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UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21972

Name of Fund: BlackRock Credit Allocation Income Trust IV (BTZ)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
Credit Allocation Income Trust IV, 55 East 52nd Street, New York, NY 10055.

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

Date of fiscal year end: 10/31/2010

Date of reporting period: 07/31/2010

Item 1 – Schedule of Investments


Schedule of Investments July 31, 2010 (Unaudited)

BlackRock Credit Allocation Income Trust IV (BTZ)
(Percentages shown are based on Net Assets)

Common Stocks  Shares  Value 
Commercial Banks — 0.8%     
Citizens Banking Corp. (a)  6,406,596  $ 5,792,844 
Total Common Stocks – 0.8%    5,792,844 
  Par   
Corporate Bonds  (000)   
Aerospace & Defense — 2.7%     
BE Aerospace, Inc., 8.50%,     
7/01/18  $ 3,575  3,887,813 
Bombardier, Inc., 7.75%,     
3/15/20 (b)  4,500  4,848,750 
United Technologies Corp., 5.70%,     
4/15/40  10,000  11,180,590 
    19,917,153 
Airlines — 0.7%     
Continental Airlines Pass-Through     
Certificates, Series 2009-2,     
Class B, 9.25%, 5/10/17  2,225  2,341,812 
Delta Air Lines, Inc., Series 02G1,     
6.72%, 7/02/24  2,461  2,356,274 
    4,698,086 
Auto Components — 0.6%     
Icahn Enterprises LP:     
7.75%, 1/15/16  1,700  1,704,250 
8.00%, 1/15/18  2,500  2,493,750 
    4,198,000 
Beverages — 0.5%     
Constellation Brands, Inc., 7.25%,     
5/15/17  3,230  3,359,200 

 

Building Products — 0.2%     
Building Materials Corp. of     
America, 7.00%, 2/15/20 (b)  1,100  1,108,250 
Capital Markets — 1.8%     
Ameriprise Financial, Inc., 5.30%,     
3/15/20  4,500  4,812,637 
The Goldman Sachs Group, Inc.,     
7.50%, 2/15/19  6,850  7,959,159 
Lehman Brothers Holdings, Inc. (a)(c):     
3.95%, 11/10/09  105  22,313 
4.38%, 11/30/10  325  69,062 
    12,863,171 
Chemicals — 0.3%     
CF Industries, Inc., 7.13%,     
5/01/20  1,850  1,974,875 
Commercial Banks — 0.1%     
Kazkommerts Finance 2 BV,     
9.20% (d)(e)  500  395,000 

 

  Par   
Corporate Bonds  (000)  Value 
Commercial Services &     
Supplies — 2.5%     
Browning-Ferris Industries, Inc.,     
7.40%, 9/15/35  $ 4,420  $ 5,290,974 
Clean Harbors, Inc., 7.63%, 8/15/16  2,500  2,581,250 
Corrections Corp. of America,     
7.75%, 6/01/17  4,835  5,161,363 
Waste Management, Inc., 6.13%,     
11/30/39  4,750  5,085,179 
    18,118,766 
Communications Equipment —     
0.8%     
Brocade Communications Systems,     
Inc., 6.88%, 1/15/20 (b)  3,580  3,660,550 
CC Holdings GS V LLC, 7.75%,     
5/01/17 (b)  1,725  1,884,563 
    5,545,113 
Consumer Finance — 3.0%     
Capital One Bank USA NA, 8.80%,     
7/15/19  3,950  5,028,022 
Inmarsat Finance Plc, 7.38%,     
12/01/17 (b)  2,975  3,049,375 
SLM Corp., 4.00%, 7/25/14 (e)  15,852  13,410,475 
    21,487,872 
Containers & Packaging — 1.1%     
Ball Corp.:     
7.13%, 9/01/16  2,000  2,150,000 
6.75%, 9/15/20  3,575  3,753,750 
Owens-Brockway Glass Container,     
Inc., 6.75%, 12/01/14  1,110  1,129,425 
Rock-Tenn Co., 9.25%, 3/15/16  800  869,000 
    7,902,175 

 

