilver, Inc., 6.875%, 4/15/15	585,000
1,000		Reynolds American, Inc., 7.625%, 6/01/16	1,094,090
		Rite Aid Corp.,
3,320		7.50%, 3/01/17	3,311,700
5,000	3	8.125%, 5/01/10	5,162,500
1,790 1,3		Sally Holdings LLC, 10.50%, 11/15/16	1,861,600
565		Spectrum Brands, Inc., 7.375%, 2/01/15	447,762
2,175		United Rentals NA, Inc., 7.00%, 2/15/14	2,218,500
		Total Consumer Products	37,909,413

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)

		Description
		Containers
& Packaging0.7%
		Berry Plastics Holding Corp.,
$ 1,210		8.875%, 9/15/14	$ 1,246,300
835	2	9.23%, 9/15/14	853,788
885		Crown Americas LLC/Crown Americas Capital Corp.,
7.75%, 11/15/15	935,887
585		Graham Packaging Co., Inc., 8.50%, 10/15/12	596,700
1,370	1,2	Impress Holdings BV, 8.481%, 9/15/13 (Netherlands)	1,402,501
		Total Containers & Packaging	5,035,176
		Ecological
Services & Equipment0.6%
2,000		Casella Waste Systems, Inc., 9.75%, 2/01/13	2,115,000
2,065		Waste Services, Inc., 9.50%, 4/15/14	2,178,575
		Total Ecological Services & Equipment	4,293,575
		Energy6.1%
5,500	1,3	AES Corp., 8.75%, 5/15/13	5,864,375
550		Berry Petroleum Co., 8.25%, 11/01/16	552,063
1,210		Chaparral Energy, Inc., 8.50%, 12/01/15	1,228,150
		Chesapeake Energy Corp.,
650		6.375%, 6/15/15	650,813
100		6.875%, 11/15/20	100,750
4,000	3	7.50%, 9/15/13	4,180,000
		Compagnie Generale de Geophysique-Veritas (France)
255		7.50%, 5/15/15	267,750
420		7.75%, 5/15/17	445,200
925		Compton Petroleum Finance Corp., 7.625%, 12/01/13
(Canada)	918,062
1,640		East Cameron Gas Co., 11.25%, 7/09/19 (Cayman
Islands)	1,574,400
590		Edison Mission Energy, 7.50%, 6/15/13	613,600
400		El Paso Corp., 7.80%, 8/01/31	446,000
400		El Paso Natural Gas Co., 8.875%, 6/15/32	499,556
161		Elwood Energy LLC, 8.159%, 7/05/26	170,716
		Encore Acquisition Co.,
250		6.00%, 7/15/15	228,750
200		7.25%, 12/01/17	193,500
495		Exco Resources, Inc., 7.25%, 1/15/11	496,238
380	3	Grant Prideco, Inc., Ser. B, 6.125%, 8/15/15	377,150
895		KCS Energy, Inc., 7.125%, 4/01/12	886,050
4,324	3	Midwest Generation LLC, Ser. B, 8.56%, 1/02/16	4,767,502
625		Mirant Americas Generation LLC, 8.30%, 5/01/11	660,937
500		Mission Energy Holdings Co., 13.50%, 7/15/08	546,250
		NRG Energy, Inc.,
210		7.25%, 2/01/14	217,350
1,185		7.375%, 2/01/16	1,230,919
1,990	1	OPTI, Inc., 8.25%, 12/15/14 (Canada)	2,104,425
580		Orion Power Holdings, Inc., 12.00%, 5/01/10	669,900
		Reliant Energy, Inc.,
1,035		6.75%, 12/15/14	1,084,162
170		9.25%, 7/15/10	178,288
1,515	1	Sabine Pass LNG LP, 7.50%, 11/30/16	1,556,662

		Description
		Energy(contd)
$ 1,240	1	SemGroup LP, 8.75%, 11/15/15	$ 1,280,300
1,890	1,2	Stone Energy Corp., 8.106%, 7/15/10	1,890,000
5,000		Swift Energy Co., 9.375%, 5/01/12	5,225,000
725	1	Targa Resources, Inc., 8.50%, 11/01/13	746,750
1,550		Whiting Petroleum Corp., 7.25%, 5/01/12-5/01/13	1,519,400
		Total Energy	43,370,968
		Entertainment
& Leisure1.3%
505		AMC Entertainment, Inc., 11.00%, 2/01/16	579,487
370		Cinemark, Inc., Zero Coupon, 3/15/14	340,400
1,430	1	Greektown Holdings LLC, 10.75%, 12/01/13	1,533,675
1,100		Harrahs Operating Co., Inc., 5.75%, 10/01/17	913,000
4,425		MGM Mirage, 9.75%, 6/01/07	4,441,594
250		Poster Financial Group, Inc., 8.75%, 12/01/11	260,000
1,255	1	TDS Investor, 9.875%, 9/01/14	1,342,850
100		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
6.625%, 12/01/14	100,250
		Total Entertainment & Leisure	9,511,256
		Financial
Institutions6.7%
		American Real Estate Partners LP/American Real Estate
Finance Corp.,
1,480	3	7.125%, 2/15/13	1,455,950
5,860	3	8.125%, 6/01/11	5,977,200
790	1,2	BMS Holdings, Inc., 12.40%, 2/15/12	791,975
490		Britannia Bulk Plc, 11.00%, 12/01/11 (United Kingdom)	494,900
		Ford Motor Credit Co.,
2,800		7.375%, 2/01/11	2,769,379
940	2	8.105%, 1/13/12	927,134
60	2	9.806%, 4/15/12	64,128
2,735	3	General Motors Acceptance Corp., 6.875%, 8/28/12	2,733,085
3,494	1	iPayment Investors LP, 11.625%, 7/15/14	3,633,496
950		iPayment, Inc., 9.75%, 5/15/14	989,187
900		K&F Acquisition, Inc., 7.75%, 11/15/14	963,000
5,000	1,3	Kazkommerts Intl. BV, 10.125%, 5/08/07 (Netherlands)	5,002,500
200	2	Marsh & McLennan Cos., Inc., 5.495%, 7/13/07	200,026
		Momentive Performance Materials, Inc.,
3,430	1	10.125%, 12/01/14	3,635,800
1,310	1	11.50%, 12/01/16	1,401,700
		Rainbow National Services LLC,
925	1	8.75%, 9/01/12	987,438
4,835	1	10.375%, 9/01/14	5,445,419
1,480		Standard Aero Holdings, Inc., 8.25%, 9/01/14	1,602,100
5,146	4	Structured Asset Receivable Trust, 5.114%, 1/21/10	5,143,007
220	2	Universal City Florida Holding Co. I/II, 10.106%,
5/01/10	225,775
2,930	1	Wimar Opco LLC/Wimar Opco Finance Corp., 9.625%,
12/15/14	2,973,950
		Total Financial Institutions	47,417,149

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)

		Description
		Health
Care1.9%
$ 5,000	3	Concentra Operating Corp., 9.50%, 8/15/10	$ 5,275,000
		HealthSouth Corp.,
860	1	10.75%, 6/15/16	937,400
1,390	1,2	11.354%, 6/15/14	1,511,625
3,000		Norcross Safety Products LLC/Norcross Capital Corp.,
9.875%, 8/15/11	3,168,750
1,045		Tenet Healthcare Corp., 6.875%, 11/15/31	836,000
1,830		Universal Hospital Services, Inc., 10.125%, 11/01/11	1,960,563
		Total Health Care	13,689,338
		Industrials2.3%
1,700	1	AGY Holding Corp., 11.00%, 11/15/14	1,787,125
4,000		Fasten Tech, Inc., 11.50%, 5/01/11	4,245,000
650		Hexcel Corp., 6.75%, 2/01/15	651,625
905		Park-Ohio Industries, Inc., 8.375%, 11/15/14	895,950
		RBS Global, Inc./Rexnord Corp.,
2,000		9.50%, 8/01/14	2,140,000
1,430		11.75%, 8/01/16	1,587,300
3,125	1	Sunstate Equipment Co. LLC,
		10.50%, 4/01/13	3,343,750
1,415		Trimas Corp., 9.875%, 6/15/12	1,468,063
		Total Industrials	16,118,813
		Media9.1%
		Affinion Group, Inc.,
1,975		10.125%, 10/15/13	2,152,750
850		11.50%, 10/15/15	935,000
420		American Media Operations, Inc., Ser. B, 10.25%, 5/01/09	395,850
800	2	Cablevision Systems Corp., Ser. B, 9.82%, 4/01/09	848,000
520		CanWest MediaWorks, Inc., 8.00%, 9/15/12 (Canada)	539,500
3,500		CBD Media, Inc., 8.625%, 6/01/11	3,679,375
950		CCH I Holdings LLC/CCH I Holdings Capital Corp.,
11.00%, 10/01/15	1,009,375
		Charter Communications Holdings II
		LLC/Charter
Communications Holdings II Capital Corp.,
2,255		10.25%, 9/15/10	2,401,575
865		Ser. B, 10.25%,
9/15/10	919,063
2,425	1	CMP Susquehanna Corp., 9.875%, 5/15/14	2,473,500
6,685	3	Comcast Cable Communications, Inc., 6.875%, 6/15/09	6,913,092
1,650		Dex Media West LLC/Dex Media Finance Co., Ser. B,
9.875%, 8/15/13	1,796,437
500		DirecTV Holdings LLC/DirecTV Financing Co., 8.375%,
3/15/13	527,500
		EchoStar DBS Corp.,
2,800		5.75%, 10/01/08	2,803,500
1,330		7.00%, 10/01/13	1,381,538
200		7.125%, 2/01/16	208,250
2,525	1	Idearc, Inc., 8.00%, 11/15/16	2,635,469
300	1	Iesy Repository GMBH, 10.375%, 2/15/15 (Germany)	317,250
740		LIN Television Corp., 6.50%, 5/15/13	728,900
820		MediaNews Group, Inc., 6.875%, 10/01/13	746,200
2,105		Network Communications, Inc., 10.75%, 12/01/13	2,157,625

		Description
		Media(contd)
$ 2,790		Nexstar Finance, Inc., 7.00%, 1/15/14	$ 2,713,275
		Nielsen Finance LLC/Nielsen Finance Co.,
1,400	1	Zero Coupon,
8/01/16	1,011,500
4,340	1,3	10.00%, 8/01/14	4,741,450
2,000	1,2	Paxson Communications Corp., 8.606%, 1/15/12	2,040,000
1,900		Primedia, Inc., 8.00%, 5/15/13	1,976,000
4,260	3	RH Donnelley Corp., Ser. A-3, 8.875%, 1/15/16	4,622,100
2,000		Salem Communications Corp., 7.75%, 12/15/10	2,045,000
460		Sinclair Broadcast Group, Inc., 4.875%, 7/15/18	461,150
185		Sirius Satellite Radio, Inc., 9.625%, 8/01/13	185,000
1,965	1	Umbrella Acquisition, Inc., 9.75%, 3/15/15	1,979,737
		Vertis, Inc.,
2,390		9.75%, 4/01/09	2,443,775
865		Ser. B, 10.875%,
6/15/09	857,431
4,442		Young Broadcasting, Inc., 10.00%, 3/01/11	4,519,735
		Total Media	65,165,902
		Real
Estate0.3%
2,000	3	Rouse Co., 5.375%, 11/26/13	1,885,294
		Technology3.8%
		Amkor Technology, Inc.,
2,063		7.75%, 5/15/13	2,042,370
600		9.25%, 6/01/16	636,000
1,965		Celestica, Inc., 7.625%, 7/01/13 (Canada)	1,871,662
		Freescale Semiconductor, Inc.,
5,460	1	9.125%, 12/15/14	5,432,700
600	1,2	9.23%, 12/15/14	600,000
430	1	Hynix Semiconductor, Inc.,
		9.875%, 7/01/12
(South Korea)	479,450
2,700	1	NXP BV/NXP Funding LLC,
		9.50%, 10/15/15
(Netherlands)	2,835,000
		Sanmina-SCI Corp.,
125		6.75%, 3/01/13	118,750
1,710	3	8.125%, 3/01/16	1,673,663
1,340		Sensata Technologies, 8.00%, 5/01/14 (Netherlands)	1,343,350
		SunGard Data Systems, Inc.,
590		9.125%, 8/15/13	632,775
2,600		10.25%, 8/15/15	2,860,000
3,765		Superior Essex Communications LLC/Essex Group, Inc.,
9.00%, 4/15/12	3,915,600
872	1	UGS Capital Corp. II, 10.38%, 6/01/11	898,037
1,780		UGS Corp., 10.00%, 6/01/12	1,940,200
		Total Technology	27,279,557
		Telecommunications8.4%
1,420		Cincinnati Bell, Inc., 7.25%, 7/15/13	1,476,800
1,830	1	Cricket Communications, Inc., 9.375%, 11/01/14	1,955,812
5,000	3	Deutsche Telekom Intl. Finance BV, 8.00%, 6/15/10
(Netherlands)	5,410,445
		Digicel Group Ltd. (Bermuda)
1,120	1,3	8.875%, 1/15/15	1,099,000
2,695	1	9.125%, 1/15/15	2,614,150
860	2	Hawaiian Telcom Communications, Inc., Ser. B, 10.86%,
5/01/13	879,350

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Telecommunications(contd)
$ 2,495		Intelsat Corp., 9.00%, 6/15/16	$ 2,735,144
		Intelsat Ltd. (Bermuda)
415	2	8.872%, 1/15/15	424,580
1,800		9.25%, 6/15/16	1,980,000
630		11.25%, 6/15/16	718,988
2,815	2	11.354%, 6/15/13	3,012,050
1,470		Intelsat Subsidiary Holding Co. Ltd., 8.625%, 1/15/15
(Bermuda)	1,571,062
3,850	1	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)	4,138,750
		Nortel Networks Ltd. (Canada)
2,220	1,2	9.606%, 7/15/11	2,375,400
465	1	10.125%, 7/15/13	512,663
3,517		PanAmSat Corp., 9.00%, 8/15/14	3,798,360
3,231	1,2	ProtoStar I Ltd., 12.50%, 10/15/12 (Bermuda)	3,456,865
4,000	2,3	Qwest Communications Intl., Inc., 8.86%, 2/15/09	4,040,000
		Qwest Corp.,
1,000	3	7.875%, 9/01/11	1,065,000
2,500	2,3	8.605%, 6/15/13	2,734,375
3,675	3	9.125%, 3/15/12	4,060,875
3,595	1	West Corp., 11.00%, 10/15/16	3,927,537
1,500	1	Wind Acquisition Finance S.A., 10.75%, 12/01/15
(Luxembourg)	1,732,500
		Windstream Corp.,
2,340	3	8.125%, 8/01/13	2,538,900
1,310		8.625%, 8/01/16	1,437,725
		Total Telecommunications	59,696,331
		Transportation0.9%
520		American Airlines, Inc., Ser. 99-1, 7.324%, 4/15/11	527,800
1,715		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)	1,676,413
111		Horizon Lines LLC, 9.00%, 11/01/12	116,828
2,150	1	Navios Maritime Holdings, Inc., 9.50%, 12/15/14
(Marshall Islands)	2,262,875
1,650		Overseas Shipholding Group, Inc., 8.75%, 12/01/13	1,833,562
		Total Transportation	6,417,478
		Total Corporate Bonds	420,030,121
		Bank Loans55.8%
		Aerospace
& Defense0.5%
970		Arinc, Inc., Loan B, LIBOR + 2.00%, 2/15/11	972,425
1,960		DI Finance/DynCorp Intl., Loan B, LIBOR + 2.25%,
1/31/11	1,972,250
469		Primus Intl., Inc., Loan B, LIBOR + 2.50%, 6/16/12	470,896
495		Wesco Aircraft Hardware Corp., First Lien Loan, LIBOR
+ 2.25%, 9/29/13	498,668
		Total Aerospace & Defense	3,914,239
		Automotive2.4%
2,000		Goodyear Tire & Rubber Co., Third Lien Loan,
LIBOR + 3.50%, 4/01/11	2,006,500
741		IAP Worldwide Services, Inc., First Lien Loan, LIBOR
+ 4.25%, 12/31/12	741,088

	Description
	Automotive(contd)
$ 1,496	Keystone Automotive Industries, Inc., Loan B, LIBOR,
1/15/12	$ 1,492,509
449	Lear Corp., First Lien Loan, LIBOR + 2.50%, 3/23/12	449,051
993	Mark IV Industries, Inc., First Lien Loan, LIBOR +
2.50%, 6/30/11	1,000,771
	Metaldyne Corp.,
98	Deposit Funded
Loan, LIBOR, 1/15/12	98,813
667	LIBOR, 1/15/14	671,925
499	Motorsport Aftermarket Group, Inc., LIBOR, 11/15/13	502,491
	Navistar Intl. Corp.,
2,750	LIBOR + 3.25%,
1/30/12	2,784,947
1,000	Revolver Loan,
LIBOR + 3.25%, 1/30/12	1,012,708
974	Rent-A-Center, Inc., Loan B, LIBOR + 1.75%, 6/30/12	975,516
	Reynolds & Reynolds Co.,
1,990	LIBOR + 2.00%,
10/31/12	1,997,462
1,250	Second Lien Loan, LIBOR + 5.50%,
10/31/13	1,276,562
2,444	TRW Automotive Acquisitions Corp., Loan B, LIBOR +
1.50%, 6/30/12	2,439,549
	Total Automotive	17,449,892
	Basic
Materials3.1%
	Basell N.V.,
417	Loan B2, 9/30/13	420,963
83	Loan B4, LIBOR +
2.25%, 8/01/13	84,193
417	Loan C2, LIBOR +
3.00%, 9/30/14	420,964
83	Loan C4, LIBOR +
3.00%, 8/01/14	84,193
810	Boise Cascade Corp., Loan D, LIBOR + 1.75%, 10/31/11	812,033
	Brenntag Holdings,
282	Loan B6, LIBOR +
2.25%, 9/15/14	389,184
218	Loan B6 B, LIBOR
+ 2.50%, 9/15/14	301,304
3,000	Cognis Deutschland, Loan B, LIBOR + 4.75%,
11/15/13	3,045,000
848	Compass Minerals Group, Inc., LIBOR + 1.50%,
12/31/12	848,846
	Ineos Group Holdings Plc,
1,350	Loan A4, LIBOR +
2.25%, 12/16/12	1,357,313
1,733	Loan B2, LIBOR +
2.25%, 12/16/13	1,751,062
1,733	Loan C2, LIBOR +
2.75%, 12/16/14	1,751,062
	Invista BV,
1,290	Loan B1, LIBOR +
1.50%, 4/30/11	1,289,939
684	Loan B2, LIBOR +
1.50%, 4/30/11	686,327
692	ISP Chemco, Inc., LIBOR + 1.75%, 2/28/13	695,470
1,237	John Maneely Co., Loan B, LIBOR + 3.25%, 12/15/13	1,238,436
1,562	Nalco Co., Loan B, LIBOR + 1.75%, 11/01/10	1,569,897
490	PQ Corp., LIBOR + 2.00%, 2/28/12	490,817
980	Rockwood Specialties Group, Inc., Loan E, LIBOR + 2.00%,
8/15/12	987,167
1,611	SP Newsprint, Loan B, LIBOR + 2.25%,1/09/10	1,617,153

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)

	Description
	Basic
Materials(contd)
	UPC Technology Corp.,
$ 1,000	Loan J2, LIBOR +
2.00%, 3/31/13	$ 999,821
1,000	Loan K2, LIBOR +
2.00%, 12/31/13	999,821
	Total Basic Materials	21,840,965
	Building
& Development2.0%
398	Armstrong World Industries, Inc., LIBOR + 1.75%,
10/12/13	398,370
1,244	Beacon Roofing Supply, Inc., Loan B, LIBOR + 2.00%,
10/31/13	1,243,750
	Brand Energy & Infrastructure Services, Inc.,
500	First Lien Loan
B, LIBOR + 2.25%, 2/15/14	502,032
500	Second Lien Loan,
LIBOR, 2/15/15	504,062
2,494	Building Materials Holding Corp., LIBOR + 2.75%,
3/15/14	2,476,294
1,500	Custom Building Products, Inc., Second Lien Loan,
LIBOR + 5.00%, 4/30/12	1,495,000
1,500	Edge-Star Partners, First Lien Loan, 4.00%, 11/18/07	1,492,500
250	Euramax Intl., Inc., Second Lien Loan, LIBOR + 7.00%,
7/15/13	242,500
1,500	Hanley Wood LLC, LIBOR + 2.25%,3/07/14	1,496,250
422	Maxim Crane Works LP, PRIME + 1.00%,1/28/10	421,657
496	Nacco Industries, Inc., TBD, 3/31/13	498,731
488	Nortek, Inc., Loan B, PRIME + 1.00%,8/24/11	488,719
850	Rhodes Ranch, First Lien Loan, LIBOR + 3.25%,
11/15/10	852,125
1,975	United Subcontractors, Inc., First Lien Loan, LIBOR +
2.75%, 12/31/12	1,963,480
	Total Building & Development	14,075,470
	Conglomerates1.5%
	Atlantis Plastics, Inc.,
983	First Lien Loan,
LIBOR + 4.00%, 9/30/11	976,605
250	Second Lien Loan,
LIBOR + 9.00%,9/30/11	231,250
895	Blount Intl., Loan B, LIBOR + 1.75%,8/15/10	894,644
1,956	Colfax Corp., Loan B, LIBOR + 2.25%,11/30/11	1,965,462
	Invensys Plc,
1,000	Loan A, LIBOR +
2.00%, 12/15/10	1,006,250
1,000	Loan B, LIBOR +
2.13%, 12/15/10	2,002,200
597	Jarden Corp., LIBOR + 1.75%, 1/15/12	597,615
752	Mueller Group, Inc., Loan B, LIBOR + 2.00%, 9/30/12	756,513
	Sensus Metering Systems, Inc.,
1,154	Loan B1, LIBOR +
2.00%, 12/30/09	1,157,234
125	Loan B2, LIBOR +
2.00%, 12/30/09	125,367
722	St. John Knits Intl., Inc., Loan B, LIBOR + 3.00%,
3/30/12	725,701
	Total Conglomerates	10,438,841

		Description
		Consumer
Products7.7%
$ 1,000		Aearo Technologies, Inc., Second Lien Loan, LIBOR +
6.50%, 9/30/13	$ 1,015,000
990		24 Hour Fitness Worldwide, Inc., Loan B, LIBOR + 2.50%,
6/30/12	993,713
		Advance Food Co.,
778		Loan B, LIBOR,
3/16/14	777,778
222		Loan B, LIBOR,
3/31/14	222,222
750		American Safety Razor Co., Second Lien
		Loan, LIBOR +
6.25%, 2/15/14	761,250
		Aramark Corp.,
198		Letter of Credit,
LIBOR + 2.13%, 1/30/14	198,400
2,764		Loan B, LIBOR +
2.13%, 1/30/14	2,776,115
450		Arbys Restaurant Group, Inc., Loan B, LIBOR + 2.25%,
7/31/12	453,309
452		Bare Escentuals Beauty, Inc., First Lien Loan, LIBOR
+ 2.50%, 2/15/12	455,724
		Berkline Bench Craft,
97	5	Loan B, PRIME +
4.75%, 10/31/11	64,030
1,005	5	Second Lien Loan,
PRIME + 7.00%,4/30/12	100,505
1,250		Brickman Group Ltd., LIBOR + 2.00%,1/30/14	1,252,344
1,290		Burger King Corp., Loan B1, LIBOR + 1.50%, 2/28/13	1,291,978
1,024		Burlington Coat Factory Warehouse Corp., Loan B,
LIBOR + 2.25%, 4/15/13	1,017,032
491		Centerplate, Inc., PRIME + 1.25%, 10/15/10	492,149
1,095		Central Garden & Pet Co., Loan B, LIBOR + 1.50%,
9/30/12	1,094,044
		Cenveo Corp.,
2,188		Loan C, LIBOR + 1.75%, 9/07/13	2,189,299
62		Delayed Draw Loan, LIBOR + 1.75%,9/07/13	62,108
491		Chiquita Brands Intl., Inc., Loan C, LIBOR + 3.00%,
7/15/13	496,470
995		Coinmach Corp., Loan B1, 1.25%,12/15/12	1,000,864
2,215		Cracker Barrel, Loan B, LIBOR + 1.50%,5/15/13	2,216,612
1,000		Davids Bridal, Inc., LIBOR + 2.00%,1/30/14	994,167
		Dole Food Co., Inc.,
468		Letter of Credit, LIBOR + 1.88%, 4/12/13	467,651
1,044		LIBOR + 2.00%,
4/30/12	1,042,483
3,480		Loan C, LIBOR +
2.00%, 3/31/13	3,474,942
429		Douglas Dynamics LLC, LIBOR + 1.75%,12/16/10	424,334
500		DS Waters Holdings, Inc., Loan B, LIBOR, 3/31/12	500,000
		Eastman Kodak Co.,
476		Loan B1, LIBOR +
2.25%, 10/15/12	476,104
364		Loan B2, 1.50%,
10/15/12	364,244
1,914		Eight OClock Coffee, First Lien Loan, LIBOR + 2.75%,
11/14/11	1,913,594
471		Foamex Intl. Inc., First Lien Loan, LIBOR + 2.25%,
2/15/13	471,373
709		FTD, Inc., LIBOR, 8/15/13	712,123

