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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 811-21349

Name of Fund: BlackRock Limited Duration Income Trust (BLW)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
Limited Duration Income Trust, 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: 08/31/2010

Date of reporting period: 02/28/2010

Item 1 – Report to Stockholders



Semi-Annual Report

FEBRUARY 28, 2010 | (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 
Dear Shareholder  3 
Semi-Annual Report:   
Fund Summaries  4 
The Benefits and Risks of Leveraging  10 
Derivative Financial Instruments  11 
Disclosure of Expenses  11 
Fund Financial Statements   
       Schedules of Investments  12 
       Statements of Assets and Liabilities  38 
       Statements of Operations  40 
       Statements of Changes in Net Assets  42 
       Statements of Cash Flows  45 
Fund Financial Highlights  46 
Fund Notes to Financial Statements  52 
Master Senior Floating Rate LLC Portfolio Summary  62 
Master Senior Floating Rate LLC Financial Statements:   
       Schedule of Investments  63 
       Statement of Assets and Liabilities  69 
       Statement of Operations  70 
       Statements of Changes in Net Assets  70 
       Statement of Cash Flows  71 
Master Senior Floating Rate LLC Financial Highlights  72 
Master Senior Floating Rate LLC Notes to Financial Statements  73 
Officers and Directors  77 
Additional Information  78 

2 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Dear Shareholder

The past year marked a pivotal turning point for global markets as the Great Recession that started in December 2007 began to recede and give way to recov-

ery. The dramatic about-face could be attributed to a confluence of factors, most notably the extraordinary policy actions of global governments and central

banks, a resurgence in corporate profits and growing signs of stability and healing in world economies.

After reaching a trough in early March 2009, stocks galloped higher as investors were lured back into the markets by depressed valuations, desire for higher

yields and increasing confidence that all-out financial disaster had been averted. The result was a powerful upswing in global equities and other higher-risk

assets through the end of 2009. More recently, the combination of mixed economic data, lingering deflation issues (especially in Europe) and proposed fees

and levies on banks dampened investor conviction, resulting in a several-week bout of profit-taking. The selloff had a more pronounced negative effect on inter-

national and emerging market equities due primarily to concerns of higher interest rates in Asia and negative headlines out of Europe, particularly in Greece.

Generally speaking, investors’ renewed affinity for risk was notable in the fixed income markets as well, where non-Treasury assets made a robust recovery. One

of the major themes in 2009 was the reversal of the flight-to-quality trade. High yield, one of the most battered areas during the financial crisis, emerged as

the strongest-performing fixed income sector in both the taxable and tax-exempt space. Despite weak fundamentals, the municipal market produced solid

returns as technical conditions remained supportive of the asset class. Municipal bond mutual funds enjoyed strong inflows and tax-exempt issuance remained

low thanks to the ever-increasing popularity of the Build America Bond program. Nevertheless, state and local fiscal woes and bankruptcy fears remain firmly in

the spotlight, and bear close monitoring.

At the same time, yields on money market securities declined throughout the reporting period and remain near all-time lows, with the Federal Open Market

Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an “extended period.” Investor assets in

money market funds declined from the peak registered in early 2009, but remain above levels registered prior to the financial crisis that began in 2007.

Against this backdrop, the major market averages posted the following returns:

Total Returns as of February 28, 2010  6-month  12-month 
US equities (S&P 500 Index)  9.32%  53.62% 
Small cap US equities (Russell 2000 Index)  10.59  63.95 
International equities (MSCI Europe, Australasia, Far East Index)  0.72  54.58 
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)  0.07  0.20 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)  0.07  (1.54) 
Taxable fixed income (Barclays Capital US Aggregate Bond Index)  3.19  9.32 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index)  4.13  9.98 
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  13.86  55.20 
       Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.   

The market continues to show signs of improvement, but questions about the strength and sustainability of the recovery abound. Through periods of uncer-

tainty, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and investment insight, visit

www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder® magazine, as well as its quarterly com-

panion newsletter, Shareholder Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we look forward to your continued

partnership in the months and years ahead.


THIS PAGE NOT PART OF YOUR FUND REPORT 3


Fund Summary as of February 28, 2010 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.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended February 28, 2010, the Fund returned 17.73% based on market price and 9.88% based on net asset value (“NAV”). For the
same period, the Lipper Loan Participation Funds category posted an average return of 29.78% on a market price basis and 13.09% 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. During the period, we generally favored less economically sensitive sectors and higher-quality credits, which
detracted from results as they underperformed lower-rated issues and those sectors with greater economic sensitivity. In addition, the Fund maintained
relatively conservative levels of leverage (at period end, 16% of the Fund’s total managed assets), which detracted from performance versus the Lipper
competitors, who maintained leverage closer to the 33 1 / 3 % regulatory limit. On the positive side, approximately 13% of the portfolio was invested in high
yield, which aided performance as the sector performed well. Overweight positions in the automotive sector and a few special situation and distressed
credits also was additive.

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 (“NYSE”)  BHL 
Initial Offering Date  January 31, 2008 
Yield on Closing Market Price as of February 28, 2010 ($12.62)1  5.13% 
Current Monthly Distribution per Share2  $0.054 
Current Annualized Distribution per Share2  $0.648 
Leverage as of February 28, 20103  16% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The distribution is not constant and is subject to change.
3 Represents loans outstanding as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to
borrowings, minus the sum of liabilities (other than borrowing 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:

  2/28/10  8/31/09  Change  High  Low 
Market Price  $12.62  $11.03  14.42%  $12.69  $10.96 
Net Asset Value  $13.38  $12.53  6.78%  $13.41  $12.51 

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     
  2/28/10  8/31/09 
Floating Rate Loan Interests  82%  94% 
Corporate Bonds  17  6 
Other Interests  1   

     Credit Quality Allocations4     
  2/28/10  8/31/09 
BBB/Baa       10%     16% 
BB/Ba       41     57 
B       44     27 
Not Rated     5     — 
 4 Using the higher of Standard & Poor’s Corporation (“S&P’s”) or 
     Moody’s Investors Service, Inc. (“Moody’s”) ratings.   

4 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Fund Summary as of February 28, 2010 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 convert-
ible preferred securities), notes or other debt securities or instruments that pay a floating rate of interest.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended February 28, 2010, the Fund returned 26.89% based on market price and 23.33% based on NAV. For the same period, the
closed-end Lipper Loan Participation Funds category posted an average return of 29.78% on a market price basis and 13.09% on a NAV basis. All returns
reflect reinvestment of dividends. The Fund's premium to NAV, which widened during the period, accounts for the difference between performance based on
price and performance based on NAV. During the period, 66% of the Fund’s portfolio was invested in floating rate loan interests and about 30% in high
yield bonds, with a portion of the allocation in floating rate notes and a portion swapped to floating rate. Both categories outperformed floating rate loan
interests during the six months, which benefited performance. The Fund’s credit allocation has been biased towards lower-quality and nonrated credits,
which also aided results. On the other hand, the Fund maintained leverage in the low-teen range, which detracted from performance versus the Lipper com-
petitors, who maintained leverage closer to the 33 1 / 3 % regulatory limit.

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 NYSE  DVF 
Initial Offering Date  January 31, 2005 
Yield on Closing Market Price as of February 28, 2010 ($10.67)1  7.70% 
Current Monthly Distribution per Share2  $0.0685 
Current Annualized Distribution per Share2  $0.8220 
Leverage as of February 28, 20103  17% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The distribution is not constant and is subject to change.
3 Represents loans outstanding as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to
any borrowings, minus the sum of liabilities (other than borrowings 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:       
  2/28/10  8/31/09  Change  High  Low 
Market Price  $10.67  $8.80  21.25%  $10.73  $8.65 
Net Asset Value  $10.30  $8.74  17.85%  $10.36  $8.74 
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     
  2/28/10  8/31/09 
Floating Rate Loan Interests  66%  49% 
Corporate Bonds  31  49 
Common Stocks  2  2 
Other Interests  1   

     Credit Quality Allocations4     
  2/28/10  8/31/09 
BBB/Baa  5%   
BB/Ba  25  17% 
B  40  37 
CCC/Caa  13  34 
CC/Ca  1  4 
D  2  3 
Not Rated  14  5 
 4 Using the higher of S&P’s or Moody’s ratings.   

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 5


Fund Summary as of February 28, 2010 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.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended February 28, 2010, the Fund returned 32.19% based on market price and 14.12% based on NAV. For the same period, the
closed-end Lipper Loan Participation Funds category posted an average return of 29.78% on a market price basis and 13.09% on a NAV basis. The per-
formance 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 moved from a discount to NAV to a premium by period end,
which accounts for the difference between performance based on price and performance based on NAV. During the period, slightly less than 20% of the
Fund was invested in high yield bonds, which contributed positively to performance as high yield outperformed floating rate loan interests. Overweight
positions in the automobiles sector and a few special situation and distressed credits also helped results, as did an underweight in health care. On the
other hand, the Fund generally favored less economically sensitive sectors and higher-quality credits, which detracted from performance as these issues
underperformed lower-rated issues and those sectors with greater economic sensitivity. In addition, the Fund maintained relatively conservative levels of
leverage (at period end, 15% of the Fund’s total managed assets), which was a detractor versus the Lipper competitors, who maintained leverage closer to
the 33 1 / 3 % regulatory limit.

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 NYSE  FRA 
Initial Offering Date  October 31, 2003 
Yield on Closing Market Price as of February 28, 2010 ($15.64)1  6.25% 
Current Monthly Distribution per Share2  $0.0815 
Current Annualized Distribution per Share2  $0.9780 
Leverage as of February 28, 20103  15% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The distribution is not constant and is subject to change.
3 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:       
  2/28/10  8/31/09  Change  High  Low 
Market Price  $15.64  $12.26  27.57%  $15.65  $12.15 
Net Asset Value  $14.24  $12.93  10.13%  $14.30  $12.93 
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     
  2/28/10  8/31/09 
Floating Rate Loan Interests  73%  75% 
Corporate Bonds  25  24 
Other Interests  1   
Common Stocks  1  1 

     Credit Quality Allocations4     
  2/28/10  8/31/09 
BBB/Baa  5%     12% 
BB/Ba  35  15 
B  40  46 
CCC/Caa  9  21 
D  2  4 
Not Rated  9  2 
 4 Using the higher of S&P’s or Moody’s ratings.   

6 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Fund Summary as of February 28, 2010 BlackRock Limited Duration Income Trust

Investment Objective

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

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended February 28, 2010, the Fund returned 14.21% based on market price and 12.73% based on NAV. For the same period, the
closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 21.84% on a market price basis and 18.08% 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 Lipper category is composed primarily of high yield funds. In addition to high yield bonds, the
Fund invests in high yield loans and investment-grade bonds, which hurt relative performance as these securities underperformed high yield. The Fund
tended to favor sectors less exposed to the economy, the consumer and housing, which detracted from results given the period’s strong market perform-
ance. Conversely, overweights in the automobiles sector and a number of special situation and distressed credits (including automobiles) helped. During the
period, the Fund tended to hold low cash balances, although the cash position at period end was 6%. Given the market’s positive performance, this cash
balance negatively impacted 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 NYSE  BLW 
Initial Offering Date  July 30, 2003 
Yield on Closing Market Price as of February 28, 2010 ($15.64)1  5.37% 
Current Monthly Distribution per Share2  $0.070 
Current Annualized Distribution per Share2  $0.840 
Leverage as of February 28, 20103  2% 

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 1, 2010. The Monthly Distribution per Share was increased to $0.075. 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 Fund’s market price and net asset value per share:

  2/28/10  8/31/09  Change  High  Low 
Market Price  $15.64  $14.09  11.00%  $15.68  $13.72 
Net Asset Value  $16.38  $14.95  9.57%  $16.38  $14.95 
The following charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the 
Fund’s corporate bond and US government securities investments:         

Portfolio Composition     
  2/28/10  8/31/09 
Floating Rate Loan Interests  42%  45% 
Corporate Bonds  33  24 
U.S. Government Sponsored     
Agency Securities  18  26 
Non-Agency Mortgage     
Backed Securities  2   
Asset-Backed Securities  2  2 
Foreign Agency Obligations  2  2 
Other Interests  1   
U.S. Treasury Obligations    1 

     Credit Quality Allocations4     
  2/28/10  8/31/09 
AAA/Aaa5  36%  53% 
BBB/Baa  3  6 
BB/Ba  22  11 
B  28  10 
CCC/Caa  7  16 
C    1 
D    1 
Not Rated  4  2 
 4 Using the higher of S&P’s or Moody’s ratings.   
 5 Includes U.S. Government Sponsored Agency securities and 
     U.S. Treasury Obligations, which are deemed AAA/Aaa by the 
     investment advisor.     

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 7


Fund Summary as of February 28, 2010 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.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended February 28, 2010, the Fund returned 7.97% based on NAV. For the same period, the closed-end Lipper Loan Participation
Funds category posted an average return of 13.09% on a NAV basis. All returns reflect reinvestment of dividends. The Fund, through its investment in the
Master Senior Floating Rate LLC, maintained relatively conservative positioning (i.e., higher quality credits and loan structures) and no leverage, which hin-
dered performance in the strong market of the past six months versus its Lipper competitors, many of which employ leverage. We believe this positioning is
prudent for the medium term. Overweight positions in the automobiles sector and a few special situation and distressed credits helped results, as did an
underweight in health care. During the period, the Fund tended to hold low cash balances, although the cash position at period end was 8%. Given the
market’s positive performance, this cash balance negatively impacted 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 Information1

Initial Offering Date  November 3, 1989 
Yield based on Net Asset Value as of February 28, 2010 ($7.54)2  4.94% 
Current Monthly Distribution per Share3  $0.028552 
Current Annualized Distribution per Share3  $0.372196 
   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:         
  2/28/10  8/31/09  Change  High  Low 
Net Asset Value  $7.54  $7.16  5.31%  $7.59  $7.16 

     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, 2009       February 28, 2010       During the Period4   September 1, 2009   February 28, 2010 During the Period4 
BlackRock Senior Floating Rate Fund, Inc.  $1,000  $1,079.70  $7.89  $1,000  $1,017.21         $7.65 
   4 Expenses are equal to the annualized expense ratio of 1.53%, 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, 2010


Fund Summary as of February 28, 2010 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.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended February 28, 2010, the Fund returned 7.88% based on NAV. For the same period, the closed-end Lipper Loan Participation
Funds category posted an average return of 13.09% on a NAV basis. All returns reflect reinvestment of dividends. The Fund, through its investment in the
Master Senior Floating Rate LLC, maintained relatively conservative positioning (i.e., higher quality credits and loan structures) and no leverage, which hin-
dered performance in the strong market of the past six months versus its Lipper competitors, many of which employ leverage. We believe this positioning is
prudent for the medium term. Overweight positions in the automobiles sector and a few special situation and distressed credits helped results, as did an
underweight in health care. During the period, the Fund tended to hold low cash balances, although the cash position at period-end was 8%. Given the
market’s positive performance, this cash balance negatively impacted 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 Information1

Initial Offering Date  March 26, 1999 
Yield based on Net Asset Value as of February 28, 2010 ($8.17)2  4.80% 
Current Monthly Distribution per Share3  $0.030085 
Current Annualized Distribution per Share3  $0.392179 

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:         
  2/28/10  8/31/09  Change  High  Low 
Net Asset Value  $8.17  $7.76  5.28%  $8.22  $7.75 

     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, 2009           February 28, 2010   During the Period4  September 1, 2009           February 28, 2010   During the Period4 
BlackRock Senior Floating Rate Fund II, Inc.  $1,000  $1,078.80  $8.61  $1,000  $1,016.51  $8.35 

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, 2010 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. However, these objectives cannot be achieved in all interest rate
environments.