Diversified Financial     
Services — 1.7%     
GMAC, Inc., 8.30%, 2/12/15 (b)  3,700  3,894,250 
ING Groep NV, 5.78% (d)(e)  10,000  8,150,000 
Stan IV Ltd., 2.48%, 7/20/11 (e)  283  240,550 
    12,284,800 
Diversified Telecommunication     
Services — 3.3%     
AT&T Inc., 6.30%, 1/15/38  5,000  5,565,325 
New Communications Holdings,     
Inc., 8.50%, 4/15/20 (b)  4,500  4,803,750 
Qwest Corp., 8.38%, 5/01/16  3,285  3,736,687 
Verizon Communications, Inc.,     
7.35%, 4/01/39  4,700  5,932,796 
Windstream Corp.:     
8.63%, 8/01/16  1,250  1,303,125 
7.88%, 11/01/17  2,700  2,747,250 
    24,088,933 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated
according to the following list:

GO

General Obligation Bonds

RB

Revenue Bonds

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JULY 31, 2010

1


Schedule of Investments(continued)

BlackRock Credit Allocation Income Trust IV (BTZ)
(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)  Value 
Electric Utilities — 1.4%     
Progress Energy Inc., 7.00%,     
10/30/31  $ 5,000  $ 6,077,375 
Southern California Edison Co.,     
5.50%, 3/15/40  3,850  4,210,707 
    10,288,082 
Electronic Equipment, Instruments     
& Components — 0.3%     
Jabil Circuit Inc., 8.25%, 3/15/18  2,000  2,180,000 
Energy Equipment &     
Services — 4.8%     
Compagnie Generale de     
Geophysique-Veritas, 7.75%,     
5/15/17  2,500  2,437,500 
Halliburton Co., 7.45%, 9/15/39  13,076  16,664,551 
Hornbeck Offshore Services, Inc.,     
Series B, 6.13%, 12/01/14  2,750  2,468,125 
Transocean, Inc., 6.00%, 3/15/18  14,400  13,473,648 
    35,043,824 
Food & Staples Retailing — 4.4%     
CVS Caremark Corp.:     
4.75%, 5/18/20  10,000  10,412,670 
6.30%, 6/01/62 (e)  7,800  7,176,000 
Wal-Mart Stores, Inc.:     
5.25%, 9/01/35  2,650  2,759,477 
6.20%, 4/15/38  10,000  11,720,850 
    32,068,997 
Food Products — 0.8%     
Kraft Foods, Inc.:     
6.50%, 8/11/17  1,985  2,340,758 
6.13%, 8/23/18  1,990  2,314,336 
Smithfield Foods, Inc., 10.00%,     
7/15/14 (b)  1,250  1,396,875 
    6,051,969 
Gas Utilities — 0.7%     
Nisource Finance Corp., 6.13%,     
3/01/22  4,750  5,228,282 
Health Care Equipment &     
Supplies — 1.9%     
Fresenius US Finance II, Inc.,     
9.00%, 7/15/15 (b)  4,250  4,760,000 
Medtronic, Inc.:     
6.50%, 3/15/39  1,050  1,291,970 
5.55%, 3/15/40  7,058  7,853,712 
    13,905,682 
Health Care Providers &     
Services — 2.7%     
Aetna, Inc., 6.75%, 12/15/37  4,075  4,619,958 
HCA, Inc.:     
8.50%, 4/15/19  2,000  2,210,000 
7.25%, 9/15/20  3,600  3,807,000 
Tenet Healthcare Corp. (b):     
10.00%, 5/01/18  2,175  2,471,344 
8.88%, 7/01/19  1,825  2,007,500 
UnitedHealth Group, Inc., 6.88%,     
2/15/38  4,075  4,729,828 
    19,845,630 

 