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description
		Consumer
Products(contd)
$ 350		Gold Toe, Second
Lien Loan, LIBOR + 6.00%, 4/30/14	$ 357,438
802		Language Line,
Inc., Loan B1, LIBOR + 3.25%, 6/14/11	808,310
1,000	5	Le-Natures, Inc.,
Loan B, LIBOR + 4.00%, 9/30/11	646,000
1,080		Maidenform, Inc.,
LIBOR + 1.75%, 5/14/10	1,083,057
2,420		Michael Foods,
Inc., Loan B1, LIBOR + 2.00%, 11/30/10	2,426,364
1,506		Neiman-Marcus
Group, Inc., LIBOR + 2.00%, 4/15/13	1,518,686
1,391		New Page, Loan B,
LIBOR + 2.25%, 4/30/12	1,401,007
455		Nice Pak
Products, LIBOR + 3.75%, 6/15/10	457,171
1,500		Orchard Supply
Hardware Stores Corp., Loan B2, LIBOR + 2.45%, 12/09/07	1,515,000
993		Oriental Trading
Co., LIBOR + 2.25%, 1/30/14	1,007,387
		OSI Group LLC,
1,463		LIBOR + 2.00%,
9/15/11	1,465,242
1,463		Loan B, LIBOR +
2.00%, 9/15/11	1,465,242
399		PETCO Animal
Supplies, Inc., LIBOR + 2.50%, 10/31/12	401,850
591		Pierre Foods,
Inc., Loan B, LIBOR + 2.25%, 7/15/10	593,465
750		Pivotal
Promontory LLC, Second Lien Loan, LIBOR + 6.50%, 9/15/11	729,375
1,425		Prestige Brands
Holdings, Inc., Loan B, LIBOR + 2.25%, 4/06/11	1,431,362
1,985		Quiznos Corp.,
First Lien Loan, LIBOR + 2.25%, 5/01/12	1,991,451
730		Riverdeep
Interactive Learning, Inc., LIBOR + 6.20%, 12/21/07	728,175
		Sturm Foods,
Inc.,
1,375		LIBOR + 2.50%,
1/30/14	1,377,292
500		Second Lien Loan,
LIBOR + 7.00%, 6/30/14	502,917
621	5	Synventive
Acquisition, Inc., Mezzanine Loan, LIBOR + 14.0%, 2/17/14	233,047
831		Tupperware Corp.,
LIBOR + 1.50%, 11/07/12	830,681
356		Warnaco, Inc.,
Loan B, PRIME + 0.50%, 1/31/12	356,111
		Wastequip, Inc.,
311		Delayed Draw
Loan, 0.75%, 2/15/13	313,512
689		Loan B, LIBOR +
2.25%, 2/15/13	693,988
750		Waterpik
Technologies, Inc., Second Lien Loan, LIBOR + 6.50%, 10/15/13	746,250
		Total Consumer
Products	54,852,341
		Containers &
Packaging2.3%
		Bluegrass
Container Co. LLC,
343		First Lien Loan,
LIBOR + 2.25%, 6/30/13	346,354
1,146		Loan B, LIBOR +
2.25%, 6/30/13	1,157,550
1,500		Second Lien Loan,
LIBOR + 5.00%, 12/30/13	1,524,000
		Consolidated
Container Co. LLC,
1,000		First Lien Loan,
LIBOR, 4/15/14	1,002,083
750		Second Lien Loan,
LIBOR, 10/15/14	743,750

Principal Amount (000)	Description	Value
	Containers &
Packaging(contd)
$ 2,469	Georgia-Pacific
Corp., First Lien Loan, LIBOR + 1.75%, 2/28/13	$ 2,479,914
5,000	Graham Packaging
Co., LP, Loan B, LIBOR, 4/15/11	5,026,040
1,260	Graphic Packaging
Intl., Inc., Loan C, LIBOR + 2.50%, 8/08/10	1,262,063
568	Smurfit-Stone
Container Enterprises, Inc., Deposit Funded Loan, 0.50%, 11/15/10	571,580
1,940	Solo Cup, Inc.,
LIBOR + 3.50%, 2/27/11	1,968,190
	Total Containers
& Packaging	16,081,524
	Ecological Services &
Equipment0.1%
500	Envirosolutions,
Inc., Initial Loan, LIBOR + 3.50%, 7/15/12	504,063
	Energy4.0%
429	AES Corp., LIBOR
+ 1.75%, 4/30/08	430,625
	Coffeyville
Resources LLC,
243	Letter of Credit,
0.50%, 12/21/13	246,486
1,254	Loan D, LIBOR +
3.00%, 12/21/13	1,270,329
	Coleto Creek
Power,
127	Letter of Credit,
LIBOR + 2.75%, 7/31/13	127,813
1,859	Loan B, LIBOR +
2.75%, 7/31/13	1,864,761
	ElectricInvest
Holding Co. Ltd.,
1,100	Junior Loan,
LIBOR, 12/21/12	2,217,934
596	LIBOR, 12/21/12	819,768
	Generac Power
Systems, Inc.,
990	First Lien Loan,
LIBOR + 2.50%, 11/15/13	990,000
500	Second Lien Loan,
LIBOR + 6.00%, 5/15/14	498,959
1,481	Key Energy Services,
Inc., Loan C, LIBOR + 2.50%, 8/15/12	1,487,730
	LSP General
Finance Co. LLC,
40	0.88%, 4/15/13	39,619
889	First Lien Loan,
LIBOR + 1.75%, 4/15/13	890,444
	MACH Gen LLC,
70	Letter of Credit,
0.50%, 2/22/14	70,291
678	LIBOR + 2.00%,
2/22/14	677,480
499	McJunkin Corp.,
Loan B, LIBOR + 2.25%, 1/30/14	501,088
495	MEG Energy Corp.,
Loan B, LIBOR + 2.00%, 4/15/13	498,403
	Northeast Energy,
159	Letter of Credit,
LIBOR + 2.50%, 10/31/13	159,686
1,341	Loan B, LIBOR +
2.50%, 10/31/13	1,351,189
250	Second Lien Loan,
LIBOR + 4.50%, 10/31/14	252,708
5,404	NRG Energy, Inc.,
LIBOR + 2.00% , 1/31/13	5,442,376
287	Petro Geological
Services, Loan B, LIBOR + 2.50%, 12/31/12	288,266
83	Regency Gas,
First Lien Loan, LIBOR + 2.50%, 8/15/13	83,542
	SandRidge Energy,
Inc.,
1,500	8.625%, 3/01/15	1,496,250
1,500	LIBOR, 3/01/14	1,496,250
971	SemCrude LP,
LIBOR + 2.25% , 2/28/11	970,993

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)	Description	Value
	Energy(contd)
	TPF Generation
Holdings LLC,
$ 151	Letter of Credit,
LIBOR + 2.10%, 12/31/13	$ 151,484
800	Loan B, LIBOR +
2.00%, 4/12/26	805,261
47	Revolver Loan,
0.50%, 12/31/13	47,487
1,485	Trinidad Energy
Services Income Trust, LIBOR + 2.50%, 4/15/11	1,488,713
1,000	Western Refining,
LIBOR + 1.75%, 3/15/14	1,001,250
	Wolf Hollow I LP,
473	Loan B, LIBOR +
2.25%, 6/15/12	463,451
400	Synthetic Letter
of Credit, LIBOR + 2.25%, 6/15/12	392,000
96	Synthetic
Revolver Loan, LIBOR + 2.25%, 6/22/12	94,149
	Total Energy	28,616,785
	Entertainment &
Leisure3.1%
3,204	CCM Merger, Inc.,
Loan B, LIBOR + 2.00%, 7/31/12	3,212,258
1,119	Cinemark, Inc.,
Loan B, LIBOR + 1.75%, 10/05/13	1,123,106
500	Edge Las Vegas,
First Lien Loan, LIBOR + 3.50%, 6/15/07	500,000
938	Fairmont Hotels
& Resorts, Inc., Loan B, LIBOR + 3.25%, 7/15/11	942,598
1,990	Greektown
Holdings LLC, Loan B, LIBOR + 2.50%, 12/15/12	2,009,900
	Green Valley
Ranch Gaming LLC,
482	First Lien Loan,
LIBOR + 2.00%, 1/29/12	484,055
1,000	Second Lien Loan,
LIBOR + 3.25%, 1/29/12	1,007,375
493	Hit Entertainment
Ltd., LIBOR + 2.25%, 8/31/12	494,655
4,950	Metro-Goldwyn-Mayer
Studios, Inc., Loan B, LIBOR + 3.25%, 4/15/12	4,951,935
983	Penn National
Gaming, Inc., Loan B, LIBOR + 1.75%, 5/31/12	989,239
5,030	Travelport LLC,
LIBOR + 7.00%, 3/22/12	4,897,962
	Travelport, Inc.,
29	Letter of Credit,
LIBOR + 2.50%, 8/31/13	29,233
295	LIBOR + 2.50%,
8/31/13	296,916
497	Wembley, Inc.,
First Lien Loan, LIBOR + 2.50%, 8/31/11	501,832
451	Yellowstone
Mountain Club, LIBOR + 2.38%, 10/15/10	450,652
	Total
Entertainment & Leisure	21,891,716
	Financial
Institutions4.2%
984	Advantage Sales
& Marketing, Inc., LIBOR + 2.00%, 4/15/13	985,021
1,496	Alix Partners,
LIBOR + 2.25%, 10/30/13	1,505,601
915	Arias
Acquisitions, Inc., LIBOR + 5.50%, 7/30/11	882,234
	Asurion Corp.,
956	First Lien Loan,
LIBOR + 3.00%, 8/30/12	967,148
500	Second Lien Loan,
LIBOR + 6.25%, 2/28/13	508,125

Principal Amount (000)	Description	Value
	Financial
Institutions(contd)
$ 995	Bankruptcy
Management, LIBOR + 2.75%, 6/30/11	$ 1,000,597
950	Billing Services
Group, LIBOR + 2.50%, 5/05/12	1,296,417
929	BNY Convergex
Group LLC, First Lien Loan, LIBOR + 3.00%, 8/31/13	935,536
451	CCC Information
Services Group, Inc., Loan B, LIBOR + 2.50%, 2/15/13	452,245
1,244	Charter Mac, Loan
B, LIBOR + 2.50%, 8/15/12	1,248,414
746	Conseco, Inc.,
LIBOR + 2.00%, 9/30/13	749,515
	GS Holdings
Corp.,
56	Delayed Draw
Loan, 0.50%, 5/15/13	56,093
83	LIBOR + 1.75%,
5/15/11	83,528
551	LIBOR + 1.75%,
5/15/13	550,899
	J.G. Wentworth
LLC,
4,000	First Lien Loan,
LIBOR, 4/15/14	4,000,000
1,000	Second Lien Loan,
LIBOR, 10/15/14	1,012,500
872	Jostens, Inc.,
Loan C, LIBOR + 2.00%, 10/15/11	875,302
934	Lucite Intl.
Finance Plc, LIBOR + 9.00%, 7/15/14	1,311,801
659	N.E.W. Holdings I
LLC, First Lien Loan, LIBOR + 2.25%, 8/31/13	661,829
	NASDAQ Stock
Market, Inc.,
971	Loan B, LIBOR +
1.75%, 4/18/12	972,817
563	Loan C, LIBOR +
1.75%, 4/18/12	563,973
858	Professional
Service, Inc., Loan B, LIBOR + 2.75%, 10/31/12	859,957
498	Renfro Corp.,
Delayed Draw Loan, LIBOR + 1.00%, 9/30/13	502,462
1,116	Sedgewick Claims
Management Services, Inc., Loan B, LIBOR + 2.25%, 2/28/13	1,117,873
	TPG Springs Ltd.,
886	Loan B, LIBOR +
2.75%, 3/22/13	1,769,617
886	Loan C, LIBOR +
3.25%, 3/22/14	1,775,311
993	TransFirst
Holdings, Inc., Loan B, PRIME + 1.00%, 8/09/12	997,462
425	Universal
American Financial Corp., LIBOR + 2.25%, 5/25/09	426,594
901	USI Holdings
Corp., Loan B, LIBOR + 2.25%, 7/30/08	900,575
744	Vertellus, First
Lien Loan, LIBOR + 3.25%, 7/08/13	749,493
	Total Financial
Institutions	29,718,939
	Health Care3.5%
	Cardinal Health,
Inc.,
1,500	LIBOR, 4/15/14	1,500,000
2,000	Loan B, LIBOR,
4/15/14	2,729,299
853	CCS Medical, Loan
B, LIBOR + 3.25%, 10/31/12
		852,951
2,925	Community Health
Systems, Inc., First Incremental Loan, LIBOR + 1.75%, 8/15/11	2,929,113
975	Concentra
Operating Corp., Loan B, LIBOR + 2.00%, 9/30/11	976,707
95	Duloxetine
Royalty, First Lien Loan, LIBOR + 4.50%, 10/15/13	95,130

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)	Description	Value
	Health Care(contd)
$ 250	Emdeon Business
Services, LLC, Second Lien Loan, LIBOR, 5/30/14	$ 255,000
730	Eye Care Centers
of America, Inc., LIBOR + 2.50%, 2/28/12	730,442
2,000	Health Management
Associates, Inc., LIBOR + 1.75%, 2/15/14	2,007,222
1,985	HealthSouth
Corp., Loan B, LIBOR + 2.50%, 3/15/13	1,996,956
1,000	IASIS Healthcare
Corp., LIBOR + 2.00%, 5/15/14	1,002,188
2,041	Jean Coutu Group,
Inc., Loan B, LIBOR + 2.50%, 6/30/11	2,041,846
430	Multiplan, Inc.,
LIBOR + 2.50%, 4/15/13	432,226
493	National Renal
Institutes, Inc., Loan B, LIBOR + 2.25%, 4/15/13	492,832
	Quintiles
Transnational Corp.,
990	First Lien Loan,
LIBOR + 2.00%, 3/31/13	990,310
250	Second Lien Loan,
LIBOR + 4.00%, 3/31/14	253,125
980	Select Medical
Corp., Loan B, LIBOR + 2.00%, 2/28/12	975,768
985	Vanguard Health
Holding Co. II LLC, Replacement Loan, LIBOR + 2.25%, 9/30/11	990,840
	Warner Chilcott
Corp.,
306	Dovonex Loan,
LIBOR + 2.00%, 1/18/12	306,584
1,863	Loan B, LIBOR +
2.00%, 1/18/11	1,870,290
518	Loan C, LIBOR +
2.00%, 1/18/11	520,062
973	WellCare Holdings
LLC, LIBOR + 2.50%, 5/13/09	974,323
	Total Health Care	24,923,214
	Industrials2.1%
993	Acosta, Inc.,
LIBOR + 2.25%, 8/15/13	999,737
988	Bolthouse Farms,
Inc., First Lien Loan, LIBOR + 2.25%, 12/01/12	990,895
	Buhrmann U.S.,
Inc.,
499	Loan D, LIBOR +
1.75%, 12/30/10	499,997
2,258	Loan D1, LIBOR +
1.75%, 12/30/10	2,263,479
1,500	Clarke American
Corp., Loan B, LIBOR, 3/12/13	1,498,437
1,800	Drummond Co.,
Inc., LIBOR + 1.50%, 2/15/12	1,755,000
	Kion Group,
250	Loan B, LIBOR,
3/15/15	253,594
250	Loan C, LIBOR,
3/15/16	254,719
	Novelis, Inc.,
199	Loan B, LIBOR +
2.25%, 1/13/10	199,150
346	Loan B, LIBOR +
2.25%, 12/30/11	345,891
2,494	Oshkosh Truck
Corp., Loan B, LIBOR + 1.75%, 11/30/13	2,500,765
625	QTC Acquisition,
Inc., Second Lien Loan, LIBOR + 6.50%, 5/04/13	626,562
	Standard Steel
LLC,
83	Delayed Draw Loan,
1.00%, 7/15/12	83,854
414	Loan B, LIBOR +
2.50%, 7/15/12	416,126
1,260	Thermo Fluids,
Inc., Loan B, LIBOR + 3.00%, 8/15/11	1,260,302

Principal Amount (000)	Description	Value
	Industrials(contd)
	Trimas Corp.,
$ 94	Letter of Credit,
+ 0.50%, 7/31/11	$ 94,805
404	Loan B, LIBOR +
2.75%, 7/31/13	408,766
470	United Rentals
NA, Inc., Initial Loan, LIBOR + 2.00%, 2/12/11	471,716
	Total Industrials	14,923,795
	Media10.4%
500	Affinion Group,
Inc., LIBOR, 3/01/12	493,333
	American Lawyers
Media, Inc.,
1,702	First Lien Loan,
0.75%, 3/15/10	1,702,099
2,000	Second Lien Loan,
LIBOR + 5.75%, 3/07/11	2,000,000
1,000	Audio Visual
Services Corp., Second Lien Loan, LIBOR + 5.50%, 9/15/14	1,003,750
3,970	Cablevision
Systems Corp., Incremental Loan, LIBOR + 1.75%, 3/31/13	3,982,902
6,500	Cequel
Communications II LLC, LIBOR, 11/05/13	6,491,875
6,000	Charter
Communications Holdings LLC, TBD, 4/30/14	5,989,686
3,500	Charter
Communications Holdings LLC/ Charter Communication Holdings Capital Corp.,
LIBOR + 2.625%, 4/28/13	3,496,087
718	CMP Susquehanna
Corp., Loan B, LIBOR + 2.00%, 5/05/12	720,998
	Dex Media West
LLC/Dex Media Finance Co.,
720	Loan B1, LIBOR +
1.50%, 9/09/10	720,134
2,865	Loan B2, LIBOR +
1.50%, 9/01/09	2,864,934
1,317	DirecTV Holdings
LLC, Loan B, LIBOR + 1.50%, 3/06/10	1,320,543
	Gatehouse Media
Operating, Inc.,
1,000	Loan B, LIBOR +
1.75%, 9/15/14	994,375
592	Delayed Draw
Loan, LIBOR + 0.50%, 9/15/14	588,339
2,000	Gray Television,
Inc., Delayed Draw Loan, LIBOR + 1.50%, 9/18/14	1,997,503
2,993	Idearc, Inc.,
Loan B, LIBOR + 2.00%, 11/15/14	3,011,416
500	Knology, First
Lien Loan, LIBOR + 2.25%, 3/15/12	501,250
495	Liberty
Cablevision of Puerto Rico Ltd., LIBOR + 2.25%, 2/15/13	495,928
1,995	Mediacom
Broadband LLC, Loan D1, LIBOR + 1.75%, 1/31/15	1,993,442
1,970	Mediacom Illinois
LLC, Loan C, LIBOR + 1.75%, 1/15/15	1,968,831
1,917	Mission
Broadcasting, Inc., Loan B, LIBOR + 1.75%, 8/14/12	1,913,133
399	Multicultural
Radio Broadcasting, Inc., LIBOR + 2.75%, 12/15/12	399,997
1,000	National
CineMedia, Inc., Loan B, LIBOR + 1.75%, 2/28/15	1,000,179
	New Wave
Communications,
70	LIBOR + 3.25%,
6/20/13	70,000
943	PRIME + 2.50%,
6/20/13	942,875
230	TBD, 6/20/13	230,000
1,816	Nexstar Finance,
Inc., Loan B, LIBOR + 1.75%, 8/14/12	1,812,516

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)	Description	Value
	Media(contd)
$ 3,483	Nielsen Finance
LLC/Nielsen Finance Co., Loan B, LIBOR + 2.25%, 8/15/13	$ 3,510,433
484	NTL Investment
Holding Ltd., Loan B4, LIBOR + 2.00%, 9/03/12	485,751
	Penton Media,
Inc.,
1,125	First Lien Loan,
LIBOR + 2.25%, 2/15/13	1,128,691
1,000	Second Lien Loan,
LIBOR + 5.00%, 2/15/14	1,008,125
1,000	Persona
Communications, Inc., Second Lien Loan, LIBOR + 6.00%, 4/30/14	1,010,000
750	Puerto Rico Cable
Acquisition Co., Second Lien Loan, LIBOR + 6.25%, 7/31/11	756,562
3,318	RH Donnelley,
Inc., Loan D2, LIBOR + 1.50%, 12/31/11	3,319,665
	Univision
Communications, Inc.,
5,638	Loan B, LIBOR +
2.25%, 9/15/14	5,623,169
1,000	Second Lien Loan,
LIBOR, 3/31/16	999,583
362	TBD, 9/30/14	361,489
1,413	UPC Broadband Holding
BV, Loan M1, LIBOR, 12/31/14	1,936,133
500	Wide Open West
Finance LLC, Loan B, LIBOR + 2.25%, 4/30/13	502,604
1,934	WMG Acquisition
Corp., LIBOR + 2.00%, 4/08/11	1,939,797
2,500	Yell Group Plc,
Loan B, LIBOR + 2.00% , 2/15/13	3,074,319
	Total Media	74,362,446
	Real Estate0.7%
2,250	Foster Wheeler
Ltd., Letter of Credit, 0.50%, 9/15/11	2,255,625
270	Kyle Acquisition
Group LLC, Loan B, LIBOR + 3.50%, 7/31/08	272,707
490	Masonite Intl.
Corp., LIBOR + 2.00% , 3/31/13	478,554
1,500	Realogy Corp.,
LIBOR, 9/22/14	1,505,758
558	Stewart
Enterprises, Inc., Loan B, LIBOR + 1.75%, 11/30/11	558,223
	Total Real Estate	5,070,867
	Technology2.1%
741	Affiliated
Computer Services, Inc., Loan B, LIBOR + 2.00%, 3/31/13	741,551
998	ClientLogic
Corp., LIBOR + 2.50%, 1/30/14	1,002,903
373	Coinstar, Inc.,
LIBOR + 2.25%, 7/15/11	374,345
500	Electrical
Components Intl. Holdings Co., Second Lien Loan, LIBOR + 6.50%, 5/19/14	500,000
	Intergraph Corp.,
475	First Lien Loan,
LIBOR + 2.25%, 5/15/14	477,513
750	Second Lien Loan,
LIBOR, 11/15/14	763,594
994	Marvell
Technology Group Ltd., Loan B, LIBOR + 2.00%, 11/06/09	999,347
697	RedPrairie Corp.,
Loan B, LIBOR, 7/31/12	697,491
1,500	San Juan Cable,
LIBOR + 6.50%, 3/15/13	1,502,345
2,481	Sensata
Technologies BV, Loan B, LIBOR + 1.75%, 4/27/13	2,478,007
2,456	SunGard Data
Systems, Inc., Loan B, LIBOR + 2.00%, 1/05/13	2,475,380