The Funds may utilize leverage through borrowings or through entering into
reverse repurchase agreements and dollar rolls. 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 each Fund (including the
assets obtained from leverage) are invested in higher-yielding portfolio
investments, each Fund’s shareholders will benefit from the incremental
net income.

The interest earned on securities purchased with the proceeds from lever-
age is paid to shareholders in the form of dividends, and the value of these
portfolio holdings is reflected in the per share NAV. However, in order to
benefit shareholders, the yield curve must be positively sloped; that is,
short-term interest 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, income to shareholders will be lower than if
the Funds had not used leverage.

To illustrate these concepts, assume a Fund’s capitalization is $100 million
and it borrows for an additional $30 million, 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 borrowing
costs and interest expense on the $30 million of borrowings based on the
lower short-term interest rates. At the same time, the securities purchased
by the Fund with assets received from the borrowings earn the income
based on long-term interest rates. In this case, the borrowing costs and
interest expense of the borrowings is significantly lower than the income
earned on the Fund’s long-term investments, and therefore Common
Shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental net income pickup will be
reduced or eliminated completely. Furthermore, if prevailing short-term inter-
est rates rise above long-term interest 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.

Furthermore, the value of the Funds’ portfolio investments generally varies
inversely with the direction of long-term interest rates, although other
factors can influence the value of portfolio investments. In contrast, the
redemption value of the Funds’ borrowings do not fluctuate in relation
to interest rates. As a result, changes in interest rates can influence the
Funds’ NAV positively or negatively in addition to the impact on Fund
performance from leverage from borrowings discussed above.

The use of leverage may enhance opportunities for increased income to
the Funds and shareholders, but as described above, it also creates risks
as short- or long-term interest rates fluctuate. Leverage also will generally
cause greater changes in the 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, each Fund’s 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. Each Fund may be
required to sell portfolio securities at inopportune times or at distressed
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 a Fund to incur losses. The use of leverage may limit each
Fund’s ability to invest in certain types of securities or use certain types
of hedging strategies. Each Fund will incur expenses in connection with
the use of leverage, all of which are borne by common shareholders of
each Fund and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, the Funds are permitted
to borrow through their credit facility up to 33 1 / 3 % of their total managed
assets. As of February 28, 2010, the Funds had outstanding leverage from
borrowings as a percentage of their total managed assets as follows:

  Percent of 
  Leverage 
BHL  16% 
DVF  17% 
FRA  15% 
BLW  2% 

10 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Derivative Financial Instruments

The Funds may invest in various derivative instruments, including swaps,
financial futures contracts, foreign currency exchange contracts and
options, as specified in Note 2 of 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, interest rate, credit, equity and/or foreign
currency exchange 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 counterparty to the
transaction or illiquidity of the derivative instrument. The Funds’ ability to

successfully use a derivative instrument depends on the investment
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 distressed values,
may limit the amount of appreciation the Funds can realize on an invest-
ment or may cause the Funds to hold a security that they 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 administration fees, and other Fund
expenses. The examples on the previous pages (which are based on a hypo-
thetical investment of $1,000 invested on September 1, 2009 and held
through February 28, 2010) are intended to assist shareholders both in
calculating expenses based on an investment in each Fund and in compar-
ing 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 corresponding
to their Fund 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, 2010 11


Schedule of Investments February 28, 2010 (Unaudited)

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

Common Stocks    Shares           Value 
Capital Markets — 0.2%       
E*Trade Financial Corp. (a)  163,000  $ 262,430 
Total Common Stocks — 0.2%      262,430 
    Par   
Corporate Bonds    (000)   
Aerospace & Defense — 0.3%       
L-3 Communications Corp., 5.88%, 1/15/15  USD  300  301,125 
Airlines — 0.3%       
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16    300  309,000 
Auto Components — 0.0%       
Delphi International Holdings Unsecured, 12.00%,       
10/06/14    13  12,923 
Building Products — 0.3%       
Building Materials Corp. of America, 7.00%, 2/15/20 (b)  375  375,000 
Chemicals — 0.4%       
Hexion Finance Escrow LLC, 8.88%, 2/01/18 (b)    280  261,800 
Nalco Co., 8.25%, 5/15/17 (b)    250  266,875 
      528,675 
Commercial Services & Supplies — 0.5%       
Clean Harbors, Inc., 7.63%, 8/15/16    400  404,000 
The Geo Group, Inc., 7.75%, 10/15/17 (b)    250  253,125 
      657,125 
Communications Equipment — 0.0%       
Brocade Communications Systems, Inc., 6.88%,       
1/15/20 (b)    50  51,000 
Consumer Finance — 0.5%       
Inmarsat Finance Plc, 7.38%, 12/01/17 (b)    575  589,375 
Containers & Packaging — 1.1%       
Berry Plastics Escrow LLC, 8.25%, 11/15/15 (b)    700  698,250 
Crown Americas LLC, 7.63%, 5/15/17 (b)    280  291,200 
Owens-Brockway Glass Container, Inc., 7.38%, 5/15/16    280  289,100 
      1,278,550 
Diversified Financial Services — 2.4%       
CIT Group, Inc., 7.00%, 5/01/17    1,375  1,215,156 
FCE Bank Plc:       
7.13%, 1/16/12  EUR  600  809,804 
7.13%, 1/15/13    50  66,721 
GMAC, Inc., 8.30%, 2/12/15 (b)  USD  850  857,438 
      2,949,119 
Diversified Telecommunication Services — 1.7%       
Cincinnati Bell, Inc., 8.25%, 10/15/17    500  500,000 
PAETEC Holding Corp., 8.88%, 6/30/17 (b)    100  100,624 
Qwest Corp., 8.38%, 5/01/16    640  700,800 
Windstream Corp., 7.88%, 11/01/17    750  733,125 
      2,034,549 
Energy Equipment & Services — 0.4%       
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (b)    500  497,500 
Food Products — 1.1%       
B&G Foods, Inc., 7.63%, 1/15/18    300  303,000 
Bumble Bee Foods LLC, 7.75%, 12/15/15 (b)    210  210,525 
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)    740  801,050 
      1,314,575 

    Par   
Corporate Bonds    (000)           Value 
Health Care Providers & Services — 0.3%       
DaVita, Inc., 6.63%, 3/15/13  USD  405  $ 406,013 
Health Care Technology — 0.8%       
IMS Health, Inc., 12.50%, 3/01/18 (b)    850  977,500 
Hotels Restaurants & Leisure — 1.1%       
Icahn Enterprises LP (b):       
     7.75%, 1/15/16    375  352,500 
     8.00%, 1/15/18    750  705,000 
MGM Mirage, 11.13%, 11/15/17 (b)    240  259,200 
      1,316,700 
Household Durables — 0.7%       
Beazer Homes USA, Inc., 12.00%, 10/15/17 (b)    715  797,225 
Household Products — 0.1%       
Libbey Glass, Inc., 10.00%, 2/15/15 (b)    65  67,275 
IT Services — 0.3%       
SunGard Data Systems, Inc., 4.88%, 1/15/14    383  357,626 
Independent Power Producers & Energy Traders — 2.7%       
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)  1,165  1,179,562 
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)    400  408,000 
NRG Energy, Inc., 7.25%, 2/01/14    1,700  1,712,750 
      3,300,312 
Media — 2.4%       
Cablevision Systems Corp., Series B, 8.00%, 4/15/12    710  748,162 
Clear Channel Worldwide Holdings, Inc., 9.25%,       
12/15/17 (b)    1,160  1,190,512 
DISH DBS Corp., 7.00%, 10/01/13    425  434,563 
UPC Germany GmbH, 8.13%, 12/01/17 (b)    500  500,000 
      2,873,237 
Paper & Forest Products — 1.9%       
NewPage Corp., 11.38%, 12/31/14    2,205  2,105,775 
Verso Paper Holdings LLC, 11.50%, 7/01/14 (b)    200  210,000 
      2,315,775 
Real Estate Investment Trusts (REITs) — 0.2%       
Omega Healthcare Investors, Inc., 7.50%, 2/15/20 (b)    290  292,900 
Software — 0.1%       
JDA Software Group, Inc., 8.00%, 12/15/14 (b)    82  84,460 
Textiles, Apparel & Luxury Goods — 0.5%       
Levi Strauss & Co., 8.63%, 4/01/13  EUR  450  615,809 
Wireless Telecommunication Services — 1.3%       
Cricket Communications, Inc., 7.75%, 5/15/16  USD  1,500  1,524,375 
Total Corporate Bonds — 21.4%      25,827,723 
Floating Rate Loan Interests (c)       
Aerospace & Defense — 0.7%       
Avio SpA:       
     Facility B2, 2.36%, 12/15/14    2  2,030 
     Facility C2, 2.98%, 12/14/15    2  2,165 
Hawker Beechcraft Acquisition Co. LLC:       
     Letter of Credit Facility Deposit, 2.25%, 3/26/14    23  17,170 
     Term Loan, 2.23% – 2.25%, 3/26/14    393  289,435 

     Portfolio Abbreviations         
To simplify the listings of portfolio holdings in the  CAD  Canadian Dollar  TALF  Term Asset-Backed Securities Loan Facility 
Schedules of Investments, the names and descriptions of  EUR  Euro  USD  US Dollar 
many of the securities have been abbreviated according  GBP  British Pound     
to the following list:         

See Notes to Financial Statements.

12 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (c)    (000)           Value 
Aerospace & Defense (concluded)       
TASC, Inc.:       
     Tranche A Term Loan, 5.50%, 12/18/14  USD  170  $ 170,709 
     Tranche B Term Loan, 5.75%, 12/18/15    330  332,200 
      813,709 
Auto Components — 3.1%       
Affinion Group Holdings, Inc., Tranche B Term Loan,       
 2.73%, 10/17/12    324  314,463 
Allison Transmission, Inc., Term Loan, 2.98% – 3.00%,       
 8/07/14    2,160  1,978,226 
Dana Holding Corp., Term Advance, 4.48% – 6.50%,       
 1/30/15    563  548,176 
Exide Technologies Term Loan, 3.91%, 5/15/12  EUR  150  183,823 
Lear Corp., Loan (Closing Date Loan & Delayed       
 Draw Loan), 7.50%, 11/09/14  USD  759  760,974 
      3,785,662 
Automobiles — 0.6%       
Ford Motor Co., Tranche B-1 Term Loan, 3.24% – 3.26%,       
 12/15/13    743  691,236 
Building Products — 2.6%       
Building Materials Corp. of America:       
     Second Lien Term Loan, 6.00%, 9/15/14    750  738,000 
     Term Loan Advance, 3.00%, 2/22/14    738  718,227 
Goodman Global, Inc., Term Loan, 6.25%, 2/13/14    1,084  1,088,402 
Momentive Performance Materials (Blitz 06-103 GmbH),       
 Tranche B-2 Term Loan, 2.67%, 12/04/13  EUR  495  604,357 
      3,148,986 
Capital Markets — 0.4%       
Nuveen Investments, Inc., Term Loan, 3.25% – 3.32%,       
 11/13/14  USD  523  455,141 
Chemicals — 6.7%       
Ashland Inc., Term B Borrowing, 7.65%, 5/13/14    493  498,714 
Chemtura Corp. Debtor in Possession Return of Capital       
 Term Loan, 6.00%, 1/26/11    850  853,719 
Gentek Holding, LLC, Tranche B Term Loan, 7.00%,       
 10/29/14    500  502,500 
Huish Detergents Inc., Tranche B Term Loan, 2.01%,       
 4/26/14    234  224,915 
Matrix Acquisition Corp. (fka MacDermid, Inc.), Tranche B       
 Term Loan, 2.23%, 4/12/14    1,546  1,372,292 
Nalco Co., Term Loan, 6.50%, 5/13/16    1,219  1,227,407 
PQ Corp. (fka Niagara Acquisition, Inc.), Original       
 Term Loan (First Lien), 3.48% – 3.50%, 7/30/14    1,233  1,128,296 
Rockwood Specialties Group, Inc., Term Loan H, 6.00%,       
 5/15/14    700  702,100 
Solutia Inc., Loan, 7.25%, 2/28/14    732  741,370 
Tronox Worldwide LLC, Tranche B-1 Term Loan, 9.00%,       
 6/24/10    800  820,960 
      8,072,273 
Commercial Services & Supplies — 3.7%       
ARAMARK Corp.:       
     Letter of Credit, 2.11%, 1/26/14    53  50,085 
     US Term Loan, 2.13%, 1/26/14    798  761,571 
Advanced Disposal Services, Inc., Term B Loan, 6.00%,       
 1/14/15    400  400,000 
Alliance Laundry Systems LLC, Term Loan, 2.73%,       
 1/27/12    525  504,219 
Casella Waste Systems, Inc, Term B Loan, 7.00%,       
 4/09/14    561  564,758 
Johnson Diversey, Inc. Term Loan B, 5.50%, 11/24/15    500  503,750 

    Par   
Floating Rate Loan Interests (c)    (000)           Value 
Commercial Services & Supplies (concluded)       
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.23%, 4/02/14  USD  982  $ 866,121 
West Corp., Incremental Term B-3 Loan, 7.25%,       
 10/24/13    747  754,023 
      4,404,527 
Construction & Engineering — 1.1%       
Safway First Out Term Loan, 9.00%, 12/14/17    750  750,000 
Welding Services Term Loan B, 9.35%, 12/16/13    548  550,878 
      1,300,878 
Consumer Finance — 1.6%       
DaimlerChrysler Financial Services Americas LLC,       
 Term Loan (First Lien), 4.24%, 8/03/12    1,899  1,875,102 
Containers & Packaging — 2.3%       
Anchor Glass Term Loan B, 6.00%, 2/18/16    700  697,813 
Berry Plastics Holding Corp., Term C Loan, 2.25%,       
 4/03/15    678  606,851 
Graham Packaging Co., LP, B Term Loan, 2.50%,       
 10/07/11    683  673,872 
Smurfit Kappa Acquisitions (JSG):       
     Term B1, 3.77% – 4.37%, 7/16/14  EUR  306  409,740 
     C1 Term Loan Facility, 4.00% – 4.34%, 7/16/15    303  405,447 
      2,793,723 
Diversified Consumer Services — 2.9%       
Coinmach Laundry Corp., Delay Draw Term Loan,       
 3.23% – 3.25%, 11/14/14  USD  248  218,760 
Coinmach Service Corp., Term Loan, 3.26%, 11/14/14    1,474  1,274,737 
Laureate Education Term Loan B, 7.00%, 8/15/14    1,995  1,976,895 
      3,470,392 
Diversified Financial Services — 2.2%       
CIT Group, Inc., Tranche 2A Term Loan, 9.50% – 9.75%,       
 1/20/12    950  973,156 
Reynolds Group Holdings Inc., US Term Loan, 6.25%,       
 11/05/15    1,700  1,710,625 
      2,683,781 
Diversified Telecommunication Services — 2.6%       
Cavtel Holdings, LLC, Term Loan, 10.50%, 12/31/12 (d)    224  191,630 
Hawaiian Telcom Communications, Inc., Tranche C       
 Term Loan, 4.75%, 5/30/14    510  384,086 
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    587  586,995 
Level 3 Communications Incremental Term Loan, 7.59%,       
 3/13/14    525  473,047 
US Telepacific Corp. Second Lien Term Loan, 7.75%,       
 7/25/15    175  175,328 
Wind Finance SL SA, Euro Facility (Second Lien), 7.67%,       
 12/17/14  EUR  1,000  1,356,190 
      3,167,276 
Electrical Equipment — 0.4%       
Baldor Electric Co., Term Loan, 5.25%, 1/31/14  USD  539  539,322 
Electronic Equipment, Instruments &       
Components — 2.1%       
Flextronics International Ltd.:       
     A Closing Date Loan, 2.48% – 2.50%, 10/01/14    104  97,888 
     Term Loan B, 2.50%, 10/01/12    565  545,102 
L-1 Identity Solutions Operating Co., Term Loan, 6.75%,       
 8/05/13    651  651,023 
Matinvest 2 SAS/ Butterfly Wendel US, Inc. (Deutsche       
 Connector):       
     B-2 Facility, 2.75% , 6/22/14    886  693,122 
     C-2 Facility, 3.00% , 6/22/15    732  572,698 
      2,559,833 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 13