  Par   
Corporate Bonds  (000)  Value 
Household Durables — 0.6%     
Cemex Espana Luxembourg,     
9.25%, 5/12/20 (b)  $ 4,947  $ 4,439,933 
IT Services — 0.7%     
International Business Machines     
Corp., 5.60%, 11/30/39  4,400  4,883,569 
Insurance — 3.3%     
Liberty Mutual Group, Inc., 6.70%,     
8/15/16 (b)  1,495  1,559,219 
Lincoln National Corp., 6.25%,     
2/15/20  4,075  4,348,673 
Northwestern Mutual Life     
Insurance, 6.06%, 3/30/40 (b)  5,500  6,126,120 
Principal Financial Group, Inc.,     
8.88%, 5/15/19  1,145  1,430,188 
Prudential Financial, Inc., 6.63%,     
12/01/37  4,075  4,368,718 
QBE Insurance Group Ltd., 9.75%,     
3/14/14 (b)  4,973  6,028,405 
    23,861,323 
Life Sciences Tools &     
Services — 1.5%     
Bio-Rad Laboratories, Inc., 8.00%,     
9/15/16  5,480  5,863,600 
Life Technologies Corp., 6.00%,     
3/01/20  4,800  5,292,034 
    11,155,634 
Machinery — 1.3%     
Ingersoll-Rand Global Holding Co.,     
Ltd., 9.50%, 4/15/14  4,075  5,033,497 
Navistar International Corp.,     
8.25%, 11/01/21  3,975  4,203,563 
    9,237,060 
Media — 6.2%     
CSC Holdings LLC:     
8.50%, 6/15/15  2,300  2,475,375 
8.63%, 2/15/19  1,950  2,130,375 
Comcast Corp., 6.30%, 11/15/17  4,075  4,715,403 
Cox Communications, Inc., 8.38%,     
3/01/39 (b)  4,075  5,459,579 
DISH DBS Corp.:     
7.00%, 10/01/13  1,950  2,028,000 
7.88%, 9/01/19  1,850  1,965,625 
Gannett Co., Inc., 9.38%,     
11/15/17 (b)  3,100  3,363,500 
Intelsat Corp., 9.25%, 6/15/16  2,000  2,135,000 
News America, Inc., 6.15%,     
3/01/37  4,850  5,105,503 
Time Warner Cable, Inc., 6.75%,     
6/15/39  4,675  5,324,231 
Time Warner, Inc., 7.70%,     
5/01/32  4,900  5,987,839 
UPC Germany GmbH, 8.13%,     
12/01/17 (b)  1,225  1,252,562 
Virgin Media Secured Finance Plc,     
6.50%, 1/15/18 (b)  3,175  3,286,125 
    45,229,117 

 

2 BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JULY 31, 2010


Schedule of Investments(continued) 

 

BlackRock Credit Allocation Income Trust IV (BTZ)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Metals & Mining — 1.3%       
AK Steel Corp., 7.63%, 5/15/20  $ 2,250  $ 2,258,438 
Aleris International, Inc., 10.00%,       
12/15/16 (a)(c)    5,000  2,000 
Phelps Dodge Corp., 7.13%, 11/01/27  3,500  3,790,139 
Teck Resources Ltd., 10.75%, 5/15/19  2,000  2,497,600 
United States Steel Corp., 7.38%,       
4/01/20    550  551,375 
      9,099,552 
Multi-Utilities — 2.6%       
CenterPoint Energy, Inc.:       
5.95%, 2/01/17    3,600  3,900,082 
6.50%, 5/01/18    3,950  4,445,610 
Dominion Resources, Inc., 8.88%,       
1/15/19    8,000  10,665,288 
      19,010,980 
Multiline Retail — 3.1%       
Dollar General Corp., 10.63%, 7/15/15  4,225  4,647,500 
J.C. Penney Co., Inc., 5.65%,       
6/01/20    17,700  17,788,500 
      22,436,000 
Oil, Gas & Consumable       
Fuels — 3.4%       
BP Capital Markets Plc, 3.88%,       
3/10/15    3,085  2,949,133 
Chesapeake Energy Corp., 6.25%,       
1/15/18    2,200  2,249,500 
Enbridge Energy Partners LP,       
9.88%, 3/01/19    2,425  3,259,857 
Enterprise Products Operating LLC,       
6.65%, 4/15/18    4,800  5,567,117 
Kinder Morgan Energy Partners LP,       
6.85%, 2/15/20    4,800  5,686,805 
ONEOK Partners LP, 8.63%,       
3/01/19    4,075  5,223,857 
      24,936,269 
Paper & Forest Products — 2.4%       
Georgia-Pacific LLC, 8.25%,       
5/01/16 (b)    3,955  4,291,175 
International Paper Co.:       
7.50%, 8/15/21    3,950  4,738,452 
8.70%, 6/15/38    3,100  4,080,893 
7.30%, 11/15/39    4,075  4,670,357 
      17,780,877 
Pharmaceuticals — 8.9%       
Abbott Laboratories:       
6.15%, 11/30/37    942  1,110,246 
6.00%, 4/01/39    9,405  10,923,945 
Bristol-Myers Squibb Co.:       
5.88%, 11/15/36    8,015  9,021,139 
6.13%, 5/01/38    2,353  2,747,676 
Eli Lilly & Co., 5.95%, 11/15/37    2,353  2,694,039 
GlaxoSmithKline Capital, Inc.,       
6.38%, 5/15/38    10,100  12,154,815 
Merck & Co., Inc., 6.50%,       
12/01/33    2,885  3,523,592 
Pfizer, Inc., 7.20%, 3/15/39    10,000  13,422,820 
Schering-Plough Corp., 6.55%,       
9/15/37    6,945  8,681,805 
      64,280,077 