Principal Amount (000)	Description	Value
	Technology(contd)
$ 1,995	Verifone, Inc.,
LIBOR + 1.75%, 2/28/13	$ 2,009,963
191	Westcom Corp.,
Loan B, LIBOR + 2.75%, 12/31/10	190,659
	Wire Rope Corp.,
171	Delayed Draw
Loan, LIBOR + 2.25%, 1/30/14	171,857
829	LIBOR + 2.25%,
1/30/14	834,786
	Total Technology	15,219,741
	Telecommunications4.4%
2,000	American Cellular
Corp., Loan B, LIBOR + 2.00%, 3/16/14	2,002,500
1,250	American Cellular
Wireless LLC, Loan B, LIBOR + 2.00%, 3/16/14	1,252,604
993	Atlantic
Broadband Finance LLC, Loan B2, LIBOR + 2.25%, 1/30/11	1,001,807
1,481	Consolidated
Communications, Inc., Loan D, LIBOR + 1.75%, 4/07/12	1,484,953
500	Country Road
Communications LLC, Second Lien Loan, LIBOR + 7.75%, 6/30/13	505,000
	Eircom Group PLC,
2,000	Loan B, LIBOR +
2.38%, 9/15/15	2,762,563
2,000	Loan C, LIBOR +
2.75%, 9/15/14	2,734,984
4,000	Insight Midwest
Holdings LLC, Loan B, 2.50%, 4/03/14	4,018,752
2,000	Iowa
Telecommunications Services, Inc., Loan B, LIBOR + 1.75%, 11/30/11	2,010,416
746	IPC Acquisition
Corp., First Lien Loan, LIBOR + 2.50%, 9/30/13	751,847
1,709	NTELOS, Inc.,
First Lien Loan, LIBOR + 2.25%, 2/24/10	1,716,221
	NTL Investment
Holding Ltd.,
968	Loan B2, LIBOR +
2.13%, 9/03/12	1,940,384
2,000	Loan C, LIBOR +
2.75%, 3/03/13	4,106,260
744	Nuvox
Communications, LIBOR + 5.00%, 5/15/12	744,375
2,993	West Corp., Loan
B2, LIBOR + 2.38%, 10/31/13	3,013,074
832	Wind Acquisition
Finance S.A., Loan A1, LIBOR + 2.00%, 6/17/12	1,136,801
	Total
Telecommunications	31,182,541
	Transportation1.7%
824	Delta Air Lines,
Inc., Loan A, LIBOR + 2.75%, 4/15/08	825,761
	Dockwise
Transport N.V.,
192	Loan B1, LIBOR,
4/15/16	195,180
296	Loan B2, LIBOR,
4/15/16	300,910
489	Loan C, LIBOR,
4/15/15	495,275
	Hawker Beechraft
Acquisition Co.,
78	Letter of Credit,
LIBOR, 3/31/14	78,265
922	LIBOR + 2.00%,
3/31/14	924,949
1,750	RailAmerica,
Inc., Loan B, LIBOR, 10/15/08	1,751,094
644	Sirva Worldwide,
Inc., LIBOR + 6.25%, 11/30/10	629,939
3,000	U.S. Airways,
Loan B, LIBOR, 3/22/14	3,012,750
2,250	United Air Lines,
Inc., Loan B, LIBOR + 2.00%, 1/30/14	2,249,120

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Transportation(contd)
$ 1,763		Vanguard Car
Rental Holdings, Inc., Loan B, LIBOR + 3.00%, 6/30/13	$ 1,775,403
		Total
Transportation	12,238,646
		Total Bank Loans	397,306,025
		Mortgage
Pass-Through Securities20.6%
		Federal National
Mortgage Assoc.,
1,507		5.50%,
12/01/28-11/01/33	1,494,049
7,559	3	5.50%,
2/01/32-10/01/33	7,495,859
17,000	3	7.25%, 1/15/10	18,040,757
121,000		TBA, 5.00%,
5/17/22	119,260,625
		Total Mortgage
Pass-Through Securities	146,291,290
		Interest Only Asset-Backed
Securities0.2%
		Sterling Coofs
Trust,
28,175		Ser. 1, 2.362%,
4/15/29	845,265
24,469		Ser. 2, 2.126%,
3/30/30	672,896
		Total Interest
Only Asset-Backed Securities	1,518,161
		U.S. Government and Agency
Securities3.9%
		U.S. Treasury
Notes,
20,425	3	3.375%,
12/15/08-9/15/09	19,989,389
6,000	3,6	3.875%, 5/15/09	5,914,920
1,815	3	4.25%, 8/15/15	1,770,191
		Total U.S. Government and Agency
Securities	27,674,500
		Foreign Government
Bonds2.4%
476		Bolivarian
Republic of Venezuela, 6.25%, 12/18/07	476,124
4,871	3	Peru Government
International Bond, 8.375%, 5/03/16	5,825,716
5,000	3	Republic of
Colombia, 9.75%, 4/23/09	5,405,000
5,093	3	Turkey, 7.00%,
9/26/16	5,207,592
		Total Foreign
Government Bonds	16,914,432

Units (000)
		Warrants0.0%
10	7	Reliant Resources, Inc., expires 8/25/08, strike
price $0.001, 1 share for 1 warrant	172,264

Shares
		Common
Stocks0.0%
7,579	7	Critical Care Systems Intl., Inc.	47,368
		Preferred
Stock0.0%
125,000		Superior Essex Holding Corp., Ser. A, 9.50%	125,000
		Total
Long-Term Investments (cost $999,202,694)	1,010,079,161

Principal Amount (000)		Description
		SHORT-TERM INVESTMENT0.5%
		U.S. Government and Agency Discount
Notes0.5%
$ 3,400	8	Federal Home Loan
Bank Disc. Notes, 5.061%, 5/01/07 (cost $3,400,000)	$ 3,400,000
		Total
Investments142.4% (cost $1,002,602,694 9 )	$ 1,013,479,161
		Liabilities in
excess of other assets (42.4)%	(301,539,548	)
		Net
Assets100%	$ 711,939,613

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

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

See Notes to Financial Statements.

PO RTFOLIO OF INVESTMENTS APRIL 30, 2007 (unaudited)

BlackRock Preferred and Equity Advantage Trust (BTZ)

(Percentages shown are based on Net Assets)

Shares	Description	Value
	LONG-TERM
INVESTMENTS138.9%
	Common
Stocks37.6%
	Aerospace
& Defense0.4%
18,800	L-3 Communications Holdings, Inc.	$ 1,690,684
28,300	Lockheed Martin Corp.	2,720,762
	Total Aerospace & Defense	4,411,446
	Automotive0.3%
89,500	Ford Motor Co.	719,580
62,500	General Motors Corp.	1,951,875
11,200	Genuine Parts Co.	553,392
10,000	PACCAR, Inc.	839,800
	Total Automotive	4,064,647
	Basic
Materials1.6%
17,900	Air Products & Chemicals, Inc.	1,369,350
29,800	Alcoa, Inc.	1,057,602
6,800	Allegheny Technologies, Inc.	745,144
29,700	Aluminum Corp. of China Ltd. (ADR)	862,785
5,200	BASF AG (ADR)	617,812
46,000	Dow Chemical Co. (The)	2,052,060
46,500	E.I. du Pont de Nemours & Co.	2,286,405
46,100	Freeport-McMoRan Copper & Gold, Inc.	3,096,076
74,200	Intl. Paper Co.	2,798,824
33,900	MeadWestvaco Corp.	1,130,904
24,600	Plum Creek Timber Co., Inc. (REIT)	976,620
13,700	PPG Industries, Inc.	1,008,046
52,100	USEC, Inc.	1,050,857
	Total Basic Materials	19,052,485
	Building
& Development0.2%
15,800	Centex Corp.	707,366
26,400	D.R. Horton, Inc.	585,552
16,000	KB Home	705,760
7,600	Lennar Corp., Class A	324,596
16,000	Masco Corp.	435,360
	Total Building & Development	2,758,634
	Consumer
Products5.4%
108,300	Altria Group, Inc.	7,464,036
30,400	Amazon.com, Inc.	1,864,432
70,200	Amgen, Inc.	4,502,628
45,000	Anheuser-Busch Cos., Inc.	2,213,550
10,300	Black & Decker Corp.	934,416
8,300	Clorox Co.	556,764
113,100	Coca-Cola Co. (The)	5,902,689
19,706	CVS/Caremark Corp.	714,145
26,400	Eastman Kodak Co.	657,624
17,100	Federated Deptartment Stores, Inc.	751,032
21,800	Fortune Brands, Inc.	1,746,180
67,700	Gap, Inc.	1,215,215
92,900	Home Depot, Inc.	3,518,123
6,900	JC Penney Co., Inc.	545,721
74,946	Kraft Foods, Inc.	2,508,443
72,600	Lowes Cos., Inc.	2,218,656
12,600	Ltd. Brands, Inc., Class A	347,382
17,400	Newell Rubbermaid, Inc.	533,658
13,700	Nordstrom, Inc.	752,404
6,800	OfficeMax, Inc.	334,696
18,800	PepsiCo, Inc.	1,242,492
128,000	Procter & Gamble Co.	8,231,680
19,700	Reynolds American, Inc.	1,265,922

Shares		Description	Value
		Consumer
Products(contd)
183,800		Sara Lee Corp.	$ 3,016,158
6,100	1	Sears Holdings Corp.	1,164,551
43,300	1	Starbucks Corp.	1,343,166
26,000		Tupperware Brands Corp.	731,120
9,500		Universal Corp.	595,460
53,100		UST, Inc.	3,009,708
4,700		VF Corp.	412,707
96,600		Wal-Mart Stores, Inc.	4,629,072
37,900		Walgreen Co.	1,663,810
7,000		Whole Foods Market, Inc.	327,530
		Total Consumer Products	66,915,170
		Energy4.5%
36,100		American Electric Power, Inc.	1,812,942
26,300		Anadarko Petroleum Corp.	1,227,158
20,300		Apache Corp.	1,471,750
19,900		Baker Hughes, Inc.	1,599,761
32,100		BP Plc (ADR)	2,160,972
70,500		Chevron Corp.	5,484,195
66,700		ConocoPhillips	4,625,645
9,200		Consol Energy, Inc.	385,204
54,600		Consolidated Edison, Inc.	2,798,796
32,100		Devon Energy Corp.	2,339,127
11,400		DTE Energy Co.	576,726
34,800		Duke Energy Corp.	714,096
14,100		EOG Resources, Inc.	1,035,504
197,600		Exxon Mobil Corp.	15,685,488
17,000		Great Plains Energy, Inc.	554,880
48,200		Halliburton Co.	1,531,314
20,300		Hess Corp.	1,152,025
7,500		Marathon Oil Corp.	761,625
9,400		Nicor, Inc.	481,656
7,600		NiSource, Inc.	186,884
7,300		Peabody Energy Corp.	350,254
17,500		Rowan Cos., Inc.	641,200
21,000		Sasol Ltd. (ADR)	717,570
17,000		Schlumberger Ltd.	1,255,110
13,900		Smith Intl., Inc.	728,916
21,000		Southern Co.	793,590
9,600		Sunoco, Inc.	725,088
38,300		Total S.A. (ADR)	2,822,327
15,400	1	Transocean, Inc.	1,327,480
		Total Energy	55,947,283
		Entertainment
& Leisure0.3%
12,500		Brunswick Corp.	409,500
31,900		Carnival Corp.	1,559,591
50,000		Regal Entertainment Group	1,087,500
		Total Entertainment & Leisure	3,056,591
		Financial
Institutions7.7%
40,000		American Express Co.	2,426,800
79,200	2	American Intl. Group, Inc.	5,536,872
18,300		Arthur J. Gallagher & Co.	511,668
164,100		Bank of America Corp.	8,352,690
39,700		Bank of New York Co., Inc.	1,607,056
92,300		BB&T Corp.	3,841,526
7,500		Bear Stearns Cos., Inc.	1,167,750
2,800		Cigna Corp.	435,652
152,300		Citigroup, Inc.	8,166,326

See Notes to Financial Statements.

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

(Percentages shown are based on Net Assets)

Shares		Description	Value
		Financial
Institutions(contd)
33,800		Comerica, Inc.	$ 2,092,558
62,900	1	E*Trade Financial Corp.	1,388,832
37,400		Fannie Mae	2,203,608
22,900		Freddie Mac	1,483,462
27,300		Goldman Sachs Group, Inc. (The)	5,968,053
30,300		HSBC Holdings Plc (ADR)	2,798,508
99,300		JPMorgan Chase & Co.	5,173,530
38,500		KeyCorp	1,373,680
34,400		Lehman Brothers Holdings, Inc.	2,589,632
35,700		Lincoln National Corp.	2,540,055
54,900		Marsh & McLennan Cos., Inc.	1,743,624
25,600		MCG Capital Corp.	451,072
71,300		Morgan Stanley	5,989,913
92,200		National City Corp.	3,369,910
152,300		New York Community Bancorp, Inc.	2,659,158
54,700		Progressive Corp.	1,261,929
75,000		Regions Financial Corp.	2,631,750
30,700		Travelers Cos., Inc.	1,660,870
91,400		U.S. Bancorp	3,139,590
101,000		Wachovia Corp.	5,609,540
74,000		Washington Mutual, Inc.	3,106,520
107,300		Wells Fargo & Co.	3,850,997
		Total Financial Institutions	95,133,131
		Health
Care-4.6%
58,400		Abbott Laboratories	3,306,608
58,700		Aetna, Inc.	2,751,856
5,100		Applera Corp. - Applied Biosystems Group	159,324
8,100		Bausch & Lomb, Inc.	476,523
37,900		Baxter Intl., Inc.	2,146,277
30,600		Becton Dickinson & Co.	2,407,914
9,300 1		Biogen Idec, Inc.	439,053
32,600		Boston Scientific Corp.	503,344
176,100		Bristol-Myers Squibb Co.	5,082,246
10,300	1	Celgene Corp.	629,948
40,700		Eli Lilly & Co.	2,406,591
16,500	1	Express Scripts, Inc.	1,576,575
24,800	1	Gilead Sciences, Inc.	2,026,656
4,600		Humana, Inc.	290,904
114,000		Johnson & Johnson	7,321,080
6,600		MedImmune, Inc.	374,088
64,500		Medtronic, Inc.	3,413,985
90,800		Merck & Co., Inc.	4,670,752
274,300	2	Pfizer, Inc.	7,257,978
11,100		Quest Diagnostics, Inc.	542,679
49,500		Schering-Plough Corp.	1,570,635
9,800	1	St. Jude Medical, Inc.	419,342
39,200		UnitedHealth Group, Inc.	2,079,952
44,200		Wyeth	2,453,100
19,500	1	Zimmer Holdings, Inc.	1,764,360
		Total Health Care	56,071,770
		Industrials3.0%
37,600		3M Co.	3,112,152
33,700		Boeing Co.	3,134,100
44,000		Caterpillar, Inc.	3,195,280
14,800		Deere & Co.	1,619,120
6,700		Fluor Corp.	640,654
389,000		General Electric Co.	14,338,540
29,700		Honeywell Intl., Inc.	1,609,146
38,000		Illinois Tool Works, Inc.	1,949,780
30,100		Ingersoll-Rand Co. Ltd. Bermuda	1,343,965

Shares		Description	Value
		Industrials(contd)
20,300		Leggett & Platt, Inc.	$ 477,456
15,900		Rockwell Automation, Inc.	946,686
2,800		Terex Corp.	217,980
5,500		Textron, Inc.	559,185
130,000		Tyco Intl. Ltd. Bermuda	4,241,900
		Total Industrials	37,385,944
		Media1.0%
75,100		CBS Corp., Class B	2,385,927
122,950	1	Comcast Corp., Class A	3,277,847
55,700		DIRECTV Group, Inc.	1,327,888
13,200		Dow Jones & Co., Inc.	479,556
87,500		Time Warner, Inc.	1,805,125
28,200		Viacom, Inc.	1,163,250
38,900		Walt Disney Co. (The)	1,360,722
		Total Media	11,800,315
		Real
Estate0.8%
31,000		Annaly Capital Management, Inc. (REIT)	493,210
33,700		Crescent Real Estate Equities Co. (REIT)	691,187
27,900		Equity Residential (REIT)	1,295,397
15,600		First Industrial Realty Trust, Inc. (REIT)	683,124
13,900		Health Care Property Investors, Inc.	491,921
59,100		Hospitality Properties Trust (REIT)	2,690,823
56,300		HRPT Properties Trust (REIT)	689,112
20,200		Inland Real Estate Corp. (REIT)	367,438
39,600		Starwood Hotels & Resorts Worldwide, Inc.	2,653,992
		Total Real Estate	10,056,204
		Technology4.4%
10,400		Agilent Technologies, Inc.	357,448
39,700		Apple, Inc.	3,962,060
182,100		Applied Materials, Inc.	3,499,962
30,100		AutoDesk, Inc.	1,242,227
38,300		Automatic Data Processing, Inc.	1,714,308
9,575		Broadridge Financial Solutions, Inc.	191,883
13,600		Cognizant Technology Solutions Corp.	1,215,840
35,600	1	Dell, Inc.	897,476
46,200	1	eBay, Inc.	1,568,028
16,500		Electronic Arts, Inc.	831,765
140,800	1	EMC Corp.	2,137,344
10,300	1	Google, Inc.	4,855,214
84,600		Hewlett-Packard Co.	3,565,044
202,400		Intel Corp.	4,351,600
51,200		Intl. Business Machines Corp.	5,233,152
38,600		Maxim Integrated Products, Inc.	1,224,392
296,300		Microsoft Corp.	8,871,222
54,500		National Semiconductor Corp.	1,433,350
94,700	1	Oracle Corp.	1,780,360
12,900		Paychex, Inc.	478,590
17,200		Pitney Bowes, Inc.	825,600
6,200		SanDisk Corp.	269,390
115,800		Sanmina-SCI Corp.	399,510
252,400	1	Sun Microsystems, Inc.	1,317,528
43,700		Xilinx, Inc.	1,288,276
33,900	1	Yahoo!, Inc.	950,556
		Total Technology	54,462,125
		Telecommunications2.8%
217,687		AT&T, Inc.	8,428,841
129,100		Chunghwa Telecom Co. Ltd. (ADR)	2,569,090
8,400	1	Ciena Corp.	244,944
174,800	1	Cisco Systems, Inc.	4,674,152

See Notes to Financial Statements.

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

(Percentages shown are based on Net Assets)

Shares		Description	Value
		Telecommunications(contd)
64,000		Citizens
Communications Co.	$ 996,480
43,300	1	Corning, Inc.	1,027,076
15,700		Juniper Networks,
Inc.	351,052
140,400		Motorola, Inc.	2,433,132
119,200		Qualcomm, Inc.	5,220,960
109,900		Sprint Nextel
Corp.	2,201,297
47,000		Tele Norte Leste
Participacoes (ADR)	769,390
156,000		Verizon
Communications, Inc.	5,956,080
		Total
Telecommunications	34,872,494
		Transportation0.6%
39,700		General Maritime
Corp.	1,273,179
37,600		Nordic American
Tanker Shipping	1,448,352
15,700		Ship Finance
Intl. Ltd.	466,918
62,900		United Parcel
Service, Inc., Class B	4,430,047
		Total
Transportation	7,618,496
		Total Common
Stocks	463,606,735
		Preferred Stocks28.9%
		Energy3.3%
40,000		Entergy Louisiana
LLC, 6.95%	3,983,277
785,000		Interstate Power
& Light Co., Ser. B, 8.375%	25,757,812
120,000		Nexen, Inc.,
7.35%	3,060,000
288,000		PPL Energy Supply
LLC, 7.00%	7,450,560
		Total Energy	40,251,649
		Financial Institutions22.0%
400,000		ACE Ltd., Ser. C,
7.80%	10,328,000
400,000		Aegon N.V., 6.50%	10,262,520
		Arch Capital Group
Ltd.,
100,000		8.00%	2,662,500
160,000		Ser. B, 7.875%	4,230,000
600,000	4	Aspen Insurance
Holdings Ltd., 7.401%	15,420,000
180,000	4	Axis Capital
Holdings Ltd., Ser. B, 7.50%	19,473,750
170,731		Berkley W.R.
Capital Trust II, 6.75%	4,310,958
10,000	3	Centaur Funding
Corp., Ser. B, 9.08%	11,787,500
210,000		Citizens Funding
Trust I, 7.50%	5,424,300
150,000	3	CoBank ACB, 7.00%	7,731,900
113,200		Countrywide
Capital V, 7.00%	2,790,380
600,000		Deutsche Bank
Capital Funding Trust VIII, 6.375%	15,450,000
389,000		Endurance
Specialty Holdings Ltd., 7.75%	10,394,080
120,000		Everest RE
Capital Trust, 7.85%	3,026,256
		Federal Home Loan
Mortgage Corp.,
260,000		5.66%	6,505,200
535,000		Ser. V, 5.57%	13,385,700
5,000,000	3,4	Glitnir Banki HF,
7.451%	5,398,550
300,000		HSBC Holdings
Plc, Ser. A, 6.20%	7,602,000
200,000		ING Groep N.V.,
6.125%	5,006,260
805,000		KeyCorp Capital
IX, 6.75%	20,535,550
298,100		National City
Capital Trust II, 6.625%	7,517,724
265,600		PartnerRE Ltd.,
Ser. C, 6.75%	6,756,200
285,000		RenaissanceRe
Holdings Ltd., Ser. D, 6.60%	6,956,850
50	4	Roslyn Real
Estate Asset Corp., Ser. D, 9.00%	5,009,375
665,000		Royal Bank of Scotland
Group Plc (ADR), Ser. R, 6.125%	16,691,500
		Santander Finance
Preferred S.A. Unipersonal,
522,000	3	6.50%	13,017,375
670,000	3	6.80%	17,022,221
85,000		Sovereign Capital
Trust V, 7.75%	2,273,750
7,150,000	3,4	Woori Bank, 6.208%	7,149,786
300,000		XL Capital Ltd.,
Ser. B, 7.625%	7,640,640
		Total Financial
Institutions	271,760,825

Shares	Description	Value
	Real Estate3.1%
520,000	CBL &
Associates Properties, Inc. (REIT), Ser. C, 7.75%	$ 13,265,200
60,000	iStar Financial,
Inc. (REIT), Ser. I, 7.50%	1,515,000
341,300	PS Business
Parks, Inc. (REIT), Ser. P, 6.70%	8,447,175
600,000	Public Storage,
Inc. (REIT), Ser. M, 6.625%	14,844,000
	Total Real Estate	38,071,375
	Telecommunications0.5%
270,000	AT&T, Inc.,
6.375%	6,750,000
	Total Preferred
Stocks	356,833,849

Principal Amount (000)
		Trust Preferred
Stocks45.7%
		Building
& Development0.9%
$ 10,750	3,4,5	C8 Capital SPV Ltd., 6.64%	10,796,010
		Energy2.0%
4,500	4,5	Enterprise Products Operating LP, 8.375%	4,983,035
11,900	4	PPL Capital Funding, Inc., Ser. A, 6.70%, 3/30/67	11,907,544
7,325	5	Trans-Canada Pipelines Ltd., 6.35%	7,325,000
		Total Energy	24,215,579
		Financial
Institutions41.3%
17,000		Ace Capital Trust II, 9.70%, 4/01/30	22,757,643
11,150		American Intl. Group, Inc., Ser. A1, 6.25%, 3/15/37	11,109,463
23,273		AON Corp., 8.205%, 1/01/27	26,296,815
5,000		Astoria Capital Trust I, Ser. B, 9.75%, 11/01/29	5,561,099
32,000	3,4,5	AXA S.A., 6.463% (France)	31,619,744
30,000	3,4,5	BOI Capital Funding No. 3, 6.107% (Ireland)	29,396,430
10,000	5	BTA Finance Luxembourg S.A., 8.25% (Kazakhstan)	9,261,100
8,250	3,4,5	C10 Capital SPV Ltd., 6.722% (British Virgin Islands)	8,238,615
5,000	2	Capital One Capital III, 7.686%, 8/15/36	5,401,465
15,000		Capital One Capital IV, 6.745%, 2/17/37	14,633,475
7,650	4	Chubb Corp., 6.375%, 3/29/67	7,742,771
20,000	3,4,5	Commonwealth Bank of Australia, 6.024% (Australia)	20,196,200
65,000	3	DJ CDX NA HY, Ser. 7-T1, 8.375%, 12/29/11	67,275,000
4,000	3	Dresdner Funding Trust I, 8.151%, 6/30/31	4,835,724
8,775	4,5	Everest Reinsurance Holdings, Inc., 6.60%	8,866,799
10,000	3,4,5	HBOS Plc, 6.413% (United Kingdom)	9,818,680
7,000	3,4,5,6	HSBC Capital Funding LP, Ser. 2, 10.176% (Jersey
Channel Islands)	10,220,315
25,100	3,4,5	ICICI Bank Ltd., 7.25% (India)	26,077,244
35,000	2,4	JPMorgan Chase Capital XXI, Ser. U, 6.305%, 2/02/37	35,400,085
5,000	5	Kazkommerts Finance 2 BV, 9.25% (Netherlands)	5,099,000
11,600	3,4	Liberty Mutual Group, Inc., Ser. B, 7.00%, 3/15/37	11,655,773
13,000	3,4,5	Lloyds TSB Group Plc, 6.267% (United Kingdom)	12,932,179
10,000	3,4	Mangrove Bay Pass-Through Trust, 6.102%, 7/15/33	9,823,300

See Notes to Financial Statements.