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (c)    (000)           Value 
Energy Equipment & Services — 0.4%       
MEG Energy Corp., Tranche D Term Loan, 6.00%,       
 12/21/16  USD  499  $ 489,710 
Food & Staples Retailing — 3.0%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.54%, 7/09/15  GBP  500  682,987 
Bolthouse Farms, Inc. Term Loan B, 3.75%, 2/04/16  USD  500  500,000 
Pierre Foods Term Loan B, 8.50%, 9/30/14    475  473,812 
Pilot Travel Centers Term Loan B, 3.50%, 11/18/15    1,000  1,004,636 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/10/15    900  932,400 
      3,593,835 
Food Products — 4.3%       
CII Investment, LLC (fka Cloverhill), Term Loan B, 8.50%,       
 10/14/14    1,068  1,067,857 
Dole Food Co., Inc.:       
     Credit-Linked Deposit, 7.89%, 4/12/13    127  127,425 
     Term Loan B, 3.50%, 2/10/17    441  441,397 
     Term Loan C, 5.50%, 2/10/17    1,059  1,059,353 
     Tranche B Term Loan, 8.00%, 4/12/13    222  221,599 
Pilgrim’s Pride Corp. Term Loan A, 5.29%, 12/01/12    450  443,250 
Pinnacle Foods Finance LLC, Tranche C Term Loan,       
 7.50%, 4/02/14    1,100  1,104,517 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,       
 4/12/13    719  718,984 
      5,184,382 
Health Care Equipment & Supplies — 1.6%       
Biomet, Inc., Dollar Term Loan, 3.23% – 3.25%, 3/25/15  1,021  987,376 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.23%, 5/20/14    885  854,836 
Hologic, Inc., Tranche B Term Loan, 3.50%, 3/29/13    35  34,341 
      1,876,553 
Health Care Providers & Services — 4.9%       
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.50%, 7/25/14    82  76,796 
     Funded Term Loan, 2.48% – 2.50%, 7/25/14    1,619  1,512,806 
DaVita Inc., Tranche B-1 Term Loan, 1.73% – 1.76%,       
 10/05/12    200  195,325 
Fresenius SE:       
     Tranche B1 Term Loan, 6.75%, 9/10/14    590  592,752 
     Tranche B2 Term Loan, 6.75%, 9/10/14    356  358,049 
HCA Inc., Tranche A-1 Term Loan, 1.75%, 11/16/12    2,117  1,999,143 
Vanguard Health Systems Term Loan B, 5.00%, 1/29/16    1,200  1,201,500 
      5,936,371 
Health Care Technology — 1.1%       
IMS Healthcare Term Loan B, 5.25%, 2/16/16    1,300  1,305,200 
Hotels Restaurants & Leisure — 5.7%       
BLB Worldwide Holdings, Inc. (Wembley, Inc.),       
 First Priority Term Loan, 4.75%, 7/18/11 (a)(e)    1,000  685,000 
Cedar Fair LP Term Loan B, 4.00%, 2/04/16    750  748,829 
Harrah’s Operating Co., Inc.:       
     Term B-2 Loan, 3.25%, 1/28/15    656  529,466 
     Term B-4 Loan, 9.50%, 10/31/16    750  747,917 
Penn National Gaming, Inc., Term Loan B,       
 1.98% – 2.00%, 10/03/12    936  916,960 
QCE, LLC (Quiznos), Term Loan (Second Lien), 2.56%,       
 5/05/13    183  156,492 
SW Acquisitions Co., Inc., Term Loan, 5.75%, 6/01/16    1,000  1,004,375 
Six Flags Theme Parks, Inc. Term Loan, 4.50%, 6/13/15    1,750  1,733,812 
VML US Finance LLC (aka Venetian Macau), Term B:       
     Delayed Draw Project Loan, 4.76%, 5/25/12    151  143,500 
     Funded Project Loan, 4.76%, 5/27/13    266  253,457 
      6,919,808 

    Par   
Floating Rate Loan Interests (c)    (000)           Value 
Household Durables — 0.4%       
Jarden Corp., Term Loan B3, 2.75%, 1/24/12  USD  441  $ 437,210 
Household Products — 0.2%       
VI-JON, Inc. (VJCS Acquisition, Inc.), Tranche B       
 Term Loan, 2.23%, 4/24/14    302  289,532 
IT Services — 4.4%       
Amadeus Global Travel Distribution SA:       
     Term Loan B, 2.23%, 5/22/15    955  907,775 
     Term Loan C, 2.73%, 5/22/16    955  907,775 
Ceridian Corp., US Term Loan, 3.23% – 3.25%, 11/09/14  752  657,742 
First Data Corp.:       
     Initial Tranche B-2 Term Loan, 3.00%, 9/24/14    1,022  890,863 
     Initial Tranche B-3 Term Loan, 3.00%, 9/24/14    981  853,480 
SunGard Data Systems, Inc. (Solar Capital Corp.),       
 Incremental Term Loan, 6.75%, 2/28/14    1,042  1,045,930 
      5,263,565 
Independent Power Producers & Energy Traders — 1.4%     
Dynegy Holdings Inc.:       
     Term Letter of Credit Facility Term Loan, 3.98%,       
     4/02/13    486  473,928 
     Tranche B Term Loan, 3.98%, 4/02/13    39  38,151 
Texas Competitive Electric Holdings Co., LLC (TXU),       
 Initial Tranche B-3 Term Loan, 3.73% – 3.75%,       
 10/10/14    1,462  1,169,414 
      1,681,493 
Industrial Conglomerates — 1.1%       
Sequa Corp., Term Loan, 3.51% – 3.94%, 12/03/14    1,389  1,270,284 
Insurance — 0.6%       
Alliant Holdings I, Inc., Term Loan, 3.25%, 8/21/14    732  690,687 
Internet & Catalog Retail — 0.2%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/26/14  211  211,196 
Machinery — 2.6%       
Accuride Term Loan, 10.00%, 1/31/12    460  459,042 
Bucyrus International Term Loan C, 4.50%, 1/26/16    1,000  1,005,300 
LN Acquisition Corp. (Lincoln Industrial):       
     Delayed Draw Term Loan (First Lien), 3.49%, 7/11/14  245  225,727 
     Initial US Term Loan (First Lien), 3.49%, 7/11/14  637  585,769 
Oshkosh Truck Corp., Term B Loan, 6.25% – 6.26%,       
 12/06/13    872  870,942 
      3,146,780 
Media — 22.4%       
Catalina Marketing Corp., Initial Term Loan, 2.98%,       
 10/01/14    443  427,746 
Cengage Learning Acquisitions, Inc. (Thomson Learning),     
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14  1,890  1,871,500 
Cequel Communications, LLC:       
     Term Loan, 2.25% – 4.25%, 11/05/13    532  503,975 
     Tranche B Term Loan, 6.25%, 5/05/14    1,016  1,017,837 
Charter Communications Operating, LLC, New Term Loan,     
 2.26%, 3/06/14    3,125  2,914,912 
FoxCo Acquisition Sub, LLC, Term Loan, 7.50%, 7/14/15  669  642,160 
HMH Publishing Co. Ltd., Tranche A Term Loan, 5.23%,     
 6/12/14    1,016  855,046 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.50% – 2.56%, 3/10/14    739  330,222 
Harland Clarke Holdings Corp. (fka Clarke American       
 Corp.), Tranche B Term Loan, 2.73% – 2.75%, 6/30/14  522  456,600 
Insight Midwest Holdings, LLC, B Term Loan, 2.25%,       
 4/07/14    500  480,078 
Intelsat Corp. (fka PanAmSat Corp.):       
     Tranche B-2-A Term Loan, 2.73%, 1/03/14    241  228,844 
     Tranche B-2-B Term Loan, 2.73%, 1/03/14    241  228,774 
     Tranche B-2-C Term Loan, 2.73%, 1/03/14    241  228,774 

See Notes to Financial Statements.

14 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (c)    (000)           Value 
Media (concluded)       
Lamar Media Corp.:       
     Series B Incremental Loan, 5.50% – 5.75%,       
     9/28/12  USD  382  $ 379,472 
     Series E Incremental Loan, 5.50% – 5.75%,       
     3/31/13    705  704,829 
     Term Loan, 5.50% – 5.75%, 9/28/12    942  935,401 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):       
     Facility B1, 3.34%, 6/28/15  EUR  1,010  942,428 
     Facility C1, 3.59%, 6/30/16    1,010  942,428 
Local TV Finance, LLC, Term Loan, 2.26%, 5/07/13  USD  225  194,625 
MCC Iowa LLC (Mediacom Broadband Group),       
 Tranche E Term Loan, 6.50%, 1/03/16    1,018  1,025,898 
New Vision Exit Term Loan, 13.00%, 10/01/12    318  319,857 
Newsday, LLC:       
     Fixed Rate Term Loan, 10.50%, 8/01/13    750  801,562 
     Floating Rate Term Loan, 6.50%, 8/01/13    500  501,250 
Nielsen Finance LLC:       
     Class B Dollar Term Loan, 3.98%, 5/01/16    1,359  1,316,272 
     Dollar Term Loan, 2.23%, 8/09/13    246  231,713 
Sinclair Television Group, Inc., Tranche B Term Loan,       
 6.50%, 10/29/15    500  502,500 
Springer Science+Business Media SA, Facility A1,       
 6.75%, 7/01/16  EUR  1,100  1,480,346 
Sunshine Acquisition Ltd. (aka HIT Entertainment),       
 Term Facility, 2.50%, 3/20/12  USD  1,751  1,539,233 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    1,387  1,390,920 
UPC Financing Partnership, Facility U, 4.99%,       
 12/31/17  EUR  800  1,014,888 
Virgin Media Investment Holdings Ltd.:       
     B7 Facility, 4.40%, 9/03/12  GBP  223  331,051 
     C Facility, 4.40%, 9/03/12    372  553,389 
     C Facility, 3.58%, 7/17/13    140  199,420 
Worldcolor Press Inc. and Worldcolor (USA) Corp.       
 (fka Quebecor World, Inc.), Advance, 9.00%, 7/23/12  USD  798  805,629 
Yell Group Plc TPI Term Loan A, 7.12%, 8/09/11    750  718,125 
      27,017,704 
Multi-Utilities — 0.3%       
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     Synthetic Letter of Credit, 2.81%, 11/01/13    35  32,767 
     Term B Advance (First Lien), 2.75%, 11/01/13    381  355,912 
      388,679 
Multiline Retail — 2.5%       
Dollar General Corp., Tranche B-1 Term Loan,       
 2.98% – 3.00%, 7/07/14    781  757,236 
Hema Holding BV, Facility D, 5.42%, 1/01/17  EUR  1,800  2,058,823 
The Neiman Marcus Group Inc., Term Loan, 2.26%,       
 4/06/13  USD  185  166,048 
      2,982,107 
Oil, Gas & Consumable Fuels — 0.9%       
Big West Oil, LLC:       
     Delayed Advance Loan, 4.50%, 5/15/14    442  433,618 
     Initial Advance Loan, 4.50%, 5/15/14    352  344,924 
     Initial Advance Loan, 9.75%, 1/26/15    325  326,625 
      1,105,167 
Paper & Forest Products — 0.9%       
Georgia-Pacific LLC, Term Loan B, 2.25% – 2.26%,       
 12/23/12    1,161  1,133,860 
Personal Products — 0.5%       
American Safety Razor Co., LLC:       
     Loan (Second Lien), 6.51%, 1/30/14    500  292,500 
     Term Loan (First Lien), 2.75% – 2.76%, 7/31/13    200  181,148 
Revlon Consumer Products Corp., Term Loan,       
 4.25% – 4.26%, 1/15/12    125  123,008 
      596,656 

  Par   
Floating Rate Loan Interests (c)  (000)  Value 
Pharmaceuticals — 1.6%     
Warner Chilcott Co., LLC, Term A Loan, 5.50%,     
 10/30/14  USD 644 $  643,907 
Warner Chilcott Corp., Term B-1 Loan, 5.75%, 4/30/15  1,300  1,299,875 
    1,943,782 
Professional Services — 0.8%     
Booz Allen Hamilton, Inc., Tranche B Term Loan, 7.50%,     
 7/31/15  988  993,809 
Real Estate Management & Development — 1.0%     
Realogy Corp.:     
     Delayed Draw Term B Loan, 3.25%, 10/10/13  524  461,773 
     Initial Term B Loan, 3.25%, 10/10/13  196  173,247 
     Synthetic LC, 3.23%, 10/10/13  53  46,644 
     Term Loan (Second Lien), 13.50%, 10/15/17  500  543,750 
    1,225,414 
Specialty Retail — 1.2%     
Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan,     
 2.98%, 10/21/13  326  314,082 
General Nutrition Centers, Inc., Term Loan,     
 2.48% – 2.57%, 9/16/13  275  261,452 
Michaels Stores, Inc.:     
     Term Loan B, 2.50% – 2.56%, 10/31/13  401  360,854 
     Term Loan B-1, 4.75% – 4.81%, 7/31/16  506  481,689 
    1,418,077 
Textiles, Apparel & Luxury Goods — 0.4%     
Hanesbrands Inc., New Term Loan, 5.25%, 12/10/15  500  503,750 
Wireless Telecommunication Services — 2.3%     
Digicel International Finance Ltd., Tranche A, 2.81%,     
 3/30/12  1,579  1,519,967 
MetroPCS Wireless, Inc., Tranche B Term Loan, 2.50%,     
 11/03/13  1,266  1,219,301 
    2,739,268 
Total Floating Rate Loan Interests — 99.7%  120,106,720 
  Beneficial   
  Interest   
Other Interests (f)  (000)   
Auto Components — 0.9%     
Delphi Debtor in Possession Holding Co. LLP, Class B     
 Membership Interests  —(g)  1,067,720 
Total Other Interests — 0.9%    1,067,720 
Total Long-Term Investments     
(Cost — $146,018,527) — 122.2%  147,264,593 
Short-Term Securities  Shares   
BlackRock Liquidity Funds, TempFund, Institutional     
 Class, 0.09% (h)(i)  2,618,127  2,618,127 
Total Short-Term Securities     
(Cost — $2,618,127) — 2.2%    2,618,127 
Total Investments (Cost — $148,636,654*) — 124.4%  149,882,720 
Liabilities in Excess of Other Assets — (24.4)%  (29,374,669) 
Net Assets — 100.0%  $120,508,051 
   * The cost and unrealized appreciation (depreciation) of investments as of   
          February 28, 2010, as computed for federal income tax purposes, were as follows: 
       Aggregate cost  $148,636,654 
       Gross unrealized appreciation  $ 4,177,491 
       Gross unrealized depreciation    (2,931,425) 
       Net unrealized appreciation  $ 1,246,066 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 15


Schedule of Investments (concluded) BlackRock Defined Opportunity Credit Trust (BHL)

(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) Variable rate security. Rate shown is as of report date.   
(d) Represents a payment-in-kind security which may pay interest /dividend in addi- 
  tional par/shares.           
(e) Issuer filed for bankruptcy and/or is in default of interest payments.   
(f) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
  zation entities and are non-income producing.     
(g) Amount is less than $1,000.       
(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   
            Activity  Income 
  BlackRock Liquidity Funds, TempFund,     
  Institutional Class    $ 2,618,127         $ 2,405 
(i) Represents the current yield as of report date.     
  Foreign currency exchange contracts as of February 28, 2010 were as follows: 
              Unrealized 
  Currency    Currency    Settlement Appreciation 
  Purchased    Sold  Counterparty  Date (Depreciation) 
  USD          11,196,400          EUR 7,798,500  Citibank NA  3/24/10 $  578,030 
  GBP  810,500  USD  1,271,847  Citibank NA  4/21/10  (36,487) 
  USD  186,561  GBP  119,500  Citibank NA  4/21/10  4,420 
  USD             2,967,636  GBP  1,833,000          Morgan Stanley   
          Capital Services, Inc.                               4/21/10  173,787 
  Total          $ 719,750 
  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.     