 

  Par   
Corporate Bonds  (000)  Value 
Real Estate Investment Trusts     
(REITs) — 1.8%     
AvalonBay Communities, Inc.,     
6.10%, 3/15/20  $ 4,075  $ 4,610,500 
ERP Operating LP:     
5.38%, 8/01/16  3,925  4,261,494 
5.75%, 6/15/17  4,080  4,510,056 
    13,382,050 
Semiconductors & Semiconductor     
Equipment — 3.3%     
Advanced Micro Devices, Inc.,     
7.75%, 8/01/20 (b)(f)  1,300  1,313,000 
KLA-Tencor Corp., 6.90%, 5/01/18  2,208  2,471,041 
National Semiconductor Corp.:     
3.95%, 4/15/15  16,750  17,248,848 
6.60%, 6/15/17  2,770  3,125,372 
    24,158,261 
Specialty Retail — 0.8%     
AutoNation, Inc., 6.75%, 4/15/18  2,775  2,795,812 
AutoZone, Inc., 7.13%, 8/01/18  1,550  1,842,344 
Limited Brands, Inc., 7.00%,     
5/01/20  1,370  1,414,525 
    6,052,681 
Tobacco — 2.9%     
Altria Group, Inc.:     
9.70%, 11/10/18  4,075  5,338,894 
9.25%, 8/06/19  3,950  5,082,180 
10.20%, 2/06/39  7,400  10,451,612 
    20,872,686 
Wireless Telecommunication     
Services — 3.6%     
Cricket Communications, Inc.,     
7.75%, 5/15/16  780  807,300 
Nextel Communications, Inc.,     
Series E, 6.88%, 10/31/13  2,890  2,875,550 
SBA Tower Trust, 5.10%,     
4/15/42 (b)  21,250  22,732,207 
    26,415,057 
Total Corporate Bonds – 84.0%    609,784,986 
Investment Companies  Shares   
ProShares UltraShort Real Estate  30,000  707,400 
Total Investment Companies – 0.1%    707,400 
Preferred Securities     
  Par   
Capital Trusts  (000)   
Capital Markets — 2.8%     
Credit Suisse Guernsey Ltd.,     
5.86% (d)(e)  $ 1,050  955,500 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JULY 31, 2010

3


Schedule of Investments(continued)

BlackRock Credit Allocation Income Trust IV (BTZ)
(Percentages shown are based on Net Assets)