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

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Financial Institutions(contd)
$ 21,000	3,4,5	Mizuho Capital
Investment 1 Ltd., 6.686% (Cayman Islands)	$ 21,570,003
25,000	3,4,5	Resona Preferred
Global Securities Ltd., 7.191% (Cayman Islands)	26,427,025
7,000	3,4,5	Shinsei Finance
II, 7.16% (Cayman Islands)	7,144,375
10,000	3,4,5	SMFG Preferred Capital
1 Ltd., 6.078% (Cayman Islands)	10,026,500
17,850	3,4,5	Societe Generale,
5.922% (France)	17,856,783
11,350	4	State Street
Capital Trust IV, 6.355%, 6/01/67	11,123,000
11,325	4	Travelers Cos.,
Inc., 6.25%, 3/15/67	11,340,447
10,000	4,5	XL Capital Ltd.,
Ser. E, 6.50% (Cayman Islands)	9,870,200
		Total Financial
Institutions	509,577,252
		Real Estate1.5%
13,000	3,5	Sovereign Real
Estate Investment Corp. (REIT), 12.00%	19,305,000
		Total Trust
Preferred Stocks	563,893,841
		Corporate Bonds26.7%
		Automotive1.7%
20,000		Ford Motor Co.,
7.45%, 7/16/31	15,900,000
5,000		Lear Corp., Ser.
B, 8.75%, 12/01/16	4,868,750
		Total Automotive	20,768,750
		Basic Materials0.2%
2,350	3	Ineos Group
Holdings Plc, 8.50%, 2/15/16 (United Kingdom)	2,273,625
		Commercial Services0.4%
5,000	3	Quebecor World,
Inc., 9.75%, 1/15/15 (Canada)	5,275,000
		Consumer Products0.7%
5,000	3	Michaels Stores,
Inc., 11.375%, 11/01/16	5,512,500
3,850		Spectrum Brands,
Inc., 7.375%, 2/01/15	3,051,125
		Total Consumer
Products	8,563,625
		Energy1.3%
2,610	3	Halliburton Co.,
7.60%, 8/15/96	3,012,948
8,000		Pioneer Natural
Resources Co., 6.65%, 3/15/17	7,840,928
5,000	4	Southern Union
Co., 7.20%, 11/01/66	5,082,870
		Total Energy	15,936,746
		Entertainment & Leisure0.6%
2,500		AMC
Entertainment, Inc., 11.00%, 2/01/16	2,868,750
2,000		Harrahs
Operating Co., Inc., 5.75%, 10/01/17	1,660,000
3,000		Station Casinos,
Inc., 6.875%, 3/01/16	2,823,750
		Total
Entertainment & Leisure	7,352,500
		Financial Institutions17.9%
		Barclays Bank Plc
(United Kingdom)
15,000	3,4,5	5.926%	15,151,950
20,000	3,4,5	6.86%	21,598,000
100,000	3	CDX North America
High Yield, 8-T1, 7.625%, 6/29/12	99,750,000
15,000	3,4,5,6	HBOS Plc, 5.92%
(United Kingdom)	14,740,380
6,500	3,4	ICICI Bank Ltd.,
6.375%, 4/30/22 (India)	6,503,186
5,000	3	Momentive
Performance Materials, Inc., 9.75%, 12/01/14	5,287,500

Principal Amount (000)		Description	Value
		Financial Institutions(contd)
$ 15,000	4	Reinsurance Group
of America, Inc., 6.75%, 12/15/65	$ 15,066,465
18,000	4,5	Royal Bank of
Scotland Group Plc, 7.648% (United Kingdom)	21,188,880
20,000	3,4,5	Swiss Re Capital
I LP, 6.854%	20,881,060
		Total Financial
Institutions	220,167,421
		Health Care0.4%
4,500		Tenet Healthcare
Corp., 9.875%, 7/01/14	4,601,250
		Industrials0.4%
5,000	3	Aleris Intl.,
Inc., 10.00%, 12/15/16	5,218,750
		Media1.1%
5,000		Cablevision
Systems Corp., Ser. B, 8.00%, 4/15/12	5,125,000
1,000		Nexstar Finance,
Inc., 7.00%, 1/15/14	972,500
5,000		Primedia, Inc.,
8.00%, 5/15/13	5,200,000
2,000		Vertis, Inc.,
Ser. B, 10.875%, 6/15/09	1,982,500
		Total Media	13,280,000
		Technology1.3%
5,000	3	Freescale
Semiconductor, Inc., 9.125%, 12/15/14	4,975,000
5,000	3	NXP BV/NXP
Funding LLC, 9.50%, 10/15/15 (Netherlands)	5,250,000
5,000		SunGard Data
Systems, Inc., 10.25%, 8/15/15	5,500,000
		Total Technology	15,725,000
		Telecommunications0.7%
		Intelsat Ltd.
(Bermuda)
3,325	4	8.872%, 1/15/15	3,401,753
5,000		11.25%, 6/15/16	5,706,250
		Total
Telecommunications	9,108,003
		Total Corporate
Bonds	328,270,670
		Total Long-Term Investments (cost
$1,701,774,301)	1,712,605,095

Shares (000)
	MONEY MARKET FUND0.9%
11,500 7	SSgA Tax Free
Money Mkt. Fund - Class A, 3.326% (cost $11,500,000)	11,500,000
	Total Investments before borrowed bonds, investment
sold short, and outstanding call options written (cost $1,713,274,301 8 )	1,724,105,095

Principal Amount (000)
		BORROWED BONDS15.1%
		U.S. Treasury
Notes,
$ 102,375	9	4.81%, 6/04/07	102,375,000
83,948	9	4.927%, 6/04/07	83,947,500
		Total Borrowed Bonds (cost $186,322,500)	186,322,500
		INVESTMENT SOLD SHORT(15.0)%
(182,000	)	U.S. Treasury
Notes, 4.875%, 8/15/16 (proceeds $183,539,692)	(185,341,338	)

See Notes to Financial Statements.

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

(Percentages shown are based on Net Assets)

Contracts (000)		Description	Value
		OUTSTANDING CALL OPTIONS WRITTEN(0.3)%
(10	)	S&P 500
Index, strike price $1,470, expires 5/19/07	$ (265,000	)
(55	)	S&P 500
Index, strike price $1,475, expires 5/19/07	(1,237,500	)
(65	)	S&P 500
Index, strike price $1,485, expires 5/19/07	(1,040,000	)
(80	)	S&P 500
Index, strike price $1,490, expires 5/19/07	(1,080,000	)
(5	)	S&P 500
Index, strike price $1,520, expires 5/19/07	(14,000	)
		Total Outstanding Call Options Written (premium
received $2,935,287)	(3,636,500	)
		Total Investments net of borrowed bonds, investment
sold short, and outstanding call options written 139.6%	$ 1,721,449,757
		Liabilities in excess of other assets(2.1)%	(25,945,321	)
		Preferred shares at redemption value, including dividends
payable(37.5)%	(462,269,872	)
		Net Assets Applicable to Common
Shareholders100%	$ 1,233,234,564

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

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

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS APRIL 30, 2007 (unaudited)

BlackRock Strategic Bond Trust (BHD)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		LONG-TERM INVESTMENTS102.5%
		Corporate Bonds97.7%
		Aerospace & Defense6.8%
$ 250		AAR Corp., Ser.
A2, 8.39%, 5/15/11	$ 252,500
120	1	Bombardier, Inc.,
8.00%, 11/15/14 (Canada)	126,150
1,164		DI Finance/DynCorp
Intl., Ser. B, 9.50%, 2/15/13	1,251,300
		DRS Technologies,
Inc.,
50		6.875%, 11/01/13	50,500
80		7.625%, 2/01/18	83,800
2,000		Lockheed Martin Corp.,
Ser. B, 6.15%, 9/01/36	2,080,895
1,000		Northrop Grumman
Corp., 7.125%, 2/15/11	1,068,839
650		Raytheon Co.,
4.85%, 1/15/11	643,239
50		Sequa Corp.,
9.00%, 8/01/09	52,875
90	1	TransDigm, Inc.,
7.75%, 7/15/14	93,375
1,000		United
Technologies Corp., 6.35%, 3/01/11	1,046,285
		Total Aerospace
& Defense	6,749,758
		Automotive3.9%
110		Accuride Corp.,
8.50%, 2/01/15	113,575
45	1	Ashtead Capital,
Inc., 9.00%, 8/15/16	48,375
		AutoNation, Inc.,
110		7.00%, 4/15/14	110,550
110	2	7.356%, 4/15/13	110,963
20	1,2	Avis Budget Car
Rental LLC/Avis Budget Finance, Inc., 7.86%, 5/15/14	20,550
1,000		DaimlerChrysler NA
Holding Corp., 7.30%, 1/15/12	1,078,261
350		Ford Capital BV,
9.50%, 6/01/10 (Netherlands)	351,750
400		Lear Corp., Ser.
B, 8.75%, 12/01/16	389,500
200		Metaldyne Corp.,
11.00%, 11/01/13	206,000
1,400		Sonic Automotive, Inc.,
Ser. B, 8.625%, 8/15/13	1,459,500
		Total Automotive	3,889,024
		Basic Materials6.9%
270		Abitibi-Consolidated,
Inc., 6.00%, 6/20/13 (Canada)	233,550
320		AK Steel Corp.,
7.75%, 6/15/12	330,400
180	1	American Pacific
Corp., 9.00%, 2/01/15	180,900
60	2	Bowater, Inc.,
8.355%, 3/15/10	60,300
20		Chemtura Corp.,
6.875%, 6/01/16	19,700
150		CPG Intl. I,
Inc., 10.50%, 7/01/13	157,500
40		Domtar, Inc.,
7.125%, 8/15/15 (Canada)	40,750
120		Donohue Forest Products,
7.625%, 5/15/07 (Canada)	120,000
130	1	FMG Finance Ltd.,
10.625%, 9/01/16 (Australia)	152,100
		Freeport-McMoRan
Copper & Gold, Inc.,
660		8.375%, 4/01/17	721,875
240	2	8.564%, 4/01/15	252,900
		Huntsman LLC,
50		11.625%, 10/15/10	53,875
99		12.00%, 7/15/12	110,385
595	1	Ineos Group Holdings
Plc, 8.50%, 2/15/16 (United Kingdom)	575,662
190	1	Innophos
Holdings, Inc., 9.50%, 4/15/12	192,850

Principal Amount (000)		Description	Value
		Basic Materials(contd)
$ 980		Innophos, Inc.,
8.875%, 8/15/14	$ 1,026,550
135	1	Key Plastics
LLC/Key Plastics Finance Corp., 11.75%, 3/15/13	136,350
		Lyondell Chemical
Co.,
170		8.00%, 9/15/14	178,075
290		8.25%, 9/15/16	310,300
130		10.50%, 6/01/13	142,513
55		Nalco Co.,
8.875%, 11/15/13	58,850
530		NewPage Corp.,
10.00%, 5/01/12	585,650
475	2	Nova Chemicals
Corp., 8.502%, 11/15/13 (Canada)	483,312
565	1	Pregis Corp.,
12.375%, 10/15/13	621,500
170	1	Terra Capital,
Inc., 7.00%, 2/01/17	166,600
5	1	Verso Paper
Holdings LLC/Verson Paper, Inc., 11.375%, 8/01/16	5,350
		Total Basic
Materials	6,917,797
		Building & Development0.7%
465		Goodman Global
Holding Co., Inc., 7.875%, 12/15/12	468,488
140		Nortek, Inc.,
8.50%, 9/01/14	138,600
125		North American
Energy Partners, Inc., 8.75%, 12/01/11 (Canada)	128,750
		Total Building
& Development	735,838
		Commercial Services0.1%
120	1	Quebecor World,
Inc., 9.75%, 1/15/15 (Canada)	126,600
		Conglomerates0.4%
325		Honeywell Intl.,
Inc., 7.50%, 3/01/10	345,827
		Consumer Products4.6%
350	2	Ames True Temper,
Inc., 9.356%, 1/15/12	357,000
60	1	Beverages &
More, Inc., 9.25%, 3/01/12	60,750
		General Nutrition
Centers, Inc.,
360	1	9.796%, 3/15/14	352,350
290	1	10.75%, 3/15/15	289,275
369		Lazy Days RV
Center, Inc., 11.75%, 5/15/12	381,915
		Michaels Stores,
Inc.,
340	1	10.00%, 11/01/14	373,150
430	1	11.375%, 11/01/16	474,075
30	1,2	Nutro Products,
Inc., 9.37%, 10/15/13	30,675
500		Pantry, Inc.
(The), 7.75%, 2/15/14	503,750
100		Quiksilver, Inc.,
6.875%, 4/15/15	97,500
200		Reynolds
American, Inc., 7.625%, 6/01/16	218,818
510		Rite Aid Corp.,

7.50%, 3/01/17 | 508,725 |
| 270 | 1 | Sally Holdings
LLC, 10.50%, 11/15/16 | 280,800 |
| 75 | | Spectrum Brands,
Inc., 7.375%, 2/01/15 | 59,437 |
| 600 | | United Rentals
NA, Inc., 7.00%, 2/15/14 | 612,000 |
| | | Total Consumer
Products | 4,600,220 |
| | | Containers & Packaging0.9% | |
| | | Berry Plastics
Holding Corp., | |
| 190 | | 8.875%, 9/15/14 | 195,700 |
| 130 | 2 | 9.23%, 9/15/14 | 132,925 |
| 250 | | Crown Americas
LLC/Crown Americas Capital Corp., 7.75%, 11/15/15 | 264,375 |
| 55 | | Graham Packaging Co.,
Inc., 8.50%, 10/15/12 | 56,100 |

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Containers & Packaging(contd)
$ 260	1,2	Impress Holdings
BV, 8.481%, 9/15/13 (Netherlands)	$ 266,168
		Total Containers
& Packaging	915,268
		Ecological Services & Equipment2.2%
1,500		Casella Waste
Systems, Inc., 9.75%, 2/01/13	1,586,250
550		Waste Services,
Inc., 9.50%, 4/15/14	580,250
		Total Ecological
Services & Equipment	2,166,500
		Energy12.3%
100		Berry Petroleum
Co., 8.25%, 11/01/16	100,375
250		Chaparral Energy,
Inc., 8.50%, 12/01/15	253,750
		Chesapeake Energy
Corp.,
130		6.375%, 6/15/15	130,163
20		6.875%, 11/15/20	20,150
		Compagnie Generale
de Geophysique-Veritas (France)
65		7.50%, 5/15/15	68,250
70		7.75%, 5/15/17	74,200
255		Compton Petroleum
Finance Corp., 7.625%, 12/01/13 (Canada)	253,088
1,000		ConocoPhillips
Holding Co., 6.95%, 4/15/29	1,141,707
725	1,3	Corral Finans AB,
6.855%, 4/15/10 (Sweden)	727,859
1,000		Dominion
Resources, Inc., 5.70%, 9/17/12	1,025,648
250	4	DTE Energy Co.,
7.05%, 6/01/11	266,161
125		Edison Mission
Energy, 7.50%, 6/15/13	130,000
		El Paso Corp.,
165		7.75%, 1/15/32	183,975
205		7.80%, 8/01/31	228,575
175		El Paso Natural
Gas Co., 8.875%, 6/15/32	218,556
31		Elwood Energy
LLC, 8.159%, 7/05/26	33,310
		Encore
Acquisition Co.,
30		6.00%, 7/15/15	27,450
40		7.25%, 12/01/17	38,700
275		Exco Resources,
Inc., 7.25%, 1/15/11	275,687
1,075		FirstEnergy
Corp., Ser. C, 7.375%, 11/15/31	1,234,038
60		Grant Prideco,
Inc., Ser. B, 6.125%, 8/15/15	59,550
225		KCS Energy, Inc.,
7.125%, 4/01/12	222,750
		Midwest Generation
LLC,
370		8.75%, 5/01/34	408,850
426		Ser. B, 8.56%,
1/02/16	469,388
185		Mirant Americas
Generation LLC, 8.30%, 5/01/11	195,638
120		Mission Energy
Holdings Co., 13.50%, 7/15/08	131,100
		NRG Energy, Inc.,
50		7.25%, 2/01/14	51,750
285		7.375%, 2/01/16	296,044
250		Occidental
Petroleum Corp., 6.75%, 1/15/12	267,867
320	1	OPTI, Inc.,
8.25%, 12/15/14 (Canada)	338,400
140		Orion Power
Holdings, Inc., 12.00%, 5/01/10	161,700
1,000		Progress Energy,
Inc., 7.75%, 3/01/31	1,210,930
		Reliant Energy,
Inc.,
285		6.75%, 12/15/14	298,537
130		9.25%, 7/15/10	136,338
305	1	Sabine Pass LNG
LP, 7.50%, 11/30/16	313,387
275	1	SemGroup LP,
8.75%, 11/15/15	283,937

Principal Amount (000)		Description	Value
		Energy(contd)
$ 260	1,2	Stone Energy
Corp., 8.106%, 7/15/10	$ 260,000
400	1	Targa Resources,
Inc., 8.50%, 11/01/13	412,000
330		Whiting Petroleum
Corp., 7.25%, 5/01/12-5/01/13	323,475
25		Williams Cos.,
Inc., 7.125%, 9/01/11	26,250
		Total Energy	12,299,533
		Entertainment & Leisure1.2%
200		AMC
Entertainment, Inc., 11.00%, 2/01/16	229,500
60		Cinemark, Inc.,
Zero Coupon, 3/15/14	55,200
225	1	Greektown
Holdings LLC, 10.75%, 12/01/13	241,313
100		Harrahs
Operating Co., Inc., 5.75%, 10/01/17	83,000
55		Poster Financial
Group, Inc., 8.75%, 12/01/11	57,200
190		Seneca Gaming
Corp., Ser. B, 7.25%, 5/01/12	193,325
155	1	TDS Investor,
9.875%, 9/01/14	165,850
140		Wynn Las Vegas
LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14	140,350
		Total
Entertainment & Leisure	1,165,738
		Financial Institutions16.1%
104		AES Ironwood LLC,
8.857%, 11/30/25	116,721
		American Real Estate Partners LP/American Real Estate
Finance Corp.,
230		7.125%, 2/15/13	226,262
860		8.125%, 6/01/11	877,200
100	1,2	BMS Holdings,
Inc., 12.40%, 2/15/12	100,250
80		Britannia Bulk
Plc, 11.00%, 12/01/11 (United Kingdom)	80,800
		Ford Motor Credit
Co.,
1,600	2	6.926%, 1/15/10	1,563,094
150	2	8.105%, 1/13/12	147,947
2,000	4	General Electric
Capital Corp., 3.45%, 7/16/07	1,992,624
1,500		HSBC Bank, Inc.,
3.875%, 9/15/09	1,459,872
538	1	iPayment
Investors LP, 11.625%, 7/15/14	559,425
175		iPayment, Inc.,
9.75%, 5/15/14	182,219
225		K&F
Acquisition, Inc., 7.75%, 11/15/14	240,750
325		MetLife, Inc.,
6.125%, 12/01/11	338,305
		Momentive
Performance Materials, Inc.,
30	1	9.75%, 12/01/14	31,725
555	1	10.125%, 12/01/14	588,300
185	1	11.50%, 12/01/16	197,950
		Rainbow National
Services LLC,
210	1	8.75%, 9/01/12	224,175
2,245	1	10.375%, 9/01/14	2,528,431
460		Standard Aero
Holdings, Inc., 8.25%, 9/01/14	497,950
666	5	Structured Asset
Receivable Trust, 5.114%, 1/21/10	665,184
1,000	1,4	TIAA Global
Markets, Inc., 3.875%, 1/22/08	987,987
50	2	Universal City
Florida Holding Co. I/II, 10.106%, 5/01/10	51,313
2,000	4	Wells Fargo &
Co., 3.50%, 4/04/08	1,966,848
450	1	Wimar Opco
LLC/Wimar Opco Finance Corp., 9.625%, 12/15/14	456,750
		Total Financial
Institutions	16,082,082

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

(Percentages shown are based on Net Assets)

Principal Amount (000)		Description	Value
		Health
Care3.7%
		HealthSouth
Corp.,
$ 85	1	10.75%, 6/15/16	$ 92,650
150	1,2	11.354%, 6/15/14	163,125
1,000	4	Merck & Co.,
Inc., 4.375%, 2/15/13	960,531
150		Tenet Healthcare
Corp., 6.875%, 11/15/31	120,000
290		Universal
Hospital Services, Inc., 10.125%, 11/01/11	310,690
1,000		WellPoint, Inc.,
5.95%, 12/15/34	991,883
1,000		Wyeth, 6.50%,
2/01/34	1,075,862
		Total Health Care	3,714,741
		Industrials2.1%
260	1	AGY Holding
Corp., 11.00%, 11/15/14	273,325
100		Hexcel Corp.,
6.75%, 2/01/15	100,250
300		Park-Ohio
Industries, Inc., 8.375%, 11/15/14	297,000
		RBS Global,
Inc./Rexnord Corp.,
350		9.50%, 8/01/14	374,500
225		11.75%, 8/01/16	249,750
470	1	Sunstate
Equipment Co. LLC, 10.50%, 4/01/13	502,900
330		Trimas Corp.,
9.875%, 6/15/12	342,375
		Total Industrials	2,140,100
		Media15.5%
		Affinion Group,
Inc.,
435		10.125%, 10/15/13	474,150
220		11.50%, 10/15/15	242,000
125		American Media
Operations, Inc., Ser. B, 10.25%, 5/01/09	117,813
1,000		AOL Time Warner,
Inc., 7.70%, 5/01/32	1,142,668
120	2	Cablevision
Systems Corp., Ser. B, 9.82%, 4/01/09	127,200
80		CanWest
MediaWorks, Inc., 8.00%, 9/15/12 (Canada)	83,000
150		CCH I Holdings
LLC/CCH I Holdings Capital Corp., 11.00%, 10/01/15	159,375
		Charter
Communications Holdings II LLC/Charter Communications Holdings II Capital Corp.,
515		10.25%, 9/15/10	548,475
105		Ser. B, 10.25%,
9/15/10	111,563
500	1	CMP Susquehanna
Corp., 9.875%, 5/15/14	510,000
1,000		Comcast Cable
Communications, Inc.,6.875%, 6/15/09	1,034,120
50		Dex Media West
LLC/Dex Media Finance Co., Ser. B, 9.875%, 8/15/13	54,438
100		DirecTV Holdings
LLC/DirecTV Financing Co., 8.375%, 3/15/13	105,500
		EchoStar DBS
Corp.,
550		5.75%, 10/01/08	550,687
210		7.00%, 10/01/13	218,138
45		7.125%, 2/01/16	46,856
485	1	Idearc, Inc.,
8.00%, 11/15/16	506,219
75	1	Iesy Repository
GMBH, 10.375%, 2/15/15 (Germany)	79,313
165		LIN Television
Corp., 6.50%, 5/15/13	162,525
130		MediaNews Group,
Inc., 6.875%, 10/01/13	118,300
405		Network
Communications, Inc., 10.75%, 12/01/13	415,125
1,500		News America,
Inc., 6.20%, 12/15/34	1,471,942