  Fair Value Measurements — Various inputs are used in determining the fair value of 
  investments, which are as follows:         
  Level 1 — price quotations inactive 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 face value of investments) 
  The inputs or methodologies 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 the Note 1 of the Notes to Financial Statements. 
  The following tables summarize the inputs used as of February 28, 2010 in deter- 
  mining the fair valuation of the Fund’s investments:       
      Investments in Securities     
  Valuation Inputs  Level 1  Level 2       Level 3  Total 
  Assets:           
  Long-Term           
     Investments:           
  Common Stocks  $ 262,430      — $  262,430 
  Corporate Bonds  —              $ 25,814,800  $ 12,923  25,827,723 
  Floating Rate           
     Loan Interests  —               100,198,281  19,908,439                 120,106,720 
  Other Interests                              1,067,720  1,067,720 
  Short-Term           
     Securities  2,618,127        2,618,127 
  Total  $ 2,880,557             $126,013,081  $20,989,082               $149,882,720 
      Other Financial Instruments1     
  Valuation Inputs  Level 1  Level 2       Level 3  Total 
  Assets                       —  $756,237     $ 7,410 $  763,647 
  Liabilities                         (36,487)    (16,408)  (52,895) 
  Total                         $719,750     $ (8,998) $  710,752 
   1   Other financial instruments are foreign currency exchange contracts and 
    unfunded loan commitments, 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 to determine fair value:     
    Investments in Securities   
  Corporate  Floating Rate  Other   
  Bonds  Loan Interests  Interests  Total 
Balance, as of August 31, 2009    $24,495,356    $24,495,356 
Accrued discounts/premiums         
Realized gain (loss)    295,974    295,974 
Change in unrealized appreciation/depreciation2  $ (70)  3,033,712    3,033,642 
Net purchases (sales)    (4,905,004)    (4,905,004) 
Net transfers in/out of Level 3  12,993  (3,011,599)  $1,067,720  (1,930,886) 
Balance, as of February 28, 2010  $ 12,923  $19,908,439  $1,067,720  $20,989,082 
2 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in unrealized appreciation/depreciation on securities 
     still held at February 28, 2010 was $859,867.         

       The following table is a reconciliation of Level 3 other financial instruments for which significant 
       unobservable inputs were used to determine fair value:     
  Other Financial 
  Instruments3 
  Assets  Liabilities 
       Balance, as of August 31, 2009  $ 60,517   
       Accrued discounts/premiums     
       Realized gain (loss)     
       Change in unrealized appreciation/depreciation     
       Net purchases (sales)     
       Net transfers in/out of Level 3  (53,107)  $ (16,408) 
       Balance as of February 28, 2010  $ 7,410  $ (16,408) 
3 Other financial instruments are unfunded loan commitments.     
See Notes to Financial Statements.     

16 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments February 28, 2010 (Unaudited)

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

    Par   
Asset-Backed Securities    (000)           Value 
North Street Referenced Linked Notes 2000-1 Ltd.,       
 Series 2005-8A, Class D, 14.80%, 6/15/41 (a)(b)  USD  1,350  $ 513,243 
Total Asset-Backed Securities — 0.4%      513,243 
Common Stocks (c)    Shares   
Building Products — 0.7%       
Masonite Worldwide Holdings    20,955  880,110 
Capital Markets — 0.2%       
E*Trade Financial Corp.  143,000  230,230 
Chemicals — 0.1%       
Solutia, Inc.    5,000  70,350 
Wellman Holdings, Inc.    1,613  403 
      70,753 
Construction Materials — 0.0%       
Nortek, Inc.    1,570  58,090 
Electrical Equipment — 0.0%       
Medis Technologies Ltd.  176,126  12,505 
Hotels Restaurants & Leisure — 0.0%       
Buffets Restaurants Holdings, Inc.    688  3,887 
Paper & Forest Products — 1.1%       
Ainsworth Lumber Co. Ltd.  311,678  654,636 
Ainsworth Lumber Co. Ltd. (b)  349,782  734,669 
      1,389,305 
Software — 0.2%       
Euramax International    468  14,025 
TiVo, Inc.    21,000  199,080 
      213,105 
Total Common Stocks — 2.3%      2,857,985 
    Par   
Corporate Bonds    (000)   
Airlines — 0.5%       
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16  USD  300  309,000 
United Air Lines, Inc., 12.75%, 7/15/12    300  318,000 
      627,000 
Auto Components — 0.0%       
Delphi International Holdings Unsecured, 12.00%,       
 10/06/14    13  12,923 
Building Products — 2.5%       
Building Materials Corp. of America, 7.00%,       
 2/15/20 (b)    400  400,000 
CPG International I, Inc., 7.18%, 7/01/12 (a)    2,500  2,375,000 
Ply Gem Industries, Inc., 11.75%, 6/15/13    400  406,000 
      3,181,000 
Capital Markets — 0.7%       
E*Trade Financial Corp., 3.95%, 8/31/19 (b)(d)(e)    83  126,160 
Marsico Parent Co., LLC, 10.63%, 1/15/16 (b)    649  390,211 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(f)    276  60,961 
Marsico Parent Superholdco, LLC, 14.50%,       
 1/15/18 (b)(f)    183  31,796 
MU Finance Plc, 8.75%, 2/01/17 (b)  GBP  213  300,425 
      909,553 

    Par   
Corporate Bonds    (000)           Value 
Chemicals — 1.0%       
Hexion Finance Escrow LLC, 8.88%, 2/01/18 (b)  USD  300  $ 280,500 
Wellman Holdings, Inc. (e):       
     Second Lien Subordinate Note, 10.00%,       
     1/29/19 (b)    894  894,000 
     Third Lien Subordinate Note, 5.00%, 1/29/19 (f)    286  143,190 
      1,317,690 
Commercial Banks — 0.2%       
Glitnir Banki HF (c)(g):       
     5.07%, 1/27/10  EUR  100  35,403 
     4.15%, 4/20/10 (b)  USD  65  16,900 
     3.00%, 6/30/10  EUR  120  41,667 
     6.38%, 9/25/12 (b)  USD  365  94,900 
      188,870 
Commercial Services & Supplies — 0.5%       
Clean Harbors, Inc., 7.63%, 8/15/16    400  404,000 
The Geo Group, Inc., 7.75%, 10/15/17 (b)    250  253,125 
      657,125 
Communications Equipment — 0.0%       
Brocade Communications Systems, Inc., 6.88%,       
1/15/20 (b)    50  51,000 
Construction Materials — 0.5%       
Nortek, Inc., 11.00%, 12/01/13    639  670,505 
Consumer Finance — 1.2%       
Credit Acceptance Corp., 9.13%, 2/01/17 (b)    180  179,100 
Ford Motor Credit Co. LLC, 3.00%, 1/13/12 (a)    815  764,062 
Inmarsat Finance Plc, 7.38%, 12/01/17 (b)    600  615,000 
      1,558,162 
Containers & Packaging — 1.6%       
Beverage Packaging Holdings Luxembourg II SA, 8.00%,       
 12/15/16  EUR  185  240,571 
Smurfit Kappa Acquisitions (b):       
     7.25%, 11/15/17    250  333,606 
     7.75%, 11/15/19    240  325,163 
Smurfit Kappa Funding Plc, 7.75%, 4/01/15 (h)  USD  1,000  970,000 
Solo Cup Co., 10.50%, 11/01/13    130  136,175 
      2,005,515 
Diversified Financial Services — 2.6%       
CIT Group, Inc., 7.00%, 5/01/17    1,455  1,285,856 
FCE Bank Plc, 7.13%, 1/16/12  EUR  400  539,869 
GMAC Inc., 5.38%, 6/06/11    110  146,038 
GMAC LLC:       
     7.25%, 3/02/11  USD  37  37,324 
     6.88%, 9/15/11    150  150,000 
     6.75%, 12/01/14    400  382,000 
     8.30%, 2/12/15 (b)    120  121,050 
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)    400  405,000 
Reynolds Group Issuer, Inc., 7.75%, 10/15/16 (b)  EUR  200  271,653 
      3,338,790 
Diversified Telecommunication Services — 1.7%       
Cincinnati Bell, Inc., 8.25%, 10/15/17  USD  500  500,000 
PAETEC Holding Corp., 8.88%, 6/30/17    100  100,750 
Qwest Corp., 8.38%, 5/01/16    500  547,500 
Windstream Corp., 7.88%, 11/01/17    1,000  977,500 
      2,125,750 
Energy Equipment & Services — 0.6%       
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (b)    750  746,250 
Food & Staples Retailing — 0.1%       
Duane Reade, Inc., 11.75%, 8/01/15    80  100,800 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 17


Schedule of Investments (continued)

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

    Par   
Corporate Bonds    (000)           Value 
Food Products — 1.0%       
B&G Foods, Inc., 7.63%, 1/15/18  USD  300  $ 303,000 
Bumble Bee Foods LLC, 7.75%, 12/15/15 (b)    220  220,550 
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)    640  692,800 
      1,216,350 
Health Care Providers & Services — 0.4%       
Vanguard Health Holding Co. II LLC, 8.00%,       
 2/01/18 (b)    455  447,037 
Health Care Technology — 0.8%       
IMS Health, Inc., 12.50%, 3/01/18 (b)    890  1,023,500 
Hotels Restaurants & Leisure — 2.4%       
Icahn Enterprises LP (b):       
     7.75%, 1/15/16    500  470,000 
     8.00%, 1/15/18    1,000  940,000 
Little Traverse Bay Bands of Odawa Indians, 10.25%,       
 2/15/14 (b)(c)(g)    800  202,000 
MGM Mirage, 11.13%, 11/15/17 (b)    390  421,200 
Shingle Springs Tribal Gaming Authority, 9.38%,       
 6/15/15 (b)    95  75,525 
Snoqualmie Entertainment Authority, 4.14%,       
 2/01/14 (a)(b)    305  207,400 
Travelport LLC, 4.88%, 9/01/14 (a)    810  753,300 
Tropicana Entertainment LLC, Series WI, 9.63%,       
 12/15/14 (c)(g)    120  75 
      3,069,500 
Household Durables — 0.4%       
Beazer Homes USA, Inc., 12.00%, 10/15/17 (b)    500  557,500 
Household Products — 0.1%       
Libbey Glass, Inc., 10.00%, 2/15/15 (b)    65  67,275 
IT Services — 0.7%       
Alliance Data Systems Corp., 1.75%, 8/01/13 (e)    370  342,250 
SunGard Data Systems, Inc., 4.88%, 1/15/14    549  512,629 
      854,879 
Independent Power Producers & Energy Traders — 2.5%     
AES Eastern Energy LP, Series 99-B, 9.67%, 1/02/29    300  325,125 
Calpine Construction Finance Co. LP, 8.00%,       
 6/01/16 (b)    1,200  1,215,000 
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)    400  408,000 
NRG Energy, Inc., 7.25%, 2/01/14    1,260  1,269,450 
      3,217,575 
Industrial Conglomerates — 1.6%       
Sequa Corp. (b):       
     11.75%, 12/01/15    720  705,600 
     13.50%, 12/01/15 (f)    1,322  1,324,873 
      2,030,473 
Insurance — 0.3%       
USI Holdings Corp., 4.13%, 11/15/14 (a)(b)    490  405,475 
Leisure Equipment & Products — 0.3%       
Brunswick Corp., 11.25%, 11/01/16 (b)    370  411,625 
Machinery — 1.4%       
ESCO Corp., 4.13%, 12/15/13 (a)(b)    920  814,200 
RBS Global, Inc., 8.88%, 9/01/16    505  457,025 
Titan International, Inc., 8.00%, 1/15/12    460  457,700 
      1,728,925 
Marine — 0.2%       
Navios Maritime Holdings, Inc., 8.88%, 11/01/17 (b)    260  264,550 
Media — 5.2%       
Affinion Group, Inc., 10.13%, 10/15/13    820  828,200 
CSC Holdings, Inc., 8.50%, 4/15/14 (b)    180  189,225 
Canadian Satellite Radio Holdings, Inc., 12.75%,       
 2/15/14    3,000  1,800,000 

    Par   
Corporate Bonds    (000)           Value 
Media (concluded)       
Clear Channel Worldwide Holdings, Inc., 9.25%,       
12/15/17 (b)  USD  1,218  $ 1,250,040 
DISH DBS Corp., 7.00%, 10/01/13    375  383,438 
Seat Pagine Gialle SpA, 10.50%, 1/31/17  EUR  434  547,050 
TL Acquisitions, Inc., 10.50%, 1/15/15 (b)  USD  400  364,500 
UPC Germany GmbH, 8.13%, 12/01/17 (b)    1,000  1,000,000 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18 (b)    250  246,250 
      6,608,703 
Metals & Mining — 1.1%       
Aleris International, Inc. (c)(g):       
     9.00%, 12/15/14    370  925 
     10.00%, 12/15/16    500  10,625 
RathGibson, Inc., 11.25%, 2/15/14 (c)(g)    1,390  446,538 
Ryerson, Inc., 7.62%, 11/01/14 (a)    1,075  959,437 
      1,417,525 
Multiline Retail — 0.2%       
Dollar General Corp., 11.88%, 7/15/17 (f)    215  249,937 
Oil, Gas & Consumable Fuels — 0.2%       
OPTI Canada, Inc., 9.00%, 12/15/12 (b)    300  305,250 
Paper & Forest Products — 2.8%       
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(f)    686  510,897 
Clearwater Paper Corp., 10.63%, 6/15/16 (b)    190  210,900 
NewPage Corp.:       
     10.00%, 5/01/12    550  316,250 
     11.38%, 12/31/14    2,070  1,976,850 
Verso Paper Holdings LLC:       
     11.50%, 7/01/14 (b)    160  168,000 
     4.00%, 8/01/14 (a)    455  367,413 
      3,550,310 
Pharmaceuticals — 0.6%       
Angiotech Pharmaceuticals, Inc., 4.00%, 12/01/13 (a)    305  247,050 
Elan Corp. Plc, 8.75%, 10/15/16 (b)    295  286,150 
Novasep Holding SAS, 9.63%, 12/15/16  EUR  137  172,556 
      705,756 
Real Estate Investment Trusts (REITs) — 0.2%       
Omega Healthcare Investors, Inc., 7.50%, 2/15/20 (b)  USD  310  313,100 
Semiconductors & Semiconductor Equipment — 0.7%       
Spansion, Inc., 3.79%, 6/01/13 (b)(c)(g)    830  821,700 
Software — 0.0%       
BMS Holdings, Inc., 7.89%, 2/15/12 (b)(f)    488  9,759 
Specialty Retail — 0.3%       
United Auto Group, Inc., 7.75%, 12/15/16    355  338,581 
Wireless Telecommunication Services — 2.0%       
Cricket Communications, Inc., 7.75%, 5/15/16    1,000  1,016,250 
Digicel Group Ltd., 9.13%, 1/15/15 (b)(f)    1,129  1,100,775 
iPCS, Inc., 2.37%, 5/01/13 (a)    200  184,000 
Orascom Telecom Finance SCA, 7.88%, 2/08/14 (b)    325  286,000 
      2,587,025 
Total Corporate Bonds — 39.1%      49,693,243 
Floating Rate Loan Interests (a)       
Aerospace & Defense — 0.9%       
Hawker Beechcraft Term Loan B, 10.50%, 3/26/14    125  113,855 
TASC, Inc.:       
     Tranche A Term Loan, 5.50%, 12/18/14    340  341,417 
     Tranche B Term Loan, 5.75%, 12/18/15    660  664,400 
      1,119,672 

See Notes to Financial Statements.

