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UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21413

Name of Fund: BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 08/31/2009

Date of reporting period: 02/28/2009

Item 1 – Report to Stockholders



EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Semi-Annual Report

FEBRUARY 28, 2009 | (UNAUDITED)

BlackRock Defined Opportunity Credit Trust (BHL)

BlackRock Diversified Income Strategies Fund, Inc. (DVF)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

BlackRock Limited Duration Income Trust (BLW)

BlackRock Senior Floating Rate Fund, Inc.

BlackRock Senior Floating Rate Fund II, Inc.

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE


Table of Contents   
 
  Page 
 
A Letter to Shareholders  3 
Semi-Annual Report:   
Fund Summaries  4 
The Benefits and Risks of Leveraging  10 
Derivative Instruments  11 
Disclosure of Expenses  11 
Fund Financial Statements   
       Schedules of Investments  12 
       Statements of Assets and Liabilities  36 
       Statements of Operations  37 
       Statements of Changes in Net Assets  39 
       Statements of Cash Flows  42 
Fund Financial Highlights  43 
Fund Notes to Financial Statements  49 
Master Senior Floating Rate LLC Portfolio Summary  57 
Master Senior Floating Rate LLC Financial Statements:   
       Schedule of Investments  58 
       Statement of Assets and Liabilities  64 
       Statement of Operations  65 
       Statements of Changes in Net Assets  67 
Master Senior Floating Rate LLC Financial Highlights  67 
Master Senior Floating Rate LLC Notes to Financial Statements  68 
Officers and Directors/Trustees  71 
Additional Information  72 

2 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


A Letter to Shareholders

Dear Shareholder

The present time may well be remembered as one of the most tumultuous periods in financial market history. Over the past year, the housing market

collapse and the ensuing credit crisis swelled into an all-out global financial market meltdown, featuring the collapse of storied financial firms, volatile

swings in the world’s financial markets and monumental government actions, including the recent passage of the nearly $800 billion American Recovery

and Reinvestment Act of 2009.

The US economy appeared somewhat resilient through the first few months of 2008 before becoming mired in the worst recession in decades. The

economic data was dire across the board, but worse was the intensifying pace of deterioration in consumer spending, employment, manufacturing and

other key indicators. US gross domestic product (GDP) contracted at an annual rate of 6.3% in the 2008 fourth quarter — substantially below forecast and

the worst reading since 1982. The Federal Reserve Board (the “Fed”) took forceful action to revive the global economy and financial system. In addition to

slashing the federal funds target rate from 3% to a record low range of 0% to 0.25%, the central bank provided enormous cash injections and significantly

expanded its balance sheet via various lending and acquisition programs.

Against this backdrop, US equities contended with relentless market volatility, and the sentiment turned decisively negative toward period end. Declines

were significant and broad based, with little divergence among the returns for large and small cap stocks. Non-US stocks were not spared either, as the

credit crisis revealed itself to be global in nature and economic activity slowed dramatically.

Risk aversion remained the dominant theme in fixed income markets, leading the Treasury sector to top all other asset classes. The high yield market was

particularly hard hit in this environment, as economic turmoil, combined with frozen credit markets and substantial technical pressures, took a heavy toll.

Meanwhile, tax-exempt issues posted positive returns for the period, but the sector was not without significant challenges, including a shortage of market

participants, lack of liquidity, difficult funding environment and backlog of new-issue supply.

In all, investors continued to gravitate toward relative safety, as evidenced in the six- and 12-month returns of the major benchmark indexes:

Total Returns as of February 28, 2009  6-month  12-month 
US equities (S&P 500 Index)  (41.82)%  (43.32)% 
Small cap US equities (Russell 2000 Index)  (46.91)  (42.38) 
International equities (MSCI Europe, Australasia, Far East Index)  (44.58)  (50.22) 
US Treasury securities (Merrill Lynch 10-Year US Treasury Index)  8.52  8.09 
Taxable fixed income (Barclays Capital US Aggregate Bond Index*)  1.88  2.06 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index*)  0.05  5.18 
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index*)  (21.50)  (20.92) 

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

Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For our most current

views on the economy and financial markets, we invite you to visit www.blackrock.com/funds. We thank you for entrusting BlackRock with your investments,

and we look forward to continuing to serve you in the months and years ahead.

Sincerely,


Rob Kapito

President, BlackRock Advisors, LLC

THIS PAGE NOT PART OF YOUR FUND REPORT 3


Fund Summary as of February 28, 2009 BlackRock Defined Opportunity Credit Trust

Investment Objective

BlackRock Defined Opportunity Credit Trust (BHL) (the “Fund”) seeks high current income, with a secondary objective of long-
term capital appreciation.

Performance

For the six months ended February 28, 2009, the Fund returned (20.79)% based on market price and (27.30)% based on net
asset value (“NAV”). For the same period, the Lipper Loan Participation Funds category posted an average return of (39.55)% on
a market price basis and (35.93)% on a NAV basis. The performance of the Lipper category does not necessarily correlate to that
of the Fund, as the Lipper group comprises both closed-end funds and unleveraged continuously offered closed-end funds. All
returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the differ-
ence between performance based on price and performance based on NAV. This semi-annual period was one of the most difficult
in market history. Accordingly, the Fund was conservatively invested with an emphasis on more liquid credits and defensive market
sectors, which aided relative performance for the six months.

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

Fund Information

Symbol on New York Stock Exchange  BHL 
Initial Offering Date  January 31, 2008 
Yield on Closing Market Price as of February 28, 2009 ($9.35)1  14.44% 
Current Monthly Distribution per Share2  $0.1125 
Current Annualized Distribution per Share2  $1.3500 
Leverage as of February 28, 20093  24% 

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 A change in the distribution rate was declared on March 2, 2009. The Monthly Distribution per Share was decreased to $0.0825. The Yield on
Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate.
The new distribution rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of
capital or net realized gain.
3 Represents loans outstanding as a percentage of managed assets, which is the total assets of the Fund, including any assets attributable to any
borrowing that may be outstanding, minus the sum of accrued liabilities (other than debt representing financial leverage). For a discussion of
leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

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

  2/28/09  8/31/08  Change  High  Low 
Market Price  $9.35  $12.66  (26.15)%  $13.29  $6.53 
Net Asset Value  $9.70  $14.31  (32.22)%  $14.35  $8.36 

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

Portfolio Composition

  2/28/09  8/31/08 
Floating Rate Loan Interests  99%  99% 
Corporate Bonds  1  1 

4 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Fund Summary as of February 28, 2009 BlackRock Diversified Income Strategies Fund, Inc.

Investment Objective

BlackRock Diversified Income Strategies Fund, Inc. (DVF) (the “Fund”) seeks to provide investors with a high current income by
investing primarily in a diversified portfolio of floating rate debt securities and instruments, including floating or variable rate
loans, bonds, preferred securities (including convertible preferred securities), notes or other debt securities or instruments that pay
a floating rate of interest.

Performance

For the six months ended February 28, 2009, the Fund returned (47.13)% based on market price and (53.82)% based on NAV.
For the same period, the closed-end Lipper Loan Participation Funds category posted an average return of (39.55)% on a market
price basis and (35.93)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund moved from a discount to a
premium to NAV, which accounts for the difference between performance based on price and performance based on NAV. During
the period, high yield bonds, which made up 48% of the Fund’s portfolio as of February 28, 2009, performed inline with loans.
This was neutral to performance, however, the Fund’s allocation to high yield floating rate notes detracted, as these issues under-
performed. The Fund was 25% leveraged as of February 28, 2009, amplifying its negative return during one of the most difficult
periods in market history. Credit quality also hampered results, as the Fund’s average credit distribution was lower than that of
the market.

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

Fund Information

Symbol on New York Stock Exchange  DVF 
Initial Offering Date  January 31, 2005 
Yield on Closing Market Price as of February 28, 2009 ($6.03)1  24.88% 
Current Monthly Distribution per Share2  $0.125 
Current Annualized Distribution per Share2  $1.500 
Leverage as of February 28, 20093  25% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 A change in the distribution rate was declared on March 2, 2009. The Monthly Distribution per Share was decreased to $0.1150. The Yield on
Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate.
The new distribution rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of
capital or net realized gain.
3 As a percentage of managed assets, which is the total assets of the Fund, including any assets attributable to any borrowing that may be out-
standing, minus the sum of accrued liabilities, other than debt representing financial leverage). For a discussion of leveraging techniques utilized
by the Fund, please see The Benefits and Risks of Leveraging on page 10.

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

  2/28/09  8/31/08  Change  High  Low 
Market Price  $6.03  $12.77  (52.78)%  $13.04  $4.75 
Net Asset Value  $5.75  $13.94  (58.75)%  $13.94  $5.73 

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

     Portfolio Composition     
  2/28/09  8/31/08 
Floating Rate Loan Interests  50%  47% 
Corporate Bonds  48  50 
Common Stock  1  3 
Non-U.S. Government Agency     
   Mortgage-Backed Securities  1   

     Credit Quality Allocations4     
  2/28/09  8/31/08 
AA/Aa    3% 
BBB/Baa    1 
BB/Ba  9%  7 
B/B  62  61 
CCC/Caa  19  20 
CC/Ca  6  2 
Not Rated  4  6 

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 5


Fund Summary as of February 28, 2009 BlackRock Floating Rate Income Strategies Fund, Inc

Investment Objective

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (the “Fund”) seeks high current income and such preservation of
capital as is consistent with investment in a diversified, leveraged portfolio consisting primarily of floating rate debt securities and
instruments.

Performance

For the six months ended February 28, 2009, the Fund returned (35.03)% based on market price and (37.26)% based on NAV.
For the same period, the closed-end Lipper Loan Participation Funds category posted an average return of (39.55)% on a market
price basis and (35.93)% on a NAV basis. The performance of the Lipper category does not necessarily correlate to that of the
Fund, as the Lipper group comprises both closed-end funds and unleveraged continuously offered closed-end funds. All returns
reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference
between performance based on price and performance based on NAV. The six-month period featured considerable volatility
in credit markets. Consequently, the Fund was invested fairly conservatively in terms of credit and sector allocation, which
aided performance.

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

Fund Information

Symbol on New York Stock Exchange  FRA 
Initial Offering Date  October 31, 2003 
Yield on Closing Market Price as of February 28, 2009 ($8.74)1  15.77% 
Current Monthly Distribution per Share2  $0.114835 
Current Annualized Distribution per Share2  $1.378020 
Leverage as of February 28, 20093  19% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 A change in the distribution rate was declared on March 2, 2009. The Monthly Distribution per Share was decreased to $0.104835. The Yield on
Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate.
The new distribution rate is not constant and is subject to further change in the future.
3 Represents loans outstanding as a percentage of managed assets, which is the total assets of the Fund, including any assets attributable to
any borrowing that may be outstanding, minus the sum of accrued liabilities (other than debt representing financial leverage). For a discussion
of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

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

  2/28/09  8/31/08  Change  High  Low 
Market Price  $8.74  $14.49  (39.68)%  $14.68  $7.79 
Net Asset Value  $9.39  $16.12  (41.75)%  $16.12  $8.96 

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

     Portfolio Composition     
  2/28/09  8/31/08 
Floating Rate Loan Interests  71%  73% 
Corporate Bonds  28  26 
Non-U.S. Government Agency     
   Mortgage-Backed Securities  1   
Common Stocks    1 

     Credit Quality Allocations4     
  2/28/09  8/31/08 
AA/Aa    5% 
BBB/Baa  18%  11 
BB/Ba  17  11 
B/B  51  59 
CCC/Caa  7  8 
CC/Ca  1   
D  1   
Not Rated  5  6 

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

6 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Fund Summary as of February 28, 2009 BlackRock Limited Duration Income Trust

Investment Objective

BlackRock Limited Duration Income Trust (BLW) (the “Fund”) seeks to provide current income and capital appreciation.

Performance

For the six months ended February 28, 2009, the Fund returned (13.14)% based on market price and (20.15)% based on NAV.
For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of (34.08)%
on a market price basis and (34.87)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV,
which narrowed during the period, accounts for the difference between performance based on price and performance based on
NAV. The Fund’s 24% allocation to mortgage securities (as of February 28, 2009) helped relative performance dramatically,
as these issues outperformed high yield for the six-month period. The Fund employed very little leverage, which also proved
beneficial to performance.

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

Fund Information

Symbol on New York Stock Exchange  BLW 
Initial Offering Date  July 30, 2003 
Yield on Closing Market Price as of February 28, 2009 ($11.96)1  10.03% 
Current Monthly Distribution per Share2  $0.10 
Current Annualized Distribution per Share2  $1.20 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance
does not guarantee future results.
2 A change in the distribution rate was declared on March 2, 2009. The Monthly Distribution per Share was decreased to $0.09. The Yield on Closing
Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or
net realized gain.

The table below summarizes the Fund’s market price and net asset value per share:

  2/28/09  8/31/08  Change  High  Low 
Market Price  $11.96  $14.57  (17.91)%  $14.83  $ 8.83 
Net Asset Value  $12.61  $16.71  (24.54)%  $16.81  $11.86 

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

Portfolio Composition     
  2/28/09  8/31/08 
Floating Rate Loan Interests       44%  46% 
U.S. Government Agency     
   Mortgage-Backed Securities  24  16 
Corporate Bonds  24  32 
U.S. Government Obligations  5  4 
Foreign Government Obligations  3  2 

     Credit Quality Allocations3     
  2/28/09  8/31/08 
AAA/Aaa    7% 
BBB/Baa       23%  14 
BB/Ba  21  17 
B/B  34  44 
CCC/Caa  17  13 
C/C  1   
Not Rated  4  5 

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 7


Fund Summary as of February 28, 2009 BlackRock Senior Floating Rate Fund, Inc.

Investment Objective

BlackRock Senior Floating Rate Fund, Inc. (the “Fund”) is a continuously offered closed-end fund that seeks high current income
and such preservation of capital as is consistent with investment in senior collateralized corporate loans made by banks and
other financial institutions.

Performance

For the six months ended February 28, 2009, the Fund returned (22.69)% based on NAV. For the same period, the closed-end
Lipper Loan Participation Funds category posted an average return of (35.93)% on a NAV basis. All returns reflect reinvestment
of dividends. The Fund employed no leverage during the six months, while the Lipper category comprises primarily leveraged
closed-end funds. This had a huge impact on relative performance during the first three months of the reporting period —
notably, the worst period in market history. In general, the Fund was defensively positioned with respect to sector allocation,
and was broadly diversified among individual credits. This aided performance in the first half, but detracted as performance
improved during the final two months.

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

Fund Information1

Initial Offering Date  November 3, 1989 
Yield based on Net Asset Value as of February 28, 2009 ($5.95)2  6.60% 
Current Monthly Distribution per Share3  $0.030132 
Current Annualized Distribution per Share3  $0.392792 

1 The Fund is a continuously offered closed-end fund that does not trade on an exchange.
2 Yield based on net asset value is calculated by dividing the current annualized distribution per share by the net asset value.
Past performance does not guarantee future results.
3 The distribution is not constant and is subject to change.

The table below summarizes the change in the Fund’s NAV per share:

  2/28/09  8/31/08  Change  High  Low 
Net Asset Value  $5.95  $7.98  (25.44)%  $7.98  $5.54 

Expense Example for Continuously Offered Closed-End Funds

    Actual      Hypothetical5   
  Beginning  Ending    Beginning  Ending   
  Account Value  Account Value  Expenses Paid  Account Value  Account Value  Expenses Paid 
              September 1, 2008                 February 28,2009  During the Period4              September 1, 2008                  February 28,2009  During the Period4 
BlackRock Senior Floating Rate, Inc.  $1,000  $773.10  $6.66  $1,000  $1,017.39             $7.57 

4 Expenses are equal to the annualized expense ratio of 1.51%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year
period shown). Because the Fund is a feeder fund, the expense table reflects the expenses of both the feeder fund and the Master LLC in which it invests.
5 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.
See “Disclosure of Expenses for Continuously Offered Closed-End Funds” on page 11 for further information on how expenses were calculated.