		Description
		Media(contd)
$ 560		Nexstar Finance,
Inc., 7.00%, 1/15/14	$ 544,600
		Nielsen Finance LLC/Nielsen
Finance Co.,
220	1	Zero Coupon,
8/01/16	158,950
710	1	10.00%, 8/01/14	775,675
500	1,2	Paxson
Communications Corp., 8.606%, 1/15/12	510,000
320		Primedia, Inc.,
8.00%, 5/15/13	332,800
945		RH Donnelley
Corp., Ser. A-3, 8.875%, 1/15/16	1,025,325
70		Sinclair
Broadcast Group, Inc., 4.875%,7/15/18	70,175
80		Sirius Satellite
Radio, Inc., 9.625%, 8/01/13	80,000
1,000		TCI
Communications, Inc., 7.875%, 2/15/26	1,156,123
375	1	Umbrella
Acquisition, Inc., 9.75%, 3/15/15	377,812
		Vertis, Inc.,
445		9.75%, 4/01/09	455,012
370		Ser. B, 10.875%,
6/15/09	366,762
85		Viacom, Inc.,
6.625%, 5/15/11	88,758
1,215		Young
Broadcasting, Inc., 10.00%, 3/01/11	1,236,262
		Total Media	15,457,661
		Real Estate0.5%
500		ERP Operating LP,
6.95%, 3/02/11	531,882
		Technology5.4%
		Amkor Technology,
Inc.,
50		7.75%, 5/15/13	49,500
90		9.25%, 6/01/16	95,400
565		Celestica, Inc., 7.625%,
7/01/13 (Canada)	538,162
		Freescale
Semiconductor, Inc.,
970	1	9.125%, 12/15/14	965,150
100	1,2	9.23%, 12/15/14	100,000
100	1	Hynix
Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)	111,500
540	1	NXP BV/NXP
Funding LLC, 9.50%, 10/15/15 (Netherlands)	567,000
		Sanmina-SCI
Corp.,
15		6.75%, 3/01/13	14,250
330		8.125%, 3/01/16	322,988
200		Sensata
Technologies, 8.00%, 5/01/14 (Netherlands)	200,500
		SunGard Data
Systems, Inc.,
140		9.125%, 8/15/13	150,150
610		10.25%, 8/15/15	671,000
1,010		Superior Essex
Communications LLC/Essex Group, Inc., 9.00%, 4/15/12	1,050,400
137	1	UGS Capital Corp.
II, 10.38%, 6/01/11	140,656
410		UGS Corp.,
10.00%, 6/01/12	446,900
		Total Technology	5,423,556
		Telecommunications12.4%
190		Cincinnati Bell,
Inc., 7.25%, 7/15/13	197,600
280	1	Cricket
Communications, Inc., 9.375%,11/01/14	299,250
		Digicel Group
Ltd. (Bermuda)
170	1,4	8.875%, 1/15/15	166,812
520	1	9.125%, 1/15/15	504,400
130	2	Hawaiian Telcom
Communications, Inc.,Ser. B, 10.86%, 5/01/13	132,925
355		Intelsat Corp.,
9.00%, 6/15/16	389,169

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

(Percentages shown are based on Net Assets)

		Description
		Telecommunications(contd)
		Intelsat Ltd.
(Bermuda)
$ 85	2	8.872%, 1/15/15	$ 86,962
300		9.25%, 6/15/16	330,000
170		11.25%, 6/15/16	194,012
730	2	11.354%, 6/15/13	781,100
240		Intelsat Subsidiary
Holding Co. Ltd., 8.625%,1/15/15 (Bermuda)	256,500
500	1	Nordic Telephone
Co. Holdings ApS, 8.875%, 5/01/16 (Denmark)	537,500
		Nortel Networks
Ltd. (Canada)
390	1,2	9.606%, 7/15/11	417,300
135	1	10.125%, 7/15/13	148,838
125		PanAmSat Corp.,
9.00%, 8/15/14	135,000
		Qwest Corp.,
200		7.875%, 9/01/11	213,000
340	2	8.605%, 6/15/13	371,875
1,500		SBC
Communications, Inc., 6.45%, 6/15/34	1,556,049
1,000		Telecom Italia
Capital S.A., 4.95%, 9/30/14 (Luxembourg)	952,815
2,000		Verizon New
England, Inc., 6.50%, 9/15/11	2,085,508
1,000	4	Vodafone Group
Plc, 7.75%, 2/15/10 (United Kingdom)	1,065,864
590	1	West Corp.,
11.00%, 10/15/16	644,575
250	1	Wind Acquisition
Finance S.A., 10.75%, 12/01/15 (Luxembourg)	288,750
		Windstream Corp.,
360		8.125%, 8/01/13	390,600
220		8.625%, 8/01/16	241,450
		Total
Telecommunications	12,387,854
		Transportation2.0%
125		American
Airlines, Inc., Ser. 99-1, 7.324%,4/15/11	126,875
500		Canadian National
Railway Co., 6.90%,7/15/28 (Canada)	557,773
475		CHC Helicopter
Corp., 7.375%, 5/01/14 (Canada)	464,312
39		Horizon Lines
LLC, 9.00%, 11/01/12	41,048
425	1	Navios Maritime
Holdings, Inc., 9.50%,12/15/14 (Marshall Islands)	447,313
300		Overseas
Shipholding Group, Inc., 8.25%, 3/15/13	315,000
		Total
Transportation	1,952,321
		Total Corporate
Bonds	97,602,300
		U.S. Government and Agency Securities3.6%
410	4	U.S. Treasury
Bonds, 5.375%, 2/15/31	439,149
		U.S. Treasury
Notes,
810	4	4.125%, 8/15/10	800,824
1,000	4	4.25%, 8/15/13	985,312
75	4	4.25%, 8/15/15	73,148
710	4	4.75%, 5/15/14	717,627
550	4	4.875%, 8/15/16	560,097
		Total U.S.
Government and Agency Securities	3,576,157
		Foreign Government Bond0.2%
225		United Mexican
States, 6.75%, 9/27/34	250,876

Shares		Description
		Common
Stocks0.2%
396,568	6	Adelphia Recovery
Trust	$ 27,760
947	6	Critical Care
Systems Intl., Inc.	5,919
6,007	6	Time Warner
Cable, Inc.	221,177
		Total Common
Stocks	254,856
		Preferred Stock0.1%
50,000		Superior Essex
Holding Corp., Ser. A, 9.50%,	50,000


		Trust Preferred Stock0.7%
$ 650	1,2,7	Barclays Bank
Plc, 8.55% (United Kingdom)		728,856
		Total Long-Term
Investments (cost $100,288,930)		102,463,045
		SHORT-TERM INVESTMENT6.2%
		U.S. Government and Agency Discount Notes6.2%
6,200	8	Federal Home Loan
Bank Disc. Notes, 5.061%, 5/01/07 (cost $6,200,000)	.	6,200,000
		Total
investments108.7% (cost $106,488,930 9 )	$	108,663,045
		Liabilities in
excess of other assets(8.7)%	.	(8,721,255	)
		Net Assets100%	$	99,941,790

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

See Notes to Financial Statements.

S TATEMENTS OF ASSETS AND LIABILITIES (unaudited)
April 30,
2007

	Broad Investment Grade 2009 Term Trust Inc. 1 (BCT)
Assets
Investments at value,
unaffiliated 2	$ 40,033,423	$	397,611,108
Investments at value,
affiliated 3			890,858
Investments in affiliates	21,463		81,796
Cash	143,967		81,596
Foreign currency at value 4			8,580,440
Receivable from investments sold			979,270
Variation margin receivable			1,084,294
Deposits with brokers as collateral for borrowed
bonds
Interest receivable	232,812		5,875,518
Unrealized appreciation on interest rate
swaps			3,059,604
Unrealized appreciation on credit default
swaps
Other assets	1,124		14,872
	40,432,789		418,259,356
Liabilities
Reverse repurchase agreements			36,554,125
Payable for investments purchased			4,369,118
Variation margin payable
Unrealized loss on foreign currency exchange
contracts			4,281
Loans payable
Investments sold short at
value 5
Outstanding options written at
value 6			1,490,319
TBA sale commitments 7
Unrealized depreciation on interest rate
swaps			516,016
Unrealized depreciation on total return
swaps			9,303
Interest payable			1,029,672
Interest rate floors at value
Investment advisory fees payable	18,267		151,459
Administration fees payable	4,982
Deferred Trusteesfees	21,463		81,796
Payable to affiliates	3,252		29,116
Other accrued expenses	35,159		203,598
	83,123		44,438,803
Preferred
Shares at Redemption Value
$0.001 par value per share and $25,000 liquidation value per share,
including dividends payable 8
Net
Assets Applicable to Common Shareholders	$ 40,349,666	$	373,820,553
Composition of Net Assets
Par value 9	$ 29,571	$	27,019
Paid-in capital in excess of par	38,447,104		386,089,643
Cost of shares held in
treasury 10
Undistributed (distributions in excess of) net
investment income	5,276,270		(7,085,134	)
Accumulated net realized gain (loss)	(3,223,700	)	(5,431,330	)
Net unrealized appreciation
(depreciation)	(179,579	)	220,355
Net assets, April 30, 2007	$ 40,349,666	$	373,820,553
Net asset value 11	$ 13.65	$	13.84
1 Consolidated
Statement of Assets and Liabilities
2 Investments at
cost, unaffiliated	$ 40,213,002	$	399,423,196
3 Investments at
cost, affiliated	$	$	891,058
4 Foreign
currency at cost	$	$	8,766,766
5 Proceeds
received	$	$
6 Premiums
received	$	$	2,261,545
7 Proceeds for
TBA sale commitments	$	$
8 Preferred
shares outstanding
9 Par value per
share	$ 0.01	$	0.001
10 Shares held in
treasury
11 Common shares
outstanding	2,957,093		27,018,774

See Notes to Financial Statements.

	High Yield Trust (BHY)
Assets
Investments at value,
unaffiliated 2	$ 72,479,825	$	448,638,171	$	439,084,312	$	1,013,479,161	$	1,724,105,095	$	108,663,045
Investments at value,
affiliated 3			1,176,793		51,029
Investments in affiliates	31,113		153,393		184,118		75,575				16,678
Cash	2,466		43,849		3,012,715		2,295,071		2,180,548		52,390
Foreign currency at value 4							1,681
Receivable from investments sold	10,300		25,786,001		67,604,951		5,333,025		107,419,606		101,000
Variation margin receivable			1,281,924				27,813
Deposits with brokers as collateral for borrowed
bonds					61,867,750				186,322,500
Interest receivable	1,572,303		5,956,547		4,968,878		15,693,079		16,979,390		1,993,620
Unrealized appreciation on interest rate
swaps			3,538,661		1,850,384
Unrealized appreciation on credit default
swaps	10,172
Other assets	6,391		18,156		24,960		31,718		7,274		7,462
	74,112,570		486,593,495		578,649,097		1,036,937,123		2,037,014,413		110,834,195
Liabilities
Reverse repurchase agreements			61,184,826		36,189,500		182,178,141		10,061,000		10,479,908
Payable for investments purchased	476,082		11,934,469		51,151,545		139,177,034		138,170,750		100,000
Variation margin payable					306,344				671,977
Unrealized loss on foreign currency exchange
contracts							487,961
Loans payable	20,250,000
Investments sold short at
value 5					48,923,473				185,341,338
Outstanding options written at
value 6			1,641,456		1,647,713				3,636,500
TBA sale commitments 7			24,619,875		19,854,127
Unrealized depreciation on interest rate
swaps			623,785		824,402
Unrealized depreciation on total return
swaps			10,255		3,594
Interest payable	89,577		1,070,094		1,943,231		2,357,014		1,839,735		133,852
Interest rate floors at value					2,142,702
Investment advisory fees payable	44,994		188,313		221,500		394,537		900,153		59,066
Administration fees payable	2,194		64,874		94,809
Deferred Trusteesfees	31,113		153,393		184,118		75,575				16,678
Payable to affiliates	264		16,493		47,597		35,796		11,909		8,838
Other accrued expenses	86,477		174,791		222,004		291,452		876,615		94,063
	20,980,701		101,682,624		163,756,659		324,997,510		341,509,977		10,892,405
Preferred
Shares at Redemption Value
$0.001 par value per share and $25,000 liquidation value per share,
including dividends payable 8									462,269,872
Net Assets
Applicable to Common Shareholders	$ 53,131,869	$	384,910,871	$	414,892,438	$	711,939,613	$	1,233,234,564	$	99,941,790
Composition of Net Assets
Par value 9	$ 6,417	$	344,497	$	639,425	$	36,850	$	51,828	$	7,058
Paid-in capital in excess of par	92,987,168		404,369,870		518,124,907		701,609,463		1,230,315,432		98,443,594
Cost of shares held in
treasury 10			(17,377,850	)
Undistributed (distributions in excess of) net
investment income	85,248		(2,061,255	)	(1,932,916	)	(1,443,777	)	(3,950,451	)	117,368
Accumulated net realized gain (loss)	(39,124,805	)	(2,863,478	)	(90,676,760	)	1,354,318		(511,596	)	(800,345	)
Net unrealized appreciation
(depreciation)	(822,159	)	2,499,087		(11,262,218	)	10,382,759		7,329,351		2,174,115
Net assets, April 30, 2007	$ 53,131,869	$	384,910,871	$	414,892,438	$	711,939,613	$	1,233,234,564	$	99,941,790
Net asset value 11	$ 8.28	$	11.17	$	6.49	$	19.32	$	23.79	$	14.16
1 Consolidated
Statement of Assets and Liabilities
2 Investments at
cost, unaffiliated	$ 73,312,156	$	449,496,071	$	456,476,407	$	1,002,602,694	$	1,713,274,301	$	106,488,930
3 Investments at
cost, affiliated	$	$	1,187,582	$	53,517	$		$		$
4 Foreign
currency at cost	$	$		$		$	605	$		$
5 Proceeds
received	$	$		$	49,629,126	$		$	183,539,692	$
6 Premiums
received	$	$	2,478,560	$	2,486,055	$		$	2,935,287	$
7 Proceeds for
TBA sale commitments	$	$	24,627,656	$	19,885,469	$		$		$
8 Preferred
shares outstanding							18,480
9 Par value per
share	$ 0.001	$	0.01	$	0.01	$	0.001	$	0.001	$	0.001
10 Shares held in
treasury			1,757,400
11 Common shares
outstanding	6,417,363		34,449,693		63,942,536		36,849,516		51,828,157		7,058,402

| STATEMENTS OF OPERATIONS
(unaudited) |
| --- |
| For the
six months ended April 30, 2007 |

	Broad Investment Grade 2009 Term Trust Inc. 1 (BCT)	Core Bond Trust (BHK)
Investment Income
Interest income	$ 1,054,164	$ 11,455,123
Dividend income		5,454
Foreign taxes withheld
Income from affiliates	182	2,060
Affiliated income		34,249
Total investment income	1,054,346	11,496,886
Expenses
Investment advisory	110,637	1,082,808
Administration	30,174
Transfer agent	4,403	6,800
Custodian	34,607	120,832
Reports to shareholders	16,916	51,293
Directors/Trustees	1,834	11,544
Registration	575	7,561
Independent accountants	14,834	38,158
Legal	4,780	38,555
Officers fees	348	2,988
Insurance	1,327	12,104
Organization
Auction agent
Deferred Trustees fees	182	2,060
Miscellaneous	5,958	26,091
Total expenses excluding interest expense and
excise tax	226,575	1,400,794
Interest expense		630,830
Excise tax	54,413
Total expenses	280,988	2,031,624
Less Advisory fees waived
Less fees paid indirectly		(4,389	)
Net expenses	280,988	2,027,235
Net investment income	773,358	9,469,651
Realized and Unrealized Gain
(Loss)
Net realized gain (loss) from:
Investments	15,531	1,278,777
Foreign currency		(142,785	)
Futures and swaps		2,494,820
Interest rate floors		3,317
Options written		472,353
Short sales
	15,531	4,106,482
Net change in unrealized
appreciation/depreciation on:
Investments	110,151	1,283,794
Foreign currency		(143,401	)
Futures and swaps		(3,391,917	)
Interest rate floors
Options written		(160,633	)
Short sales
	110,151	(2,412,157	)
Net gain	125,682	1,694,325
Dividends from net investment income to
preferred shareholders
Net Increase in Net Assets Resulting from
Operations	$ 899,040	$ 11,163,976

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

See Notes to Financial Statements.

	High Yield Trust (BHY)
Investment Income
Interest income	$ 3,158,041	$	13,451,472	$	15,739,308	$	34,668,232	$	21,536,601	$	4,163,263
Dividend income	10,706		3,316				19,200		11,672,571		4,158
Foreign taxes withheld									(50,904	)
Income from affiliates	554		3,425		4,896
Affiliated income			45,899		1,881		1,895				312
Total investment income	3,169,301		13,504,112		15,746,085		34,689,327		33,158,268		4,167,733
Expenses
Investment advisory	374,184		1,142,227		1,332,105		2,484,667		3,437,209		413,791
Administration	35,637		190,371		307,409
Transfer agent	6,731		9,823		31,678		6,592		5,625		6,554
Custodian	58,055		113,968		130,211		215,099		96,334		54,865
Reports to shareholders	17,704		58,462		80,310		95,995		68,118		15,511
Directors/Trustees	1,876		11,592		11,716		12,966		7,927		3,288
Registration	7,538		10,127		16,580		10,938		9,124		7,532
Independent accountants	21,887		38,237		38,330		26,782		17,842		20,438
Legal	4,804		34,294		34,198		50,917		36,485		9,631
Officers fees	397		3,078		3,364		5,693		5,370		782
Insurance	2,170		13,311		15,137		28,806		20,205		3,457
Organization									15,000
Auction agent									158,294
Deferred Trustees fees	554		3,425		4,896		1,895				312
Miscellaneous	5,751		27,737		28,853		36,644		35,279		7,758
Total expenses excluding interest expense and
excise tax	537,288		1,656,652		2,034,787		2,976,994		3,912,812		543,919
Interest expense	597,904		1,643,919		3,243,877		5,540,337		5,428,787		333,702
Excise tax									14,538
Total expenses	1,135,192		3,300,571		5,278,664		8,517,331		9,356,137		877,621
Less Advisory fees waived											(101,157	)
Less fees paid indirectly	(4,648	)	(4,336	)	(12,336	)	(31,027	)	(45,843	)	(3,447	)
Net expenses	1,130,544		3,296,235		5,266,328		8,486,304		9,310,294		773,017
Net investment income	2,038,757		10,207,877		10,479,757		26,203,023		23,847,974		3,394,716
Realized and Unrealized Gain
(Loss)
Net realized gain (loss) from:
Investments	(2,489,403	)	(593,598	)	935,244		4,362,012		4,836,696		716,167
Foreign currency							405,541
Futures and swaps			3,331,676		(573,758	)	64,385		212,584
Interest rate floors			3,654		3,623
Options written			505,900		42,523				(7,452,467	)
Short sales			(14,313	)	(23,452	)			1,891,591
	(2,489,403	)	3,233,319		384,180		4,831,938		(511,596	)	716,167
Net change in unrealized
appreciation/depreciation on:
Investments	5,150,819		1,483,024		(1,550,865	)	8,476,479		10,830,794		1,478,277
Foreign currency							(459,348	)
Futures and swaps	10,172		(3,554,749	)	2,505,083		4,613		(998,584	)
Interest rate floors					448,464
Options written			(161,965	)	(151,089	)			(701,213	)
Short sales			221,468		210,050				(1,801,646	)
	5,160,991		(2,012,222	)	1,461,643		8,021,744		7,329,351		1,478,277
Net gain	2,671,588		1,221,097		1,845,823		12,853,682		6,817,755		2,194,444
Dividends from net investment income to
preferred shareholders									(3,526,895	)
Net Increase in Net Assets Resulting from
Operations	$ 4,710,345	$	11,428,974	$	12,325,580	$	39,056,705	$	27,138,834	$	5,589,160

| STATEMENTS OF CASH FLOWS
(unaudited) |
| --- |
| For the
six months ended April 30, 2007 |

	Broad Investment Grade 2009 Term Trust Inc. 1 (BCT)		Core Bond Trust (BHK)
Net Increase in Net Assets Resulting from
Operations
to Net Cash Flows Provided by Operating Activities
Net increase in net assets resulting from
operations, excluding
dividends to preferred shareholders	$ 899,040		$ 11,163,976
Purchases of long-term investments	(564,277	)	(467,403,416	)
Proceeds from sales of long-term
investments	5,832,043		448,064,708
Net proceeds (purchases) of short-term
investments	(4,564,288	)	850,714
Increase in deposits with brokers as collateral
for borrowed bonds
Amortization of premium and discount on
investments	(64,839	)	1,114,209
Net realized loss (gain) on
investments	(15,531	)	(1,278,777	)
Decrease (Increase) in unrealized
appreciation/depreciation on
investments	(110,151	)	(1,283,794	)
Net effect of exchange rates on foreign
currency			142,785
Increase (Decrease) in investments sold
short
Increase (Decrease) in outstanding options
written			(637,453	)
Increase (Decrease) in TBA sale
commitments
Decrease in interest rate floors
Decrease (Increase) in unrealized
appreciation/depreciation on swaps			(143,128	)
Increase in investments in affiliates	(181	)	(2,060	)
Decrease (Increase) in receivable for
investments sold			(583,452	)
Decrease in unrealized gain on foreign currency
exchange contracts			83,487
Increase in variation margin
receivable			(450,956	)
Decrease (Increase) in interest
receivable	115,107		(522,831	)
Decrease (Increase) in other assets	1,326		7,464
Decrease in foreign currency payable to
custodian
Increase (Decrease) in payable for investments
purchased			(6,596,670	)
Decrease in payable for dollar rolls
Increase in unrealized loss on foreign currency
exchange contracts			4,281
Increase (Decrease) in variation margin
payable
Increase in interest payable			346,935
Increase (Decrease) in investment advisory fee
payable	(1,074	)	4,323
Decrease in cash with brokers as
collateral			(600,000	)
Increase (Decrease) in administration fee
payable	(293	)
Increase in Deferred Directors/Trustees
fees	181		2,060
Increase (Decrease) in payable to
affiliates	(4,702	)	11,277
Increase (Decrease) in accrued
expenses	(159,027	)	24,451
Total adjustments	464,294		(28,845,843	)
Net cash provided by (used for) operating
activities	$ 1,363,334		$ (17,681,867	)
Cash flows provided by (used for) financing
activities:
Capital contributions
Increase (Decrease) in reverse repurchase
agreements			32,643,037
Increase in preferred shares at redemption value
including dividends
payable
Cash dividends paid to common
shareholders	(1,330,692	)	(10,861,547	)
Distributions to preferred
shareholders
Net cash provided by (used for) financing
activities:	$ (1,330,692	)	$ 21,781,490
Net increase (decrease) in cash	32,642		4,099,623
Cash and foreign currency at beginning of
period	111,325		4,562,413
Cash and foreign currency at end of
period	$ 143,967		$ 8,662,036
Cash paid during the period for
interest	$		$ 283,895

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

See Notes to Financial Statements.