18 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (a)    (000)           Value 
Auto Components — 2.8%       
Affinion Group Holdings, Inc., Tranche B Term Loan,       
 2.73%, 10/17/12  USD  325  $ 315,412 
Allison Transmission, Inc., Term Loan, 2.98% – 3.00%,       
 8/07/14    1,920  1,758,055 
Dana Holding Corp., Term Advance, 4.48% – 6.50%,       
 1/30/15    622  606,296 
Exide Technologies Term Loan, 3.91%, 5/15/12  EUR  150  183,824 
Lear Corp., Loan (Closing Date Loan & Delayed       
 Draw Loan), 7.50%, 11/09/14  USD  703  704,584 
      3,568,171 
Automobiles — 0.9%       
Ford Motor Co., Tranche B-1 Term Loan, 3.24% – 3.26%,       
 12/15/13    1,218  1,134,833 
Beverages — 0.2%       
Culligan International Co., Loan (Second Lien), 5.18%,       
 4/24/13  EUR  500  281,409 
Building Products — 2.1%       
Building Materials Corp. of America:       
     Second Lien Term Loan, 6.00%, 9/15/14  USD  750  738,000 
     Term Loan Advance, 3.00%, 2/22/14    748  728,487 
Goodman Global, Inc., Term Loan, 6.25%, 2/13/14    1,172  1,176,650 
      2,643,137 
Chemicals — 4.4%       
Ashland Inc., Term B Borrowing, 7.65%, 5/13/14    274  277,063 
Chemtura Corp. Debtor in Possession Return of Capital       
 Term Loan, 6.00%, 1/26/11    800  803,500 
Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),       
 2.25%, 5/31/14    275  218,878 
Gentek Holding, LLC, Tranche B Term Loan, 7.00%,       
 10/29/14    400  402,000 
Huish Detergents Inc., Tranche B Term Loan, 2.01%,       
 4/26/14    241  231,038 
Matrix Acquisition Corp. (MacDermid, Inc.),       
 Tranche C Term Loan, 2.63%, 12/15/13  EUR  248  275,385 
Nalco Co., Term Loan, 6.50%, 5/13/16  USD  622  626,228 
PQ Corp. (fka Niagara Acquisition, Inc.), Original       
 Term Loan (First Lien), 3.48% – 3.50%, 7/30/14    493  450,638 
Rockwood Specialties Group, Inc., Term Loan H, 6.00%,       
 5/15/14    725  727,175 
Solutia Inc., Loan, 7.25%, 2/28/14    734  743,232 
Tronox Worldwide LLC, Tranche B-1 Term Loan, 9.00%,       
 6/24/10    800  820,960 
      5,576,097 
Commercial Services & Supplies — 2.8%       
ARAMARK Corp.:       
     LC Facility Letter of Credit, 2.11%, 1/26/14    39  37,004 
     US Term Loan, 2.13%, 1/26/14    590  562,670 
Advanced Disposal Services, Inc., Term B Loan, 6.00%,       
 1/14/15    500  500,000 
Casella Waste Systems, Inc, Term B Loan, 7.00%,       
 4/09/14    398  400,488 
Johnson Diversey, Inc. Term Loan B, 5.50%, 11/24/15    425  428,187 
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.23%, 4/02/14    721  635,947 
West Corp., Incremental Term B-3 Loan, 7.25%,       
 10/24/13    996  1,005,524 
      3,569,820 
Construction & Engineering — 1.2%       
Safway First Out Term Loan, 9.00%, 12/14/17    800  800,000 
Welding Services Term Loan B, 9.35%, 12/16/13    747  751,197 
      1,551,197 

    Par   
Floating Rate Loan Interests (a)    (000)           Value 
Consumer Finance — 1.5%       
DaimlerChrysler Financial Services Americas LLC,       
 Term Loan (First Lien), 4.24%, 8/03/12  USD  1,970  $ 1,944,701 
Containers & Packaging — 1.3%       
Anchor Glass Term Loan B, 6.00%, 2/18/16    675  668,250 
Berry Plastics Holding Corp., Term C Loan, 2.25%, 4/03/15  579  517,608 
Graham Packaging Co., LP, B Term Loan, 2.50%, 10/07/11  432  426,510 
      1,612,368 
Diversified Consumer Services — 2.9%       
Coinmach Service Corp., Term Loan, 3.25%, 11/14/14    1,719  1,487,193 
Laureate Education Term Loan B, 7.00%, 8/15/14    2,146  2,126,153 
      3,613,346 
Diversified Financial Services — 1.2%       
CIT Group, Inc., Tranche 2A Term Loan, 9.50% – 9.75%,       
 1/20/12 (f)    890  911,694 
Reynolds Group Holdings Inc., US Term Loan, 6.25%,       
 11/05/15    600  603,750 
      1,515,444 
Diversified Telecommunication Services — 2.1%       
Cavtel Holdings, LLC, Term Loan, 10.50%, 12/31/12    323  276,798 
Hawaiian Telcom Communications, Inc., Tranche C       
 Term Loan, 4.75%, 5/30/14    1,531  1,152,257 
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    546  545,459 
Level 3 Communications Incremental Term Loan, 7.59%,       
 3/13/14    550  495,573 
US Telepacific Corp. Second Lien Term Loan, 7.75%,       
 7/25/15    225  225,422 
      2,695,509 
Electrical Equipment — 0.6%       
Baldor Electric Co., Term Loan, 5.25%, 1/31/14    711  712,341 
Energy Equipment & Services — 0.4%       
MEG Energy Corp., Tranche D Term Loan, 6.00%,       
 4/03/16    547  537,026 
Food & Staples Retailing — 3.7%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.54%, 7/09/15  GBP  750  1,024,480 
Bolthouse Farms, Inc. Term Loan B, 3.75%, 2/04/16  USD  550  550,000 
Pierre Foods Term Loan B, 8.50%, 9/30/14    304  303,240 
Pilot Travel Centers Term Loan B, 3.50%, 11/18/15    1,500  1,506,954 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/10/15    900  932,400 
SUPERVALU Inc., Term B Advance, 1.48%, 6/02/12    331  321,020 
      4,638,094 
Food Products — 3.8%       
CII Investment, LLC (fka Cloverhill), Term Loan B, 8.50%,       
 10/14/14    904  903,571 
Dole Food Co., Inc.:       
     Credit-Linked Deposit, 7.89%, 4/12/13    86  86,311 
     Term Loan B, 3.50%, 2/10/17    441  441,397 
     Term Loan C, 5.50%, 2/10/17    1,059  1,059,353 
     Tranche B Term Loan, 8.00%, 4/12/13    150  150,099 
Pilgrim's Pride Corp. Term Loan A, 5.29%, 12/01/12    500  492,500 
Pinnacle Foods Finance LLC, Tranche C Term Loan,       
 7.50%, 4/02/14    1,200  1,204,928 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,       
 4/12/13    487  487,000 
      4,825,159 
Health Care Equipment & Supplies — 1.0%       
Biomet, Inc., Dollar Term Loan, 3.23% – 3.25%,       
 3/25/15  USD  672  649,587 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.23%, 5/20/14    664  641,127 
Hologic, Inc., Tranche B Term Loan, 3.50%, 3/29/13    35  34,341 
      1,325,055 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 19


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (a)    (000)           Value 
Health Care Providers & Services — 4.0%       
CCS Medical, Inc. (Chronic Care), Loan (Debtor in       
 Possession), 13.00%, 3/31/10  USD  31  $ 31,247 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.50%, 7/25/14    97  90,610 
     Funded Term Loan, 2.48% -2.50%, 7/25/14    1,894  1,769,921 
DaVita Inc., Tranche B-1 Term Loan, 1.73% – 1.76%,       
 10/05/12    300  292,988 
Fresenius SE:       
     Tranche B1 Term Loan, 6.75%, 9/10/14    99  99,832 
     Tranche B2 Term Loan, 6.75%, 9/10/14    69  69,658 
HCA Inc.:       
     Tranche A-1 Term Loan, 1.75%, 11/16/12    1,482  1,399,840 
     Tranche B-1 Term Loan, 2.50%, 11/18/13    387  367,453 
Vanguard Health Systems Term Loan B, 5.00%, 1/29/16  1,000  1,001,250 
      5,122,799 
Health Care Technology — 1.0%       
IMS Healthcare Term Loan B, 5.25%, 2/16/16    1,200  1,204,800 
Hotels Restaurants & Leisure — 5.1%       
Cedar Fair LP Term Loan B, 4.00%, 2/04/16    750  748,828 
Green Valley Ranch Gaming, LLC, Loan (Second Lien),     
 3.50%, 8/16/14    500  50,000 
Harrah's Operating Co., Inc., Term B-4 Loan, 9.50%,       
 10/31/16    1,500  1,495,833 
Lake at Las Vegas Joint Venture / LLV-1, LLC (c)(g):       
     Mezzanine, 20.00%, 10/01/10    2  25 
     Revolving Loan Credit-Linked Deposit Account,       
     14.35%, 6/20/12    120  1,204 
     Term Loan, 14.35%, 6/20/12    1,312  13,114 
QCE, LLC (Quiznos), Term Loan (Second Lien), 2.56%,     
 5/05/13    172  147,062 
SW Acquisitions Co., Inc., Term Loan, 5.75%, 6/01/16  1,000  1,004,375 
Six Flags Theme Parks, Inc. Term Loan, 4.50%, 6/13/15  1,750  1,733,812 
Universal City Development Term Loan B, 7.75%,       
 11/06/14    750  754,219 
VML US Finance LLC (aka Venetian Macau) Term B:       
     Delayed Draw Project Loan, 4.76%, 5/25/12    64  60,525 
     Funded Project Loan, 4.76%, 5/27/13    458  436,016 
      6,445,013 
Household Durables — 0.8%       
American Residential Services LLC, Term Loan       
 (Second Lien), 12.00%, 4/17/15 (f)    1,030  991,654 
IT Services — 3.3%       
Audio Visual Services Group, Inc.:       
     Loan (Second Lien) 5.76%, 8/28/14    539  53,852 
     Tranche B Term Loan (First Lien), 2.51%, 2/28/14  746  522,328 
Ceridian Corp., US Term Loan, 3.23% – 3.25%,       
 11/09/14    989  864,426 
First Data Corp.:       
     Initial Tranche B-2 Term Loan, 3.00%, 9/24/14    2,123  1,851,073 
     Initial Tranche B-3 Term Loan, 3.00%, 9/24/14    121  104,942 
SunGard Data Systems, Inc. (Solar Capital Corp.):       
     Incremental Term Loan, 6.75%, 2/28/14    497  499,222 
     Tranche B US Term Loan, 3.86% – 3.87%, 2/28/16  323  314,438 
      4,210,281 
Independent Power Producers & Energy Traders — 1.4%     
Dynegy Holdings Inc.:       
     Term Letter of Credit Facility Term Loan, 3.98%,       
     4/02/13    694  677,261 
     Tranche B Term Loan, 3.98%, 4/02/13    56  54,519 
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-1 Term Loan, 3.73% – 3.75%,       
     10/10/14    1,097  881,518 
     Initial Tranche B-2 Term Loan, 3.73% – 3.75%,       
     10/10/14    231  185,477 
      1,798,775 

    Par   
Floating Rate Loan Interests (a)    (000)           Value 
Industrial Conglomerates — 0.4%       
Sequa Corp., Term Loan, 3.51% -3.94%, 12/03/14  USD  522  $ 477,602 
Insurance — 0.4%       
Alliant Holdings I, Inc., Term Loan, 3.25%, 8/21/14    489  461,258 
Internet & Catalog Retail — 0.3%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/26/14    422  422,391 
Machinery — 1.9%       
Accuride Term Loan, 10.00%, 1/31/12    460  459,042 
Bucyrus International Term Loan C, 4.50%, 1/26/16    1,000  1,005,300 
Oshkosh Truck Corp., Term B Loan, 6.25% – 6.26%,       
 12/06/13    999  998,059 
      2,462,401 
Media — 18.8%       
Affinion Group Holdings, Inc., Loan, 7.89%, 3/01/12 (f)    864  816,416 
Cengage Learning Acquisitions, Inc. (Thomson Learning),       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    1,495  1,480,000 
Cequel Communications, LLC:       
     Term Loan, 2.25% – 4.25%, 11/05/13    283  267,988 
     Tranche A Term Loan, (Second Lien)4.75%, 5/05/14    2,000  1,948,200 
Charter Communications Operating, LLC, New Term Loan,       
 2.23%, 3/06/14    3,200  2,984,870 
EB Sports Corp., Loan, 11.50%, 5/01/12    428  397,803 
Ellis Communications KDOC, LLC, Loan, 10.00%,       
 12/30/11    1,939  543,007 
HMH Publishing Co. Ltd.:       
     Mezzanine, 17.50%, 11/14/14 (f)    252  31,102 
     Tranche A Term Loan, 5.23%, 6/12/14    800  672,786 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.50% – 2.56%, 3/10/14    744  332,449 
Insight Midwest Holdings, LLC, B Term Loan, 2.25%,       
 4/07/14    475  456,074 
Intelsat Corp. (fka PanAmSat Corp.):       
     Tranche B-2-A Term Loan, 2.73%, 1/03/14    166  158,061 
     Tranche B-2-B Term Loan, 2.73%, 1/03/14    166  158,013 
     Tranche B-2-C Term Loan, 2.73%, 1/03/14    166  158,013 
Lamar Media Corp.:       
     Series B Incremental Loan, 5.50% – 5.75%,       
     9/28/12    540  535,725 
     Series E Incremental Loan, 5.50% – 5.75%,       
     3/31/13    235  234,943 
     Term Loan, 5.50% – 5.75%, 9/28/12    1,155  1,146,516 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG),       
 Facility B1, 3.34%, 6/30/15  EUR  337  314,143 
Mediacom Illinois, LLC (fka Mediacom       
 Communications, LLC), Tranche D Term Loan,       
 5.50%, 3/31/17  USD  499  498,122 
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13    2,000  2,137,500 
Nielsen Finance LLC:       
     Class B Dollar Term Loan, 3.98%, 5/01/16    1,028  995,348 
     Dollar Term Loan, 2.23%, 8/09/13    590  555,627 
Penton Media, Inc.:       
     Loan (Second Lien), 9.25%, 2/01/14 (c)(g)    1,000  133,333 
     Term Loan (First Lien), 2.48% – 2.50%, 2/01/13    973  709,925 
Sinclair Television Group, Inc., Tranche B Term Loan,       
 6.50%, 10/29/15    750  753,750 
Springer Science+Business Media SA, Facility A1,       
 6.75%, 7/01/16  EUR  1,000  1,345,769 
Sunshine Acquisition Ltd. (aka HIT Entertainment),       
 Term Facility, 2.50%, 3/20/12  USD  825  725,313 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    494  494,980 
United Pan Europe Communications, Term Loan, 3.93%,       
 12/30/16    1,000  972,000 
Virgin Media Investment Holdings Ltd., C Facility, 3.58%,       
 7/17/13  GBP  570  811,923 

See Notes to Financial Statements.