8 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Fund Summary as of February 28, 2009 BlackRock Senior Floating Rate Fund II, Inc.

Investment Objective

BlackRock Senior Floating Rate Fund II, Inc. (the “Fund”) is a continuously offered closed-end fund that seeks high current
income and such preservation of capital as is consistent with investment in senior collateralized corporate loans made by banks
and other financial institutions.

Performance

For the six months ended February 28, 2009, the Fund returned (22.75)% based on NAV. For the same period, the closed-end
Lipper Loan Participation Funds category posted an average return of (35.93)% on a NAV basis. All returns reflect reinvestment
of dividends. The Fund employed no leverage during the six months, while the Lipper category comprises primarily leveraged
closed-end funds. This had a huge impact on relative performance during the first three months of the reporting period —
notably, the worst period in market history. In general, the Fund was defensively positioned with respect to sector allocation,
and was broadly diversified among individual credits. This aided performance in the first half, but detracted as performance
improved during the final two months.

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

Fund Information1

Initial Offering Date  March 26, 1999 
Yield based on Net Asset Value as of February 28, 2009 ($6.44)2  6.46% 
Current Monthly Distribution per Share3  $0.031926 
Current Annualized Distribution per Share3  $0.416178 

1 The Fund is a continuously offered closed-end fund that does not trade on an exchange.
2 Yield based on net asset value is calculated by dividing the current annualized distribution per share by the net asset value.
Past performance does not guarantee future results.
3 The distribution is not constant and is subject to change.

The table below summarizes the change in the Fund’s NAV per share:

  2/28/09  8/31/08  Change  High  Low 
Net Asset Value  $6.44  $8.67  (25.72)%  $8.67  $6.02 

Expense Example for Continuously Offered Closed-End Funds

    Actual      Hypothetical5   
  Beginning  Ending    Beginning  Ending   
  Account Value  Account Value  Expenses Paid  Account Value  Account Value  Expenses Paid 
            September 1, 2008            February 28,2009  During the Period4           September 1, 2008       February 28,2009  During the Period4 
BlackRock Senior Floating Rate II, Inc.  $1,000  $772.50  $7.30  $1,000  $1,016.56             $8.30 

4 Expenses are equal to the annualized expense ratio of 1.67%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year
period shown). Because the Fund is a feeder fund, the expense table reflects the expenses of both the feeder fund and the Master LLC in which it invests.
5 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.
See “Disclosure of Expenses for Continuously Offered Closed-End Funds” on page 11 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 9


The Benefits and Risks of Leveraging

BlackRock Defined Opportunity Credit Trust, BlackRock Diversified Income
Strategies Fund, Inc., BlackRock Floating Rate Income Strategies Fund, Inc.
and BlackRock Limited Duration Income Trust (each a “Fund” and collec-
tively, the “Funds”) may utilize leverage to seek to enhance the yield and
NAV of its Common Shares. However, these objectives cannot be achieved
in all interest rate environments.

The Funds may utilize leverage through borrowings and the issuance of
short-term debt securities. In general, the concept of leveraging is based
on the premise that the cost of assets to be obtained from leverage will be
based on short-term interest rates, which normally will be lower than the
income earned by each Fund on its longer-term portfolio investments. To
the extent that the total assets of the Fund (including the assets obtained
from leverage) are invested in higher-yielding portfolio investments, the
Fund’s shareholders will benefit from the incremental yield.

The interest earned on securities purchased with the proceeds from lever-
age is paid to Common Shareholders in the form of dividends, and the
value of these portfolio holdings is reflected in the per share NAV of the
Fund’s Common Shares. However, in order to benefit Common Share-
holders, the yield curve must be positively sloped; that is, short-term inter-
est rates must be lower than long-term interest rates. If the yield curve
becomes negatively sloped, meaning short-term interest rates exceed long-
term interest rates, returns to Common Shareholders will be lower than if
the Fund had not used leverage.

To illustrate these concepts, assume a Fund’s Common Shares capitaliza-
tion is $100 million and it issues debt securities for an additional $30 mil-
lion, creating a total value of $130 million available for investment in long-
term securities. If prevailing short-term interest rates are 3% and long-term
interest rates are 6%, the yield curve has a strongly positive slope. In this
case, the Fund pays interest expense on the $30 million of debt securities
based on the lower short-term interest rates. At the same time, the Fund’s
total portfolio of $130 million earns the income based on long-term inter-
est rates. In this case, the interest expense of the debt securities is signifi-
cantly lower than the income earned on the fund’s long-term investments,
and therefore the Common Shareholders are the beneficiaries of the incre-
mental yield.

Conversely, if prevailing short-term interest rates rise above long-term inter-
est rates of 6%, the yield curve has a negative slope. In this case, the Fund
pays interest expense on the higher short-term interest rates whereas the
Fund’s total portfolio earns income based on lower long-term interest rates.
If short-term interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental yield pickup on the Common
Shares will be reduced or eliminated completely.

Furthermore, the value of the Fund’s portfolio investments generally varies
inversely with the direction of long-term interest rates, although other fac-
tors can influence the value of portfolio investments. In contrast, the
redemption value of the Fund’s debt securities do not fluctuate in relation
to interest rates. As a result, changes in interest rates can influence the
Fund’s NAV positively or negatively in addition to the impact on Fund per-
formance from leverage from debt securities.

The use of leverage may enhance opportunities for increased returns to the
Funds and Common Shareholders, but as described above, it also creates
risks as short- or long-term interest rates fluctuate. Leverage also will gen-
erally cause greater changes in a Funds’ NAV, market price and dividend
rate than a comparable portfolio without leverage. If the income derived
from securities purchased with assets received from leverage exceeds the
cost of leverage, the Funds’ net income will be greater than if leverage had
not been used. Conversely, if the income from the securities purchased is
not sufficient to cover the cost of leverage, the Funds’ net income will be
less than if leverage had not been used, and therefore the amount avail-
able for distribution to shareholders will be reduced. The Funds may be
required to sell portfolio securities at inopportune times or below fair mar-
ket values in order to comply with regulatory requirements applicable to
the use of leverage or as required by the terms of leverage instruments
which may cause the Funds to incur losses. The use of leverage may limit a
Funds’ ability to invest in certain types of securities or use certain types of
hedging strategies. The Funds will incur expenses in connection with the
use of leverage, all of which are borne by the holders of the Common
Shares and may reduce returns on the Common Shares.

Under the Investment Company Act of 1940, the Funds are permitted to
borrow through a credit facility and the issuance of short-term debt securities
up to 33 1 / 3 % of total managed assets. As of February 28, 2009, BlackRock
Limited Duration Income Trust had no outstanding leverage and the other
Funds had outstanding leverage from credit facility borrowings as a per-
centage of total managed assets as follows:

  Percent of 
  Leverage 
BlackRock Defined Opportunity Credit Trust  24% 
BlackRock Diversified Income Strategies Fund, Inc  25% 
BlackRock Floating Rate Income Strategies Fund, Inc  19% 

10 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Derivative Instruments

The Funds may invest in various derivative instruments, including swap
agreements, futures and forward currency contracts, and other instruments
specified in the Notes to Financial Statements, which constitute forms of
economic leverage. Such instruments are used to obtain exposure to a
market without owning or taking physical custody of securities or to hedge
market and/or interest rate risks. Such derivative instruments involve risks,
including the imperfect correlation between the value of a derivative instru-
ment and the underlying asset, possible default of the other party to the
transaction and illiquidity of the derivative instrument. The Funds’ ability to

successfully use a derivative instrument depends on the Advisor’s ability to
accurately predict pertinent market movements, which cannot be assured.
The use of derivative instruments may result in losses greater than if they
had not been used, may require the Funds to sell or purchase portfolio
securities at inopportune times or for prices other than current market
values, may limit the amount of appreciation the Funds can realize on
an investment or may cause the Funds to hold a security that it might
otherwise sell. The Funds’ investments in these instruments are discussed
in detail in the Notes to Financial Statements.

Disclosure of Expenses for Continuously Offered Closed-End Funds

Shareholders of BlackRock Senior Floating Rate Fund, Inc. and
BlackRock Senior Floating Rate Fund II, Inc. may incur the following charges:
(a) expenses related to transactions, including early withdrawal fees; and
(b) operating expenses, including advisory fees, and other Fund expenses.
The examples on pages 8 and 9 (which are based on a hypothetical invest-
ment of $1,000 invested on September 1, 2008 and held through
February 28, 2009) are intended to assist shareholders both in calculating
expenses based on an investment in each Fund and in comparing
these expenses with similar costs of investing in other mutual funds.

The tables provide information about actual account values and actual
expenses. In order to estimate the expenses a shareholder paid during
the period covered by this report, shareholders can divide their account
value by $1,000 and then multiply the result by the number under the
heading entitled “Expenses Paid During the Period.”

The tables also provide information about hypothetical account values and
hypothetical expenses based on each Fund’s actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in these
Funds and other funds, compare the 5% hypothetical example with the 5%
hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the tables are intended to highlight shareholders’
ongoing costs only and do not reflect any transactional expenses, such
as early withdrawal fees. Therefore, the hypothetical examples are useful
in comparing ongoing expenses only, and will not help shareholders deter-
mine the relative total expenses of owning different funds. If these trans-
actional expenses were included, shareholder expenses would have
been higher.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 11


Schedule of Investments February 28, 2009 (Unaudited)

BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

     Par     
Floating Rate Loan Interests    (000)     Value 
 
Aerospace & Defense — 1.8%         
Avio S.p.A. Facility:         
     B2, 2.604%, 12/15/14  USD  471  $  243,834 
     C2, 3.229%, 12/14/15    500    258,750 
Hawker Beechcraft Acquisition Co. LLC:         
     Letter of Credit Facility Deposit, 2.10%, 3/26/14    135    61,807 
     Term Loan, 2.479% – 3.459%, 3/26/14    2,291    1,052,566 
        1,616,957 
Auto Components — 2.7%         
Allison Transmission, Inc. Term Loan, 3.20%, 8/07/14    2,199    1,456,534 
Dana Holding Corp. Term Advance,         
 6.50% – 7.25%, 1/31/15    1,321    402,071 
Goodyear Tire & Rubber Co., The Loan (Second Lien),         
 2.23%, 4/30/14    750    521,518 
        2,380,123 
Automobiles — 0.4%         
Ford Motor Co. Term Loan, 5%, 12/15/13    992    317,156 
Building Products — 1.5%         
Building Materials Corp. of America Term Loan Advance,         
 3.625% – 3.875%, 2/22/14    745    507,849 
Momentive Performance Materials (Blitz 06-103 GMBH)         
 Tranche B-2 Term Loan, 3.803%, 12/04/13  EUR  1,000    790,229 
        1,298,078 
Capital Markets — 0.7%         
Nuveen Investments, Inc. Term Loan,         
 3.479% – 4.466%, 11/13/14  USD  1,310    617,619 
Chemicals — 5.5%         
Brenntag Holding Gmbh & Co. KG Facility B2,         
 2.47% – 3.501%, 1/20/14    1,000    790,000 
Cognis GMBH Facility C, 3.996%, 9/15/13    1,000    587,500 
Huish Detergents Inc. Tranche B Term Loan,         
 2.17%, 4/26/14    992    840,269 
Matrix Acquisition Corp. (MacDermid, Inc.)         
 Tranche B Term Loan, 2.479%, 4/12/14    1,712    1,010,017 
PQ Corp. (fka Niagara Acquisition, Inc.):         
     Loan (Second Lien), 7.68%, 7/30/15    1,000    350,000 
     Term Loan (First Lien), 4.43% – 4.71%, 7/31/14    995    594,513 
Solutia Inc. Loan, 8.50%, 2/28/14    992    637,669 
        4,809,968 
Commercial Services & Supplies — 4.6%         
Alliance Laundry Systems LLC Term Loan,         
 3.35% – 3.59%, 1/27/12    842    686,316 
Aramark Corp.:         
     Letter of Credit Facility, 2.038%, 1/26/14    119    103,208 
     U.S. Term Loan, 3.334%, 1/26/14    1,881    1,624,570 
Kion Group GMBH (formerly Neggio Holdings 3 GMBH):         
     Facility B, 2.479%, 12/29/14    500    170,000 
     Facility C, 2.979%, 12/29/15    500    170,000 
Synagro Technologies, Inc. Term Loan (First Lien),         
 2.45%, 4/02/14    992    553,287 
West Corp. Term B-2 Loan, 2.82% – 2.854%, 10/24/13    988    722,953 
        4,030,334 
Computers & Peripherals — 1.0%         
Intergraph Corp. Initial Term Loan (First Lien),         
 3.256%, 5/29/14    1,000    855,000 

     Par     
Floating Rate Loan Interests    (000)     Value 
 
Containers & Packaging — 3.5%         
Crown Americas LLC Additional Term B Dollar Loan,         
 2.205%, 11/15/12  USD  495  $  442,109 
Graphic Packaging International, Inc. Incremental Term         
 Loan, 3.203% – 4.185%, 5/16/14    1,480    1,261,557 
Smurfit Kappa Acquisitions (JSG):         
     C1 Term Loan Facility, 3.678% – 5.28%, 7/16/15  EUR  500    466,426 
     Term B1, 3.428% – 5.03%, 7/16/14    500    466,426 
Smurfit-Stone Container TLB, 8.75%, 2/03/10  USD  435    432,281 
        3,068,799 
Diversified Consumer Services — 1.1%         
Coinmach Corp. Term Loan, 3.47% – 4.26%, 11/14/14    1,489    967,669 
Diversified Telecommunication Services — 5.7%         
BCM Ireland Holdings Ltd. (Eircom):         
     Facility B, 3.428%, 8/14/14  EUR  493    416,914 
     Facility C, 3.678%, 8/14/13    492    416,961 
Hawaiian Telcom Communications, Inc. Tranche C         
 Term Loan, 4.75%, 5/30/14  USD  500    208,438 
Integra Telecom Holdings, Inc. Term Loan (First Lien),         
 5.506% – 7.219%, 8/31/13    1,982    1,189,462 
PAETEC Holding Corp. Replacement Term Loan,         
 2.979%, 2/28/13    970    703,345 
Time Warner Telecom Holdings Inc. Term Loan B Loan,         
 2.48%, 1/07/13    1,030    910,639 
Wind Finance SL S.A. Euro Facility (Second Lien),         
 11.473%, 12/17/14  EUR  1,000    1,097,923 
        4,943,682 
Electric Utilities — 0.6%         
Astoria Generating Co. Acquisitions, LLC Second Lien         
 Term Loan C, 4.23%, 8/23/13  USD  750    540,937 
Electronic Equipment & Instruments — 2.4%         
Flextronics International Ltd.:         
     A Closing Date Loan, 3.344% – 3.685%, 10/01/14    765    501,144 
     Delay Draw Term Loan, 3.344%, 10/01/12    220    144,007 
L-1 Identity Solutions Operating Co. Term Loan,         
 6.75%, 8/05/13    370    339,762 
Matinvest 2 SAS/Butterfly Wendel US, Inc.         
 (Deutsche Connector):         
     B-2 Facility, 2.695%, 6/22/14    909    609,205 
     C-2 Facility, 3.195%, 6/22/15    751    503,360 
        2,097,478 
Energy Equipment & Services — 1.9%         
Dresser, Inc. Term B Loan, 2.729% – 3.488%, 5/04/14    1,488    1,068,565 
Volnay Acquisition Co. I (aka CGG) B1 Term Loan Facility,         
 2.906% – 5.428%, 1/12/14    702    605,528 
        1,674,093 
Food & Staples Retailing — 1.1%         
AB Acquisitions UK Topco 2 Ltd Facility B2 UK         
 Borrower, 4.161%, 7/09/15  GBP  1,000    1,005,300 
Food Products — 1.3%         
Dole Food Co., Inc.:         
     Credit-Linked Deposit, 2.13%, 4/12/13  USD  74    65,941 
     Tranche B Term Loan, 2.50% – 4.25%, 4/12/13    130    116,575 
Solvest, Ltd. (Dole) Tranche C Term Loan,         
 2.563% – 4.25%, 4/12/13    485    434,324 
Wm. Wrigley Jr. Co. Tranche B Term Loan,         
 6.50%, 10/06/14    500    493,334 
        1,110,174 

See Notes to Financial Statements.