| | High Yield Trust (BHY) | | Income Opportunity Trust (BNA) | | Income Trust Inc. (BKT) | | Limited Duration Income Trust (BLW) | | Preferred and
Equity Advantage Trust 2 (BTZ) | | Strategic Bond Trust (BHD) | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net Increase in Net Assets Resulting from
Operations
to Net Cash Flows Provided by Operating Activities | | | | | | | | | | | | |
| Net increase in net assets resulting from
operations, excluding
dividends to preferred shareholders | $ 4,710,345 | | $ 11,428,974 | | $ 12,325,580 | | $ 39,056,705 | | $ 30,665,729 | | $ 5,589,160 | |
| Purchases of long-term investments | (26,286,574 | ) | (820,732,923 | ) | (1,003,845,253 | ) | (1,194,937,865 | ) | (2,197,351,517 | ) | (23,146,631 | ) |
| Proceeds from sales of long-term
investments | 26,881,619 | | 792,455,597 | | 1,060,668,586 | | 1,237,939,483 | | 500,039,052 | | 32,669,494 | |
| Net proceeds (purchases) of short-term
investments | (1,442,087 | ) | 5,181,809 | | 1,032,677 | | (3,297,390 | ) | (10,583,017 | ) | (6,147,991 | ) |
| Increase in deposits with brokers as collateral
for borrowed bonds | | | | | (1,465,374 | ) | | | (186,322,500 | ) | | |
| Amortization of premium and discount on
investments | (15,906 | ) | 933,234 | | 5,765,809 | | 1,245,920 | | (542,123 | ) | 4,510 | |
| Net realized loss (gain) on
investments | 2,489,403 | | 593,598 | | (935,244 | ) | (4,362,012 | ) | (4,836,696 | ) | (716,167 | ) |
| Decrease (Increase) in unrealized
appreciation/depreciation on
investments | (5,150,819 | ) | (1,483,024 | ) | 1,550,865 | | (8,476,479 | ) | (10,830,794 | ) | (1,478,277 | ) |
| Net effect of exchange rates on foreign
currency | | | | | | | (405,541 | ) | | | | |
| Increase (Decrease) in investments sold
short | | | | | (12,144,967 | ) | | | 185,341,338 | | | |
| Increase (Decrease) in outstanding options
written | | | (681,098 | ) | (675,416 | ) | | | 3,636,500 | | | |
| Increase (Decrease) in TBA sale
commitments | | | (1,367,812 | ) | 3,272,725 | | | | | | | |
| Decrease in interest rate floors | | | | | 247,846 | | | | | | | |
| Decrease (Increase) in unrealized
appreciation/depreciation on swaps | (10,172 | ) | (146,917 | ) | 61,120 | | | | | | | |
| Increase in investments in affiliates | (554 | ) | (3,425 | ) | (4,896 | ) | (1,895 | ) | | | (312 | ) |
| Decrease (Increase) in receivable for
investments sold | 211,419 | | 752,397 | | (51,140,957 | ) | (2,057,801 | ) | (107,419,606 | ) | 175,351 | |
| Decrease in unrealized gain on foreign currency
exchange contracts | | | | | | | | | | | | |
| Increase in variation margin
receivable | | | (471,830 | ) | | | (27,813 | ) | | | | |
| Decrease (Increase) in interest
receivable | (7,851 | ) | (406,322 | ) | (674,407 | ) | (221,718 | ) | (16,979,390 | ) | 170,200 | |
| Decrease (Increase) in other assets | (2,384 | ) | 11,419 | | 2,976 | | 26,815 | | (7,274 | ) | (1,079 | ) |
| Decrease in foreign currency payable to
custodian | | | | | | | (1,100 | ) | | | | |
| Increase (Decrease) in payable for investments
purchased | 415,450 | | (1,655,880 | ) | 51,151,545 | | (388,715 | ) | 138,170,750 | | 19,157 | |
| Decrease in payable for dollar rolls | | | | | (15,527,433 | ) | | | | | | |
| Increase in unrealized loss on foreign currency
exchange contracts | | | | | | | 450,981 | | | | | |
| Increase (Decrease) in variation margin
payable | | | | | (762,327 | ) | | | 671,977 | | | |
| Increase in interest payable | 2,677 | | 192,923 | | 339,995 | | 1,681,776 | | 1,839,735 | | 108,603 | |
| Increase (Decrease) in investment advisory fee
payable | 387 | | (5,675 | ) | (6,240 | ) | (28,337 | ) | 900,153 | | 7,350 | |
| Decrease in cash with brokers as
collateral | | | (600,000 | ) | | | | | | | | |
| Increase (Decrease) in administration fee
payable | 37 | | (946 | ) | (1,440 | ) | | | | | | |
| Increase in Deferred Directors/Trustees
fees | 554 | | 3,425 | | 4,896 | | 1,895 | | | | 312 | |
| Increase (Decrease) in payable to
affiliates | 264 | | 10,688 | | (155 | ) | 17,288 | | 11,909 | | 3,068 | |
| Increase (Decrease) in accrued
expenses | 8,140 | | 4,583 | | 58,242 | | 66,381 | | 876,615 | | 4,960 | |
| Total adjustments | (2,906,397 | ) | (27,416,179 | ) | 36,973,173 | | 27,223,873 | | (1,703,384,888 | ) | 1,672,548 | |
| Net cash provided by (used for) operating
activities | $ 1,803,948 | | $ (15,987,205 | ) | $ 49,298,753 | | $ 66,280,578 | | $ (1,672,719,159 | ) | $ 7,261,708 | |
| Cash flows provided by (used for) financing
activities: | | | | | | | | | | | | |
| Capital contributions | | | | | | | 1,286,908 | | 1,230,367,260 | | | |
| Increase (Decrease) in reverse repurchase
agreements | | | 26,858,668 | | (34,501,125 | ) | (37,821,390 | ) | 10,061,000 | | (4,471,227 | ) |
| Increase in preferred shares at redemption value
including dividends
payable | | | | | | | | | 462,269,872 | | | |
| Cash dividends paid to common
shareholders | (1,963,713 | ) | (11,368,402 | ) | (11,893,314 | ) | (27,610,100 | ) | (24,271,530 | ) | (3,260,982 | ) |
| Distributions to preferred
shareholders | | | | | | | | | (3,526,895 | ) | | |
| Net cash provided by (used for) financing
activities: | $ (1,963,713 | ) | $ 15,490,266 | | $ (46,394,439 | ) | $ (64,144,582 | ) | $ 1,674,899,707 | | $ (7,732,209 | ) |
| Net increase (decrease) in cash | (159,765 | ) | (496,939 | ) | 2,904,314 | | 2,135,996 | | 2,180,548 | | (470,501 | ) |
| Cash and foreign currency at beginning of
period | 162,231 | | 540,788 | | 108,401 | | 160,756 | | | | 522,891 | |
| Cash and foreign currency at end of
period | $ 2,466 | | $ 43,849 | | $ 3,012,715 | | $ 2,296,752 | | $ 2,180,548 | | $ 52,390 | |
| Cash paid during the period for
interest | $ 595,227 | | $ 1,450,996 | | $ 2,903,882 | | $ 3,858,561 | | $ 3,589,052 | | $ 225,099 | |

| STATEM ENT OF
CHANGES IN NET ASSETS |
| --- |
| For the
six months ended April 30, 2007 (unaudited) and the year ended October 31,
2006 |

	Broad Investment Grade 2009 Term Trust Inc. 1 (BCT) — 2007	2006		2007			2006
Net Increase in Net Assets
Operations:
Net investment income	$ 773,358	$	1,918,798	$	9,469,651		$ 17,700,447
Net realized gain (loss)	15,531		(493,395	)	4,106,482		(8,285,073	)
Net change in unrealized
appreciation/depreciation	110,151		341,005		(2,412,157	)	11,551,542
Net increase in net assets resulting from
operations	899,040		1,766,408		11,163,976		20,966,916
Dividends and Distributions to Common
Shareholders
from:
Net investment income 2	(1,330,692	)	(4,191,834	)	(10,861,547	)	(25,048,230	)
Net realized gains			(69,260	)			(7,914,351	)
Tax return of capital distributions
Total dividends and
distributions	(1,330,692	)	(4,261,094	)	(10,861,547	)	(32,962,581	)
Capital Share Transactions:
Reinvestment of common dividends
Total increase (decrease)	(431,652	)	(2,494,686	)	302,429		(11,995,665	)
Net Assets
Beginning of period	40,781,318		43,276,004		373,518,124		385,513,789
End of period	$ 40,349,666	$	40,781,318	$	373,820,553		$ 373,518,124
End of period undistributed (distribution in
excess of) net investment
income	$ 5,276,270	$	5,833,604	$	(7,085,134	)	$ (5,693,238	)

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

See Notes to Financial Statements.

	High Yield Trust (BHY) — 2007	2006		2007			2006		Income Trust Inc. (BKT) — 2007		2006
Net Increase in Net Assets
Operations:
Net investment income	$ 2,038,757	$	4,211,671	$	10,207,877		$ 19,514,794		$ 10,479,757		$ 20,352,044
Net realized gain (loss)	(2,489,403	)	(2,067,969	)	3,233,319		(7,330,378	)	384,180		1,937,674
Net change in unrealized
appreciation/depreciation	5,160,991		4,444,627		(2,012,222	)	7,965,246		1,461,643		1,267,311
Net increase in net assets resulting from
operations	4,710,345		6,588,329		11,428,974		20,149,662		12,325,580		23,557,029
Dividends and Distributions to Common
Shareholders
from:
Net investment income 2	(1,963,713	)	(4,175,232	)	(11,368,402	)	(22,238,524	)	(11,893,314	)	(21,910,288	)
Net realized gains							(8,976,694	)
Tax return of capital distributions							(2,162,198	)			(5,576,693	)
Total dividends and distributions	(1,963,713	)	(4,175,232	)	(11,368,402	)	(33,377,416	)	(11,893,314	)	(27,486,981	)
Capital Share Transactions:
Reinvestment of common dividends			48,307
Total increase (decrease)	2,746,632		2,461,404		60,572		(13,227,754	)	432,266		(3,929,952	)
Net Assets
Beginning of period	50,385,237		47,923,833		384,850,299		398,078,053		414,460,172		418,390,124
End of period	$ 53,131,869	$	50,385,237	$	384,910,871		$ 384,850,299		$ 414,892,438		$ 414,460,172
End of period undistributed (distribution in
excess of) net investment
income	$ 85,248	$	10,204	$	(2,061,255	)	$ (900,730	)	$ (1,932,916	)	$ (519,359	)

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

	Limited Duration Income Trust (BLW) — 2007		2006		Preferred and Equity Advantage Trust 1 (BTZ) — 2007		Strategic Bond Trust (BHD) — 2007	2006
Net Increase in Net Assets
Operations:
Net investment income	$ 26,203,023		$ 49,596,055		$ 23,847,974		$ 3,394,716	$	6,965,538
Net realized gain (loss)	4,831,938		(1,589,905	)	(511,596	)	716,167		(759,640	)
Net change in unrealized appreciation/depreciation	8,021,744		2,473,132		7,329,351		1,478,277		2,082,388
Dividends from net investment income to Preferred Shareholders					(3,526,895	)
Net increase in net assets resulting from operations	39,056,705		50,479,282		27,138,834		5,589,160		8,288,286
Dividends and Distributions to Common Shareholders
from:
Net investment income 2	(27,610,100	)	(55,725,066	)	(24,271,530	)	(3,260,982	)	(6,969,104	)
Tax return of capital			(760,960	)					(251,641	)
Total dividends and distributions	(27,610,100	)	(56,486,026	)	(24,271,530	)	(3,260,982	)	(7,220,745	)
Capital Share Transactions:
Net proceeds from the issuance of common shares					1,115,290,352
Net proceeds from the underwriters over-allotment
excercised					113,370,625
Reinvestment of common dividends	1,286,908		251,427		1,706,283
Net proceeds from capital share transactions	1,286,908		251,427		1,230,367,260
Total increase (decrease)	12,733,513		(5,755,317	)	1,233,234,564		2,328,178		1,067,541
Net Assets
Beginning of period	699,206,100		704,961,417				97,613,612		96,546,071
End of period	$ 711,939,613		$ 699,206,100		$ 1,233,234,564		$ 99,941,790	$	97,613,612
End of period undistributed (distribution in excess of) net
investment
income	$ (1,443,777	)	$ (36,700	)	$ (3,950,451	)	$ 117,368	$	(16,366	)

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

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

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


		Year Ended October 31,
		2006		2005		2004		2003		2002
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 13.79	$	14.63	$	15.98	$	16.02	$	17.33	$	16.05
Investment operations:
Net investment income	0.26		0.65		0.80		0.61		1.28		2.01
Net realized and unrealized gain (loss)	0.05		(0.05	)	(0.87	)	0.25		(1.40	)	0.04
Net increase (decrease) from investment operations	0.31		0.60		(0.07	)	0.86		(0.12	)	2.05
Dividends and distributions from:
Net investment income	(0.45	) 1	(1.42	)	(1.03	)	(0.90	)	(1.19	)	(0.77	)
Net realized gains			(0.02	)	(0.25	)
Total dividends and distributions	(0.45	)	(1.44	)	(1.28	)	(0.90	)	(1.19	)	(0.77	)
Net asset value, end of period	$ 13.65	$	13.79	$	14.63	$	15.98	$	16.02	$	17.33
Market price, end of period	$ 15.15	$	15.08	$	15.86	$	15.80	$	15.85	$	16.18
TOTAL INVESTMENT RETURNS: 2
At net asset value 3	1.96	%	3.53	%	(0.82	)%	5.52	%	(0.61	)%	13.65	%
At market value	3.48	%	4.44	%	8.74	%	5.45	%	5.32	%	18.34	%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	1.40	% 4	1.14	%	2.37	%	2.48	%	2.43	%	2.50	%
Net expenses	1.40	% 4	1.14	%	2.37	%	2.48	%	2.43	%	2.50	%
Net expenses excluding excise tax	1.13	% 4	1.14	%	1.19	%	1.11	%	1.18	%	1.16	%
Net investment income	3.84	% 4	4.50	%	5.23	%	3.83	%	7.54	%	12.22	%
SUPPLEMENTAL DATA:
Average net assets (000)	$ 40,565	$	42,625	$	45,264	$	47,191	$	49,882	$	48,731
Portfolio turnover	1	%	8	%	116	%	20	%	39	%	35	%
Net assets, end of period (000)	$ 40,350	$	40,781	$	43,276	$	47,255	$	47,381	$	51,244
Reverse repurchase agreements outstanding, end of period
(000)	$	$		$		$	19,263	$	19,953	$	23,669
Asset coverage, end of period 5	$	$		$		$	3,453	$	3,375	$	3,165
Reverse repurchase agreements average daily balance (000)	$	$		$	7,865	$	22,055	$	19,409	$	18,388
Reverse repurchase agreements weighted average interest
rate		%		%	2.32	%	1.20	%	1.21	%	1.82	%

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

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

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Core Bond Trust (BHK)


		Year Ended October 31,
		2006		2005		2004		2003
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 13.82	$	14.27	$	15.22	$	14.75	$	14.33	$	14.33	2
Investment operations:
Net investment income	0.35		0.66		0.78		0.92		0.83		0.99
Net realized and unrealized gain (loss)	0.07		0.11		(0.37	)	0.66		0.77		0.04
Net increase from investment operations	0.42		0.77		0.41		1.58		1.60		1.03
Dividends and distributions from:
Net investment income	(0.40	) 3	(0.93	)	(1.01	)	(0.86	)	(1.00	)	(1.00	)
Net realized gains			(0.29	)	(0.35	)	(0.25	)	(0.18	)
Total dividends and distributions	(0.40	)	(1.22	)	(1.36	)	(1.11	)	(1.18	)	(1.00	)
Capital charges with respect to issuance of shares											(0.03	)
Net asset value, end of period	$ 13.84	$	13.82	$	14.27	$	15.22	$	14.75	$	14.33
Market price, end of period	$ 12.95	$	12.86	$	13.69	$	14.02	$	13.57	$	13.82
TOTAL INVESTMENT RETURNS: 4
At net asset value 5	3.27	%	6.20	%	3.32	%	11.64	%	11.76	%	7.47	%
At market value	3.84	%	3.07	%	7.46	%	11.93	%	6.62	%	(1.02	)%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	1.10	% 6	1.08	%	1.50	%	1.32	%	1.05	%	1.04	% 6
Net expenses	1.10	% 6	1.08	%	1.50	%	1.32	%	1.05	%	1.04	% 6
Net expenses excluding interest expense	0.76	% 6	0.77	%	0.85	%	0.92	%	0.87	%	0.93	% 6
Net investment income	5.12	% 6	4.78	%	5.20	%	6.20	%	5.58	%	7.67	% 6
SUPPLEMENTAL DATA:
Average net assets (000)	$ 372,941	$	370,219	$	402,783	$	401,212	$	401,049	$	380,277
Portfolio turnover	37	%	88	%	220	%	398	%	161	%	73	%
Net assets, end of period (000)	$ 373,821	$	373,518	$	385,514	$	411,163	$	398,540	$	387,238
Reverse repurchase agreements outstanding, end of period
(000)	$ 36,554	$	3,911	$	86,876	$	102,474	$	91,668	$	165,215
Asset coverage, end of period 7	$ 11,226	$	96,502	$	5,438	$	5,012	$	5,348	$	3,342
Reverse repurchase agreements average daily balance (000)	$ 24,157	$	25,340	$	91,130	$	145,094	$	67,591	$	35,207
Reverse repurchase agreements weighted average interest
rate	5.19	%	4.54	%	2.86	%	1.11	%	1.05	%	1.04	%

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

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock High Yield Trust (BHY)

	Six Months Ended April 30, 2007 (unaudited)
		2006		2005		2004		2003		2002
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 7.85	$	7.48	$	7.95	$	6.96	$	6.13	$	7.20
Investment operations:
Net investment income	0.32		0.66		0.68		0.92		1.06		1.20
Net realized and unrealized gain (loss)	0.42		0.36		(0.36	)	1.02		0.89		(0.98	)
Net increase from investment operations	0.74		1.02		0.32		1.94		1.95		0.22
Dividends to common shareholders from:
Net investment income	(0.31	) 1	(0.65	)	(0.79	)	(0.92	)	(1.07	)	(1.20	)
Tax return of capital							(0.03	)	(0.05	)	(0.09	)
Total dividends and distributions	(0.31	)	(0.65	)	(0.79	)	(0.95	)	(1.12	)	(1.29	)
Net asset value, end of period	$ 8.28	$	7.85	$	7.48	$	7.95	$	6.96	$	6.13
Market price, end of period	$ 8.32	$	7.77	$	7.36	$	9.30	$	10.25	$	8.68
TOTAL INVESTMENT RETURNS: 2
At net asset value 3	9.58	%	14.25	%	2.72	%	29.18	%	25.00	%	(2.78	)%
At market value	11.24	%	14.93	%	(13.49	)%	0.28	%	32.87	%	7.97	%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	4.44	% 4	4.50	%	3.52	%	2.69	%	3.07	%	3.45	%
Net expenses	4.42	% 4	4.49	%	3.51	%	2.68	%	3.07	%	3.45	%
Net expenses excluding interest expense	2.08	% 4	2.19	%	2.10	%	1.96	%	2.22	%	2.20	%
Net investment income	7.97	% 4	8.74	%	8.71	%	12.16	%	16.37	%	16.29	%
SUPPLEMENTAL DATA:
Average net assets (000)	$ 51,614	$	48,176	$	50,104	$	48,186	$	41,326	$	46,751
Portfolio turnover	38	%	85	%	102	%	156	%	30	%	147	%
Net assets, end of period (000)	$ 53,132	$	50,385	$	47,924	$	50,914	$	44,438	$	38,953
Loan outstanding, end of period (000)	$ 20,250	$	20,250	$	20,750	$	19,250	$	19,250	$	19,250
Asset coverage, end of period 5	$ 3,624	$	3,488	$	3,310	$	3,645	$	3,308	$	3,024
Loan average daily balance (000)	$ 20,250	$	20,621	$	20,425	$	19,250	$	19,250	$	22,664
Loan weighted average interest rate	5.42	%	4.75	%	2.87	%	1.80	%	1.96	%	2.65	%

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Income Opportunity Trust (BNA)

	Six Months Ended April 30, 2007 (unaudited)
		2006		2005		2004		2003		2002
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 11.17	$	11.56	$	12.38	$	11.93	$	11.83	$	11.47
Investment operations:
Net investment income	0.30		0.57		0.72		0.76		0.84		1.15
Net realized and unrealized gain (loss)	0.03		0.01		(0.45	)	0.53		0.31		(0.05	)
Net increase from investment operations	0.33		0.58		0.27		1.29		1.15		1.10
Dividends and distributions from:
Net investment income	(0.33	) 1	(0.65	)	(0.81	)	(0.84	)	(0.81	)	(0.75	)
Net realized gains			(0.26	)	(0.28	)			(0.24	)
Tax return of capital			(0.06	)
Total dividends and distributions	(0.33	)	(0.97	)	(1.09	)	(0.84	)	(1.05	)	(0.75	)
Increase resulting from Trust shares repurchased											0.01
Net asset value, end of period	$ 11.17	$	11.17	$	11.56	$	12.38	$	11.93	$	11.83
Market price, end of period	$ 10.70	$	10.58	$	10.90	$	11.38	$	10.95	$	10.50
TOTAL INVESTMENT RETURNS: 2
At net asset value 3	3.15	%	5.76	%	3.03	%	11.81	%	10.92	%	11.14	%
At market value	4.32	%	6.27	%	5.53	%	12.04	%	14.71	%	8.44	%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	1.73	% 4	1.61	%	1.72	%	1.11	%	1.29	%	1.40	%
Net expenses	1.73	% 4	1.61	%	1.72	%	1.11	%	1.29	%	1.40	%
Net expenses excluding interest expense	0.87	% 4	0.89	%	0.87	%	0.84	%	0.89	%	0.93	%
Net investment income	5.36	% 4	4.92	%	5.97	%	6.29	%	6.99	%	10.04	%
SUPPLEMENTAL DATA:
Average net assets (000)	$ 383,898	$	381,726	$	413,777	$	415,131	$	413,543	$	394,495
Portfolio turnover	77	%	131	%	396	%	300	%	46	%	153	%
Net assets, end of period (000)	$ 384,911	$	384,850	$	398,078	$	426,643	$	410,981	$	407,480
Reverse repurchase agreements outstanding, end of period
(000)	$ 61,185	$	34,326	$	120,179	$	94,644	$	103,378	$	85,704
Asset coverage, end of period 5	$ 7,291	$	12,212	$	4,312	$	5,508	$	4,976	$	5,755
Reverse repurchase agreements average daily balance (000)	$ 62,115	$	59,691	$	122,457	$	97,264	$	136,172	$	36,153
Reverse repurchase agreements weighted average interest
rate	5.26	%	4.59	%	2.87	%	1.14	%	1.22	%	1.93	%

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Income Trust Inc. (BKT)

	Six Months Ended April 30, 2007 (unaudited)
		2006		2005		2004		2003		2002
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 6.48	$	6.54	$	6.95	$	7.21	$	8.13	$	8.06
Investment operations:
Net investment income	0.17		0.32		0.44		0.51		0.61		0.99
Net realized and unrealized gain (loss)	0.03		0.05		(0.30	)	(0.16	)	(0.52	)	(0.35	)
Net increase from investment operations	0.20		0.37		0.14		0.35		0.09		0.64
Dividends and distributions from:
Net investment income	(0.19	) 1	(0.34	)	(0.48	)	(0.61	)	(1.01	)	(0.57	)
Tax return of capital			(0.09	)	(0.07	)
Total dividends and distributions	(0.19	)	(0.43	)	(0.55	)	(0.61	)	(1.01	)	(0.57	)
Net asset value, end of period	$ 6.49	$	6.48	$	6.54	$	6.95	$	7.21	$	8.13
Market price, end of period	$ 6.21	$	6.07	$	5.90	$	7.50	$	7.71	$	8.07
TOTAL INVESTMENT RETURNS: 2
At net asset value 3	3.16	%	6.06	%	1.97	%	5.16	%	1.20	%	8.50	%
At market value	5.37	%	10.18	%	(14.63	)%	5.97	%	15.41	%	15.35	%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	2.58	% 4	2.85	%	2.80	%	1.37	%	1.36	%	2.05	%
Net expenses	2.57	% 4	2.84	%	2.79	%	1.37	%	1.36	%	2.05	%
Net expenses excluding interest expense	0.99	% 4	1.00	%	0.99	%	0.97	%	1.02	%	1.03	%
Net investment income	5.11	% 4	4.92	%	6.54	%	7.13	%	8.18	%	12.28	%
SUPPLEMENTAL DATA:
Average net assets (000)	$ 413,275	$	413,597	$	430,035	$	447,984	$	472,676	$	506,533
Portfolio turnover	157	%	80	%	60	%	120	%	64	%	125	%
Net assets, end of period (000)	$ 414,892	$	414,460	$	418,390	$	442,635	$	457,301	$	511,385
Reverse repurchase agreements outstanding, end of period
(000)	$ 36,190	$	70,691	$	149,558	$	223,736	$	121,767	$	205,792
Asset coverage, end of period 5	$ 12,464	$	6,863	$	3,798	$	2,978	$	4,756	$	3,485
Reverse repurchase agreements average daily balance (000)	$ 70,182	$	104,393	$	180,553	$	158,278	$	135,804	$	173,501
Reverse repurchase agreements weighted average interest
rate	5.21	%	4.54	%	2.81	%	1.12	%	1.17	%	1.81	%