20 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (a)    (000)           Value 
Media (concluded)       
Worldcolor Press Inc. and Worldcolor (USA) Corp.       
 (fka Quebecor World, Inc.), Advance, 9.00%, 7/23/12  USD  349  $ 352,771 
Yell Group Plc TPI Term Loan A, 7.12%, 8/09/11    750  718,125 
      23,840,595 
Metals & Mining — 1.7%       
Euramax International, Inc., Domestic Term Loan:       
     10.00%, 6/29/13    643  521,067 
     14.00%, 6/29/13 (f)    659  533,769 
RathGibson, Inc., Loan (Debtor in Possession), 10.75%,       
 6/30/10    1,148  1,147,507 
      2,202,343 
Multi-Utilities — 0.4%       
FirstLight Power Resources, Inc. (fka NE Energy, Inc:       
     Synthetic Letter of Credit, 2.81%, 11/01/13    46  42,597 
     Term B Advance (First Lien), 2.75%, 11/01/13    496  462,685 
      505,282 
Multiline Retail — 1.9%       
Dollar General Corp., Tranche B-2 Term Loan, 2.98%,       
 7/07/14    640  615,941 
Hema Holding BV, Facility D, 5.42%, 1/01/17  EUR  1,400  1,601,307 
The Neiman Marcus Group Inc., Term Loan, 2.26%,       
 4/06/13  USD  195  175,024 
      2,392,272 
Oil, Gas & Consumable Fuels — 1.8%       
Big West Oil, LLC:       
     Delayed Advance Loan, 4.50%, 5/15/14    363  355,418 
     Initial Advance Loan, 4.50%, 5/15/14    288  282,559 
     Initial Advance Loan, 9.75%, 1/26/15    325  326,625 
Turbo Beta Ltd., Dollar Facility, 14.50%, 3/15/18 (f)    1,760  1,320,358 
      2,284,960 
Paper & Forest Products — 0.6%       
Georgia-Pacific LLC, Term Loan B, 2.25% – 2.26%,       
 12/23/12    738  721,118 
Personal Products — 0.4%       
American Safety Razor Co., LLC:       
     Loan (Second Lien), 6.51%, 1/30/14    325  190,125 
     Term Loan (First Lien), 2.75% – 2.76%, 7/31/13    225  203,777 
Revlon Consumer Products Corp., Term Loan,       
 4.25% – 4.26%, 1/15/12    150  147,610 
      541,512 
Pharmaceuticals — 1.3%       
Warner Chilcott Co., LLC, Term A Loan, 5.50%, 10/30/14    542  542,237 
Warner Chilcott Corp., Term B-1 Loan, 5.75%, 4/30/15    1,153  1,152,279 
      1,694,516 
Professional Services — 0.8%       
Booz Allen Hamilton, Inc., Term Loan C, 6.00%, 7/31/15    1,000  1,003,125 
Real Estate Management & Development — 1.0%       
Realogy Corp.:       
     Delayed Draw Term B Loan, 3.25%, 10/10/13    549  483,763 
     Initial Term B Loan, 3.25%, 10/10/13    196  173,247 
     Synthetic Letter of Credit, 3.23%, 10/10/13    53  46,643 
     Term Loan (Second Lien), 13.50%, 10/15/17    500  543,750 
      1,247,403 
Specialty Retail — 0.6%       
Michaels Stores, Inc.:       
     Term Loan B, 2.50% – 2.56%, 10/31/13    280  252,095 
     Term Loan B-1, 4.75% – 4.81%, 7/31/16    516  491,915 
      744,010 
Textiles, Apparel & Luxury Goods — 0.3%       
Hanesbrands Inc., New Term Loan, 5.25%, 12/10/15    400  403,000 

  Par   
Floating Rate Loan Interests (a)  (000)  Value 
Wireless Telecommunication Services — 0.7%     
Digicel International Finance Ltd., Tranche A, 2.81%,     
 3/30/12  USD 175  $ 168,438 
MetroPCS Wireless, Inc., Tranche B Term Loan, 2.50%,     
 11/03/13  748  720,716 
    889,154 
Total Floating Rate Loan Interests — 82.7%    104,929,643 
  Beneficial   
  Interest   
Other Interests (i)  (000)   
Auto Components — 0.9%     
Delphi Debtor in Possession Holding Co. LLP, Class B     
 Membership Interests  —(j)  1,067,720 
Intermet Liquidating Trust, Class A  417  121,477 
    1,189,197 
Diversified Financial Services — 0.5%     
J.G. Wentworth LLC Preferred Equity Interests  —(j)  573,521 
Hotels Restaurants & Leisure — 0.0%     
Buffets, Inc.  360  36 
Household Durables — 0.3%     
Stanley Martin, Class B Memebership Units  1  375,000 
Total Other Interests — 1.7%    2,137,754 
Warrants (k)  Shares   
Hotels Restaurants & Leisure — 0.0%     
Buffets Restaurants Holdings, Inc. (expires 4/29/14)  304  3 
Oil, Gas & Consumable Fuels — 0.0%     
Turbo Cayman Ltd. (no expiration)  1   
Total Warrants — 0.0%    3 
Total Long-Term Investments     
(Cost — $180,489,619) — 126.2%    160,131,871 
Short-Term Securities     
BlackRock Liquidity Funds, TempFund, Institutional     
 Class 0.09% (l)(m)  1,615,121  1,615,121 
Total Short-Term Securities     
(Cost — $1,615,121) — 1.3%    1,615,121 
Options Purchased  Contracts   
Over-the-Counter Call Options — 0.0%     
Marsico Parent Superholdco LLC,     
 Strike Price $942.86, Expires 12/21/19,     
 Broker Goldman Sachs Bank USA  13  2,470 
Total Options Purchased (Cost — $12,711) — 0.0%    2,470 
Total Investments (Cost — $182,117,451*) — 127.5%    161,749,462 
Liabilities in Excess of Other Assets — (27.5)%    (34,852,999) 
Net Assets — 100.0%    $126,896,463 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 21


Schedule of Investments (continued) BlackRock Diversified Income Strategies Fund, Inc. (DVF)

 * The cost and unrealized appreciation (depreciation) of investments as of 
  February 28, 2010, as computed for federal income tax purposes, were as follows: 
  Aggregate cost            $182,793,594 
  Gross unrealized appreciation        $ 4,887,935 
  Gross unrealized depreciation        (25,868,167) 
  Net unrealized depreciation        $ (20,980,232) 
(a) Variable rate security. Rate shown is as of report date.     
(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) Non-income producing security.         
(d) Represents a zero-coupon bond. Rate shown reflects the current yield as of 
  report date.             
(e) Convertible security.           
 (f) Represents a payment-in-kind security which may pay interest/dividends in 
  additional face/shares.           
(g) Issuer filed for bankruptcy and/or is in default of interest payments.   
(h) All or a portion of security has been pledged as collateral in connection with swaps. 
 (i) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
  zation entities and are non-income producing.     
 (j) Amount is less than $1,000.         
(k) Warrants entitle the Fund to purchase a predetermined number of shares of com- 
  mon stock and are non-income producing. The purchase price and number of 
  shares are subject to adjustment under certain conditions until the expiration date. 
 (l) 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 Funds, TempFund,         
     Institutional Class      $ (756,457)  $2,200 
(m) Represents the current yield as of report date.     
   Foreign currency exchange contracts as of February 28, 2010 were as follows: 
  Currency  Currency       Settlement Unrealized 
  Purchased    Sold    Counterparty  Date  Appreciation 
  USD       6,887,624 EUR       4,822,000    Citibank NA  3/24/10  $ 322,031 
  USD  693,072  CAD  725,000      Goldman Sachs   
              International  4/21/10  4,104 
  USD  156,898  GBP  100,500    Citibank NA  4/21/10  3,717 
  USD  337,184  GBP  209,000  Deutsche Bank AG          4/21/10  18,627 
  USD       1,062,877 GBP  656,500        Morgan Stanley   
              Capital     
              Service, Inc.  4/21/10  62,243 
  Total                $ 410,722 
   Interest rate swaps outstanding as of February 28, 2010 were as follows: 
                Notional  
  Fixed    Floating        Amount  Unrealized 
  Rate    Rate  Counterparty             Expiration    (000)  Depreciation 
  4.82%1  3-month  JPMorgan       January     
      LIBOR  Chase Bank NA  2013  USD 20,000  $ (1,842,608) 
   1 Pays fixed interest rate and receives floating rate.     

  Credit default swaps on single-name issues — buy protection outstanding as of 
  February 28, 2010 were as follows:           
      Pay          Notional   
      Fixed         Amount  Unrealized 
  Issuer  Rate     Counterparty        Expiration  (000)  Depreciation 
  Brunswick  5.00%              Goldman Sachs                           September                  USD 100                                     $ (2,826) 
   Corp.         Bank USA             2014     
  Credit default swaps on trade index — sold protection outstanding as of 
  February 28, 2010 were as follows:           
      Receive          Notional   
      Fixed  Counter-      Credit     Amount  Unrealized 
  Index  Rate             party                  Expiration                   Rating2  (000)3  Depreciation 
  Aces High  5.00%  Morgan  March  CCC      USD 6,736  $ (148,600) 
   Yield Index    Stanley  2010       
        Capital           
        Services, Inc.           
  Credit default swaps on single-name issues — sold protection outstanding as of 
  February 28, 2010 were as follows:           
      Receive          Notional   
      Fixed  Counter-      Credit  Amount  Unrealized 
  Issuer  Rate           party                 Expiration             Rating4  (000)3  Depreciation 
  BAA  2.00%                     Deutsche            March  A–  GBP 300  $ (31,565) 
   Ferrovial    Bank AG  2012       
   Junior Term               
   Loan               
   2  Using Standard & Poor’s weighted average ratings of the underlying securities 
     in the index.             
   3  The maximum potential amount the Fund may pay should a negative credit 
    event take place under the terms of the agreement. See Note 2 of the Notes to 
     Financial Statements.           
   4   Using Standard & Poor’s rating of the issuer.     
  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.     
  Fair Value Measurements — Various inputs are used in determining the fair value of 
  investments, which are as follows:           
  Level 1 — price quotations inactive 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 face value of investments) 
  The inputs or methodologies used for valuing securities are not necessarily an indi- 
  cation 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 Note 1 of the Notes to Financial Statements. 

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (concluded) BlackRock Diversified Income Strategies Fund, Inc. (DVF)

The following tables summarize the inputs used as of February 28, 2010 in deter- 
mining the fair valuation of the Fund’s investments:       
Investments in Securities

Valuation Inputs  Level 1  Level 2  Level 3    Total 
Assets:           
Long-Term           
   Investments:           
Asset-Backed           
   Securities    — $  513,243  $ 513,243 
Common Stocks  $ 2,050,798  $ 734,669  72,518    2,857,985 
Corporate Bonds    48,607,728  1,085,515    49,693,243 
Floating Rate           
   Loan Interests    83,082,162  21,847,481  104,929,643 
Other Interests      2,137,754    2,137,754 
Warrants      3    3 
Short-Term           
   Securities  1,615,121        1,615,121 
Total  $ 3,665,919  $132,424,559   $ 25,656,514  $161,746,992 
Other Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3    Total 
Assets    $ 413,192 $  3,737  $ 416,929 
Liabilities    (2,025,599)  (16,408)    (2,042,007) 
Total    $ (1,612,407) $       (12,671) $  (1,625,078) 
1 Other financial instruments are swaps, foreign currency exchange contracts, 
     options and unfunded loan commitments. Swaps, foreign currency exchange 
      contracts and unfunded loan commitments are shown at the unrealized appre- 
     ciation/depreciation on the instrument and options are shown at value. 

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:     
      Investments in Securities     
  Asset-Backed  Common  Corporate  Floating Rate  Other     
  Securities  Stocks  Bonds  Loan Interests  Interests  Warrants  Total 
Balance, as of August 31, 2009  $ 528,255  $ 5,436  $ 1,033,683  $25,553,048  $ 228,602  $ 3  $27,349,027 
Accrued discounts/premiums               
Realized gain (loss)      (4,207)  (5,829,137)  (7,383)    (5,840,727) 
Change in unrealized appreciation/depreciation2  (15,012)  13,808  4,207  9,588,838  352,338    9,944,179 
Net purchases (sales)      3,506  (9,421,534)      (9,418,028) 
Net transfers in/out of Level 3    53,274  48,326  1,956,266  1,564,197    3,622,063 
Balance, as of February 28, 2010  $ 513,243  $ 72,518  $ 1,085,515  $21,847,481  $ 2,137,754  $ 3  $25,656,514 
2 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in unrealized appreciation/depreciation on securities 
     still held at February 28, 2010 was $6,059,889.               

The following table is a reconciliation of Level 3 other financial instruments for which significant 
unobservable inputs were used to determine fair value:     
  Other Financial Instruments3 
  Assets  Liabilities 
Balance, as of August 31, 2009  $ 38,010   
Accrued discounts/premiums     
Realized gain (loss)     
Change in unrealized appreciation/depreciation     
Net purchases (sales)     
Net transfers in/out of Level 3  (34,273)  $ (16,408) 
Balance as of February 28, 2010  $ 3,737  $ (16,408) 
 3 Other financial instruments are unfunded loan commitments.     

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 23


Schedule of Investments February 28, 2010 (Unaudited)

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

Common Stocks (a)    Shares           Value 
Building Products — 0.6%       
Masonite Worldwide Holdings  USD  33,758  $ 1,417,836 
Chemicals — 0.0%       
GEO Specialty Chemicals, Inc.    13,117  5,036 
Wellman Holdings, Inc.    430  107 
      5,143 
Construction Materials — 0.0%       
Nortek, Inc.    1,540  56,980 
Electrical Equipment — 0.0%       
Medis Technologies Ltd.    71,654  5,088 
Energy Equipment & Services — 0.1%       
Trico Marine Services, Inc.    119,185  308,689 
Paper & Forest Products — 0.2%       
Ainsworth Lumber Co. Ltd.    136,289  286,256 
Ainsworth Lumber Co. Ltd. (b)    152,951  321,252 
Western Forest Products, Inc. (b)    84,448  17,657 
      625,165 
Total Common Stocks — 0.9%      2,418,901 
    Par   
Corporate Bonds    (000)   
Airlines — 0.2%       
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16    600  618,000 
Auto Components — 0.0%       
Delphi International Holdings Unsecured, 12.00%,       
 10/06/14    32  32,306 
Building Products — 2.1%       
CPG International I, Inc.:       
     7.18%, 7/01/12 (c)    3,500  3,325,000 
     10.50%, 7/01/13    2,300  2,254,000 
      5,579,000 
Capital Markets — 0.3%       
Marsico Parent Co., LLC, 10.63%, 1/15/16 (b)    1,048  630,110 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(d)  447  98,895 
Marsico Parent Superholdco, LLC, 14.50%,       
 1/15/18 (b)(d)    292  50,734 
      779,739 
Chemicals — 0.5%       
GEO Specialty Chemicals, Inc.:       
     7.50%, 3/31/15 (b)(e)    857  557,042 
     10.00%, 3/31/15    844  548,704 
Wellman Holdings, Inc. Third Lien Subordinate Note,     
 5.00%, 1/29/19 (d)(e)    451  226,366 
      1,332,112 
Commercial Services & Supplies — 0.5%       
Clean Harbors, Inc., 7.63%, 8/15/16    800  808,000 
The Geo Group, Inc., 7.75%, 10/15/17 (b)    550  556,875 
      1,364,875 
Communications Equipment — 0.1%       
Brocade Communications Systems, Inc., 6.88%,       
 1/15/20 (b)    105  107,100 
Construction Materials — 0.6%       
Nortek, Inc., 11.00%, 12/01/13    1,547  1,624,186 
Consumer Finance — 0.6%       
Credit Acceptance Corp., 9.13%, 2/01/17 (b)    360  358,200 
Inmarsat Finance Plc, 7.38%, 12/01/17 (b)    1,225  1,255,625 
      1,613,825 