12 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Schedule of Investments (continued)

BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

     Par     
Floating Rate Loan Interests    (000)     Value 
 
Health Care Equipment & Supplies — 3.3%         
Bausch & Lomb Inc.         
     Delayed Draw Term Loan, 4.709%, 4/24/15  USD  150  $  127,664 
     Parent Term Loan, 4.709%, 4/24/15    988    842,580 
Biomet, Inc. Dollar Term Loan, 4.459%, 3/25/15    977    870,064 
DJO Finance LLC (ReAble Therapeutics Fin LLC) Term         
 Loan, 3.479% – 4.459%, 5/20/14    990    823,350 
Hologic, Inc. Tranche B Term Loan, 3.75%, 3/31/13    254    228,521 
        2,892,179 
Health Care Providers & Services — 8.9%         
CHS/Community Health Systems, Inc.:         
     Delayed Draw Term Loan, 2.729%, 7/25/14    168    142,069 
     Funded Term Loan, 2.729% – 3.506%, 7/25/14    3,292    2,787,375 
HCA Inc.:         
     Tranche A-1 Term Loan, 3.459%, 11/17/12    1,963    1,708,546 
     Tranche B-1 Term Loan, 3.709%, 11/18/13    961    809,761 
HealthSouth Corp. Term Loan,         
 2.95% – 4.69%, 3/10/13    1,762    1,554,935 
Surgical Care Affiliates, LLC Term Loan,         
 3.459%, 12/29/14    495    296,985 
Symbion, Inc.:         
     Tranche A Term Loan, 3.729%, 8/23/13    477    238,378 
     Tranche B Term Loan, 3.729%, 8/25/14    477    238,378 
        7,776,427 
Health Care Technology — 0.5%         
Sunquest Information Systems, Inc. (Misys Hospital         
 Systems, Inc.) Term Loan, 3.73% – 4.21%, 10/13/14    494    395,000 
Hotels, Restaurants & Leisure — 3.1%         
Harrah’s Operating Co., Inc. Term B-2 Loan,         
 4.159% – 4.459%, 1/28/15    1,729    1,005,931 
Penn National Gaming, Inc. Term Loan B,         
 2.23% – 2.99%, 10/03/12    985    886,928 
QCE, LLC (Quiznos) Term Loan (First Lien),         
 3.75%, 5/05/13    992    547,220 
VML US Finance LLC (aka Venetian Macau) Term B:         
     Delayed Draw Project Loan, 2.73%, 5/25/12    181    104,014 
     Funded Project Loan, 2.73%, 5/27/13    319    183,714 
        2,727,807 
Household Durables — 2.9%         
Jarden Corp. Term Loan B3, 3.959%, 1/24/12    1,733    1,564,501 
Yankee Candle Co., Inc. Term Loan,         
 2.42% – 3.47%, 2/06/14    1,606    974,197 
        2,538,698 
Household Products — 0.5%         
VI-JON, Inc. (VJCS Acquisition, Inc.) Tranche B         
 Term Loan, 2.72%, 4/24/14    500    425,000 
IT Services — 8.6%         
Amadeus Global Travel Distribution SA:         
     Term Loan B, 2.419%, 5/22/15    969    550,393 
     Term Loan C, 2.919%, 5/22/16    969    550,393 
Amadeus IT Group SA/Amadeus Verwaltungs GmbH:         
     Term B3 Facility, 3.747%, 6/30/13  EUR  308    233,198 
     Term B4 Facility, 3.747%, 6/30/13    186    141,219 
     Term C3 Facility, 4.247%, 6/30/14    308    233,198 
     Term C3 Facility, 4.247%, 6/30/14    186    141,219 
Ceridian Corp U.S. Term Loan, 3.47%, 11/09/14  USD  2,000    1,380,000 
First Data Corp. Initial Tranche:         
     B-2 Term Loan, 3.223% – 3.229%, 9/24/14    2,724    1,788,577 
     B-3 Term Loan, 3.223% – 3.229%, 9/24/14    991    647,588 

     Par     
Floating Rate Loan Interests    (000)     Value 
 
IT Services (concluded)         
SunGard Data Systems Inc. (Solar Capital Corp.)         
 New US Term Loan:         
     2.198% – 2.991%, 2/28/14  USD  1,982  $  1,658,528 
     6.75%, 2/28/14    249    229,924 
        7,554,237 
Independent Power Producers &         
Energy Traders — 6.7%         
Dynegy Holdings Inc.:         
     Term Letter of Credit Facility Term Loan, 1.98%, 4/02/13  208    172,078 
     Tranche B Term Loan, 1.98%, 4/02/13    17    13,994 
Mirant North America, LLC Term Loan,         
 2.229%, 1/03/13    748    681,636 
NRG Energy, Inc.:         
     Credit-Linked Deposit, 1.60%, 2/01/13    164    150,182 
     Term Loan, 1.869% – 2.959%, 2/01/13    1,738    1,595,512 
Texas Competitive Electric Holdings Co., LLC (TXU):         
     Initial Tranche B-1 Term Loan,         
     3.948% – 4.451%, 10/10/14    496    309,338 
     Initial Tranche B-3 Term Loan,         
     3.948% – 4.451%, 10/10/14    4,702    2,933,110 
        5,855,850 
Industrial Conglomerates — 0.7%         
Sequa Corp. Term Loan, 3.67% – 3.70%, 12/03/14    990    603,718 
Insurance — 0.8%         
Alliant Holdings I, Inc. Term Loan, 4.459%, 8/21/14    990    742,481 
Internet & Catalog Retail — 0.2%         
FTD Group, Inc. Tranche B Term Loan, 6.75%, 8/04/14  249    213,216 
Life Sciences Tools & Services — 1.4%         
Life Technologies Corp. Term B Facility,         
 5.25%, 11/20/15    1,247    1,220,379 
Machinery — 3.3%         
LN Acquisition Corp. (Lincoln Industrial):         
     Delayed Draw Term Loan (First Lien),         
     2.95%, 7/11/14    269    216,252 
     Initial U.S. Term Loan (First Lien), 2.95%, 7/11/14  716    576,673 
Navistar International Corp.:         
     Revolving Credit-Linked Deposit,         
     3.677% – 3.729%, 1/19/12    533    381,778 
     Term Advance, 3.729%, 1/19/12    1,467    1,049,888 
Oshkosh Truck Corp. Term B Loan,         
     2.20% – 3.95%, 12/06/13    892    624,070 
        2,848,661 
Media — 31.5%         
AlixPartners, LLP Tranche C Term Loan,         
 2.94% – 3.36%, 10/12/13    500    430,000 
Alpha Topco Ltd. (Formula One):         
     Facility B1, 2.854%, 12/31/13    572    287,662 
     Facility B2, 2.854%, 12/31/13    393    197,768 
Bresnan Communications, LLC:         
     Additional Term Loan B (First Lien),         
     3.13%, 6/30/13    250    213,125 
     Term Loan B (First Lien), 3.18% – 4.20%, 9/29/13  500    426,250 
CSC Holdings Inc (Cablevision) Incremental Term Loan,       
 2.205% – 2.692%, 3/29/13    1,728    1,568,497 
Catalina Marketing Corp. Initial Term Loan,         
 4.459%, 10/01/14    1,979    1,568,110 
Cengage Learning Acquisitions, Inc. (Thomson Learning)       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14  2,488    1,741,250 
Cequel Communications, LLC (aka Cebridge) Term Loan,       
 2.445% – 4.25%, 11/05/13    2,476    2,086,856 
Charter Communications Operating, LLC Replacement       
 Term Loan, 3.18% – 3.36%, 3/06/14    1,741    1,382,082 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 13


Schedule of Investments (continued)

BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

     Par     
Floating Rate Loan Interests    (000)       Value 
 
Media (concluded)         
Clarke American Corp. Tranche B Term Loan,         
 2.979% – 3.959%, 6/30/14  USD  1,480  $  871,661 
Dex Media West LLC Tranche B Term Loan,         
 7%, 10/24/14    750    360,000 
Discovery Communications Holding, LLC Term Loan B,         
 3.459%, 5/14/14    987    895,053 
FoxCo Acquisition Sub, LLC Term Loan,         
 7.25%, 7/14/15    749    384,358 
Getty Images, Inc Initial Term Loan,         
 6.25% – 7.25%, 7/02/15    497    472,860 
Gray Television, Inc. Term Loan B – DD,         
 1.95% – 2.93%, 12/31/14    483    242,325 
HMH Publishing Co. Ltd. (fka Education Media)         
 Tranche A Term Loan, 5.256%, 6/12/14    1,995    1,122,188 
Hanley-Wood, LLC (FSC Acquisition) Term Loan,         
 2.695% – 2.729%, 3/08/14    496    180,297 
Hargray Acquisition Co./DPC Acquisition LLC/HCP         
 Acquisition LLC, Term Loan (First Lien),         
 3.486%, 6/27/14    491    387,741 
Idearc Inc (Verizon) Tranche B Term Loan,         
 2.48% – 3.46%, 11/17/14    368    128,477 
Insight Midwest Holdings, LLC B Term Loan,         
 2.42%, 4/07/14    1,000    879,583 
Intelsat Corp. (fka PanAmSat Corp.):         
     Term B-2-B, 3.925%, 1/03/14    663    566,489 
     Term B-2-C, 3.925%, 1/03/14    663    566,489 
     Tranche B-2-A Term Loan, 3.925%, 1/03/14    663    566,661 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):         
     Facility B1, 4.589%, 6/28/15  EUR  1,010    114,483 
     Facility C1, 4.839%, 6/30/16    1,010    114,483 
Local TV Finance, LLC Term Loan, 2.48%, 5/07/13  USD  1,982    832,605 
MCC Iowa LLC (Mediacom Broadband Group):         
     Tranche D-1 Term Loan, 2.12%, 1/31/15    879    747,567 
     Tranche D-2 Term Loan, 2.12%, 1/31/15    248    210,886 
Mediacom Illinois, LLC (fka Mediacom         
 Communications, LLC) Tranche C Term Loan,         
 1.87%, 1/31/15    735    610,384 
NTL Cable Plc:         
     Term Loan, 4.392%, 11/19/37  GBP  389    447,261 
     Term Loan B, 5.892%, 9/03/12    469    538,117 
NV Broadcasting, LLC Term Loan (First Lien),         
 5.22%, 11/01/13  USD  1,639    639,148 
Newsday, LLC:         
     Fixed Rate Term Loan, 9.75%, 8/01/13    250    225,625 
     Floating Rate Term Loan, 6.594%, 8/01/13 (a)    500    438,750 
Nielsen Finance LLC Dollar Term Loan,         
 2.448%, 8/09/13    2,472    1,939,626 
Parkin Broadcasting, LLC Term Loan, 5.22%, 11/01/13    336    131,106 
Sunshine Acquisition Ltd. (aka HIT Entertainment)         
 Term Facility, 3.49%, 7/31/14    1,751    831,623 
TWCC Holding Corp. Term Loan, 7.25%, 9/14/15    399    380,646 
UPC Financing Partnership:         
     Facility N, 2.163%, 12/31/14    250    211,875 
     M Facility, 3.759%, 12/31/14  EUR  750    694,957 
     M Facility, 3.759%, 11/19/37    650    602,296 
Virgin Media NTL Term Loan B,         
 5.892%, 9/03/12  GBP  281    321,915 
        27,559,135 
Metals & Mining — 0.7%         
Algoma Steel Inc. Term Loan, 2.92%, 6/20/13  USD  995    587,020 

     Par     
Floating Rate Loan Interests    (000)           Value 
 
Multi-Utilities — 0.5%         
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):         
     First Lien Term Loan B, 4.125%, 11/01/13  USD  443  $  369,847 
     Synthetic Letter of Credit, 2.65%, 11/01/13    57    47,653 
        417,500 
Multiline Retail — 1.5%         
Dollar General Corp. Tranche B-1 Term Loan,         
 3.198% – 3.924%, 7/07/14    1,500    1,295,114 
Oil, Gas & Consumable Fuels — 1.7%         
Petroleum GEO-Services ASA/PGS Finance, Inc.         
 Term Loan, 3.21%, 6/29/15    1,458    1,047,419 
Vulcan Energy Corp. (fka Plains Resources, Inc.)         
 Term B3 Loan, 5.50%, 8/12/11    500    432,500 
        1,479,919 
Paper & Forest Products — 3.5%         
Georgia-Pacific LLC Term B Loan,         
 2.956% – 4.189%, 12/20/12    2,667    2,301,967 
NewPage Corp. Term Loan, 5.313%, 12/22/14    1,233    750,718 
        3,052,685 
Personal Products — 0.9%         
American Safety Razor Co., LLC Loan (Second Lien),         
 6.73%, 1/30/14    1,250    800,000 
Pharmaceuticals — 0.9%         
Warner Chilcott Co., Inc. Tranche B Acquisition Date         
 Term Loan, 3.459%, 1/18/12    579    522,445 
Warner Chilcott Corp. Tranche C Acquisition Date         
 Term Loan, 3.459%, 1/18/12    269    242,722 
        765,167 
Professional Services — 1.1%         
Booz Allen Hamilton Inc. Tranche B Term Loan,         
 7.50%, 7/31/15    998    939,146 
Real Estate Management & Development — 0.3%         
Capital Automotive LP Term Loan, 2.17%, 12/16/10    600    280,000 
Road & Rail — 0.8%         
RailAmerica, Inc.:         
     Canadian Term Loan, 5.44%, 8/14/09    65    58,707 
     U.S. Term Loan, 5.44%, 8/14/09    685    616,293 
        675,000 
Specialty Retail — 2.2%         
Adesa, Inc. (KAR Holdings, Inc.) Initial Term Loan,         
 2.73% – 3.709%, 10/20/13    928    623,983 
General Nutrition Centers, Inc. Term Loan,         
 3.69% – 3.72%, 9/16/13    990    720,170 
Michaels Stores, Inc. Term Loan B,         
 2.688% – 3.313%, 10/31/13    990    553,505 
        1,897,658 
Textiles, Apparel & Luxury Goods — 0.5%         
Hanesbrands Inc. Term B Loan (First Lien),         
 2.909% – 4%, 9/05/13    436    408,322 
Wireless Telecommunication Services — 3.4%         
Cricket Communications, Inc. (aka Leap Wireless)         
 Term B Loan, 6.50%, 6/16/13    1,070    989,970 
MetroPCS Wireless, Inc. New Tranche B Term Loan,         
 2.75% – 3.438%, 11/03/13    1,536    1,331,492 
Ntelos, Inc. Term B-1 Facility, 2.73%, 8/24/11    742    675,479 
        2,996,941 
Total Floating Rate Loan Interests — 126.2%        110,280,627 

See Notes to Financial Statements.