  Par   
Capital Trusts  (000)  Value 
Capital Markets — (concluded)     
State Street Capital Trust III,     
8.25% (d)(e)  $ 1,740  $ 1,766,013 
State Street Capital Trust IV,     
1.54%, 6/01/67 (e)  25,245  17,528,790 
    20,250,303 
Commercial Banks — 12.0%     
BB&T Capital Trust IV, 6.82%,     
6/12/77 (e)  15,300  14,764,500 
Barclays Bank Plc (b)(d)(e):     
5.93%  4,000  3,370,000 
6.86%  11,500  9,890,000 
Commonwealth Bank of Australia,     
6.02% (b)(d)(e)  20,000  18,983,320 
HSBC Capital Funding     
LP/Jersey Channel Islands,     
10.18% (b)(d)(e)  7,000  8,715,000 
National City Preferred Capital     
Trust I, 12.00% (d)(e)  3,713  4,126,257 
Shinsei Finance II (Cayman) Ltd.,     
7.16% (b)(d)(e)  1,005  658,903 
Standard Chartered Bank,     
7.01% (b)(d)(e)  5,000  4,710,645 
USB Capital XIII Trust, 6.63%,     
12/15/39  4,100  4,293,848 
Wells Fargo & Co., Series K,     
7.98% (d)(e)  12,985  13,374,550 
Wells Fargo Capital XIII,     
Series GMTN, 7.70% (d)(e)  3,900  3,997,500 
    86,884,523 
Consumer Finance — 0.8%     
Capital One Capital V, 10.25%,     
8/15/39  5,460  5,910,450 
Diversified Financial     
Services — 3.4%     
JPMorgan Chase Capital XXI,     
Series U, 1.42%, 1/15/87 (e)  12,875  9,502,497 
JPMorgan Chase Capital XXIII,     
1.44%, 5/15/77 (e)  20,695  14,808,059 
    24,310,556 
Electric Utilities — 0.5%     
PPL Capital Funding, 6.70%,     
3/30/67 (e)  3,900  3,480,750 
Insurance — 9.3%     
AXA SA, 6.46% (b)(d)(e)  12,000  9,480,000 
Ace Capital Trust II, 9.70%,     
4/01/30  4,000  4,859,744 
The Allstate Corp., 6.50%,     
5/15/67 (e)  4,000  3,660,000 
Aon Corp., 8.21%, 1/01/27  4,000  4,202,000 
Chubb Corp., 6.38%, 3/29/67 (e)  4,000  3,900,000 
Liberty Mutual Group, Inc.,     
10.75%, 6/15/88 (b)(e)  4,000  4,380,000 
Lincoln National Corp., 7.00%,     
5/17/66 (e)  4,255  3,848,222 
MetLife, Inc., 6.40%, 12/15/66  4,550  4,220,125 
Nationwide Life Global Funding I,     
6.75%, 5/15/67  4,000  3,207,600 
Reinsurance Group of America,     
6.75%, 12/15/65 (e)  15,000  12,654,510 

 

  Par   
Capital Trusts  (000)  Value 
Insurance (concluded)     
Swiss Re Capital I LP,     
6.85% (b)(d)(e)  $ 3,000  $ 2,599,098 
The Travelers Cos., Inc., 6.25%,     
3/15/67 (e)  4,000  3,790,956 
White Mountains Re Group Ltd.,     
7.51% (b)(d)(e)  4,400  3,504,160 
ZFS Finance (USA) (b)(e):     
Trust IV, 5.88%, 5/09/32  599  533,038 
Trust V, 6.50%, 5/09/67  3,331  3,031,210 
    67,870,663 
Multi-Utilities — 0.2%     
Puget Sound Energy, Inc., Series A,     
6.97%, 6/01/67 (e)  1,575  1,466,797 
Oil, Gas & Consumable     
Fuels — 1.1%     
Enterprise Products Operating     
LLC, 8.38%, 8/01/66 (e)  4,500  4,584,375 
TransCanada PipeLines Ltd.,     
6.35%, 5/15/67 (e)  4,000  3,640,000 
    8,224,375 
Real Estate Investment Trusts     
(REITs) — 1.5%     
Sovereign Real Estate Investment     
Corp., 12.00% (b)(d)  10  10,950,000 
Total Capital Trusts – 31.6%    229,348,417 
Preferred Stocks  Shares   
Diversified Financial     
Services — 0.8%     
Falcons Funding Trust I, 8.88% (b)  5,650  5,808,906 
Insurance — 2.1%     
Aspen Insurance Holdings Ltd.,     
7.40%  487,487  10,870,960 
Axis Capital Holdings Ltd., Series B,     
7.50%  51,200  4,416,000 
    15,286,960 
Wireless Telecommunication     
Services — 1.4%     
Centaur Funding Corp., 9.08%  10,000  10,575,000 
Total Preferred Stocks – 4.3%    31,670,866 
Trust Preferreds     
Insurance — 0.2%     
W.R. Berkley Capital Trust II,     
6.75%, 7/26/45 (g)  60,755  1,462,087 
Total Trust Preferreds – 0.2%    1,462,087 
Total Preferred Securities – 36.1%    262,481,370 