    Par   
Corporate Bonds    (000)  Value 
Containers & Packaging — 2.8%       
Berry Plastics Escrow LLC, 8.25%, 11/15/15 (b)  USD  1,600  $ 1,596,000 
Clondalkin Acquisition BV, 2.25%, 12/15/13 (b)(c)    4,000  3,570,000 
Crown European Holdings SA, 6.25%, 9/01/11  EUR  15  20,833 
Owens Brockway Glass Container, Inc., 6.75%,       
 12/01/14    143  194,717 
Packaging Dynamics Finance Corp., 10.00%,       
 5/01/16 (b)  USD  730  581,262 
Smurfit Kappa Acquisitions (b):       
     7.25%, 11/15/17  EUR  525  700,572 
     7.75%, 11/15/19    500  677,424 
      7,340,808 
Diversified Financial Services — 2.6%       
CIT Group, Inc., 7.00%, 5/01/17  USD  2,990  2,642,412 
FCE Bank Plc, 7.13%, 1/16/12  EUR  900  1,214,706 
GMAC, Inc., 2.45%, 12/01/14 (c)  USD  1,675  1,432,956 
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)    800  810,000 
Reynolds Group Issuer, Inc., 7.75%, 10/15/16 (b)  EUR  400  543,306 
      6,643,380 
Diversified Telecommunication Services — 1.7%       
Cincinnati Bell, Inc., 8.25%, 10/15/17  USD  1,100  1,100,000 
PAETEC Holding Corp., 8.88%, 6/30/17    225  226,687 
Qwest Communications International, Inc., 8.00%,       
 10/01/15 (b)    600  621,000 
Qwest Corp., 8.38%, 5/01/16    540  591,300 
Windstream Corp., 7.88%, 11/01/17    2,000  1,955,000 
      4,493,987 
Energy Equipment & Services — 0.5%       
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (b)    1,250  1,243,750 
Food & Staples Retailing — 0.1%       
AmeriQual Group LLC, 9.50%, 4/01/12 (b)    250  225,000 
Food Products — 1.0%       
B&G Foods, Inc., 7.63%, 1/15/18    600  606,000 
Bumble Bee Foods LLC, 7.75%, 12/15/15 (b)    450  451,125 
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)    1,500  1,623,750 
      2,680,875 
Health Care Equipment & Supplies — 0.5%       
DJO Finance LLC, 10.88%, 11/15/14    1,245  1,332,150 
Health Care Providers & Services — 1.5%       
Tenet Healthcare Corp. (b):       
     9.00%, 5/01/15    175  183,313 
     8.88%, 7/01/19    2,530  2,669,150 
Vanguard Health Holding Co. II LLC, 8.00%, 2/01/18 (b)    925  908,812 
      3,761,275 
Health Care Technology — 0.8%       
IMS Health, Inc., 12.50%, 3/01/18 (b)    1,860  2,139,000 
Hotels Restaurants & Leisure — 1.2%       
Icahn Enterprises LP (b):       
     7.75%, 1/15/16    1,000  940,000 
     8.00%, 1/15/18    2,000  1,880,000 
Little Traverse Bay Bands of Odawa Indians, 10.25%,       
 2/15/14 (a)(b)(f)    1,565  395,163 
      3,215,163 
Household Durables — 0.5%       
Beazer Homes USA, Inc., 12.00%, 10/15/17 (b)    1,200  1,338,000 
Independent Power Producers & Energy Traders — 1.2%       
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)  1,000  1,012,500 
NRG Energy, Inc., 7.25%, 2/01/14    2,155  2,171,163 
      3,183,663 

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

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

    Par   
Corporate Bonds    (000)  Value 
Industrial Conglomerates — 0.9%       
Sequa Corp. (b):       
     11.75%, 12/01/15  USD  640  $ 627,200 
     13.50%, 12/01/15 (d)    1,757  1,761,729 
      2,388,929 
Machinery — 0.6%       
Sunstate Equipment Co. LLC, 10.50%, 4/01/13 (b)    1,880  1,630,900 
Marine — 0.2%       
Navios Maritime Holdings, Inc., 8.88%, 11/01/17 (b)    530  539,275 
Media — 4.0%       
Affinion Group, Inc., 10.13%, 10/15/13    1,050  1,060,500 
CSC Holdings, Inc., 8.50%, 4/15/14 (b)    420  441,525 
Cablevision Systems Corp., Series B, 8.00%, 4/15/12    975  1,027,406 
Clear Channel Worldwide Holdings, Inc., 9.25%,       
12/15/17 (b)    2,520  2,586,292 
DISH DBS Corp., 7.00%, 10/01/13    925  945,813 
Seat Pagine Gialle SpA, 10.50%, 1/31/17 (b)  EUR  893  1,125,613 
UPC Germany GmbH, 8.13%, 12/01/17 (b)  USD  2,000  2,000,000 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18 (b)    1,250  1,231,250 
      10,418,399 
Metals & Mining — 0.4%       
FMG Finance Property Ltd., 4.25%, 9/01/11 (b)(c)    265  261,025 
Ryerson, Inc., 7.62%, 11/01/14 (c)    900  803,250 
      1,064,275 
Multiline Retail — 0.2%       
Dollar General Corp., 11.88%, 7/15/17 (d)    445  517,313 
Paper & Forest Products — 0.8%       
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(d)    1,205  897,911 
NewPage Corp., 10.00%, 5/01/12    610  350,750 
Verso Paper Holdings LLC, Series B, 4.00%, 8/01/14 (c)    910  734,825 
      1,983,486 
Pharmaceuticals — 0.9%       
Angiotech Pharmaceuticals, Inc., 4.00%, 12/01/13 (c)    605  490,050 
Elan Finance Plc, 4.25%, 11/15/11 (c)    1,820  1,747,200 
      2,237,250 
Semiconductors & Semiconductor Equipment — 1.1%       
Advanced Micro Devices, Inc., 8.13%, 12/15/17 (b)    660  668,250 
Spansion, Inc., 3.79%, 6/01/13 (a)(b)(f)    1,720  1,702,800 
STATS ChipPAC Ltd.:       
     7.50%, 7/19/10    180  181,575 
     6.75%, 11/15/11    385  383,556 
      2,936,181 
Software — 0.1%       
JDA Software Group, Inc., 8.00%, 12/15/14 (b)    177  182,310 
Wireless Telecommunication Services — 1.6%       
Cricket Communications, Inc., 7.75%, 5/15/16    2,500  2,540,625 
Digicel Group Ltd., 9.13%, 1/15/15 (b)(d)    278  271,050 
iPCS, Inc., 2.37%, 5/01/13 (c)    1,500  1,380,000 
      4,191,675 
Total Corporate Bonds — 30.1%      78,738,187 
Floating Rate Loan Interests (c)       
Aerospace & Defense — 1.1%       
Avio SpA:       
     Facility B2, 2.35%, 12/15/14    15  14,621 
     Facility C2, 2.98%, 12/14/15    16  15,587 
Hawker Beechcraft Acquisition Co. LLC:       
     Letter of Credit Facility Deposit, 2.25%, 3/26/14    70  51,286 
     Term Loan, 2.23% – 2.25%, 3/26/14    1,135  835,465 

    Par   
Floating Rate Loan Interests (c)    (000)  Value 
Aerospace & Defense (concluded)       
IAP Worldwide Services, Inc., Term Loan (First-Lien),       
 2.00% – 7.25%, 12/30/12         —(h)   
TASC, Inc.:       
     Tranche A Term Loan, 5.50%, 12/18/14  USD   680 $  682,834 
     Tranche B Term Loan, 5.75%, 12/18/15    1,320  1,328,800 
      2,928,593 
Airlines — 0.4%       
Delta Air Lines, Inc., Credit- Linked Deposit Loan,       
 0.08% – 2.25%, 4/30/12    1,225  1,144,355 
Auto Components — 3.1%       
Affinion Group Holdings, Inc., Tranche B Term Loan,       
 2.73%, 10/17/12    675  655,087 
Allison Transmission, Inc., Term Loan, 2.98% – 3.00%,       
 8/07/14    4,274  3,914,353 
Dana Holding Corp., Term Advance, 4.48% – 6.50%,       
 1/30/15    1,136  1,106,877 
Exide Technologies Term Loan, 3.91%, 5/15/12  EUR  325  398,284 
GPX International Tire Corp., Tranche B Term Loan (a)(f):       
     14.00%, 4/11/12  USD  19  9,300 
     12.25%, 3/30/12    1,141  570,273 
Lear Corp., Loan (Closing Date Loan & Delayed       
 Draw Loan), 7.50%, 11/09/14    1,406  1,409,168 
      8,063,342 
Automobiles — 1.0%       
Ford Motor Co., Tranche B-1 Term Loan, 3.24% – 3.26%,       
 12/15/13    2,661  2,478,423 
Beverages — 0.1%       
Culligan International Co., Loan (Second Lien), 5.18%,       
 4/24/13  EUR  500  281,409 
Building Products — 2.7%       
Building Materials Corp. of America:       
     Second Lien Term Loan, 6.00%, 9/15/14  USD  1,650  1,623,600 
     Term Loan Advance, 3.00%, 2/22/14    1,833  1,784,733 
Goodman Global, Inc., Term Loan, 6.25%, 2/13/14    2,442  2,451,355 
PGT Industries, Inc., Tranche A-2 Term Loan, 7.25%,       
 2/14/12    1,453  1,264,134 
      7,123,822 
Chemicals — 6.1%       
Ashland Inc., Term B Borrowing, 7.65%, 5/13/14    726  734,218 
Chemtura Corp. Debtor in Possession Return of Capital       
 Term Loan, 6.00%, 1/26/11    1,600  1,607,000 
Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),       
 2.25%, 5/31/14    488  388,172 
Gentek Holding, LLC, Tranche B Term Loan, 7.00%,       
 10/29/14    900  904,500 
Huish Detergents Inc., Tranche B Term Loan, 2.01%,       
 4/26/14    714  685,841 
Matrix Acquisition Corp. (fka MacDermid, Inc.),       
 Tranche C Term Loan, 2.63%, 12/15/13  EUR  571  633,385 
Nalco Co., Term Loan, 6.50%, 5/13/16  USD  2,438  2,454,814 
PQ Corp. (fka Niagara Acquisition, Inc.), Original       
 Term Loan (First Lien), 3.48% – 3.50%, 7/30/14    2,715  2,484,225 
Rockwood Specialties Group, Inc., Term Loan H, 6.00%,       
 5/15/14    1,525  1,529,575 
Solutia Inc., Loan, 7.25%, 2/28/14    2,907  2,944,948 
Tronox Worldwide LLC, Tranche B-1 Term Loan, 9.00%,       
 6/24/10    1,600  1,641,920 
      16,008,598 
Commercial Services & Supplies — 3.2%       
ARAMARK Corp.:       
     Letter of Credit Facility, 2.11%, 1/26/14    92  87,304 
     US Term Loan, 2.13%, 1/26/14    1,392  1,327,533 
Advanced Disposal Services, Inc., Term B Loan, 6.00%,       
 1/14/15    1,100  1,100,000 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 25


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (c)    (000)  Value 
Commercial Services & Supplies (concluded)       
Casella Waste Systems, Inc, Term B Loan, 7.00%,       
 4/09/14  USD  746  $ 750,914 
John Maneely Co., Term Loan, 3.50%, 12/09/13    706  662,194 
Johnson Diversey, Inc. Term Loan B, 5.50%, 11/24/15    900  906,750 
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.23%, 4/02/14    1,564  1,378,906 
West Corp.:       
     Incremental Term B-3 Loan, 7.25%, 10/24/13    1,492  1,506,771 
     Term B-2 Loan, 2.60% – 2.63%, 10/24/13    531  511,856 
      8,232,228 
Construction & Engineering — 1.2%       
Safway First Out Term Loan, 9.00%, 12/14/17    1,700  1,700,000 
Welding Services Term Loan B, 9.35%, 12/16/13    1,495  1,502,394 
      3,202,394 
Consumer Finance — 0.9%       
DaimlerChrysler Financial Services Americas LLC,       
 Term Loan (First Lien), 4.24%, 8/03/12    2,401  2,370,407 
Containers & Packaging — 1.2%       
Anchor Glass Term Loan B, 6.00%, 2/18/16    1,350  1,336,500 
Berry Plastics Holding Corp., Term C Loan, 2.25%,       
 4/03/15    1,047  937,049 
Graham Packaging Co., LP:       
     B Term Loan, 2.50%, 10/07/11    105  103,224 
     C Term Loan, 6.75%, 4/05/14    664  667,033 
      3,043,806 
Diversified Consumer Services — 2.2%       
Coinmach Service Corp., Term Loan, 3.26%, 11/14/14    2,702  2,337,017 
Laureate Education Term Loan B, 7.00%, 8/15/14    3,491  3,459,567 
      5,796,584 
Diversified Financial Services — 1.2%       
CIT Group, Inc., Tranche 2A Term Loan, 9.50% – 9.75%,       
 1/20/12    1,875  1,920,703 
Reynolds Group Holdings Inc., US Term Loan, 6.25%,       
 11/05/15    1,300  1,308,125 
      3,228,828 
Diversified Telecommunication Services — 1.9%       
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    1,141  1,140,381 
Level 3 Communications Incremental Term Loan, 7.59%,       
 3/13/14    1,125  1,013,672 
US Telepacific Corp. Second Lien Term Loan, 7.75%,       
 7/25/15    475  475,891 
Wind Finance SL SA, Euro Facility (Second Lien),       
 7.67%, 12/17/14  EUR  1,000  1,356,190 
Wind Telecomunicazioni SpA, A1 Term Loan Facility,       
 2.90%, 9/22/12    712  932,127 
      4,918,261 
Electrical Equipment — 0.7%       
Baldor Electric Co., Term Loan, 5.25%, 1/31/14  USD  1,338  1,339,836 
Generac Acquisition Corp., Term Loan (First Lien),       
 2.75%, 11/10/13    524  480,183 
      1,820,019 
Energy Equipment & Services — 0.4%       
MEG Energy Corp., Tranche D Term Loan, 6.00%,       
 4/03/16    1,094  1,074,052 
Food & Staples Retailing — 3.7%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.54%, 7/09/15  GBP  1,300  1,775,766 
Bolthouse Farms, Inc. Term Loan B, 3.75%, 2/04/16  USD  1,100  1,100,000 
DS Waters of America, Inc., Term Loan, 2.50%,       
 10/29/12    914  855,006 

    Par   
Floating Rate Loan Interests (c)    (000)  Value 
Food & Staples Retailing (concluded)       
Pierre Foods Term Loan B, 8.50%, 9/30/14  USD  656  $ 653,861 
Pilot Travel Centers Term Loan B, 3.50%, 11/18/15    2,750  2,762,749 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/10/15  1,900  1,968,400 
SUPERVALU Inc., Term B Advance, 1.48%, 6/02/12    685  664,027 
      9,779,809 
Food Products — 4.5%       
CII Investment, LLC (fka Cloverhill), Term Loan B, 8.50%,     
 10/14/14    1,889  1,889,286 
Dole Food Co., Inc.:       
     Credit-Linked Deposit, 7.89%, 4/12/13    390  390,102 
     Term Loan B, 3.50%, 2/10/17    912  912,221 
     Term Loan C, 5.50%, 2/10/17    2,188  2,189,329 
     Tranche B Term Loan, 8.00%, 4/12/13    678  678,409 
Pilgrim’s Pride Corp. Term Loan A, 5.29%, 12/01/12    950  935,750 
Pinnacle Foods Finance LLC, Tranche C Term Loan,       
 7.50%, 4/02/14    2,500  2,510,267 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,       
 4/12/13    2,201  2,201,118 
      11,706,482 
Health Care Equipment & Supplies — 1.0%       
Biomet, Inc., Dollar Term Loan, 3.23% – 3.25%,       
 3/25/15    1,814  1,754,198 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.23%, 5/20/14    885  854,836 
Hologic, Inc., Tranche B Term Loan, 3.50%, 3/29/13    52  51,511 
      2,660,545 
Health Care Providers & Services — 4.2%       
CCS Medical, Inc. (Chronic Care), Loan (Debtor In       
 Possession), 13.00%, 3/31/10    31  31,247 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.50%, 7/25/14    176  164,681 
     Funded Term Loan, 2.48% – 2.50%, 7/25/14    3,429  3,203,874 
DaVita Inc., Tranche B-1 Term Loan, 1.73% – 1.76%,       
 10/05/12    285  278,338 
Fresenius SE.:       
     Tranche B1 Term Loan, 6.75%, 9/10/14    1,225  1,231,687 
     Tranche B2 Term Loan, 6.75%, 9/10/14    749  752,594 
HCA Inc.:       
     Tranche A-1 Term Loan, 1.75%, 11/16/12    1,532  1,446,956 
     Tranche B-1 Term Loan, 2.50%, 11/18/13    1,948  1,848,297 
Vanguard Health Systems Term Loan B, 5.00%, 1/29/16  2,000  2,002,500 
      10,960,174 
Health Care Technology — 1.0%       
IMS Healthcare Term Loan B, 5.25%, 2/16/16    2,500  2,510,000 
Hotels Restaurants & Leisure — 5.5%       
Cedar Fair LP Term Loan B, 4.00% 2/04/16    1,600  1,597,501 
Green Valley Ranch Gaming, LLC, Loan (Second Lien),     
 3.50%, 8/16/14    500  50,000 
Harrah’s Operating Co., Inc.:       
     Term B-1 Loan, 3.25%, 1/28/15    192  154,978 
     Term B-2 Loan, 3.25%, 1/28/15    2,259  1,823,666 
     Term B-3 Loan, 3.25%, 1/28/15    168  135,591 
Penn National Gaming, Inc., Term Loan B,       
 1.98% – 2.00%, 10/03/12    1,136  1,112,613 
QCE, LLC (Quiznos), Term Loan (Second Lien), 2.56%,     
 5/05/13    424  361,291 
SW Acquisitions Co., Inc., Term Loan, 5.75%, 6/01/16  2,250  2,259,844 
Six Flags Theme Parks, Inc. Term Loan, 4.50%, 6/13/15  3,500  3,467,625 
Travelport LLC (fka Travelport, Inc.):       
     Original Post-First Amendment and Restatement       
     Synthetic Letter of Credit Loan, 2.75%, 8/23/13    178  167,341 
     Tranche B Dollar Term Loan, 2.74% – 2.75%,       
     8/23/13    889  833,991 