14 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Schedule of Investments (concluded)

BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

  Par     
Corporate Bonds  (000)    Value 
 
Diversified Telecommunication Services — 0.7%       
Qwest Corp., 5.246%, 6/15/13 (a)  USD 750  $  635,625 
Total Corporate Bonds — 0.7%      635,625 
Total Long-Term Investments       
(Cost — $146,762,245) — 126.9%      110,916,252 
 
 
 
  Beneficial     
  Interest     
Short-Term Securities  (000)     
BlackRock Liquidity Series, LLC       
   Cash Sweep Series, 0.73% (b)(c)  2,338    2,338,274 
Total Short-Term Securities       
(Cost — $2,338,274) — 2.7%      2,338,274 
Total Investments (Cost — $149,100,519*) — 129.6%    113,254,526 
Liabilities in Excess of Other Assets — (29.6)%      (25,860,529) 
Net Assets — 100.0%    $ 87,393,997 

* The cost and unrealized appreciation (depreciation) of investments as of February
28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 148,898,929 
Gross unrealized appreciation  $  98,628 
Gross unrealized depreciation    (35,743,031) 
Net unrealized depreciation  $  (35,644,403) 

(a) Variable rate security. Rate shown is as of report date.
(b) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

  Net   
Affiliate  Activity  Income 
BlackRock Liquidity Series, LLC     
   Cash Sweep Series  USD (27,287)  $14,960 

(c) Represents the current yield as of report date.
For Fund compliance purposes, the Fund’s industry classifications refer to any one
or more of the industry sub-classifications used by one or more widely recognized
market indexes or ratings group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine indus
try sub-classifications for reporting ease.
Foreign currency exchange contracts as of February 28, 2009 were as follows:

Currency  Currency    Settlement    Unrealized 
Purchased         Sold  Counterparty  Date       Appreciation 
 
USD  5,195,272  EUR  3,963,000  Deutsche Bank AG                                       3/18/09  $  172,291 
USD  644,025  EUR  500,000  UBS AG  3/18/09    10,252 
USD  209,232  EUR  165,000  UBS AG  3/18/09    87 
USD  2,101,838  GBP  1,418,500     Deutsche Bank AG                                         3/18/09    71,293 
USD  217,518  GBP  150,000  UBS AG  3/18/09    2,797 
Total            $  256,720 

Credit default swaps on traded indexes — sold protection outstanding as of
February 28, 2009 were as follows:

  Received        Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Issuer  Rate  party  Expiration  Rating1  (000)2  Depreciation 
 
LCDX Index  3.25%  JPMorgan  June  B–  USD 1,000  $(26,702) 
    Chase Bank  2013       

1 Using Standard and Poor’s weighted average ratings of the underlying securities
in the index.
2 The maximum potential amount the Fund may pay should a negative credit
event take place as defined under the terms of the agreement.

Currency Abbreviations: 
     EUR  Euro 
     GBP  British Pound 
     USD  U.S. Dollar 

Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, “Fair Value Measurements,” clarifies the definition of fair value, establishes
a framework for measuring fair values and requires additional disclosures about the
use of fair value measurements. Various inputs are used in determining the fair
value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
Level 2 — other observable inputs (including, but not limited to: quoted prices
for similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumption used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of February 28, 2009 in
determining the fair valuation of the Fund’s investments:

Valuation  Investments in    Other Financial 
Inputs  Securities    Instruments*   
  Assets    Assets    Liabilities 
Level 1           
Level 2  $ 86,549,621  $  256,720  $  (26,702) 
Level 3  26,704,905         
Total  $113,254,526  $  256,720  $  (26,702) 

* Other financial instruments are foreign currency exchange contracts and swaps,
which are valued at the unrealized appreciation/depreciation on the instrument.

The following is a reconciliation of investments for unobservable inputs (Level 3)
that were used in determining fair value:

  Investments in 
    Securities 
     Assets 
Balance as of August 31, 2008  $  4,841,355 
Accrued discounts/premiums    224,400 
Realized loss    (275,118) 
Change in unrealized appreciation/depreciation1    (15,927,562) 
Net sales    (2,114,803) 
Net transfers in Level 3    39,956,633 
Balance as of February 28, 2009  $  26,704,905 

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

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 15


Schedule of Investments February 28, 2009 (Unaudited)

BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

     Par     
Floating Rate Loan Interests    (000)     Value 
 
Airlines — 0.5%         
US Airways Group, Inc. Loan, 2.979%, 3/21/14  USD  740  $  336,469 
Auto Components — 2.8%         
Allison Transmission, Inc. Term Loan, 3.20%, 8/07/14    1,954    1,294,426 
Dana Holding Corp. Term Advance, 7.25%, 1/31/15    887    270,080 
Intermet Corp.:         
     Term Loan B PIK, 7.696%, 11/08/10 (a)    110    43,816 
     Term Loan B, 7.696%, 11/08/10 (b)(c)    402    160,797 
     Synth Letter of Credit, 2.343%, 11/09/10 (b)(c)    335    134,110 
     Synth Letter of Credit PIK, 2.343%, 11/09/10 (a)    25    10,111 
Metaldyne Co. LLC:         
     Deposit Funded Loan, 0.347% – 5.125%, 1/11/12    87    10,385 
     Initial Tranche B Term Loan, 8% – 9.87%, 1/13/14    590    70,804 
        1,994,529 
Automobiles — 0.3%         
Ford Motor Co. Term Loan, 5%, 12/15/13    323    103,176 
General Motors Corp. Secured Term Loan,         
 4.148%, 11/29/13    248    88,873 
        192,049 
Beverages — 0.2%         
Culligan International Co. Loan (Second Lien),         
 6.485% – 8.536%, 4/24/13  EUR  500    111,985 
Building Products — 0.7%         
Stile Acquisition Corp. (aka Masonite):         
     Canadian Term Loan, 6.25%, 4/06/13  USD  566    231,335 
     US Term Loan, 6.75%, 4/06/13    572    233,590 
        464,925 
Chemicals — 4.2%         
Edwards (Cayman Islands II) Ltd. Term Loan (First Lien),         
 2.479%, 5/31/14    493    295,500 
Huish Detergents Inc. Tranche B Term Loan,         
 2.17%, 4/26/14    243    205,853 
ISP Chemco LLC Term Loan, 2% – 2.75%, 6/04/14    493    412,059 
PQ Corp. (fka Niagara Acquisition, Inc.):         
     Loan (Second Lien), 7.68%, 7/30/15    3,250    1,137,500 
     Term Loan (First Lien), 4.43% – 4.71%, 7/31/14    498    297,256 
Solutia Inc. Loan, 8.50%, 2/28/14    995    639,271 
        2,987,439 
Commercial Services & Supplies — 1.7%         
NES Rentals Holdings, Inc. Permanent Term Loan         
 (Second-Lien), 8%, 7/20/13    1,726    828,342 
West Corp. Term B-2 Loan,         
 2.82% – 2.854%, 10/24/13    556    407,186 
        1,235,528 
Computers & Peripherals — 1.2%         
Dealer Computer Services, Inc. (Reynolds & Reynolds)         
 Term Loan (First Lien), 2.479%, 10/26/12    663    431,155 
Intergraph Corp. Second Lien Term Loan,         
 6.479% – 7.256%, 11/28/14    500    412,500 
        843,655 
Construction & Engineering — 0.2%         
Brand Energy & Infrastructure Services, Inc. (FR Brand         
 Acquisition Corp.) Second Lien Term Loan,         
 3.688% – 3.75%, 2/07/15    491    147,375 
Containers & Packaging — 0.9%         
Berry Plastics Group, Inc. Loan, 8.421%, 6/05/14    3,086    617,222 
Diversified Consumer Services — 1.6%         
Coinmach Corp. Term Loan, 3.47% – 4.26%, 11/14/14    1,737    1,128,947 
Diversified Financial Services — 0.3%         
J.G. Wentworth, LLC Loan (First Lien), 3.709%, 4/04/14    2,000    180,000 

 Par 
Floating Rate Loan Interests    (000)     Value 
 
Diversified Telecommunication Services — 3.0%         
Hawaiian Telcom Communications, Inc. Tranche C         
 Term Loan, 4.75%, 5/30/14  USD  1,500  $  625,313 
Wind Acquisition Holdings Finance S.A. Dollar PIK         
 Loan, 8.393%, 12/21/11    2,179    1,481,502 
        2,106,815 
Electrical Equipment — 0.4%         
Generac Acquisition Corp. First Lien Term Loan,         
 2.919%, 11/10/13    494    264,258 
Energy Equipment & Services — 1.9%         
Dresser, Inc. Term B Loan,         
 2.729% – 3.488%, 5/04/14    970    696,874 
MEG Energy Corp.:         
     Delayed Draw Term Loan, 3.46%, 4/02/13    496    307,288 
     Initial Term Loan, 3.46%, 4/03/13    486    301,475 
        1,305,637 
Food & Staples Retailing — 1.1%         
McJunkin Corp. Term Loan, 4.709%, 1/31/14    735    535,325 
WM. Bolthouse Farms, Inc. Second Lien Term Loan,         
 5.979%, 12/16/13    500    272,500 
        807,825 
Food Products — 2.2%         
Dole Food Co., Inc.:         
     Credit-Linked Deposit, 0.66%, 4/12/13    86    77,368 
     Tranche B Term Loan, 2.50% – 4.25%, 4/12/13    153    136,776 
JRD Holdings, Inc. (Jetro Holdings) Term Loan,         
 2.697%, 7/02/14    484    421,406 
Solvest, Ltd. (Dole) Tranche C Term Loan,         
 2.563% – 4.25%, 4/12/13    568    509,588 
Sturm Foods, Inc.:         
     Initial Term Loan First Loan,         
     3.438% – 3.75%, 1/31/14 (a)    491    278,784 
     Initial Term Loan Second Lien, 7.25%, 7/31/14    500    125,000 
        1,548,922 
Health Care Equipment & Supplies — 1.2%         
DJO Finance LLC (ReAble Therapeutics Fin LLC)         
 Term Loan, 3.479% – 4.459%, 5/20/14    743    617,513 
Hologic, Inc. Tranche B Term Loan, 3.75%, 3/31/13    254    228,521 
        846,034 
Health Care Providers & Services — 0.7%         
CCS Medical, Inc. (Chronic Care) Term Loan (First Lien),       
 4.71%, 9/30/12    484    217,647 
Health Management Associates, Inc. Term B Loan,         
 3.209%, 2/28/14    379    302,197 
        519,844 
Hotels, Restaurants & Leisure — 2.2%         
Golden Nugget, Inc. Second Lien Term Loan,         
 3.73%, 12/31/14    500    65,000 
Green Valley Ranch Gaming, LLC Second Lien         
 Term Loan, 3.697%, 8/16/14    500    25,000 
Harrah's Operating Co., Inc. Term B-2 Loan,         
 4.159% – 4.459%, 1/28/15    496    288,652 
Lake at Las Vegas Joint Venture/LLV-1, LLC (b)(c):         
     Revolving Loan Credit-Linked Deposit Account,         
     11.75%, 6/20/12    120    5,617 
     Term Loan, 11.75%, 6/20/12    1,125    52,510 
Las Vegas Sands, LLC:         
     Delayed Draw I Term Loan, 2.16%, 5/23/14    199    87,809 
     Tranche B Term Loan, 2.16%, 5/23/14    788    347,705 
QCE, LLC (Quiznos) Term Loan (Second Lien),         
 7.218%, 11/05/13    1,000    335,000 
VML US Finance LLC (aka Venetian Macau) Term B:         
     Delayed Draw Project Loan, 2.73%, 5/25/12    76    43,957 
     Funded Project Loan, 2.73%, 5/27/13    549    316,038 
        1,567,288 

See Notes to Financial Statements.

16 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Schedule of Investments (continued)

BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

     Par     
Floating Rate Loan Interests    (000)       Value 
 
Household Durables — 1.2%         
American Residential Services LLC Term Loan         
 (Second Lien), 12%, 4/17/15  USD  1,010  $  862,729 
IT Services — 3.7%         
Activant Solutions Inc. Term Loan, 3.438%, 5/02/13    1,570    737,792 
Audio Visual Services Group, Inc.:         
     Loan (Second Lien), 6.96%, 8/28/14    500    35,000 
     Tranche B Term Loan (First Lien), 3.71%, 2/28/14    988    276,500 
Ceridian Corp U.S. Term Loan, 3.47%, 11/09/14    1,000    690,000 
First Data Corp.:         
     Initial Tranche B-2 Term Loan,         
     3.223% – 3.229%, 9/24/14    1,139    747,925 
     Initial Tranche B-3 Term Loan,         
     3.223% – 3.229%, 9/24/14    122    79,626 
        2,566,843 
Independent Power Producers & Energy Traders — 0.7%       
Texas Competitive Electric Holdings Co., LLC (TXU) Initial         
 Tranche B-2 Term Loan, 3.909% – 4.451%, 10/10/14  738    460,494 
Industrial Conglomerates — 0.3%         
Sequa Corp. Term Loan, 3.67% – 3.70%, 12/03/14    398    242,488 
Insurance — 0.5%         
Alliant Insurance Services Term Loan B,         
 4.459%, 10/23/14    494    370,313 
Internet & Catalog Retail — 0.6%         
FTD Group, Inc. Tranche B Term Loan, 6.75%, 8/04/14    499    426,431 
Machinery — 3.2%         
Navistar International Corp.:         
     Revolving Credit-Linked Deposit,         
     3.677% – 3.729%, 1/19/12    800    572,666 
     Term Advance, 3.729%, 1/19/12    2,200    1,574,833 
Rexnord Holdings, Inc Loan, 9.181%, 3/01/13    390    97,502 
        2,245,001 
Media — 19.5%         
Affinion Group Holdings, Inc. Loan, 8.523%, 3/01/12    1,150    517,500 
AlixPartners, LLP Tranche C Term Loan,         
 2.94% – 3.36%, 10/12/13    506    435,258 
Cengage Learning Acquisitions, Inc. (Thomson Learning)         
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    2,236    1,565,379 
Cequel Communications, LLC (aka Cebridge):         
     Second Lien Tranche A Term Loan (Cash Pay),         
     4.913%, 5/05/14    2,000    1,225,000 
     Term Loan, 2.445% – 4.25%, 11/05/13    793    668,427 
EB Sports Corp Loan, 9.27%, 5/01/12    1,327    331,759 
Ellis Communications KDOC, LLC Loan, 10%, 12/30/11    1,948    1,168,611 
HMH Publishing Co. Ltd. (fka Education Media):         
     Mezzanine, 10.756%, 11/14/14    5,862    1,758,777 
     Tranche A Term Loan, 5.256%, 6/12/14    1,534    862,894 
Insight Midwest Holdings, LLC B Term Loan,         
 2.42%, 4/07/14    475    417,802 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG)         
 Facility B1, 4.589%, 6/30/15  EUR  337    38,161 
NEP II, Inc. Term B Loan, 2.729%, 2/18/14  USD  482    390,816 
Newsday, LLC Fixed Rate Term Loan, 9.75%, 8/01/13    2,000    1,805,000 
Nielsen Finance LLC Dollar Term Loan, 2.448%, 8/09/13  1,955    1,533,874 
Penton Media, Inc.:         
     Loan (Second Lien), 2.729% – 3.424%, 2/01/14    983    109,303 
     Term Loan (First Lien), 6.174%, 2/01/13    1,000    372,500 
TWCC Holding Corp. Term Loan, 7.25%, 9/14/15    499    475,808 
        13,676,869 
Metals & Mining — 0.7%         
Euramax International, Inc.:         
     Domestic Loan (Second Lien), 13%, 6/29/13    503    75,375 
     Domestic Term Loan, 8.75%, 6/29/12    1,224    397,697 
        473,072 

     Par     
Floating Rate Loan Interests    (000)       Value 
 
Multiline Retail — 0.3%         
Dollar General Corp. Tranche B-2 Term Loan,         
 3.229%, 7/07/14  USD  250  $  205,813 
Oil, Gas & Consumable Fuels — 5.7%         
Petroleum GEO-Services ASA/PGS Finance, Inc.         
 Term Loan, 3.21%, 6/29/15    477    342,405 
ScorpionDrilling Ltd. Second Lien, 8.966%, 5/08/14    2,000    1,610,000 
Turbo Beta Ltd. Dollar Facility, 14.50%, 3/15/18    1,717    1,373,350 
Vulcan Energy Corp. (fka Plains Resources, Inc.)         
 Term B3 Loan, 5.50%, 8/12/11    750    648,750 
        3,974,505 
Real Estate Management & Development — 0.8%         
LNR Property Corp. Initial Tranche B Term Loan,         
 3.92%, 7/12/11    1,140    598,500 
Software — 1.0%         
Aspect Software, Inc. Loan (Second Lien),         
 8.313%, 7/11/12  USD  2,500    750,000 
Total Floating Rate Loan Interests — 65.6%        46,059,804 
 