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Limited Duration Income Trust (BLW)

| | Six
Months Ended April 30, 2007 (unaudited) | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Year
Ended October 31, | | | | | | | | |
| | | 2006 | | 2004 | | 2005 | | | | |
| PER SHARE OPERATING PERFORMANCE : | | | | | | | | | | |
| Net asset value, beginning of period | $ 19.01 | $ | 19.17 | $ | 20.13 | $ | 19.74 | $ | 19.10 | 2 |
| Investment operations: | | | | | | | | | | |
| Net investment income | 0.71 | | 1.35 | | 1.46 | | 1.46 | | 0.33 | |
| Net realized and unrealized gain (loss) | 0.35 | | 0.03 | | (0.94 | ) | 0.43 | | 0.60 | |
| Net increase from investment operations | 1.06 | | 1.38 | | 0.52 | | 1.89 | | 0.93 | |
| Dividends and distributions from: | | | | | | | | | | |
| Net investment income | (0.75 | ) 3 | (1.52 | ) | (1.33 | ) | (1.49 | ) | (0.25 | ) |
| Net realized gains | | | | | (0.15 | ) | (0.01 | ) | | |
| Tax return of capital | | | (0.02 | ) | | | | | | |
| Total dividends and distributions | (0.75 | ) | (1.54 | ) | (1.48 | ) | (1.50 | ) | (0.25 | ) |
| Capital charges with respect to issuance of shares | | | | | | | | | (0.04 | ) |
| Net asset value, end of period | $ 19.32 | $ | 19.01 | $ | 19.17 | $ | 20.13 | $ | 19.74 | |
| Market price, end of period | $ 19.57 | $ | 18.85 | $ | 17.48 | $ | 19.95 | $ | 18.80 | |
| TOTAL INVESTMENT RETURNS: 4 | | | | | | | | | | |
| At net asset value 5 | 5.67 | % | 7.85 | % | 2.93 | % | 10.17 | % | 4.71 | % |
| At market value | 7.95 | % | 17.31 | % | (5.30 | )% | 14.64 | % | (4.77 | )% |
| RATIOS TO AVERAGE NET ASSETS: | | | | | | | | | | |
| Total expenses | 2.44 | % 6 | 2.20 | % | 1.71 | % | 1.26 | % | 0.82 | % 6 |
| Net expenses | 2.43 | % 6 | 2.19 | % | 1.71 | % | 1.25 | % | 0.82 | % 6 |
| Net expenses excluding interest expense | 0.84 | % 6 | 0.91 | % | 0.92 | % | 0.90 | % | 0.79 | % 6 |
| Net investment income | 7.50 | % 6 | 7.10 | % | 7.42 | % | 7.34 | % | 6.87 | % 6 |
| SUPPLEMENTAL DATA: | | | | | | | | | | |
| Average net assets (000) | $ 704,563 | $ | 698,382 | $ | 722,668 | $ | 730,369 | $ | 686,655 | |
| Portfolio turnover | 46 | % | 132 | % | 70 | % | 215 | % | 127 | % |
| Net assets, end of period (000) | $ 711,940 | $ | 699,206 | $ | 704,961 | $ | 739,225 | $ | 724,747 | |
| Reverse repurchase agreements outstanding, end of period
(000) | $ 182,178 | $ | 220,000 | $ | 176,010 | $ | 159,416 | $ | 118,993 | |
| Asset coverage, end of period 7 | $ 4,908 | $ | 4,178 | $ | 5,005 | $ | 5,637 | $ | 7,091 | |
| Reverse repurchase agreements average daily balance (000) | $ 207,835 | $ | 179,366 | $ | 186,660 | $ | 195,845 | $ | 26,591 | |
| Reverse repurchase agreements weighted average interest
rate | 5.34 | % | 4.96 | % | 3.08 | % | 1.32 | % | 0.76 | % |

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

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Preferred and Equity Advantage Trust (BTZ)

| | For the
period December 27, 2006 1 through April 30, 2007 (unaudited) | |
| --- | --- | --- |
| PER SHARE
OPERATING PERFORMANCE : | | |
| Net asset value, beginning
of period | $ 23.88 | 2 |
| Investment operations: | | |
| Net investment income | 0.46 | |
| Net realized and unrealized gain | 0.16 | |
| Dividends to preferred shareholders from net investment
income | (0.07 | ) |
| Net increase from
investment operations | 0.55 | |
| Dividends to common
shareholders from net investment income 3 | (0.47 | ) |
| Capital charges with
respect to issuance of: | | |
| Common shares | (0.04 | ) |
| Preferred shares | (0.13 | ) |
| Total capital charges | (0.17 | ) |
| Net asset value, end of
period | $ 23.79 | |
| Market price, end of period | $ 23.43 | |
| TOTAL
INVESTMENT RETURNS: 4 | | |
| At net asset value | 1.63 | % |
| At market value | (4.41 | )% |
| RATIOS TO
AVERAGE NET ASSETS: 5,6 | | |
| Total expenses | 2.28 | % |
| Net expenses | 2.27 | % |
| Net expenses excluding
interest expense and excise tax | 0.94 | % |
| Net investment income
before preferred share dividends | 5.80 | % |
| Preferred share dividends | 0.86 | % |
| Net investment income
available to common shareholders | 4.94 | % |
| SUPPLEMENTAL
DATA: | | |
| Average net assets (000) | $ 1,200,281 | |
| Portfolio turnover | 24 | % |
| Net assets applicable to
common shareholders, end of period (000) | $ 1,233,235 | |
| Reverse repurchase
agreements outstanding, end of period (000) | $ 10,061 | |
| Preferred shares value
outstanding, end of period (000) | $ 462,000 | |
| Asset coverage, end of
period | $ 92,293 | |
| Reverse repurchase
agreements average daily balance (000) | $ 201,159 | |
| Reverse repurchase
agreements weighted average interest rate | 5.39 | % |

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

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

FINANCIAL HIGHLIGHTS

BlackRock Strategic Bond Trust (BHD)

	Six Months Ended April 30, 2007 (unaudited)
		Year Ended October 31,
		2006		2005		2004		2003
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 13.83	$	13.68	$	15.10	$	15.07	$	12.63	$	14.33	2
Investment operations:
Net investment income	0.48		0.99		1.10		1.39		1.59		0.98
Net realized and unrealized gain (loss)	0.31		0.18		(1.13	)	0.25		2.34		(1.77	)
Net increase (decrease) from investment operations	0.79		1.17		(0.03	)	1.64		3.93		(0.79	)
Dividends and distributions from:
Net investment income	(0.46	) 3	(0.98	)	(1.12	)	(1.61	)	(1.49	)	(0.84	)
Tax return of capital			(0.04	)	(0.27	)
Total dividends and distributions	(0.46	)	(1.02	)	(1.39	)	(1.61	)	(1.49	)	(0.84	)
Capital charges with respect to issuance of shares											(0.07	)
Net asset value, end of period	$ 14.16	$	13.83	$	13.68	$	15.10	$	15.07	$	12.63
Market price, end of period	$ 13.19	$	12.85	$	12.45	$	16.70	$	15.27	$	12.35
TOTAL INVESTMENT RETURNS: 4
At net asset value 5	6.01	%	9.58	%	(0.49	)%	11.35	%	32.55	%	(6.16	)%
At market value	6.28	%	11.87	%	(18.11	)%	21.54	%	37.36	%	(12.34	)%
RATIOS TO AVERAGE NET ASSETS :
Total expenses	1.79	% 6	2.25	%	2.14	%	1.49	%	2.01	%	2.57	% 6
Net expenses	1.58	% 6	2.00	%	1.87	%	1.23	%	1.71	%	2.26	% 6
Net expenses excluding interest expense	0.90	% 6	0.94	%	0.92	%	0.89	%	1.01	%	1.25	% 6
Net investment income	6.92	% 6	7.26	%	7.58	%	9.23	%	11.32	%	10.68	% 6
SUPPLEMENTAL DATA:
Average net assets (000)	$ 98,857	$	96,003	$	101,990	$	106,330	$	98,498	$	95,675
Portfolio turnover	21	%	56	%	51	%	31	%	32	%	22	%
Net assets, end of period (000)	$ 99,942	$	97,614	$	96,546	$	106,433	$	106,045	$	88,594
Reverse repurchase agreements outstanding, end of period
(000)	$ 10,480	$	14,951	$	31,883	$	13,188	$	45,872	$	44,223
Asset coverage, end of period 7	$ 10,537	$	7,529	$	4,028	$	9,071	$	3,312	$	3,003
Reverse repurchase agreements average daily balance (000)	$ 12,675	$	21,104	$	30,406	$	27,562	$	46,036	$	44,889
Reverse repurchase agreements weighted average interest
rate	5.36	%	4.81	%	3.20	%	1.33	%	1.51	%	1.45	%

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

See Notes to Financial Statements.

s
NOTES TO FINANCIAL STATEMENTS (unaudited)

Note 1. Organization & Accounting Policies

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Loan Payable: High Yield has a $32 million committed credit facility (the facility). Under the terms of the facility, the Trust borrows at the London Interbank Offered Rate (LIBOR) plus facility and administrative fees. In addition, the Trust pays a liquidity fee on the unused portion of the facility. The Trust may borrow up to 33 1 / 3 % of its total assets up to the committed amount. In accordance with the terms of the facility, the Trust has pledged its portfolio assets as collateral for the borrowing.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| (i) | market value of investment
securities, assets and liabilities at the current rate of exchange; and |
| --- | --- |
| (ii) | purchases and sales of
investment securities, income and expenses-at the rates of exchange
prevailing on the respective dates of such transactions. |

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| Trust | Portfolio
Company | Beginning Principal Amount | Sales | Ending Principal Amount | Interest Income | Market Value of Affiliates at April 30, 2007 |
| --- | --- | --- | --- | --- | --- | --- |
| Core Bond | Merrill
Lynch | | | | | |
| | Mortgage
Investors, Inc., | | | | | |
| | Ser. HE2,
Class A2A | $ 1,509,548 | $ 618,847 | $ 890,701 | $ 34,249 | $ 890,858 |
| Income
Opportunity | Merrill
Lynch | | | | | |
| | Mortgage
Investors, Inc., | | | | | |
| | Ser. HE2,
Class A2A | 1,651,471 | 677,029 | 974,442 | 38,421 | 974,614 |
| | Merrill
Projects, Ser. 29 | 152,326 | 2,859 | 149,467 | 5,585 | 151,214 |
| | Merrill
Projects, Ser. 42 | 51,398 | 1,053 | 50,345 | 1,893 | 50,965 |
| Income Trust | Merrill
Projects, Ser. 54 | 51,249 | 847 | 50,402 | 1,881 | 51,029 |

Note 3. Portfolio Securities

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

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

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

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

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

Trust		Settlement Date	Contract to Receive	Value at Settlement Date	Value at April 30, 2007	Unrealized Depreciation
Core Bond	Sold:
	Euro	7/18/07	$ 207,567	$ 279,795	$ 284,076	$ 4,281
Limited
Duration	Sold:
	Euro	7/18/07	$ 19,790,550	$ 26,726,116	$ 27,085,352	$ 359,236
	British Pounds	7/18/07	6,563,875	12,989,497	13,118,222	128,725
						$ 487,961

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

Notional Amount (000)	Variable Rate	Counter Party	Floating Rate	Effective Date	Termination Date	Amortized Cost		Value at April 30, 2007		Unrealized Appreciation
$165,000	4.80%	Goldman Sachs	3-month LIBOR	12/25/05	03/25/11	$ (1,840,997	)	$ (852,777	)	$ 988,220
119,000	4.95	JPMorgan	3-month LIBOR	03/27/06	03/25/11	(1,427,694	)	(418,999	)	1,008,695
80,000	5.50	Union Bank of Switzerland	3-month LIBOR	12/15/06	03/15/10	(1,111,783	)	(870,926	)	240,857
						$ (4,380,474	)	$ (2,142,702	)	$ 2,237,772

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

Trust	Notional Amount (000)	Fixed Rate		Counter Party	Floating Rate	Unrealized Appreciation (Depreciation)
Core Bond	$ 41,200	4.510	% (b)	Citibank	3-month
LIBOR	10/29/04	10/29/14	$ 1,450,998
	2,800	4.500	(b)	JPMorgan	3-month
LIBOR	05/26/05	05/26/15	83,293
	4,800	4.372	(a)	Union
Bank of Switzerland	3-month
LIBOR	06/30/05	06/30/15	(188,640	)
	4,600	5.000	(a)	Deutsche
Bank	3-month
LIBOR	11/07/05	11/07/10	59,861
	4,800	5.723	(a)	JPMorgan	3-month
LIBOR	07/14/06	07/14/16	272,303
	25,100	5.496	(a)	Bank
of America	3-month
LIBOR	07/28/06	07/28/11	842,858
	3,000	5.025	(a)	Deutsche
Bank	3-month
LIBOR	11/21/06	11/21/11	41,855
	2,200	5.348	(a)	Union
Bank of Switzerland	3-month
LIBOR	02/05/07	11/29/11	21,656
	8,300	5.002	(b)	Union
Bank of Switzerland	3-month
LIBOR	01/08/07	01/08/12	(104,580	)
	8,545	5.411	(a)	JPMorgan	3-month
LIBOR	02/05/07	08/15/22	92,115
	3,100	5.347	(a)	Goldman
Sachs	3-month
LIBOR	02/05/07	02/05/17	43,408
	11,300	5.295	(a)	Union
Bank of Switzerland	3-month
LIBOR	02/08/07	02/08/17	101,301
	13,500	4.922	(a)	Lehman
Brothers	3-month
LIBOR	03/22/07	03/22/11	29,025
	700	5.250	(a)	Goldman
Sachs	3-month
LIBOR	04/12/07	04/12/17	4,430
	21,400	5.068	(b)	Goldman
Sachs	3-month
LIBOR	04/30/07	04/30/09	(17,548	)
	2,900	5.411	(a)	Goldman
Sachs	3-month
LIBOR	04/30/07	04/30/27	16,501
	7,110	6.533	(a)	Deutsche
Bank	3-month
LIBOR	01/12/07	01/12/11	(4,402	)
	7,110	6.544	(a)	Deutsche
Bank	3-month
LIBOR	01/22/07	01/22/11	(1,709	)
	6,200	4.725	(a)	Morgan
Stanley	3-month
LIBOR	08/02/05	08/02/15	(169,168	)
	5,000	4.870	(a)	Goldman
Sachs	3-month
LIBOR	01/25/06	01/25/16	(29,969	)
						$ 2,543,588
Income Opportunity Trust	$ 5,200	4.372	% (a)	Union
Bank of Switzerland	3-month
LIBOR	06/30/05	06/30/15	$ (204,360	)
	8,000	4.670	(a)	Goldman
Sachs	3-month
LIBOR	09/20/05	09/20/15	(248,874	)
	10,000	4.897	(a)	JPMorgan	3-month
LIBOR	12/12/06	12/12/11	79,700
	23,600	5.068	(b)	Goldman
Sachs	3-month
LIBOR	04/30/07	04/30/09	(19,351	)
	3,100	4.950	(a)	Union
Bank of Switzerland	3-month
LIBOR	11/29/06	11/29/11	30,515
	12,000	5.002	(b)	Union
Bank of Switzerland	3-month
LIBOR	01/08/07	01/08/12	(151,200	)
	800	5.250	(a)	Goldman
Sachs	3-month
LIBOR	04/12/07	04/12/17	5,063
	5,000	5.000	(a)	Deutsche
Bank	3-month
LIBOR	11/07/05	11/07/10	65,067
	3,200	5.025	(a)	Deutsche
Bank	3-month
LIBOR	11/21/06	11/21/11	18,208
	3,200	5.411	(a)	Lehman
Brothers	3-month
LIBOR	04/30/07	04/30/27	44,645
	14,800	4.922	(b)	Union
Bank of Switzerland	3-month
LIBOR	03/22/07	03/22/11	31,820
	5,000	5.071	(b)	Goldman
Sachs	3-month
LIBOR	03/26/07	03/26/17	38,750
	3,400	5.348	(a)	JPMorgan	3-month
LIBOR	02/05/07	02/05/17	47,609
	9,405	5.411	(a)	Union
Bank of Switzerland	3-month
LIBOR	02/05/07	08/15/22	101,385
	12,000	5.295	(a)	JPMorgan	3-month
LIBOR	02/08/07	02/08/17	107,576
	3,000	4.500	(b)	JPMorgan	3-month
LIBOR	05/26/05	05/26/15	89,243
	5,200	5.723	(a)	Citibank	3-month
LIBOR	07/14/06	07/14/16	294,995
	13,800	4.510	(b)	Bank
of America	3-month
LIBOR	10/29/04	10/29/14	486,013
	27,900	5.496	(a)	Deutsche
Bank	3-month
LIBOR	07/28/06	07/28/11	936,882
	27,500	4.399	(b)	Morgan
Stanley	3-month
LIBOR	10/25/04	10/25/14	1,161,190
						$ 2,914,876
Income Trust	$ 12,500	4.399	% (b)	Deutsche
Bank	3-month
LIBOR	10/25/04	10/25/14	$ 527,813
	3,000	4.500	(b)	JPMorgan	3-month
LIBOR	05/26/05	05/26/15	89,243
	5,400	5.723	(a)	JPMorgan	3-month
LIBOR	07/14/06	07/14/16	306,341
	3,000	5.025	(a)	Deutsche
Bank	3-month
LIBOR	11/21/06	11/21/11	41,855
	4,400	5.348	(a)	Union
Bank of Switzerland	3-month
LIBOR	02/05/07	11/29/11	43,312
	9,565	5.411	(a)	JPMorgan	3-month
LIBOR	02/05/07	08/15/22	103,110
	3,400	5.347	(a)	Goldman
Sachs	3-month
LIBOR	02/05/07	02/05/17	47,609
	11,900	5.295	(a)	Union
Bank of Switzerland	3-month
LIBOR	02/08/07	02/08/17	106,679
	800	5.250	(a)	Goldman
Sachs	3-month
LIBOR	04/30/07	04/12/17	5,063
	12,000	4.320	(a)	Union
Bank of Switzerland	3-month
LIBOR	09/08/05	09/08/10	(261,999	)
	19,000	4.889	(b)	Goldman
Sachs	3-month
LIBOR	04/22/04	04/22/14	196,809
	25,000	4.883	(a)	Union
Bank of Switzerland	3-month
LIBOR	03/21/05	03/21/15	(378,000	)
	16,000	4.925	(a)	Deutsche
Bank	3-month
LIBOR	03/22/05	03/22/15	182,742
	4,500	4.442	(a)	Morgan
Stanley	3-month
LIBOR	07/11/05	07/11/15	(151,438	)
	2,800	5.940	(a)	Union
Bank of Switzerland	3-month
LIBOR	12/07/05	12/07/15	199,808
	5,500	4.870	(a)	Goldman
Sachs	3-month
LIBOR	01/25/06	01/25/16	(32,965	)
						$ 1,025,982

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

Trust	Notional Amount (000)	Fixed Rate		Counter Party	Floating Rate	Effective Date	Termination Date	Unrealized Depreciation
Core Bond	$ 7,430	0.676	% (b)	Morgan Stanley	Lehman +0.40 %	04/18/07	10/31/07	$ 9,303
Income Opportunity Trust	81,900	0.676	(b)	Morgan Stanley	Lehman +0.40 %	04/18/07	10/31/07	$ 10,255
Income Trust	28,700	0.676	(b)	Morgan Stanley	Lehman +0.40 %	04/18/07	10/31/07	$ 3,594

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

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

Notional Amount (000)	Fixed Rate	Counter Party	Effective Date	Termination Date	Unrealized Appreciation
$300	2.450%	Lehman
Brothers	02/24/07	03/20/12	$ 10,172

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

Trust	Calls — Contracts/ Notional Amount	Premium Received		Contracts/ Notional Amount		Premium Received
Core Bond
Options outstanding at October 31, 2006	$ 21,300,000	$	991,347	$	135,100,037	$	2,068,284
Options written	18,200,000		455,276		18,200,000		455,276
Options closed	(11,600,000	)	(315,851	)	(125,400,037	)	(1,392,787	)
Options outstanding at April 30, 2007	$ 27,900,000	$	1,130,772	$	27,900,000	$	1,130,773
Income
Opportunity Trust
Options outstanding at October 31, 2006	$ 23,400,000	$	1,085,069	$	148,200,041	$	2,236,554
Options written	19,700,000		491,847		19,700,000		491,847
Options closed	(12,400,000	)	(337,634	)	(137,200,041	)	(1,489,123	)
Options outstanding at April 30, 2007	$ 30,700,000	$	1,239,282	$	30,700,000	$	1,239,278
Income Trust
Options outstanding at October 31, 2006	$ 23,500,000	$	1,088,815	$	150,100,000	$	2,223,745
Options written	19,600,000		489,124		19,600,000		489,124
Options closed	(12,300,000	)	(334,911	)	(138,900,000	)	(1,469,842	)
Options outstanding at April 30, 2007	$ 30,800,000	$	1,243,028	$	30,800,000	$	1,243,027
Preferred
and Equity
Options outstanding at October 31, 2006	$	$		$		$
Options written	1,426,500		19,941,479
Options closed	(1,210,500	)	(17,002,202	)
Options expired	(1,000	)	(3,990	)
Options outstanding at April 30, 2007	$ 215,000	$	2,935,287	$		$

Note 4. Borrowings

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

| Trust/Counter
Party | Rate | Trade Date | Maturity Date 1 | Net Closing Amount | Par |
| --- | --- | --- | --- | --- | --- |
| Core Bond | | | | | |
| Lehman Brothers | 4.150% | 04/30/07 | TBD | $ 3,125,360 | $ 3,125,000 |
| | 4.750 | 04/18/07 | TBD | 2,336,376 | 2,332,375 |
| | 5.000 | 03/07/07 | TBD | 210,597 | 209,000 |
| | 5.000 | 04/26/07 | 5/3/07 | 7,901,861 | 7,895,281 |
| | 5.000 | 04/30/07 | TBD | 12,011,537 | 12,009,869 |
| | 5.220 | 04/23/07 | TBD | 4,766,529 | 4,761,006 |
| | 5.250 | 04/23/07 | TBD | 593,285 | 592,594 |
| | 5.280 | 04/23/07 | 5/1/07 | 5,328,244 | 5,322,000 |
| | 5.300 | 04/30/07 | TBD | 307,045 | 307,000 |
| | | | | | $ 36,554,125 |
| Income
Opportunity | | | | | |
| Lehman Brothers | 5.400 | 04/23/07 | TBD | $ 8,939,802 | $ 8,930,425 |
| | 5.180 | 04/23/07 | TBD | 8,065,203 | 8,057,088 |
| | 5.280 | 04/23/07 | 05/01/07 | 22,782,366 | 22,759,000 |
| | 4.800 | 04/26/07 | 05/02/07 | 7,226,597 | 7,220,820 |
| | 4.900 | 04/30/07 | TBD | 12,854,768 | 12,853,018 |
| | 5.050 | 04/30/07 | TBD | 1,364,666 | 1,364,475 |
| | | | | | $ 61,184,826 |
| Income Trust | | | | | |
| Lehman Brothers | 5.210 | 01/09/07 | TBD | $ 22,599,299 | $ 22,242,000 |
| | 4.950 | 03/12/07 | TBD | 14,041,471 | 13,947,500 |
| | | | | | $ 36,189,500 |
| Limited
Duration | | | | | |
| Barclays Bank | 5.380 | 04/24/07 | TBD | $ 4,063,474 | $ 4,061,000 |
| | 5.400 | 04/26/07 | 05/02/07 | 1,239,519 | 1,239,147 |
| | | | | | $ 5,300,147 |
| Credit Suisse First Boston LLC | 5.450 | 11/28/06 | TBD | $ 2,722,635 | $ 2,661,000 |
| | 5.400 | 12/05/06 | TBD | 21,430,624 | 20,974,430 |
| | 5.400 | 12/07/06 | TBD | 7,629,893 | 7,467,475 |
| | 5.500 | 12/14/06 | TBD | 3,525,732 | 3,455,000 |
| | 5.400 | 01/17/07 | TBD | 2,240,300 | 2,206,214 |
| | 5.500 | 01/18/07 | TBD | 58,213,681 | 57,311,816 |
| | 5.500 | 02/01/07 | TBD | 2,616,094 | 2,581,000 |
| | 4.000 | 04/17/07 | TBD | 1,561,946 | 1,559,520 |
| | 5.450 | 04/17/07 | TBD | 12,862,264 | 12,837,000 |
| | 5.450 | 04/19/07 | TBD | 4,482,539 | 4,474,410 |
| | 5.300 | 04/23/07 | TBD | 2,547,477 | 2,544,480 |
| | 5.350 | 04/25/07 | TBD | 572,797 | 570,000 |
| | | | | | $ 118,642,345 |