 

4 BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JULY 31, 2010


Schedule of Investments(continued)

BlackRock Credit Allocation Income Trust IV (BTZ)
(Percentages shown are based on Net Assets)

    Par   
Taxable Municipal Bonds    (000)  Value 
City of Chicago Illinois, RB, Build       
America Bonds, 6.85%,       
1/01/38  $ 5,000  $ 5,162,350 
Metropolitan Transportation       
Authority, RB, Build America       
Bonds, 6.55%, 11/15/31    4,075  4,195,987 
State of California, GO, Build       
America Bonds, 7.35%,       
11/01/39    2,050  2,151,168 
State of Illinois, GO, Pension,       
5.10%, 6/01/33    4,075  3,323,855 
Total Taxable Municipal Bonds – 2.0%    14,833,360 
U.S. Treasury Obligations       
U.S. Treasury Notes (h):       
1.75%, 7/31/15    60,000  60,440,400 
4.63%, 2/15/40    75,000  83,402,325 
Total U.S. Treasury Obligations – 19.8%    143,842,725 
Total Long-Term Investments       
(Cost – $1,044,380,796) – 142.8%    1,037,442,685 
Short-Term Securities    Shares   
BlackRock Liquidity Funds,       
TempFund, Institutional Class,       
0.23% (i)(j)    2,100,903  2,100,903 
Total Short-Term Securities       
(Cost – $2,100,903) – 0.3%      2,100,903 
Total Investments       
(Cost – $1,046,481,699*) – 143.1%    1,039,543,588 
Preferred Shares at Redemption Value – (31.8)%  (231,064,276) 
Liabilities in Excess of Other Assets – (11.3)%  (82,202,679) 
Net Assets Applicable to Common Shares – 100.0%  $ 726,276,633 
* The cost and unrealized appreciation (depreciation) of investments as 
of July 31, 2010, as computed for federal income tax purposes, were as 
Aggregate follows: cost      $ 1,059,627,737 
Gross unrealized appreciation      $ 45,860,572 
Net Gross unrealized unrealized depreciation depreciation      $ (20,084,149) (65,944,721) 
(a) Non-income producing security.     

 

(b) 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.   
(c) Issuer filed for bankruptcy and/or is in default of interest payments. 
(d) Security is perpetual in nature and has no stated maturity date. 
(e) Variable rate security. Rate shown is as of report date.   
(f) When-issued security. Unsettled when-issued transactions were as 
follows:     
    Unrealized 
Counterparty  Value  Appreciation 
JPMorgan Securities, Inc.  $ 1,313,000 $  13,000 

 

(g) Convertible security.       
(h) All or a portion of security has been pledged as collateral in connection 
  with open reverse repurchase agreements.     
(i)  Investments in companies considered to be an affiliate of the Fund 
  during the period, for purposes of Section 2(a)(3) of the Investment 
  Company Act of 1940, as amended, are as follows:   
    Shares Held    Shares Held   
    at October  Net  at July 31,   
  Affiliate  31, 2009  Activity  2010  Income 
  BlackRock         
  Liquidity Funds,         
  TempFund,         
  Institutional         
  Class    267,832,781                    (265,731,878)  2,100,903  $170,352 
(j)  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 rating group indexes, and/or as
defined by Fund management. This definition may not apply for purposes
of this report, which may combine such industry sub-classifications for
reporting ease.