 
 
Corporate Bonds         
Auto Components — 2.6%         
Allison Transmission, Inc. (d):         
     11%, 11/01/15    95    46,075 
     11.25%, 11/01/15 (a)    305    117,425 
The Goodyear Tire & Rubber Co., 8.625%, 12/01/11    2,000    1,600,000 
Lear Corp., 8.75%, 12/01/16    255    43,350 
        1,806,850 
Building Products — 3.0%         
CPG International I, Inc., 8.561%, 7/01/12 (e)    2,500    1,325,000 
Momentive Performance Materials, Inc. Series WI,         
 9.75%, 12/01/14    400    152,000 
Ply Gem Industries, Inc., 11.75%, 6/15/13    1,350    621,000 
        2,098,000 
Capital Markets — 2.1%         
E*Trade Financial Corp., 12.50%, 11/30/17    2,125    977,500 
Marsico Parent Co., LLC, 10.625%, 1/15/16 (d)    724    296,840 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (a)(d)    283    116,198 
Marsico Parent Superholdco, LLC,         
 14.50%, 1/15/18 (a)(d)    193    79,423 
        1,469,961 
Chemicals — 2.1%         
American Pacific Corp., 9%, 2/01/15    440    369,600 
Wellman Holdings, Inc. (f):         
     Second Lien Subordinate Note, 10%, 1/29/19    894    894,000 
     Third Lien Subordinate Note, 5%, 1/29/19    272    190,400 
        1,454,000 
Commercial Services & Supplies — 0.9%         
West Corp., 11%, 10/15/16    985    630,400 
Construction Materials — 1.2%         
Nortek, Inc., 10%, 12/01/13    2,050    820,000 
Containers & Packaging — 8.6%         
Berry Plastics Holding Corp., 5.871%, 9/15/14 (e)    2,235    1,039,275 
Packaging Dynamics Finance Corp., 10%, 5/01/16 (d)    1,570    675,100 
Smurfit Kappa Funding Plc, 7.75%, 4/01/15 (g)    5,000    2,912,500 
Smurfit-Stone Container Enterprises, Inc.,         
 8%, 3/15/17 (b)(c)    780    68,250 
Wise Metals Group LLC, 10.25%, 5/15/12    2,750    1,347,500 
        6,042,625 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 17


Schedule of Investments (continued)

BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

     Par     
Corporate Bonds    (000)     Value 
 
Diversified Financial Services — 3.1%         
FCE Bank Plc, 7.125%, 1/16/12  EUR  2,300  $  1,778,651 
Ford Motor Credit Co. LLC, 4.01%, 1/13/12 (e)  USD  815    399,350 
        2,178,001 
Food Products — 1.0%         
Tyson Foods, Inc., 10.50%, 3/01/14 (d)    750    706,875 
Hotels, Restaurants & Leisure — 4.9%         
Harrahs Operating Co., Inc.:         
     10%, 12/15/15 (d)    220    61,600 
     10.75%, 2/01/16    1,992    278,880 
     10.75%, 2/01/18 (a)    944    57,941 
     10%, 12/15/18 (d)    938    262,640 
Little Traverse Bay Bands of Odawa Indians,         
 10.25%, 2/15/14 (d)    800    368,000 
Shingle Springs Tribal Gaming Authority,         
 9.375%, 6/15/15 (d)    410    239,850 
Snoqualmie Entertainment Authority,         
 5.384%, 2/01/14 (d)(e)    305    164,700 
Travelport LLC, 5.886%, 9/01/14 (e)    810    259,200 
Tropicana Entertainment LLC Series WI,         
 9.625%, 12/15/14 (b)(c)    120    1,200 
Tunica-Biloxi Gaming Authority, 9%, 11/15/15 (d)    1,000    800,000 
Universal City Florida Holding Co. I,         
 5.92%, 5/01/10 (e)    2,025    972,000 
        3,466,011 
Household Durables — 0.5%         
Stanley-Martin Communities LLC, 9.75%, 8/15/15    1,250    350,000 
IT Services — 0.3%         
Alliance Data Systems Corp., 1.75%, 8/01/13 (d)(f)    370    246,975 
Independent Power Producers & Energy Traders — 2.1%       
Dynegy Holdings, Inc., 8.375%, 5/01/16    1,000    635,000 
Energy Future Holdings Corp., 11.25%, 11/01/17 (a)    1,000    440,000 
Texas Competitive Electric Holdings Co. LLC,         
 10.50%, 11/01/16 (a)    800    384,000 
        1,459,000 
Industrial Conglomerates — 0.7%         
Sequa Corp. (d):         
     11.75%, 12/01/15    1,530    244,800 
     13.50%, 12/01/15 (a)    2,132    255,068 
        499,868 
Insurance — 0.3%         
USI Holdings Corp., 5.113%, 11/15/14 (d)(e)    490    232,750 
Machinery — 1.9%         
ESCO Corp., 5.871%, 12/15/13 (d)(e)    920    570,400 
RBS Global, Inc., 8.875%, 9/01/16    505    380,013 
Titan International, Inc., 8%, 1/15/12    460    369,150 
        1,319,563 
Marine — 0.1%         
Navios Maritime Holdings, Inc., 9.50%, 12/15/14    141    84,600 
Media — 4.3%         
Affinion Group, Inc., 10.125%, 10/15/13    320    248,000 
CSC Holdings, Inc., 8.50%, 4/15/14 (d)    180    172,800 
Canadian Satellite Radio Holdings, Inc.,         
 12.75%, 2/15/14    3,000    607,500 
Local Insight Regatta Hldgs, Inc., 11%, 12/01/17    832    199,680 
TL Acquisitions, Inc., 10.50%, 1/15/15 (d)    1,570    737,900 
Virgin Media, Inc., 6.50%, 11/15/16 (d)(f)    2,000    1,045,000 
        3,010,880 

    Par     
Corporate Bonds    (000)       Value 
 
Metals & Mining — 1.9%         
Aleris International, Inc. (b)(c):         
     9%, 12/15/14  USD  370  $  37 
     10%, 12/15/16    500    625 
RathGibson, Inc., 11.25%, 2/15/14    1,390    305,800 
Ryerson, Inc., 8.545%, 11/01/14 (d)(e)    2,010    1,025,100 
        1,331,562 
Oil, Gas & Consumable Fuels — 4.8%         
Chesapeake Energy Corp., 9.50%, 2/15/15    800    744,000 
Denbury Resources, Inc., 9.75%, 3/01/16    1,500    1,410,000 
Forest Oil Corp., 8.50%, 2/15/14 (d)    640    582,400 
SandRidge Energy, Inc., 5.06%, 4/01/14 (e)    1,000    657,172 
        3,393,572 
Paper & Forest Products — 5.7%         
Abitibi-Consolidated, Inc., 5.496%, 6/15/11 (e)    5,000    450,000 
Ainsworth Lumber Co. Ltd., 11%, 7/29/15 (a)(d)    2,623    1,183,870 
Bowater, Inc., 9%, 8/01/09    190    48,450 
NewPage Corp.:         
     7.42%, 5/01/12 (e)    3,000    720,000 
     10%, 5/01/12    1,820    550,550 
Verso Paper Holdings LLC Series B,         
 4.92%, 8/01/14 (e)    4,000    1,040,000 
        3,992,870 
Pharmaceuticals — 1.3%         
Angiotech Pharmaceuticals, Inc.,         
 5.011%, 12/01/13 (e)    1,500    918,750 
Real Estate Management & Development — 1.0%         
Realogy Corp.:         
     10.50%, 4/15/14    2,445    513,450 
     12.375%, 4/15/15    1,460    175,200 
        688,650 
Semiconductors & Semiconductor Equipment — 0.9%         
Avago Technologies Finance Pte. Ltd.,         
 6.761%, 6/01/13 (e)    400    314,000 
Spansion, Inc., 4.386%, 6/01/13 (b)(c)(d)    1,410    329,588 
        643,588 
Software — 0.1%         
BMS Holdings, Inc., 9.224%, 2/15/12 (a)(d)(e)    446    107,517 
Specialty Retail — 2.4%         
Buffets, Inc., 12.50%, 11/01/14 (b)(c)    360    36 
General Nutrition Centers, Inc., 7.584%, 3/15/14 (a)(e)    1,670    985,300 
Michaels Stores, Inc.:         
     10%, 11/01/14    715    243,994 
     11.375%, 11/01/16    1,135    268,144 
United Auto Group, Inc., 7.75%, 12/15/16    355    170,400 
        1,667,874 
Wireless Telecommunication Services — 5.9%         
BCM Ireland Preferred Equity Ltd.,         
 8.959%, 2/15/17 (a)(d)  EUR  438    27,755 
Crown Castle International Corp., 9%, 1/15/15  USD  215    209,625 
Digicel Group Ltd. (d):         
     8.875%, 1/15/15    1,070    797,150 
     9.125%, 1/15/15 (a)    2,129    1,490,300 
iPCS, Inc., 3.295%, 5/01/13 (e)    200    144,000 
Nordic Telephone Co. Holdings ApS (d):         
     8.875%, 5/01/16    800    728,000 
     10.357%, 5/01/16 (e)  EUR  500    526,115 
Orascom Telecom Finance SCA, 7.875%, 2/08/14 (a)  USD  325    195,000 
        4,117,945 
Total Corporate Bonds — 63.7%        44,738,687 

See Notes to Financial Statements.

18 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Schedule of Investments (continued)

BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

Non-U.S. Government Agency  Par     
Mortgage-Backed Securities  (000)       Value 
Commercial Mortgage-Backed Securities — 1.5%       
Crown Castle Towers LLC:       
     Series 2005-1A Class AFL, 0.841%, 6/15/35 (e)  USD 785  $  714,350 
     Series 2005-1A Class AFX, 4.643%, 6/15/35 (d)  220    210,100 
Global Signal Trust Series 2006-1 Class A2,       
 5.45%, 2/15/36  125    116,875 
Total Non-U.S.Government Agency Mortgage-Backed       
Securities — 1.5%      1,041,325 
 
 
Asset-Backed Securities       
North Street Referenced Linked Notes 2000-1 Ltd.       
 Series 2005-8A Class D, 16.496%, 6/15/41 (d)(e)  1,350    62,019 
Total Asset-Backed Securities — 0.1%      62,019 
 
 
Capital Trusts       
Diversified Financial Services — 0.3%       
Citigroup, Inc. Series E, 8.40% (e)(h)  690    241,569 
Total Capital Trusts — 0.3%      241,569 
 
 
Common Stocks  Shares     
Capital Markets — 0.1%       
E*Trade Financial Corp. (b)  96,809    77,447 
Chemicals — 0.0%       
Wellman Holdings, Inc.  1,613    403 
Electrical Equipment — 0.1%       
Medis Technologies Ltd. (b)  176,126    100,392 
Oil, Gas & Consumable Fuels — 0.9%       
EXCO Resources, Inc. (b)  72,787    663,089 
Paper & Forest Products — 0.5%       
Ainsworth Lumber Co. Ltd.  311,678    176,394 
Ainsworth Lumber Co. Ltd. (b)(d)  349,782    198,481 
      374,875 
Total Common Stocks — 1.6%      1,216,206 
 
 
Preferred Stocks       
Capital Markets — 0.0%       
Marsico Parent Superholdco, LLC, 16.75% (d)  48    20,880 
Total Preferred Stocks — 0.0%      20,880 
Total Long-Term Investments       
(Cost — $199,041,581) — 132.8%      93,380,490 
 
 
  Beneficial     
  Interest     
Short-Term Securities  (000)     
BlackRock Liquidity Series, LLC       
Cash Sweep Series, 0.73% (i)(j)  USD 2,757    2,757,179 
Total Short-Term Securities       
(Cost — $2,757,179) — 3.9%      2,757,179 

Options Purchased  Contracts    Value 
 
Over-the-Counter Call Options       
Marsico Parent Superholdco LLC, expiring       
 December 2009 at USD 942.86,       
 Goldman Sachs & Co.  13  $  20,995 
Total Options Purchased       
(Cost — $12,711) — 0.0%      20,995 
Total Investments (Cost — $201,811,471*) — 136.7%      96,158,664 
Liabilities in Excess of Other Assets — (36.7)%      (25,839,974) 
Net Assets — 100.0%    $  70,318,690 

* The cost and unrealized appreciation (depreciation) of investments as of February 28,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 201,810,260 
Gross unrealized appreciation  $348,397 
Gross unrealized depreciation  (105,999,993) 
Net unrealized depreciation  $(105,651,596) 

(a) Represents a payment-in-kind security which may pay interest/dividends in
additional par/shares.
(b) Non-income producing security.
(c) Issuer filed for bankruptcy and/or is in default of interest payments.

(d) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(e) Variable rate security. Rate shown is as of report date.
(f) Convertible security.
(g) All, or portion of, security held as collateral in connection with swaps.
(h) Security is perpetual in nature and has no stated maturity date.
(i) Represents the current yield as of report date.
(j) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

  Net   
Affiliate  Activity  Income 
BlackRock Liquidity Series, LLC     
   Cash Sweep Series  USD (2,835,226)  $17,840 

For Fund compliance purposes, the Fund’s industry classifications refer to any one
or more of the industry sub-classifications used by one or more widely recognized
market indexes or ratings group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine
industry sub-classifications for reporting ease.
Foreign currency exchange contracts as of February 28, 2009 were as follows:

            Unrealized 
Currency  Currency    Settlement Appreciation 
Purchased    Sold  Counterparty  Date  (Depreciation) 
 
USD  345,725  CAD  425,000  UBS AG  3/18/09  $ 11,678 
USD  2,906,531  EUR  2,217,000  Deutsche Bank AG  3/18/09  96,383 
USD  94,210  EUR  75,000  UBS AG  3/18/09  (856) 
Total            $ 107,205 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 19


Schedule of Investments (continued)

BlackRock Diversified Income Strategies Fund, Inc. (DVF)

Credit default swaps on single-name issues — buy protection outstanding as of
February 28, 2009 were as follows:

  Pay      Notional     
  Fixed      Amount  Unrealized 
Issuer  Rate  Counterparty  Expiration  (000)  Appreciation 
 
Tyson    Goldman Sachs           
 Foods, Inc.  4.22%  Bank USA  March 2014  USD  500    162 
Masco    JPMorgan           
 Corp.  5.30%  Chase Bank,           
    National           
    Association  March 2014  USD  500    14,093 
Host Hotel &    Goldman Sachs           
 Resorts LP  5.00%  Bank USA  March 2014  USD 1,275    21,736 
Mohawk    JPMorgan           
 Industries  4.45%  Chase Bank,           
    National           
    Association  March 2014  USD  500    5,594 
Total            $  41,585 

Credit default swaps on single-name issues — sold protection outstanding as of
February 28, 2009 were as follows:

  Received        Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Issuer  Rate  party  Expiration  Rating1  (000)2  Depreciation 
 
Ford Motor    Deutsche  March       
 Co.  4.20%  Bank AG  2010  CCC  USD 2,000  $(1,397,085) 
BAA Ferrovial             
 Junior    Deutsche  June       
 Term Loan  2.00%  Bank AG  2012  A–  GBP 300  (108,863) 
Total            $(1,505,948) 

1 Using Standard and Poor’s ratings of the issuer.
2 The maximum potential amount the Fund may pay should a negative credit
event take place as defined under the terms of the agreement.