1 TBD - To be determined

| Trust/Counter
Party | Rate | Trade Date | Maturity Date 1 | Net Closing Amount | Par |
| --- | --- | --- | --- | --- | --- |
| Limited Duration (cont) Lehman Brothers | 3.250 % | 01/09/06 | TBD | $ 1,406,615 | $ 1,384,000 |
| | 1.500 | 09/06/06 | TBD | 894,697 | 888,000 |
| | 5.500 | 11/27/06 | TBD | 341,858 | 334,000 |
| | 5.180 | 01/09/07 | TBD | 3,401,891 | 3,347,937 |
| | 5.200 | 01/11/07 | TBD | 16,857,549 | 16,596,250 |
| | 5.150 | 02/12/07 | TBD | 1,803,135 | 1,783,237 |
| | 5.250 | 02/28/07 | TBD | 5,976,087 | 5,923,294 |
| | 5.000 | 03/07/07 | TBD | 984,463 | 977,000 |
| | 5.270 | 03/19/07 | TBD | 18,408,741 | 18,296,250 |
| | 3.500 | 04/11/07 | TBD | 1,733,028 | 1,730,000 |
| | 5.260 | 04/20/07 | TBD | 1,444,318 | 1,442,000 |
| | 5.290 | 04/24/07 | 05/02/07 | 1,912,927 | 1,910,681 |
| | 5.280 | 04/26/07 | 05/03/07 | 3,624,595 | 3,623,000 |
| | | | | | $ 58,235,649 |
| Preferred and Equity Credit Suisse First Boston LLC | 5.400 | 04/27/07 | TBD | $ 4,321,648 | $ 4,321,000 |
| | 5.400 | 04/30/07 | TBD | 5,740,861 | 5,740,000 |
| | | | | | $ 10,061,000 |
| Strategic Bond Credit Suisse First Boston LLC | 5.000 | 03/07/07 | TBD | $ 1,146,693 | $ 1,138,000 |
| | 5.200 | 03/07/07 | TBD | 2,189,255 | 2,172,000 |
| | 5.240 | 03/07/07 | TBD | 247,969 | 246,000 |
| | 5.400 | 01/18/07 | TBD | 6,040,419 | 5,949,393 |
| | 5.400 | 01/19/07 | TBD | 989,425 | 974,515 |
| | | | | | $ 10,479,908 |

1 TBD - To be determined

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

Trust / Counter Party	Description	Rate	Maturity Date
Core Bond Lehman Brothers	Federal Home Loan
	Mortgage Corp.	5.500 %	11/01/18	$ 690,000	$ 315,298	$ 316,391
	Federal
National Mortgage Assoc.	6.000	02/01/36	1,000,000	866,860	873,610
	Federal
National Mortgage Assoc.	6.000	09/01/36	1,000,000	894,207	901,170
	Federal
National Mortgage Assoc.	6.000	11/01/36	4,000,000	3,691,036	3,719,778
	Digicel
Group Ltd.	8.875	01/15/15	240,000	240,000	235,500
	Resolution
Funding Corp.	0.000	07/15/18	525,000	525,000	303,641
	Resolution
Funding Corp.	0.000	10/15/18	525,000	525,000	299,396
	U.S.
Treasury Inflation Protected Bond	2.000	01/15/26	5,005,000	5,124,369	4,864,948
	U.S.
Treasury Bonds	4.750	02/15/37	7,925,000	7,925,000	10,164,225
	U.S.
Treasury Notes	4.625	02/15/17	11,965,000	11,965,000	11,959,388
	U.S.
Treasury Notes	4.500	03/31/12	3,125,000	3,125,000	3,122,438
						$ 36,760,485
Income Opportunity Lehman Brothers	Bank
of America Corp.	7.800	02/15/10	2,450,000	2,450,000	$ 2,622,095
	Berkshire
Hathaway Finance Corp.	3.375	10/15/08	2,525,000	2,525,000	2,463,524
	Citigroup,
Inc.	6.125	08/25/36	1,350,000	1,350,000	1,391,977
	Federal
National Mortgage Assoc.	5.500	10/01/20	445,159	371,002	371,675
	Federal
National Mortgage Assoc.	5.500	07/01/16	5,601,876	502,529	504,766
	Federal
National Mortgage Assoc.	5.500	03/01/18	1,539,074	529,211	531,060
	Federal
National Mortgage Assoc.	5.500	05/01/17	2,610,656	432,974	434,683
	Federal
National Mortgage Assoc.	5.500	11/01/17	4,172,428	543,440	545,586
	Federal
National Mortgage Assoc.	5.500	08/01/17	13,451,104	2,479,521	2,489,311
	Federal
National Mortgage Assoc.	5.500	12/01/32	583,245	331,624	328,807
	Federal
National Mortgage Assoc.	5.500	09/01/17	2,272,174	373,721	375,197
	Federal
National Mortgage Assoc.	5.500	08/01/17	2,274,535	324,370	325,651
	Federal
National Mortgage Assoc.	5.500	01/01/33	12,476,919	5,958,886	5,908,261
	Federal
National Mortgage Assoc.	5.500	03/01/18	1,483,364	510,924	512,710
	Federal
National Mortgage Assoc.	5.500	04/01/34	875,003	469,625	465,649
	Federal
National Mortgage Assoc.	5.500	02/01/35	5,014,015	3,278,696	3,250,936
	Federal
National Mortgage Assoc.	5.500	05/18/35	600,000	390,038	391,578
	Federal
National Mortgage Assoc.	5.500	10/01/20	810,190	756,131	757,502
	Federal
National Mortgage Assoc.	5.500	07/01/20	906,698	627,378	628,515
	Federal
National Mortgage Assoc.	5.500	10/01/20	807,941	734,105	735,436
	Federal
National Mortgage Assoc.	5.500	03/01/21	677,502	601,106	601,951
	Federal
National Mortgage Assoc.	5.500	04/01/21	410,151	360,261	360,767
	Federal
National Mortgage Assoc.	5.500	06/01/36	1,001,094	946,330	936,113
	Federal
National Mortgage Assoc.	5.500	10/01/20	833,871	659,220	660,416
	Federal
National Mortgage Assoc.	5.500	12/01/20	353,789	292,162	292,692
	Federal
National Mortgage Assoc.	5.500	02/01/21	505,628	423,235	423,829
	Federal
National Mortgage Assoc.	5.500	03/01/21	654,254	587,474	588,299
	Federal
National Mortgage Assoc.	6.000	01/01/37	1,000,000	971,274	978,824
	General
Electric Capital Corp.	6.750	03/15/32	2,650,000	2,650,000	3,017,242
	U.S.
Treasury Inflation Protected Bond	2.000	01/15/26	8,470,000	8,673,534	8,234,436
	U.S.
Treasury Bonds	4.750	02/15/37	8,628,000	8,628,000	8,534,982
	U.S.
Treasury Notes	4.625	02/15/17	12,805,000	12,805,000	12,798,994
						$ 62,463,465
Income Trust Lehman Brothers	U.S.
Treasury Strip	0.000	11/15/24	52,800,000	52,800,000	$ 22,281,811
	U.S.
Treasury Notes	4.000	08/31/07	14,000,000	14,000,000	13,952,974
						$ 36,234,785

Trust / Counter Party	Description	Rate	Maturity Date	Original Face	Current Face	Market Value
Limited Duration Barclays Bank	Lyondell Chemical Co.	11.125 %	07/15/12	$ 3,020,000	$ 3,020,000	$ 3,216,300
	Huntsman LLC	11.625	10/15/10	925,000	925,000	996,688
	Freeport-McMoRan
	Copper & Gold, Inc.	8.375	04/01/17	1,246,000	1,246,000	1,362,812
						$ 5,575,800
Credit Suisse First Boston LLC	AES Corp.	8.750	05/15/13	5,100,000	5,100,000	$ 5,437,875
	American Real Estate Partners LP/American Real Estate Finance Corp.	8.125	06/01/11	4,970,000	4,970,000	5,069,400
	American Real Estate Partners LP/American Real Estate Finance Corp.	7.125	02/15/13	1,480,000	1,480,000	1,455,950
	Chesapeake Energy Corp.	7.500	09/15/13	4,000,000	4,000,000	4,180,000
	Republic of Colombia	9.750	04/23/09	5,000,000	5,000,000	5,405,000
	Comcast Cable Communications, Inc.	6.875	06/15/09	6,685,000	6,685,000	6,913,092
	Concentra Operating Corp.	9.500	08/15/10	5,000,000	5,000,000	5,275,000
	DR Horton, Inc.	5.875	07/01/13	3,000,000	3,000,000	2,924,886
	DaimlerChrysler NA Holding Corp.	4.050	06/04/08	7,500,000	7,500,000	7,395,345
	Deutsche Telekom Intl. Finance BV	8.000	06/15/10	5,000,000	5,000,000	5,410,445
	General Motors Acceptance Corp.	6.875	08/28/12	2,735,000	2,735,000	2,733,085
	Group 1 Automotive, Inc.	8.250	08/15/13	5,000,000	5,000,000	5,175,000
	Kazkommerts Intl. BV	10.125	05/08/07	5,000,000	5,000,000	5,002,500
	Midwest Generation LLC	8.560	01/02/16	5,180,000	4,324,265	4,767,502
	Nielsen Finance LLC/Nielsen Finance Co.	10.000	08/01/14	4,340,000	4,340,000	4,741,450
	JC Penney Co., Inc.	8.000	03/01/10	4,400,000	4,400,000	4,708,902
	Peru Government International Bond	8.375	05/03/16	2,795,000	2,795,000	3,342,820
	Qwest Communications Intl., Inc.	8.860	02/15/09	4,000,000	4,000,000	4,040,000
	Qwest Corp.	9.125	03/15/12	3,675,000	3,675,000	4,060,875
	Qwest Corp.	7.875	09/01/11	1,000,000	1,000,000	1,065,000
	Qwest Corp.	8.605	06/15/13	2,500,000	2,500,000	2,734,375
	RH Donnelley Corp.	8.875	01/15/16	4,260,000	4,260,000	4,622,100
	Rite Aid Corp.	8.125	05/01/10	5,000,000	5,000,000	5,162,500
	Rouse Co.	5.375	11/26/13	2,000,000	2,000,000	1,885,294
	Sanmina-SCI Corp.	8.125	03/01/16	1,710,000	1,710,000	1,673,663
	Swift Energy Co.	9.375	05/01/12	5,000,000	5,000,000	5,225,000
	Turkey	7.000	09/26/16	5,093,000	5,093,000	5,207,592
	Tyco Intl. Group S.A.	6.125	11/01/08	7,500,000	7,500,000	7,609,560
	Windstream Corp.	8.125	08/01/13	2,340,000	2,340,000	2,538,900
						$ 125,763,111
Lehman Brothers	Digicel Group Ltd.	8.875	01/15/15	1,120,000	1,120,000	$ 1,099,000
	Federal National Mortgage Assoc.	7.250	01/15/10	17,000,000	17,000,000	18,040,757
	Federal National Mortgage Assoc.	5.500	10/01/33	2,317,378	1,123,789	1,114,268
	Federal National Mortgage Assoc.	5.500	02/01/32	390,000	125,329	124,264
	Federal National Mortgage Assoc.	5.500	03/01/32	900,000	311,268	309,594
	Federal National Mortgage Assoc.	5.500	01/01/33	263,772	103,987	103,104
	Federal National Mortgage Assoc.	5.500	03/01/33	900,000	249,818	247,702
	Federal National Mortgage Assoc.	5.500	06/01/33	800,952	389,380	386,083
	Federal National Mortgage Assoc.	5.500	07/01/33	1,982,153	1,030,583	1,021,858
	Federal National Mortgage Assoc.	5.500	08/01/33	1,236,912	558,619	553,890
	Federal National Mortgage Assoc.	5.500	09/01/33	5,790,192	3,135,887	3,109,336
	Federal National Mortgage Assoc.	5.500	10/01/33	453,504	208,605	206,839
	Grant Prideco, Inc.	6.125	08/15/15	380,000	380,000	377,150
	Metaldyne Corp.	11.000	11/01/13	1,000,000	1,000,000	1,030,000
	NewPage Corp.	11.606	05/01/12	1,500,000	1,500,000	1,663,125
	Sally Holdings LLC	10.500	11/15/16	1,790,000	1,790,000	1,861,600
	U.S. Treasury Notes	3.375	12/15/08	17,000,000	17,000,000	16,654,696
	U.S. Treasury Notes	3.875	05/15/09	5,945,000	5,945,000	5,860,700
	U.S. Treasury Notes	3.375	09/15/09	3,425,000	3,425,000	3,334,693
	U.S. Treasury Notes	4.250	08/15/15	1,815,000	1,815,000	1,770,191
						$ 58,868,850

Trust / Counter Party	Description	Rate	Maturity Date	Original Face	Current Face	Market Value
Preferred and Equity Credit Suisse First
Boston LLC	HBOS Plc	5.920 %	N/A 1	$ 6,000,000	$ 6,000,000	$ 5,896,152
	HSBC Capital Funding LP	10.176	N/A 1	3,000,000	3,000,000	4,380,135
						$ 10,276,287
Strategic Bond Credit Suisse First Boston
LLC	DTE Energy Co.	7.050	06/01/11	100,000	100,000	$ 106,465
	Digicel Group Ltd.	8.875	01/15/15	170,000	170,000	166,812
	General Electric Capital Corp.	3.450	07/16/07	2,000,000	2,000,000	1,992,624
	Merck & Co., Inc.	4.375	02/15/13	1,000,000	1,000,000	960,531
	TIAA Global Markets, Inc.	3.875	01/22/08	1,000,000	1,000,000	987,987
	U.S. Treasury Bonds	5.375	02/15/31	225,000	225,000	240,996
	U.S. Treasury Notes	4.250	08/15/13	1,000,000	1,000,000	985,312
	U.S. Treasury Notes	4.750	05/15/14	710,000	710,000	717,627
	U.S. Treasury Notes	4.125	08/15/10	810,000	810,000	800,824
	U.S. Treasury Notes	4.250	08/15/15	75,000	75,000	73,148
	U.S. Treasury Notes	4.875	08/15/16	550,000	550,000	560,097
	Vodafone Group Plc	7.750	02/15/10	1,000,000	1,000,000	1,065,864
	Wells Fargo & Co.	3.500	04/04/08	2,000,000	2,000,000	1,966,848
						$ 10,625,135

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

Note 5. Commitments

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

Note 6. Income Tax Information

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

Distributions Paid from:	Year ended October 31, 2006 — Ordinary Income	Non-taxable Return of Capital	Long-term Capital Gains	Total Distributions
Broad Investment Grade	$ 4,241,016	$	$ 20,078	$ 4,261,094
Core Bond	25,048,230		7,914,351	32,962,581
High Yield	4,175,232			4,175,232
Income Opportunity	22,238,533	2,162,198	8,976,685	33,377,416
Income Trust	21,910,288	5,576,693		27,486,981
Limited Duration	55,725,066	760,960		56,486,026
Strategic Bond	6,969,104	251,641		7,220,745

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

| Trust — Broad
Investment Grade | $ 2,061,303 | 2011 | Trust — Income Trust | $ 33,107,952 | 2007 |
| --- | --- | --- | --- | --- | --- |
| | 684,360 | 2012 | | 1,352,206 | 2008 |
| | 493,567 | 2014 | | 13,940,898 | 2009 |
| | $ 3,239,230 | | | 21,960,613 | 2011 |
| | | | | 10,100,201 | 2012 |
| | | | | 3,861,222 | 2013 |
| High Yield | $ 2,558,868 | 2007 | | 6,952,429 | 2014 |
| | 3,270,311 | 2008 | | $ 91,275,521 | |
| | 15,159,280 | 2009 | | | |
| | 8,468,860 | 2010 | | | |
| | 4,771,417 | 2011 | Limited
Duration | $ 2,008,113 | 2013 |
| | 316,410 | 2012 | | 1,268,222 | 2014 |
| | 2,060,533 | 2014 | | $ 3,276,335 | |
| | $ 36,605,679 | | | | |
| | | | Strategic
Bond | $ 432,713 | 2011 |
| Income
Opportunity | $ 2,451,628 | 2014 | | 318,492 | 2013 |
| | | | | 689,609 | 2014 |
| | | | | $ 1,440,814 | |

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

Note 7. Capital

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

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

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

Trust	April 30, 2007	October 31, 2006
High Yield		6,259
Limited
Duration	67,233	13,785
Preferred
and Equity	73,340

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

Series	Shares
T7	4,620
W7	4,620
R7	4,620
F7	4,620

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

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

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

Note 8. Subsequent Dividends

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

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

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

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

DIVIDEND REINVESTMENT PLANS

Pursuant to each Trusts respective Dividend Reinvestment Plan (the Plan), shareholders of Broad Investment Grade, Income Opportunity and Income Trust may elect, while shareholders of Core Bond, High Yield, Limited Duration, Preferred and Equity and Strategic Bond are automatically enrolled, to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the Plan Agent) in the respective 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 Broad Investment Grade declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants account, by the purchase of outstanding shares on the open market, on the Trusts primary exchange or elsewhere (open market purchases). The Trust will not issue any new shares under the Plan.

After Core Bond, High Yield, Income Trust, Limited Duration and/or Strategic Bond declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants account, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (newly issued shares) or (ii) by open market purchases. If, on the dividend payment date, the NAV is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as market premium), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each 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.

At a meeting of the Board of Trustees of the Income Opportunity Trust on November 21, 2006, the Board approved an amendment to the Dividend Reinvestment Plan of the Income Opportunity Trust. The Plan previously operated in a manner similar to Broad Investment Grades Plan, and permitted shares to be purchased only on the open market. As a result of the amendment, the Plan began permitting purchases of newly issued shares on terms similar to the Plans described in the next paragraph on April 1, 2007.

The Plan 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.

ADDITIONAL INFORMATION

Each Trust listed for trading on the New York Stock Exchange (NYSE) has filed with the NYSE its annual chief executive officer certification regarding compliance with the NYSEs listing standards and each Trust listed for trading on the American Stock Exchange (AMEX) has filed with the AMEX its corporate governance certification regarding compliance with the AMEXs listing standards. All of the Trusts have filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of such 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 principle risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts portfolios.

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on 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.

Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisors. They serve in the following capacities for the Advisor or Sub-Advisors: Robert S. KapitoDirector and Vice Chairman of the Advisor and the Sub-Advisors, Donald Burke, Anne Ackerley, Bartholomew Battista, Vincent Tritto and Brian KindelanManaging Directors of the Advisor and the Sub-Advisors, Neal AndrewsManaging Director of the Advisor, James Kong and Jay FifeManaging Directors of the Sub-Advisors, Spencer FlemingDirector of the Advisor and a Sub-Advisor and Robert MaharDirector of a Sub-Advisor.

Important Information Regarding the BlackRock Closed-End Funds Semi-Annual Investor Update

The Semi-Annual Investor Update (Update) is available on the Internet and may be accessed through BlackRocks website at http://www.blackrock.com. The Update provides information on the fixed income markets and summaries of BlackRock Closed-End Funds investment objectives and strategies. It also contains recent news regarding certain BlackRock Closed-End Funds.

If you would like to receive a hard copy of the BlackRock Closed-End Funds Semi-Annual Investor Update , please call (800) 699-1BFM.

SECTION 19 NOTICES

The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the 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 1 Cumulative Distributions — Net Investment Income | Net Realized Capital Gains | Return of Capital | Percentage
of Fiscal Year to Date 1 Cumulative Distributions by Character — Total Per Common Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Common Share |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Preferred & Equity Advantage* | $0.38 | $ | $0.09 | $0.47 | 81% | % | 19% | 100% |

| 1 | Commencement of investment
operations for Preferred and Equity Advantage was December 27, 2006. |
| --- | --- |
| * | The Trust estimates that it
has distributed more than its income and net realized gains; therefore, a
portion of your distribution may be a return of capital. A return of capital
may occur, for example, when some or all of the money that you invested in
the Trust is paid back to you. A return of capital does not necessarily
reflect the Trusts investment performance and should not be confused with
yield or income. |

BlackRock Closed-End Funds

Directors/Trustees
Ralph
L. Schlosstein, Chairman
Andrew
F. Brimmer, Lead Trustee 1
Richard
E. Cavanagh, Lead Trustee 2
Kent
Dixon
Frank
J. Fabozzi
Kathleen
Feldstein
R.
Glenn Hubbard Robert S. Kapito 3
Officers
Robert
S. Kapito, President
Donald
C. Burke, Treasurer
Bartholomew
Battista, Chief Compliance Officer
Anne
Ackerley, Vice President
Neal
Andrews, Assistant Treasurer
Jay
Fife, Assistant Treasurer
Spencer
Fleming, Assistant Treasurer
James
Kong, Assistant Treasurer
Robert
Mahar, Assistant Treasurer
Vincent
B. Tritto, Secretary
Brian
P. Kindelan, Assistant Secretary
Investment Advisor
BlackRock
Advisors, LLC
100
Bellevue Parkway
Wilmington,
DE 19809
(800)
227-7BFM
Sub-Advisor
BlackRock
Financial Management, Inc. 4
40
East 52nd Street
New
York, NY 10022
BlackRock
Investment Management, LLC 5
40
East 52nd Street
New
York, NY 10022

Accounting Agent and Custodian
State
Street Bank and Trust Company
2
Avenue de Lafayette
Boston,
MA 02111
Transfer Agent
Computershare
Trust Company, N.A.
250
Royall Street
Canton,
MA 02021
(800)
699-1BFM
Auction Agent 5
Bank
of New York
101
Barclay Street, 7 West
New
York, NY 10286
Independent Registered Public Accounting Firm
Deloitte
& Touche LLP
200
Berkeley Street
Boston,
MA 02116
Legal Counsel
Skadden,
Arps, Slate, Meagher & Flom LLP
4
Times Square
New
York, NY 10036
Legal Counsel Independent Directors/Trustees
Debevoise
& Plimpton LLP
919
Third Avenue
New
York, NY 10022

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change.

| BlackRock Closed-End
Funds |
| --- |
| c/o
BlackRock Advisors, LLC |
| 100
Bellevue Parkway |
| Wilmington,
DE 19809 |
| (800)
227-7BFM |

| 1 | Retired, effective December
31, 2006. |
| --- | --- |
| 2 | Effective as of January 1,
2007. |
| 3 | Resigned, effective
December 31, 2006. |
| 4 | For Core Bond, Limited
Duration, Preferred and Equity and Strategic Bond. |
| 5 | For Preferred and Equity. |

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called householding and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 699-1BFM.

The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisors proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the Commission) at http://www.sec.gov. Information on how proxies relating to the Trusts voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (800) 699-1BFM or on the website of the Commission at http://www.sec.gov.

The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trusts Form N-Q will be available on the Commissions website at http://www.sec.gov. Each Trusts Form N-Q may be reviewed and copied at the Commissions Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Each Trusts Form N-Q may also be obtained, upon request, by calling (800) 699-1BFM.

CEF-SEMI-3-0407

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semi-annual reports.

Item 6. Schedule of Investments.

The Registrants Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable for semi-annual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

(a) Not applicable for semi-annual reports.

(b) Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Companies and Affiliated Purchasers.

Not applicable because no such purchases were made during the period covered by this report.

Item 10. Submission of Matters to a Vote of Security Holders.

No matters were voted on by shareholders during the period covered by this report.

Item 11. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrants disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrants management, including its principle executive and principle financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the Registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Not applicable.

(a) (2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached as EX-99.CERT.

(a) (3) Not applicable.

(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) BlackRock Income Trust, Inc.

| By: | /s/ Donald
C. Burke |
| --- | --- |
| Name: | Donald C. Burke |
| Title: | Treasurer |
| Date: | July 3, 2007 |

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

| By: | /s/
Robert S. Kapito |
| --- | --- |
| Name: | Robert S. Kapito |
| Title: | Principal Executive Officer |
| Date: | July 3, 2007 |

| By: | /s/ Donald
C. Burke |
| --- | --- |
| Name: | Donald C. Burke |
| Title: | Principal Financial Officer |
| Date: | July 3, 2007 |

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