• Reverse repurchase agreements outstanding as of July 31, 2010 were
as follows:

Counter-  Interest  Trade  Maturity  Net Closing  Face 
party  Rate  Date  Date  Amount  Amount 
Credit           
Suisse           
International    0.21%  7/30/10  Open  $60,151,053   $ 60,150,000 
JPMorgan           
Securities,           
Inc.  0.22%  7/30/10    8/02/10         $54,180,993  54,180,000 
Total        $ 114,330,000 

 

• Financial futures contracts purchased as of July 31, 2010 were as follows:

    Expiration  Face  Unrealized 
Contracts  Issue  Date  Value  Appreciation 
357  10-Year U.S.  September     
  Treasury Bonds  2010  $ 43,275,879   $ 925,184 
29  30-Year U.S.  September     
  Treasury Bond  2010  $ 3,607,107  125,736 
Total      $ 1,050,920 

 

•  Credit default swaps on single-name issues - buy protection outstanding as of July 31, 2010 
  were as follows:         
        Notional      
    Pay    Amount       Unrealized 
  Issuer  Rate  Counterparty  Expiration                          (000)  Depreciation 
  Nordstrom, Inc.  5.20%  Deutsche Bank AG  June 2014                        $ 4,000   $ (640,819) 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JULY 31, 2010

5


Schedule of Investments(concluded)

BlackRock Credit Allocation Income Trust IV (BTZ)

•Fair Value Measurements - Various inputs are used in determining the fair value of investments and
derivatives, which are as follows:

•Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

•Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or
liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are observable for the assets or
liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit
risks and default rates) or other market-corroborated inputs)

•Level 3 — unobservable inputs based on the best information available in the circumstances, to the
extent observable inputs are not available (including the Fund's own assumptions used in
determining the fair value of investments and derivatives)

The inputs or methodologies 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 the Fund’s most recent financial
statements as contained in its annual report.

The following tables summarize the inputs used as of July 31, 2010 in determining the fair valuation of
the Fund's investments and derivatives:

Valuation Inputs      Level 1  Level 2    Level 3  Total 
Assets:               
Investments in Securities:             
Long-Term Investments:             
Common Stocks    $ 5,792,844  —    —  $ 5,792,844 
Corporate Bonds    —         $ 609,544,436  $ 240,550  609,784,986 
Investment Companies    707,400  —    —  707,400 
Preferred Securities    12,333,047  250,148,323    —  262,481,370 
Taxable Municipal Bonds    —  14,833,360    —  14,833,360 
U.S. Treasury Obligations    —  143,842,725    —  143,842,725 
Short-Term Securities    2,100,903  —    —  2,100,903 
Total    $ 20,934,194  $ 1,018,368,844  $ 240,550  $ 1,039,543,588 
      Derivative Financial Instruments1     
Valuation Inputs  Level 1                   Level 2  Level 3  Total 
Assets:               
Interest rate               
contracts  $ 1,050,920  —    —  $ 1,050,920 
Liabilities:               
Credit contracts      —   (640,819)    —  (640,819) 
Total  $ 1,050,920  $ (640,819)    —  $ 410,101 

 

1Derivative financial instruments are financial futures contracts and swaps, which are shown at the
unrealized appreciation/depreciation on the instrument.

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

  Corporate 
  Bonds 
Assets:   
Balance, as of October 31, 2009  $ 240,550 
Accrued discounts/premiums  (574) 
Net realized gain (loss)  — 
Net change in unrealized appreciation/depreciation  574 
Purchases  — 
Sales  — 
Transfers in2  — 
Transfers out2  — 
Balance, as of July 31, 2010  $ 240,550 

 

2The change in unrealized appreciation/depreciation on securities still held at July 31,
2010 was $574.

6 BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JULY 31, 2010


Item 2 – Controls and Procedures

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

2(b) – There were no changes in the registrant's internal control over financial reporting (as defined
in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter
that have materially affected, or are reasonably likely to materially affect, the registrant's
internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

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

BlackRock Credit Allocation Income Trust IV

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock Credit Allocation Income Trust IV

Date: September 27, 2010

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

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock Credit Allocation Income Trust IV

Date: September 27, 2010

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Credit Allocation Income Trust IV

Date: September 27, 2010