Credit default swaps on traded indexes — buy protection outstanding as of
February 28, 2009 were as follows:

  Pay       Notional 
  Fixed       Amount Unrealized 
Issuer  Rate  Counterparty  Expiration     (000) Appreciation 
 
Dow Jones  5.00%  Credit  June  USD 1,940 $ 352,096 
 CDX North    Suisse  2013   
 America    International     
 High Yield         
 Index         

Credit default swaps on traded indexes — sold protection outstanding as of
February 28, 2009 were as follows:

  Pay        Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Issuer  Rate  party  Expiration  Rating1  (000)2  Depreciation 
 
Aces High  5.00%  Morgan  March  CCC+  USD 7,000  $(5,336,893) 
 Yield Index    Stanley  2010       
    Capital         
    Services, Inc.       

1 Using Standard & Poor’s weighted average ratings of the underlying securities in
the Index.
2 The maximum potential amount the Fund may pay should a negative credit
event take place under the terms of the agreement.
Interest rate swaps outstanding as of February 28, 2009 were as follows:

  Notional   
  Amount  Unrealized 
  (000)  Depreciation 
 
Pay a fixed rate of 4.823% and receive a     
floating rate based on 3-month LIBOR     
Broker, JPMorgan Chase Bank,     
National Association     
Expires January 2013  USD 20,000  $ (1,823,284) 

Currency Abbreviations: 
     CAD  Canadian Dollar 
     EUR  Euro 
     USD  U.S. Dollar 

See Notes to Financial Statements.

20 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Schedule of Investments (concluded)

BlackRock Diversified Income Strategies Fund, Inc. (DVF)

Effective September 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value
Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, estab-
lishes a framework for measuring fair values and requires additional disclosures
about the use of fair value measurements. Various inputs are used in determining
the fair value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
Level 2 — other observable inputs (including, but not limited to: quoted prices
for similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks
and default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of February 28, 2009 in deter-
mining the fair valuation of the Fund’s investments:

Valuation  Investments in  Other Financial 
Inputs    Securities  Instruments* 
    Assets  Assets  Liabilities 
Level 1  $  1,017,322     
Level 2    65,867,757  $ 522,737  $ (8,558,118) 
Level 3    29,252,590    (108,863) 
Total  $  96,137,669  $ 522,737  $ (8,666,981) 

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

The following is a reconciliation of investments for unobservable inputs (Level 3)
that were used in determining fair value:

  Investments in 
    Securities 
     Assets 
Balance as of August 31, 2008  $  17,146,004 
Accrued discounts/premiums    95,505 
Realized loss    (2,360,754) 
Change in unrealized appreciation/depreciation1    (28,504,080) 
Net sales    (7,789,301) 
Net transfers in Level 3    50,665,216 
Balance as of February 28, 2009  $  29,252,590 

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

  Other Financial 
  Instruments* 
    Liabilities 
Balance as of August 31, 2008     
Accrued discounts/premiums     
Realized gain (loss)     
Change in unrealized appreciation/depreciation  $  (44,064) 
Net purchases (sales)     
Net transfers out of Level 3    (64,799) 
Balance as of February 28, 2009  $  (108,863) 

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 21


Schedule of Investments February 28, 2009 (Unaudited)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

    Par     
Floating Rate Loan Interests    (000)     Value 
 
Aerospace & Defense — 5.7%         
Avio S.p.A.:         
     Dollar Mezzanine Term Loan, 10.061%, 12/13/16  USD  2,079  $  488,438 
     Facility B2, 2.604% – 3.936, 12/15/14    1,661    859,731 
     Facility C2, 3.229% – 4.56%, 12/14/15    1,771    916,512 
Hawker Beechcraft Acquisition Co. LLC:         
     Letter of Credit Facility Deposit, 3.459%, 3/26/14    240    110,313 
     Term Loan, 2.479% – 3.459%, 3/26/14    4,089    1,878,628 
IAP Worldwide Services, Inc. Term Loan (First-Lien),         
 8.25%, 12/30/12    2,030    1,055,361 
Vought Aircraft Industries, Inc.:         
     Revolver, 2.47% – 2.48%, 12/22/10    3,000    1,800,000 
     Term Loan, 2.98%, 12/22/11    3,016    2,432,895 
     Tranche B Letter of Credit Deposit, 2.97%, 12/22/10  373    301,156 
        9,843,034 
Airlines — 0.9%         
Delta Air Lines, Inc. Credit-Linked Deposit Loan,         
 0.32% – 2.445%, 4/30/12    1,238    940,500 
US Airways Group, Inc. Loan, 2.979%, 3/21/14    1,480    672,938 
        1,613,438 
Auto Components — 3.3%         
Affinia Group Inc. Tranche B Term Loan,         
 4.174%, 11/30/11    2,544    1,271,786 
Allison Transmission, Inc. Term Loan, 3.32%, 8/07/14    4,885    3,236,064 
Dana Holding Corp. Term Advance, 7.25%, 1/31/15    1,576    479,392 
GPX International Tire Corp. Tranche B Term Loan,         
 8.23% – 10.25%, 3/30/12    1,266    696,228 
        5,683,470 
Automobiles — 0.2%         
Ford Motor Co. Term Loan, 5.0%, 12/15/13    522    166,668 
General Motors Corp. Secured Term Loan,         
 4.148%, 11/29/13    422    151,085 
        317,753 
Beverages — 0.1%         
Culligan International Co. Loan (Second Lien),         
 6.48% – 8.536%, 4/24/13  EUR  500    111,985 
Building Products — 2.1%         
Building Materials Corp. of America Term Loan Advance,         
 3.625% – 3.875%, 2/22/14  USD  2,729    1,860,560 
PGT Industries, Inc. Tranche A-2 Term Loan,         
 6.25%, 2/14/12    1,923    1,057,719 
Stile Acquisition Corp. (aka Masonite) Canadian         
 Term Loan, 6.25%, 4/06/13    912    372,680 
Stile U.S. Acquisition Corp. (aka Masonite) US Term         
 Loan, 6.75%, 4/06/13    921    376,312 
        3,667,271 
Capital Markets — 0.8%         
Riskmetrics Group Holdings, LLC Term B Loan         
 (First Lien), 3.459%, 1/10/14    1,453    1,300,521 
Chemicals — 4.4%         
Edwards (Cayman Islands II) Ltd. Term Loan (First Lien),         
 2.479%, 5/31/14    493    295,500 
Huish Detergents Inc. Tranche B Term Loan,         
 2.17%, 4/26/14    1,478    1,250,950 
ISP Chemco LLC Term Loan, 2.0% – 2.75%, 6/04/14    985    824,117 
PQ Corp. (fka Niagara Acquisition, Inc.) Term Loan         
 (First Lien), 4.43% – 4.71%, 7/31/14    3,980    2,378,050 
Solutia Inc. Loan, 8.50%, 2/28/14    4,485    2,881,552 
        7,630,169 

    Par     
Floating Rate Loan Interests    (000)     Value 
 
Commercial Services & Supplies — 0.7%         
John Maneely Co. Term Loan,         
 4.41% – 4.604%, 12/09/13  USD  851  $  487,360 
West Corp. Term B-2 Loan, 2.82% – 2.854%, 10/24/13    1,037    759,598 
        1,246,958 
Computers & Peripherals — 0.9%         
Dealer Computer Services, Inc. (Reynolds & Reynolds)         
 Term Loan (First Lien), 2.479%, 10/26/12    1,110    721,403 
Intergraph Corp.:         
     Initial Term Loan (First Lien), 3.256%, 5/29/14    419    357,980 
     Second Lien Term Loan, 8.181%, 11/28/14    500    412,500 
        1,491,883 
Construction Materials — 0.4%         
Headwaters Inc. Term Loan B1 (First Lien),         
 5.97%, 4/30/11    1,025    717,708 
Containers & Packaging — 2.0%         
Berry Plastics Group, Inc. Loan, 8.421%, 6/05/14    1,218    243,640 
Graham Packaging Co., LP New Term Loan,         
 2.688% – 6.313%, 10/07/11    1,217    1,018,143 
Graphic Packaging International, Inc. Incremental         
 Term Loan, 3.203% – 4.185%, 5/16/14    1,970    1,679,263 
Smurfit-Stone Container Term Loan B, 8.75%, 2/03/10    580    576,375 
        3,517,421 
Distributors — 0.3%         
Keystone Automotive Operations, Inc. Loan,         
 3.947% – 5.75%, 1/12/12    1,426    534,883 
Diversified Consumer Services — 1.0%         
Coinmach Corp. Term Loan, 3.47% – 4.26%, 11/14/14    2,729    1,774,060 
Diversified Financial Services — 1.3%         
DaimlerChrysler Financial Services Americas LLC         
 Term Loan (First Lien), 6.0%, 8/03/12    3,960    2,059,148 
J.G. Wentworth, LLC Loan (First Lien), 3.709%, 4/04/14    2,300    207,000 
        2,266,148 
Electrical Equipment — 1.0%         
Generac Acquisition Corp. First Lien Term Loan,         
 2.919%, 11/10/13    548    293,393 
Sensus Metering Systems New Term B-1,         
 2.47% – 3.256%, 12/17/10    1,578    1,420,435 
        1,713,828 
Energy Equipment & Services — 2.4%         
Dresser, Inc. Term B Loan, 2.729% – 3.489%, 5/04/14    4,000    2,872,000 
MEG Energy Corp.:         
     Delayed Draw Term Loan, 3.46%, 4/02/13    991    614,575 
     Initial Term Loan, 3.46%, 4/03/13    973    602,950 
        4,089,525 
Food & Staples Retailing — 3.4%         
AB Acquisitions UK Topco 2 Ltd. Facility B2 UK Borrower,         
 4.161%, 7/09/15  GBP  3,000    3,015,899 
Advantage Sales & Marketing, Inc. (ASM Merger         
 Sub, Inc.) Term Loan, 2.45% – 3.47%, 3/29/13  USD  1,461    1,147,133 
DSW Holdings, Inc. Loan, 2.705%, 3/02/12    924    674,844 
McJunkin Corp. Term Loan, 4.709%, 1/31/14    725    528,151 
WM. Bolthouse Farms, Inc. Second Lien Term Loan,         
 5.979%, 12/16/13    1,000    545,000 
        5,911,027 

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Schedule of Investments (continued)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

     Par     
Floating Rate Loan Interests    (000)     Value 
 
Food Products — 1.3%         
Dole Food Co., Inc.:         
     Credit-Linked Deposit, 2.79%, 4/12/13  USD  176  $  158,033 
     Tranche B Term Loan, 2.50% – 4.25%, 4/12/13    312    279,382 
Solvest, Ltd. (Dole) Tranche C Term Loan,         
 2.563% – 4.25%, 4/12/13    1,161    1,040,895 
Sturm Foods, Inc.:         
     Initial Term Loan First Loan,         
     3.438% – 3.75%, 1/31/14 (a)    975    553,355 
     Initial Term Loan Second Lien, 7.25%, 7/31/14    1,000    250,000 
        2,281,665 
Health Care Equipment & Supplies — 0.7%         
DJO Finance LLC (ReAble Therapeutics Fin LLC)         
 Term Loan, 3.479% – 4.459%, 5/20/14    990    823,350 
Hologic, Inc. Tranche B Term Loan, 3.75%, 3/31/13    381    342,781 
        1,166,131 
Health Care Providers & Services — 2.1%         
CCS Medical, Inc. (Chronic Care) Term Loan (First Lien),         
 4.71%, 9/30/12    473    212,968 
CHS/Community Health Systems, Inc.:         
     Delayed Draw Term Loan, 2.729%, 7/25/14    65    55,312 
     Funded Term Loan, 2.729% – 3.506%, 7/25/14    1,280    1,083,853 
Health Management Associates, Inc. Term B Loan,         
 3.209%, 2/28/14    2,874    2,291,708 
        3,643,841 
Hotels, Restaurants & Leisure — 3.6%         
Golden Nugget, Inc. Second Lien Term Loan,         
 3.73%, 12/31/14    500    65,000 
Green Valley Ranch Gaming, LLC Second Lien         
 Term Loan, 3.697%, 8/16/14    500    25,000 
Greenwood Racing Inc. Term Loan, 2.73%, 11/28/11    490    362,600 
Harrah's Operating Co., Inc.:         
     Term B-1 Loan, 4.159% – 4.459%, 1/28/15    236    136,327 
     Term B-2 Loan, 4.159% – 4.459%, 1/28/15    2,779    1,616,453 
     Term B-3 Loan, 4.159% – 4.459%, 1/28/15    210    121,180 
Las Vegas Sands, LLC:         
     Delayed Draw I Term Loan, 2.16%, 5/23/14    398    175,617 
     Tranche B Term Loan, 2.16%, 5/23/14    1,576    695,410 
Penn National Gaming, Inc. Term Loan B,         
 2.23% – 2.99%, 10/03/12    1,195    1,076,174 
QCE, LLC (Quiznos) Term Loan (Second Lien),         
 3.75%, 11/05/13    984    542,431 
Travelport LLC (fka Travelport Inc.):         
     Original Post-First Amendment and Restatement         
     Synthetic Letter of Credit Loan, 2.729% –         
     3.709%, 8/23/13    178    105,133 
     Tranche B Dollar Term Loan, 2.729%, 8/23/13    889    523,962 
VML US Finance LLC (aka Venetian Macau) Term B:         
     Delayed Draw Project Loan, 2.73%, 5/25/12    384    220,899 
     Funded Project Loan, 2.73%, 5/27/13    866    498,420 
        6,164,606 
Household Durables — 2.8%         
American Residential Services LLC Term Loan         
 (Second Lien), 12%, 4/17/15    2,020    1,725,457 
Simmons Bedding Co. Tranche D Term Loan,         
 9.535%, 12/19/11    3,166    2,418,797 
Yankee Candle Co., Inc. Term Loan,         
 2.42% – 3.47%, 2/06/14    1,250    758,334 
        4,902,588 

    Par     
Floating Rate Loan Interests    (000)     Value 
 
IT Services — 2.6%         
Activant Solutions Inc. Term Loan, 3.438%, 5/02/13  USD  1,962  $  922,240 
Audio Visual Services Group, Inc.:         
     Loan (Second Lien), 6.96%, 8/28/14    1,000    70,000 
     Tranche B Term Loan (First Lien), 3.71%, 2/28/14  1,481    414,750 
Ceridian Corp U.S. Term Loan, 3.47%, 11/09/14    2,000    1,380,000 
First Data Corp.:         
     Initial Tranche B-2 Term Loan,         
     3.223% – 3.229%, 9/24/14    1,286    844,271 
     Initial Tranche B-3 Term Loan,         
     3.223% – 3.229%, 9/24/14    343    224,256 
RedPrairie Corp.:         
     Loan (Second Lien), 7.736%, 1/20/13    300    129,000 
     Term Loan, 4.25% – 5.25%, 7/20/12    636    400,882 
        4,385,399 
Independent Power Producers & Energy Traders — 1.1%       
Calpine Generating Co., LLC Second Priority Term Loan,       
 11.07%, 4/01/10    1    598 
Texas Competitive Electric Holdings Co., LLC (TXU):         
     Initial Tranche B-2 Term Loan,         
     3.948% – 4.451%, 10/10/14    983    612,954 
     Initial Tranche B-3 Term Loan,         
     3.948% – 4.451%, 10/10/14    1,955    1,219,463 
        1,833,015 
Industrial Conglomerates — 1.0%         
Sequa Corp. Term Loan, 3.67% – 3.70%, 12/03/14    2,796    1,705,759 
Insurance — 0.2%         
Alliant Holdings I, Inc. Term Loan, 4.459%, 8/21/14    494    370,313 
Internet & Catalog Retail — 0.4%         
FTD Group, Inc. Tranche B Term Loan, 6.75%, 8/04/14  748    639,647 
Leisure Equipment & Products — 2.7%         
24 Hour Fitness Worldwide, Inc. Tranche B Term Loan,       
 2.98% – 3.93%, 6/08/12    3,890    2,178,400 
Easton-Bell Sports, Inc. Tranche B Term Loan,         
 2.66% – 2.92%, 3/16/12    3,119    2,281,872 
Fender Musical Instruments Corp.:         
     Delayed Draw Loan, 2.75%, 6/09/14    166    74,750 
     Initial Loan, 3.71%, 6/09/14    329    147,997 
        4,683,019 
Machinery — 4.0%         
NACCO Materials Handling Group, Inc. Loan,         
 2.479% – 4.595%, 3/21/13    1,463    760,500 
Navistar International Corp.:         
     Revolving Credit-Linked Deposit,         
     3.67% – 3.729%, 1/19/12    1,333    954,444 
     Term Advance, 3.729%, 1/19/12    3,667    2,624,721 
Oshkosh Truck Corp. Term B Loan,         
 2.20% – 3.95%, 12/06/13    1,761    1,232,538 
TriMas Co. LLC:         
     Tranche B Term Loan, 2.729% – 3.434%, 8/02/13  1,588    1,000,716 
     Tranche B-1 Loan, 2.40%, 3/27/12    375    236,250 
        6,809,169 
Media — 23.2%         
Affinion Group Holdings, Inc. Loan, 8.523%, 3/01/12  2,000    900,000 
AlixPartners, LLP Tranche C Term Loan,         
 2.94% – 3.36%, 10/12/13    1,591    1,367,953 
Bresnan Communications, LLC Additional Term Loan B       
 (First Lien), 3.13%, 6/30/13    1,500    1,278,750 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 23


Schedule of Investments (continued)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

    Par     
Floating Rate Loan Interests    (000)       Value 
 
Media (concluded)         
Catalina Marketing Corp. Initial Term Loan,         
 4.459%, 10/01/14  USD  1,732  $  1,372,489 
Cengage Learning Acquisitions, Inc. (Thomson Learning):         
     Term Loan, 2.98%, 7/03/14    234    152,071 
     Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    5,221    3,654,879 
Cequel Communications, LLC (aka Cebridge):         
     Second Lien Tranche A Term Loan (Cash Pay),         
     4.913%, 5/05/14    2,000    1,225,000 
     Term Loan, 2.445% – 4.25%, 11/05/13    2,121    1,787,765 
Clarke American Corp. Tranche B Term Loan,         
 2.979% – 3.959%, 6/30/14    985    580,165 
Dollar General Corp. Tranche B-2 Term Loan,         
 3.160%, 7/07/14    725    596,856 
Emmis Operating Co. Tranche B Term Loan,         
 2.479% – 3.466%, 11/01/13    545    234,400 
HMH Publishing Co. Ltd. (fka Education Media):         
     Mezzanine, 10.756%, 11/14/14    9,593    2,877,998 
     Tranche A Term Loan, 5.256%, 6/12/14    2,630    1,479,247 
Hanley-Wood, LLC (FSC Acquisition) Term Loan,         
 2.695% – 2.729%, 3/08/14    1,481    538,187 
Insight Midwest Holdings, LLC B Term Loan,         
 2.42%, 4/07/14    1,825    1,605,239 
Intelsat Subsidiary Holding Co. Ltd. Tranche B         
 Term Loan, 3.925%, 1/03/14    1,906    1,677,254 
Knology, Inc. Term Loan, 2.663%, 6/30/12    728    582,315 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):         
     Facility B1, 4.589%, 6/30/15  EUR  337    38,161 
     Facility C1, 4.839%, 6/30/16    337    38,161 
MCC Iowa LLC (Mediacom Broadband Group) Tranche A         
 Term Loan, 1.87%, 3/31/10  USD  888    820,938 
MCNA Cable Holdings LLC (OneLink Communications)         
 Loan (PIK facility), 9.62%, 3/01/13 (a)    1,179    731,214 
Mediacom Illinois, LLC (fka Mediacom         
 Communications, LLC) Tranche C Term Loan,         
 1.87%, 1/31/15    3,097    2,572,280 
Mediannuaire Holding (Pages Jaunes) Term Loan D,         
 5.909%, 1/11/17  EUR  500    80,593 
Metro-Goldwyn-Mayer Inc. Tranche B Term Loan,         
 3.729% – 4.7809%, 4/09/12  USD  3,314    1,474,576 
Multicultural Radio Broadcasting, Inc. Term Loan,         
 3.195%, 12/18/12    328    229,814 
Newsday, LLC Fixed Rate Term Loan, 9.75%, 8/01/13    1,000    902,500 
NextMedia Operating, Inc.:         
     Delay Draw Term Loan, 5.123%, 11/15/12    200    94,149 
     Initial Term Loan (First Lien), 5.174%, 11/15/12    267    125,461 
     Loan (Second Lien), 8.17%, 11/15/13    1,763    432,034 
Nielsen Finance LLC Dollar Term Loan,         
 2.448%, 8/09/13    5,865    4,601,621 
Penton Media, Inc. Loan (Second Lien),         
 6.174%, 2/01/14    1,000    111,250 
Sunshine Acquisition Ltd. (aka HIT Entertainment)         
 Term Facility, 3.49%, 7/31/14    732    347,716 
TWCC Holding Corp. Term Loan, 7.25%, 9/14/15    748    713,711 
UPC Financing Partnership M Facility,         
 3.760%, 12/31/14  EUR  5,000    4,633,044 
        39,857,791 
Multi-Utilities — 1.9%         
Energy Transfer Equity, LP Term Loan,         
 2.991%, 11/01/12  USD  1,000    870,000 
FirstLight Power Resources, Inc. (fka NE Energy, Inc.)         
 Second Lien Term Loan, 5.966%, 5/01/14    500    315,000 
Riverside Energy Center Term Loan, 5.424%, 6/24/11    1,531    1,393,367 

Floating Rate Loan Interests    (000)           Value 
 
Multi-Utilities (concluded)         
Rocky Mountain Energy Center:         
     LLC Credit Linked Deposit, 1.074%, 6/24/11  USD  134  $  121,909 
     LLC Term Loan, 5.424%, 6/24/11    701    638,203 
        3,338,479 
Oil, Gas & Consumable Fuels — 2.7%         
Big West Oil, LLC:         
     Delayed Advance Loan, 4.50%, 5/15/14    550    269,500 
     Initial Advance Loan, 4.50%, 5/15/14    438    214,375 
Coffeyville Resources, LLC:         
     Funded Letter of Credit, 8.75%, 12/28/10    487    353,311 
     Tranche D Term Loan, 8.75%, 12/30/13    1,567    1,137,938 
Petroleum GEO-Services ASA/PGS Finance, Inc.         
 Term Loan, 3.21%, 6/29/15    953    684,811 
Vulcan Energy Corp. (fka Plains Resources Inc) Term B3         
 Loan, 5.50%, 8/12/11    1,500    1,297,500 
Western Refining, Inc. Term Loan, 8.25%, 5/30/14    986    612,125 
        4,569,560 
Paper & Forest Products — 0.7%         
NewPage Corp. Term Loan, 5.313%, 12/22/14    1,238    753,750 
Verso Paper Finance Holdings LLC Loan,         
 7.685% – 8.435%, 2/01/13    1,899    379,722 
        1,133,472 
Pharmaceuticals — 0.5%         
Catalent Pharma Solutions, Inc. (fka Cardinal         
 Health 409, Inc.) Euro Term Loan, 5.223%, 4/15/14  EUR  985    899,087 
Real Estate Management & Development — 1.0%         
Mattamy Funding Partnership Loan, 3.563%, 4/11/13  USD  973    680,750 
Realogy Corp. Initial Term B Loan, 3.434%, 10/10/13    1,970    1,114,145 
        1,794,895 
Specialty Retail — 0.6%         
Adesa, Inc. (KAR Holdings, Inc.) Initial Term Loan,         
 2.73% – 3.71%, 10/20/13    1,436    965,887 
Textiles, Apparel & Luxury Goods — 0.1%         
Renfro Corp. Tranche B Term Loan,         
 4.16% – 4.48%, 10/05/13    436    218,125 
Total Floating Rate Loan Interests — 84.1%        144,793,530 
 
 
 
Corporate Bonds         
Auto Components — 2.5%         
The Goodyear Tire & Rubber Co., 6.318%, 12/01/09 (b)    4,500    4,235,625 
Building Products — 2.2%         
CPG International I, Inc.:         
     8.561%, 7/01/12 (b)    3,500    1,855,000 
     10.50%, 7/01/13    3,000    1,590,000 
Momentive Performance Materials, Inc. Series WI,         
 9.75%, 12/01/14    750    285,000 
        3,730,000 

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Schedule of Investments (continued)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

    Par     
Corporate Bonds    (000)     Value 
 
Capital Markets — 1.9%         
E*Trade Financial Corp., 12.50%, 11/30/17 (c)  USD  5,313  $  2,443,750 
Marsico Parent Co., LLC, 10.625%, 1/15/16 (c)    1,168    478,880 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (a)(c)    457    187,416 
Marsico Parent Superholdco, LLC,         
 14.50%, 1/15/18 (a)(c)    312    127,747 
        3,237,793 
Chemicals — 1.1%         
GEO Specialty Chemicals Corp.,         
 7.50%, 3/31/15 (a)(c)(d)    820    614,217 
GEO Specialty Chemicals, Inc.,         
 9.935%, 12/31/09 (b)(d)    1,319    987,601 
Wellman Holdings, Inc. Third Lien Subordinate Note,         
 5%, 1/29/19 (d)    430    301,000 
        1,902,818 
Commercial Services & Supplies — 1.9%         
Allied Waste North America, Inc. Series B,         
 7.375%, 4/15/14    3,375    3,324,375 
Construction Materials — 0.8%         
Nortek, Inc., 10%, 12/01/13    3,420    1,368,000 
Containers & Packaging — 3.2%         
Berry Plastics Holding Corp., 5.871%, 9/15/14 (b)    1,450    674,250 
Clondalkin Acquisition BV, 3.996%, 12/15/13 (b)(c)    4,000    2,480,000 
Crown European Holdings SA, 6.25%, 9/01/11  EUR  795    977,624 
Owens Brockway Glass Container, Inc.,         
 6.75%, 12/01/14    395    445,677 
Packaging Dynamics Finance Corp., 10%, 5/01/16 (c)  USD  2,350    1,010,500 
        5,588,051 
Diversified Financial Services — 1.8%         
FCE Bank Plc, 7.125%, 1/16/12  EUR  4,000    3,093,306 
Diversified Telecommunication Services — 1.7%         
Qwest Corp., 5.246%, 6/15/13 (b)  USD  3,500    2,966,250 
Food & Staples Retailing — 0.1%         
AmeriQual Group LLC, 9.50%, 4/01/12 (c)    250    150,000 
Health Care Equipment & Supplies — 1.4%         
DJO Finance LLC, 10.875%, 11/15/14    3,250    2,470,000 
Hotels, Restaurants & Leisure — 3.0%         
American Real Estate Partners LP, 7.125%, 2/15/13    5,000    4,112,500 
Harrah's Operating Co., Inc.:         
     10.75%, 2/01/16    1,325    185,500 
     10.75%, 2/01/18 (a)    315    19,335 
     10%, 12/15/18 (c)    505    141,400 
Little Traverse Bay Bands of Odawa Indians,         
 10.25%, 2/15/14 (c)    1,565    719,900 
        5,178,635 
IT Services — 1.9%         
First Data Corp., 9.875%, 9/24/15    6,000    3,300,000 
Independent Power Producers & Energy Traders — 1.5%         
Texas Competitive Electric Holdings Co. LLC,         
 10.25%, 11/01/15    5,230    2,641,150 
Industrial Conglomerates — 0.2%         
Sequa Corp. (c):         
     11.75%, 12/01/15    640    102,400 
     13.50%, 12/01/15 (a)    1,591    190,309 
        292,709 

  Par     
Corporate Bonds  (000)       Value 
 
Machinery — 0.7%       
Sunstate Equipment Co. LLC, 10.50%, 4/01/13 (c)  USD 2,000  $  1,100,000 
Media — 1.9%       
CSC Holdings, Inc.:       
     8.50%, 4/15/14 (c)  420    403,200 
     Series B, 7.625%, 4/01/11  2,000    1,980,000 
Cablevision Systems Corp. Series B, 8%, 4/15/12  575    556,312 
Local Insight Regatta Hldgs, Inc., 11%, 12/01/17  1,244    298,560 
      3,238,072 
Metals & Mining — 0.7%       
FMG Finance Property Ltd., 5.261%, 9/01/11 (b)(c)  265    225,250 
Ryerson, Inc., 8.545%, 11/01/14 (b)(c)  1,680    856,800 
      1,082,050 
Oil, Gas & Consumable Fuels — 0.6%       
SandRidge Energy, Inc., 5.06%, 4/01/14 (b)  1,600    1,051,475 
Paper & Forest Products — 1.9%       
Abitibi-Consolidated, Inc., 5.496%, 6/15/11 (b)  2,650    238,500 
Ainsworth Lumber Co. Ltd., 11%, 7/29/15 (a)(c)  1,147    517,679 
NewPage Corp.:       
     10%, 5/01/12  2,000    605,000 
     7.42%, 5/01/12 (b)  3,925    942,000 
Verso Paper Holdings LLC Series B, 4.92%, 8/01/14 (b)  4,000    1,040,000 
      3,343,179 
Pharmaceuticals — 0.4%       
Angiotech Pharmaceuticals, Inc., 5.011%, 12/01/13 (b)  1,000    612,500 
Real Estate Management & Development — 0.1%       
Realogy Corp., 10.50%, 4/15/14  1,055    221,550 
Semiconductors & Semiconductor Equipment — 0.8%       
Avago Technologies Finance Pte. Ltd.,       
6.761%, 6/01/13 (b)  900    706,500 
Spansion, Inc., 4.386%, 6/01/13 (b)(c)(e)(f)  2,870    670,862 
      1,377,362 
Specialty Retail — 0.2%       
General Nutrition Centers, Inc., 7.584%, 3/15/14 (a)(b)  700    413,000 
Wireless Telecommunication Services — 0.4%       
Crown Castle International Corp., 9%, 1/15/15  550    536,250 
Digicel Group Ltd., 9.125%, 1/15/15 (a)(c)  278    194,600 
      730,850 
Total Corporate Bonds — 32.9%      56,648,750 
 
 
 
Common Stocks  Shares     
Capital Markets — 0.1%       
E*Trade Financial Corp. (e)  242,021    193,617 
Chemicals — 0.0%       
GEO Specialty Chemicals, Inc. (e)  13,117    5,035 
Wellman Holdings, Inc.  430    108 
      5,143 
Electrical Equipment — 0.0%       
Medis Technologies Ltd. (e)  71,654    40,843 
Energy Equipment & Services — 0.2%       
Trico Marine Services, Inc. (e)  119,185    389,735 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 25


Schedule of Investments (continued)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

Common Stocks  Shares    Value 
 
Paper & Forest Products — 0.1%       
Ainsworth Lumber Co. Ltd.  136,289  $  77,133 
Ainsworth Lumber Co. Ltd. (c)(e)  152,951    86,791 
Western Forest Products, Inc. (c)(e)  84,448    9,957 
      173,881 
Total Common Stocks — 0.4%      803,219 
 
 
Non-U.S. Government Agency  Par     
Mortgage-Backed Securities  (000)     
Commercial Mortgage-Backed Securities — 1.4%       
Crown Castle Towers LLC Series 2005-1A:       
Class AFL, 0.936%, 6/15/35 (b)  USD 1,795    1,633,450 
Class AFX, 4.643%, 6/15/35 (c)  495    472,725 
Global Signal Trust Series 2006-1 Class A2,       
 5.45%, 2/15/36  290    271,150 
Total Non-U.S. Government Agency       
Mortgage-Backed Securities — 1.4%      2,377,325 
 
 
 
Preferred Stocks  Shares     
Capital Markets — 0.0%       
Marsico Parent Superholdco, LLC, 16.75% (c)  78    33,930 
Total Preferred Stocks — 0.0%      33,930 
Total Long-Term Investments       
(Cost — $335,541,062) — 118.8%      204,656,754 
 
 
  Beneficial     
  Interest     
Short-Term Securities  (000)     
BlackRock Liquidity Series, LLC       
 Cash Sweep Series, 0.73% (g)(h)  USD 4,457    4,457,276 
Total Short-Term Securities       
(Cost — $4,457,276) — 2.6%      4,457,276 
 
 
 
Options Purchased  Contracts     
Over the Counter Call Options       
Marsico Parent Superholdco LLC, expiring       
 December 2009 at USD 942.86 Broker,       
 Goldman Sachs & Co.  20    32,300 
Total Options Purchased       
(Cost — $19,556) — 0.0%      32,300 
Total Investments (Cost — $340,017,894*) — 121.4%      209,146,330 
Liabilities in Excess of Other Assets — (21.4)%      (36,911,150) 
Net Assets — 100.0%    $ 172,235,180 

* The cost and unrealized appreciation (depreciation) of investments as of February
28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 339,963,284 
Gross unrealized appreciation     $        313,322 
Gross unrealized depreciation  (131,130,276) 
Net unrealized depreciation  $(130,816,954) 

(a) Represents a payment-in-kind security which may pay interest/dividends in
additional par/shares.
(b) Variable rate security. Rate shown is as of report date.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(d) Convertible security.
(e) Non-income producing security.
(f) Issuer filed for bankruptcy and/or is in default of interest payments.
(g) Represents the current yield as of report date.
(h) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

  Net   
Affiliate  Activity  Income 
BlackRock Liquidity Series, LLC     
   Cash Sweep Series  USD 2,822,607  $24,202 

For Fund compliance purposes, the Fund's industry classifications refer to any one
or more of the industry sub-classifications used by one or more widely recognized
market indexes or ratings group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine industry
sub-classifications for reporting ease.
Foreign currency exchange contracts as of February 28, 2009 were as follows:

Currency  Currency    Settlement  Unrealized 
Purchased  Sold    Counterparty  Date  Appreciation 
 
USD  256,243  CAD  315,000  UBS AG  3/18/09  $ 8,655 
USD           10,228,578  EUR  7,802,000  Deutsche Bank AG  3/18/09  339,191 
USD  1,383,308  EUR  1,055,000  Citibank NA  3/18/09  46,047 
USD  837,233  EUR  650,000  UBS AG  3/18/09  13,328 
USD  3,118,328  GBP  2,103,000  UBS AG  3/18/09  107,940 
Total            $ 515,161 

Credit default swaps on single-name issues — buy protection outstanding as of
February 28, 2009 were as follows:

  Pay      Notional   
  Fixed      Amount  Unrealized 
Issuer  Rate  Counterparty  Expiration  (000)2  Appreciation 
 
First Data  5%  JPMorgan Chase  December       
 Corp.    Bank, NA  2013  USD  3,000  $ 184,800 
First Data  5%  JPMorgan Chase  December       
 Corp.    Bank, NA  2013  USD  3,000  237,300 
Host Hotels &  5%  Goldman Sachs  March  USD  2,500  42,620 
 Resorts LP    Bank USA  2014       
Masco Corp.  5.3%  JPMorgan Chase  March       
    Bank, NA  2014  USD  1,000  28,186 
Mohawk  4.45%  JPMorgan Chase  March       
 Industries,    Bank, NA  2014  USD  1,000  11,188 
 Inc.             
Total            $ 504,094 

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Schedule of Investments (concluded)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

Credit default swaps on single-name issues — sold protection outstanding as of
February 28, 2009 were as follows:

  Receive     Notional 
  Fixed       Amount           Unrealized 
Issuer1  Rate  Counterparty  Expiration     (000)2              Depreciation 
 
Ford Motor  3.80%  UBS AG  March  USD 10,000     $(7,007,760) 
Co.      2010   

1 Credit rating is CCC using Standard and Poor’s ratings.
2 The maximum potential amount the Fund may pay should a negative credit
event take place as defined under the terms of the agreement.
Credit default swaps on traded indexes — buy protection outstanding as of February
28, 2009 were as follows:

  Pay      Notional   
  Fixed      Amount  Unrealized 
Issuer  Rate  Counterparty  Expiration  (000)  Appreciation 
 
Dow Jones  5%  Credit Suisse  June  USD 3,880  $704,193 
 CDX North    International  2013     
 America           
 High Yield           
 Index 10.V1           

Currency Abbreviations: 
     CAD  Canadian Dollar 
     EUR  Euro 
     GBP  British Pound 
     USD  U.S. Dollar 

Effective September 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure-
ments” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a
framework for measuring fair values and requires additional disclosures about the
use of fair value measurements. Various inputs are used in determining the fair
value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
Level 2 — other observable inputs (including, but not limited to: quoted prices
for similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks
and default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumption used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of February 28, 2009 in deter-
mining the fair valuation of the Fund’s investments:

Valuation  Investments in    Other Financial 
Inputs    Securities    Instruments* 
    Assets    Assets  Liabilities 
Level 1    $        711,284       
Level 2    145,788,452  $  1,755,748  $ (7,007,760) 
Level 3    62,614,294       
Total  $ 209,114,030  $  1,755,748  $ (7,007,760) 

* Other financial instruments are swaps, foreign currency exchange contracts
and options. Swaps and foreign currency exchange contracts are valued at
the unrealized appreciation/depreciation on the instruments and options are
shown at market value.
The following is a reconciliation of investments for unobservable inputs (Level 3)
that were used in determining fair value:

  Investments in 
    Securities 
     Assets 
Balance as of August 31, 2008  $  27,977,920 
Accrued discounts/premiums    164,900 
Realized loss    (5,006,943) 
Change in unrealized appreciation/depreciation1    (46,483,912) 
Net sales    (16,941,868) 
Net transfers in Level 3    102,904,197 
Balance as of February 28, 2009  $  62,614,294 

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

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 27


Schedule of Investments February 28, 2009 (Unaudited)

BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

     Par     
Floating Rate Loan Interests    (000)     Value 
 
Aerospace & Defense — 0.8%         
Avio Holding SpA:         
     Term Loan B, 2.604%, 9/25/14  USD  1,000  $  517,500 
     Term Loan C, 3.229%, 9/25/15    1,000    517,500 
Hawker Beechcraft Acquisition Co. LLC:         
     Letter of Credit Facility Deposit, 2.10%, 3/26/14    244    112,016 
     Term Loan, 2.479% – 3.459%, 3/26/14    4,569    2,099,278 
IAP Worldwide Services, Inc. First Lien Term Loan,         
 7.25%, 12/31/12    585    304,392 
Wesco Aircraft Hardware Corp. First Lien Term Loan,         
 2.73%, 9/25/13    486    401,156 
        3,951,842 
Airlines — 0.2%         
US Airways Group, Inc. Term Loan, 2.979%, 3/23/14    2,220    1,009,407 
Auto Components — 0.7%         
Allison Transmission, Inc. Term Loan, 3.20%, 8/07/14    4,053    2,685,303 
Dana Holding Corp. Term Advance, 6.50% – 7.25%, 1/31/15  890    270,759 
Dayco Products LLC — (Mark IV Industries, Inc.)         
 Replacement Term B Loan, 5.97% – 8.48%, 6/01/11    854    204,853 
Metaldyne Co. LLC:         
     Deposited Fund Tranche Loan, 0.346% –         
     5.125%, 1/11/12    98    11,769 
     Initial Tranche Term B Loan, 2% – 8%, 1/11/14    669    80,244 
Rally Parts, LLC (Motorsport Aftermarket) Tranche         
 Term B Loan, 2.98% – 3.96%, 11/03/13    490    181,300 
        3,434,228 
Beverages — 0.1%         
Culligan International Co., Second Lien Term Loan,         
 6.485% – 8.536%, 5/25/13  EUR  1,500    335,954 
Le-Nature's, Inc. Term B Loan,         
10.25%, 12/28/12 (e)(f)  USD  1,000    145,000 
        480,954 
Building Products — 1.0%         
Armstrong World Industries, Inc. Tranche B Term Loan,         
 2.223%, 10/02/13    194    174,177 
Building Material Corp. of America Advance Term Loan,         
 3.625% – 3.875%, 2/22/14    2,873    1,958,643 
Custom Building Products, Inc. Second Lien Term Loan,         
 10.75%, 4/29/12    1,500    847,500 
Momentive Performance Materials (Blitz 06-103 GMBH):       
     Tranche B-1, 2.75%, 12/04/13    967    716,839 
     Tranche B-2, 3.803%, 12/04/13  EUR  1,000    790,229 
United Subcontractors Inc. Tranche B Term Loan,         
 6.43% – 6.80%, 12/27/12  USD  1,820    364,016 
        4,851,404 
Capital Markets — 0.2%         
Marsico Parent Co., LLC Term Loan,         
 4.50% – 7.25%, 12/15/14    475    225,393 
Nuveen Investments, Inc. Term Loan,         
 3.479% – 4.466%, 11/13/14    1,496    705,367 
        930,760 
Chemicals — 3.1%         
Brenntag Holdings GMBH & Co. KG Facility:         
     B6A and B6B, 7.163%, 11/24/37  EUR  500    488,717 
     Second Lien Term Loan 2, 5.501%, 7/17/15  USD  500    289,375 
     Second Lien Term Loan 3A, 9.421%, 3/21/16  EUR  115    86,361 
     Second Lien Term Loan 3B, 9.421%, 3/15/16    385    289,209 
Cognis GMBH Facility:         
     Term Loan A, 5.329%, 11/17/13    803    641,564 
     Term Loan B, 5.329%, 11/16/13    197    157,118 
Edwards (Cayman Islands II) Ltd. First Lien Term Loan,         
 2.479%, 5/23/14  USD  493    295,500 

    Par     
Floating Rate Loan Interests    (000)    Value 
 
Chemicals (concluded)         
ElectriciInvest Holding Co. Ltd (Viridian Group Plc)         
 Junior Term Facility:         
     6.082%, 4/20/12  EUR  894  $  764,728 
     5.928%, 12/21/12  GBP  900    872,917 
Huish Detergents, Inc. Tranche Term B Loan,         
 2.17%, 4/26/14  USD  1,244    1,052,989 
ISP Chemco Term B Loan, 2% – 2.75%, 6/04/14    1,478    1,236,175 
Ineos U.S. Finance LLC Term Facility:         
     A4, 7.702%, 2/20/13    923    364,674 
     B2, 8.202%, 2/20/15    1,631    636,101 
     C2, 8.703%, 2/20/14    1,631    636,101 
Lucite International Group Holdings Ltd. PIK,         
 11.312%, 7/03/14 (c)  EUR  1,185    1,026,543 
PQ Corp. (fka Niagara Acquisition, Inc.):         
     First Lien Term Loan, 4.43% – 4.71%, 7/31/14  USD  3,980    2,378,050 
     Second Lien Term Loan, 7.68%, 7/30/15    3,250    1,137,500 
Rockwood Specialties Group, Inc. Tranche Term Loan D,         
 1.979%, 12/13/12    960    843,200 
Solutia, Inc. Term Loan, 8.50%, 2/28/14    1,741    1,118,725 
        14,315,547 
Commercial Services & Supplies — 1.6%         
Aramark Corp.         
     Letter of Credit, 2.038%, 1/26/14    185    159,546 
     Term Loan, 3.334%, 1/26/14    2,907    2,511,359 
EnviroSolutions Real Property Holdings, Inc. Initial         
 Term Loan, 10.50%, 7/01/12    503    276,698 
Kion GmbH:         
     Term Loan B, 2.479%, 3/04/15    250    85,000 
     Term Loan C, 2.979%, 3/04/16    250    85,000 
Language Line, Inc. Tranche B-1 Term Loan,         
 4.71%, 11/14/11    708    608,563 
Sirva Worldwide, Inc. Second Lien Term Loan,         
 12%, 5/15/15    246    12,299 
Synagro Technologies, Inc. First Lien Term Loan,         
 2.45%, 4/01/14    2,729    1,521,540 
West Corp. Term B Loan-2,         
 2.82% – 2.854%, 10/31/13    2,940    2,152,729 
        7,412,734 
Communications Equipment — 0.2%         
SafeNet, Inc. First Lien Term Loan,         
 3.398% – 3.66%, 4/12/14    1,970    1,068,725 
Computers & Peripherals — 0.6%         
Dealer Computer Services, Inc. (Reynolds &         
 Reynolds) First Lien Term Loan, 2.479%, 10/31/12    1,381    897,534 
Intergraph Corp.:         
     First Lien Initial Term Loan, 3.256%, 5/15/14    1,431    1,223,363 
     Second Lien Term Loan,         
     6.479% – 7.256%, 11/17/14    750    618,750 
        2,739,647 
Construction & Engineering — 0.2%         
Brand Energy & Infrastructure Services, Inc.         
 Term Loan B:         
     3.688% – 3.75%, 1/31/14    990    638,335 
     7% – 7.313%, 2/15/15    1,000    300,000 
        938,335 
Containers & Packaging — 1.5%         
Atlantis Plastic Films, Inc. Second Lien Term Loan,         
 12.25%, 3/22/12 (e)(f)    250    0 
Graham Packaging Co. LP New Term Loan,         
 2.689% – 6.313%, 9/30/11    1,585    1,326,418 
Graphic Packaging International, Inc. Incremental         
 Term Loan, 3.203% – 4.185%, 5/16/14    2,340    1,994,125 

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT FEBRUARY 28, 2009


Schedule of Investments (continued)

BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

    Par     
Floating Rate Loan Interests    (000)     Value 
 
Containers & Packaging (concluded)         
Modelo 3 S.a.r.l. (Mivisa) Tranche B2 Term Loan,         
 5.452%, 6/03/15  EUR  1,000  $  933,908 
Smurfit-Stone Container Enterprises, Inc.:         
     Term Loan, 5%, 11/01/10  USD  568    376,065 
     Term Loan B, 0.50%, 2/03/10    580    576,375 
     Term Loan B, 0.50%, 11/01/11    130    86,429 
     Term Loan C, 2.69% – 4.50%, 2/03/10    630    592,200 
     Term Loan C, 1.312%, 11/01/11    376    250,363 
Solo Cup Co. Term B Loan1,         
 3.913% – 5.75%, 2/27/11    1,114    1,003,031 
        7,138,914 
Distributors — 0.1%         
Keystone Automotive Operations, Inc. Term Loan,         
 3.947% – 5.75%, 1/12/12    1,426    534,883 
Diversified Consumer Services — 0.7%         
Coinmach Corp. Term Loan, 3.47% – 4.26%, 11/15/14    4,714    3,064,286 
Diversified Financial Services — 0.2%         
JG Wentworth, LLC:         
     First Lien Term Loan, 3.709%, 4/03/14    4,000    360,000 
     Term Loan B, 3.709%, 4/03/14    400    36,000 
Professional Services Industries Inc. First Lien         
 Term Loan, 3.23%, 10/31/12    649    564,323 
        960,323 
Diversified Telecommunication Services — 1.4%         
Eircom Group Plc:         
     Term Loan B, 3.428%, 8/14/14  EUR  1,970    1,667,657 
     Term Loan C, 3.678%, 8/14/13    1,970    1,667,843 
Hawaiian Telcom Communications, Inc. Tranche C         
 Term Loan, 4.75%, 6/01/14  USD  1,898    791,312 
Time Warner Telecom Holdings Inc. Term B Loan,         
 2.48%, 2/23/14    2,013    1,778,905 
Wind Telecomunicazione S.P.A. A1 Term Loan Facility,         
 3.082% – 6.973%, 9/22/12  EUR  424    468,486 
        6,374,203 
Electric Utilities — 0.4%         
Astoria Generating Co. Acquisitions, LLC Second Lien         
 Term Loan C, 4.23%, 8/23/13  USD