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (c)    (000)           Value 
Hotels Restaurants & Leisure (concluded)       
Universal City Development Term Loan B, 7.75%,       
 11/06/14  USD  1,500  $ 1,508,437 
VML US Finance LLC (aka Venetian Macau) Term B:       
     Delayed Draw Project Loan, 4.76%, 5/25/12    320  304,159 
     Funded Project Loan, 4.76%, 5/27/13    723  687,635 
      14,464,672 
Household Durables — 1.0%       
American Residential Services LLC, Term Loan       
 (Second Lien), 12.00%, 4/17/15 (d)    2,061  1,983,308 
Jarden Corp., Term Loan B3, 2.75%, 1/24/12    544  539,736 
      2,523,044 
IT Services — 4.0%       
Audio Visual Services Group, Inc.:       
     Tranche B Term Loan (First Lien), 2.51%, 2/28/14    995  696,437 
     Loan (Second Lien), 5.76%, 8/28/14    1,077  107,704 
Ceridian Corp., US Term Loan, 3.23% – 3.25%,       
 11/09/14    1,152  1,007,492 
First Data Corp.:       
     Initial Tranche B-1 Term Loan, 2.98% – 3.00%,       
     9/24/14    356  310,851 
     Initial Tranche B-2 Term Loan, 2.98% – 3.00%,       
     9/24/14    4,606  4,016,721 
     Initial Tranche B-3 Term Loan, 3.00%,       
     9/24/14    340  295,556 
RedPrairie Corp.:       
     Loan (Second Lien), 6.75%, 1/20/13    300  285,000 
     Term Loan B, 3.31%, 7/20/12    523  507,688 
SunGard Data Systems, Inc. (Solar Capital Corp.):       
     Incremental Term Loan, 6.75%, 2/28/14    895  898,600 
     Tranche B US Term Loan, 3.86% – 3.87%, 2/28/16    2,249  2,191,538 
      10,317,587 
Independent Power Producers & Energy Traders — 1.8%       
Dynegy Holdings Inc., Tranche B Term Loan, 3.98%,       
 4/02/13    1,500  1,463,560 
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-1 Term Loan, 3.73% – 3.75%,       
     10/10/14    2,516  2,022,307 
     Initial Tranche B-2 Term Loan, 3.73% – 3.75%,       
     10/10/14    224  180,507 
     Initial Tranche B-3 Term Loan, 3.73% – 3.75%,       
     10/10/14    1,435  1,148,202 
      4,814,576 
Industrial Conglomerates — 0.6%       
Sequa Corp., Term Loan, 3.51% – 3.94%, 12/03/14    1,769  1,617,881 
Insurance — 0.2%       
Alliant Holdings I, Inc., Term Loan, 3.25%, 8/21/14    489  461,258 
Internet & Catalog Retail — 0.2%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/26/14    634  633,587 
Leisure Equipment & Products — 0.3%       
24 Hour Fitness Worldwide, Inc., Tranche B Term Loan,       
 2.76%, 6/08/12    425  401,625 
Fender Musical Instruments Corp.:       
     Delayed Draw Loan, 2.51%, 6/09/14    164  139,364 
     Initial Loan, 2.51%, 6/09/14    326  275,897 
      816,886 
Machinery — 2.4%       
Accuride Term Loan, 10.00%, 1/31/12    790  788,354 
Bucyrus International Term Loan C, 4.50%, 1/26/16    2,250  2,261,925 
NACCO Materials Handling Group, Inc., Loan,       
 2.23% – 2.52%, 3/21/13    1,448  1,165,238 
Oshkosh Truck Corp., Term B Loan, 6.25% – 6.26%,       
 12/06/13    2,069  2,067,039 
      6,282,556 

    Par   
Floating Rate Loan Interests (c)    (000)           Value 
Media — 19.5%       
Affinion Group Holdings, Inc., Loan, 7.89%,       
 3/01/12 (d)  USD  1,349  $ 1,274,412 
Catalina Marketing Corp., Initial Term Loan, 2.98%,       
 10/01/14    645  621,876 
Cengage Learning Acquisitions, Inc. (Thomson Learning),       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    4,179  4,137,000 
Cequel Communications, LLC:       
     Term Loan, 2.25%, 11/05/13    526  498,709 
     Tranche A Term Loan (Second Lien), 4.75%,       
     5/05/14    2,000  1,948,200 
     Tranche B Term Loan (Second Lien), 6.25%,       
     5/05/14    475  475,760 
Charter Communications Operating, LLC, New Term Loan,       
 2.23%, 3/06/14    5,600  5,223,523 
HMH Publishing Co. Ltd.:       
     Mezzanine, 17.50%, 11/14/14    593  73,150 
     Tranche A Term Loan, 5.23%, 6/12/14    1,607  1,351,642 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.50% – 2.56%, 3/10/14    1,466  654,925 
Harland Clarke Holdings Corp. (fka Clarke American       
 Corp.), Tranche B Term Loan, 2.73% – 2.75%, 6/30/14  975  852,638 
Insight Midwest Holdings, LLC, B Term Loan, 2.25%,       
 4/07/14    1,825  1,752,285 
Intelsat Corp. (fka PanAmSat Corp.):       
     Initial Tranche B-2-A Term Loan, 2.73%, 1/03/14    333  316,123 
     Initial Tranche B-2-B Term Loan, 2.73%, 1/03/14    332  316,026 
     Initial Tranche B-2-C Term Loan, 2.73%, 1/03/14    332  316,026 
Intelsat Subsidiary Holding Co. Ltd., Tranche B       
 Term Loan, 2.73%, 7/03/13    1,682  1,605,099 
Lamar Media Corp.:       
     Series B Incremental Loan, 5.50% – 5.75%,       
     9/28/12    971  963,702 
     Series E Incremental Loan, 5.50% – 5.75%,       
     3/31/13    470  469,886 
     Term Loan, 5.50%, 9/28/12    2,818  2,796,907 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):       
     Facility B1, 3.34%, 6/30/15  EUR  337  314,143 
     Facility C1, 3.59%, 6/30/16    337  314,143 
MCC Iowa LLC (Mediacom Broadband Group):       
     Tranche A Term Loan, 1.71%, 3/31/10  USD  200  199,000 
     Tranche E Term Loan, 6.50%, 1/03/16    2,853  2,876,101 
MCNA Cable Holdings LLC (OneLink Communications),       
 Loan, 7.23%, 3/01/13 (d)    1,289  1,005,369 
Mediannuaire Holding (Pages Jaunes), Term Loan D,       
 4.96%, 1/11/17  EUR  500  427,560 
Metro-Goldwyn-Mayer Inc., Tranche B Term Loan,       
 20.50%, 4/09/12  USD  992  595,880 
Multicultural Radio Broadcasting, Inc., Term Loan,       
 2.98%, 12/18/12    304  241,300 
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13    1,750  1,870,312 
Nielsen Finance LLC:       
     Class A, Dollar Term Loan, 2.23%, 8/09/13    547  515,300 
     Class B, Dollar Term Loan, 3.98%, 5/01/16    2,534  2,453,526 
Penton Media, Inc., Loan, 9.25%, 2/01/14 (a)(f)    1,000  133,333 
Sinclair Television Group, Inc., Tranche B Term Loan,       
 6.50%, 10/29/15    1,250  1,256,250 
Springer Science+Business Media SA, Facility A1,       
 6.75%, 7/01/16  EUR  2,000  2,691,539 
Sunshine Acquisition Ltd. (aka HIT Entertainment),       
 Term Facility, 2.50%, 3/20/12  USD  1,757  1,544,726 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    2,726  2,732,342 
UPC Financing Partnership, Facility U, 4.99%, 12/31/17 EUR  1,850  2,346,928 
Virgin Media Investment Holdings Ltd., C Facility, 3.57%,       
 7/17/13  GBP  790  1,125,296 
Worldcolor Press Inc. and Worldcolor (USA) Corp.       
 (fka Quebecor World, Inc.), Advance, 9.00%, 7/23/12    1,620  1,636,508 
Yell Group Plc TPI Term Loan A, 7.12%, 8/09/11    1,000  957,500 
      50,884,945 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 27


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (c)    (000)  Value 
Multi-Utilities — 0.8%       
Energy Transfer Equity, LP, Term Loan, 1.98%, 11/01/12  USD  1,000  $ 986,243 
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     Synthetic Letter of Credit, 2.81%, 11/01/13    53  49,150 
     Term Advance (Second Lien), 4.81%, 5/01/14    500  459,166 
     Term B Advance (First Lien), 2.75%, 11/01/13    572  533,868 
      2,028,427 
Multiline Retail — 0.8%       
Dollar General Corp., Tranche B-2 Term Loan, 2.98%,       
 7/07/14    1,686  1,621,979 
The Neiman Marcus Group Inc., Term Loan, 2.26%,       
 4/06/13    410  367,998 
      1,989,977 
Oil, Gas & Consumable Fuels — 1.3%       
Big West Oil, LLC:       
     Delayed Draw Loan, 4.50%, 5/15/14    779  763,241 
     Initial Advance Loan, 4.50%, 5/15/14    619  606,983 
     Initial Advance Loan, 9.75%, 5/15/14    625  628,125 
Coffeyville Resources, LLC, Tranche D Term Loan, 8.50%,       
 12/30/13    1,470  1,478,752 
      3,477,101 
Paper & Forest Products — 1.4%       
Georgia-Pacific LLC, Term Loan B, 2.25% – 2.26%,       
 12/23/12    2,648  2,586,550 
Verso Paper Finance Holdings LLC, Loan,       
 6.50% – 7.25%, 2/01/13 (d)    2,051  1,127,776 
      3,714,326 
Personal Products — 0.4%       
American Safety Razor Co., LLC:       
     Loan (Second Lien), 6.51%, 1/30/14    675  394,875 
     Term Loan (First Lien), 2.75% – 2.76%, 7/31/13    474  430,359 
Revlon Consumer Products Corp., Term Loan,       
 4.25% – 4.26%, 1/15/12    300  295,219 
      1,120,453 
Pharmaceuticals — 1.5%       
Catalent Pharma Solutions, Inc. (fka Cardinal       
 Health 409, Inc.), Euro Term Loan, 2.67%, 4/15/14  EUR  277  333,551 
Warner Chilcott Co., LLC, Term A Loan, 5.50%,       
 10/30/14  USD  1,119  1,118,365 
Warner Chilcott Corp., Term B-1 Loan, 5.75%, 4/30/15    2,375  2,373,761 
      3,825,677 
Professional Services — 0.9%       
Booz Allen Hamilton, Inc., Term Loan C, 6.00%, 7/31/15    2,250  2,257,031 
Real Estate Management & Development — 1.4%       
Mattamy Funding Partnership, Loan, 2.56%, 4/11/13    963  880,688 
Realogy Corp.:       
     Delayed Draw Term B Loan, 3.25%, 10/10/13    1,097  967,525 
     Initial Term B Loan, 3.25%, 10/10/13    1,950  1,719,545 
      3,567,758 
Specialty Retail — 0.9%       
Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan,       
 2.98%, 10/21/13    814  785,206 
Michaels Stores, Inc.:       
     Term Loan B, 2.50% – 2.56%, 10/31/13    596  536,657 
     Term Loan B-1, 4.75% – 4.81%, 7/31/16    1,091  1,039,472 
      2,361,335 
Textiles, Apparel & Luxury Goods — 0.3%       
Hanesbrands Inc., New Term Loan, 5.25%, 12/10/15    800  806,000 
Wireless Telecommunication Services — 1.6%       
Digicel International Finance Ltd., Tranche A, 2.81%,       
 3/30/12    2,717  2,614,811 

      Par   
Floating Rate Loan Interests (c)      (000)  Value 
Wireless Telecommunication Services (concluded)       
MetroPCS Wireless, Inc., Tranche B Term Loan, 2.50%,       
 11/03/13    USD 1,745  $ 1,681,671 
        4,296,482 
Total Floating Rate Loan Interests — 88.6%        231,593,690 
      Beneficial   
      Interest   
Other Interests (g)      (000)   
Auto Components — 1.0%         
Delphi DIP Holding Co. LLP, Class B Membership Interests  —(h)  2,669,295 
Diversified Financial Services — 0.3%         
J.G. Wentworth LLC Preferred Equity Interests      —(h)  657,741 
Total Other Interests — 1.3%        3,327,036 
Total Long-Term Investments         
(Cost — $335,041,580) — 120.9%        316,077,814 
Short-Term Securities      Shares   
BlackRock Liquidity Funds, TempFund, Institutional         
 Class 0.09% (i)(j)      1,442,325  1,442,325 
Total Short-Term Securities (Cost — $1,442,325) — 0.5%  1,442,325 
Options Purchased      Contracts   
Over-the-Counter Call Options — 0.0%         
Marsico Parent Superholdco LLC, Strike Price $942.86,       
 Expires 12/21/19, Broker Goldman Sachs Bank USA    20  3,800 
Total Options Purchased (Cost — $19,556) — 0.0%      3,800 
Total Investments (Cost — $336,503,461*) — 121.4%      317,523,939 
Liabilities in Excess of Other Assets — (21.4)%        (55,918,011) 
Net Assets — 100.0%        $261,605,928 
   * The cost and unrealized appreciation (depreciation) of investments as of 
February 28, 2010, as computed for federal income tax purposes, were as follows: 
       Aggregate cost        $336,764,990 
       Gross unrealized appreciation        $ 7,774,962 
       Gross unrealized depreciation        (27,016,013) 
       Net unrealized depreciation        $ (19,241,051) 
(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) Variable rate security. Rate shown is as of report date.     
(d) Represents a payment-in-kind security which may pay interest/dividends in addi- 
       tional face/shares.         
 (e) Convertible security.         
 (f) Issuer filed for bankruptcy and/or is in default of interest payments.   
(g) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
       zation entities and are non-income producing.         
(h) Amount is less than $1,000.         
(i) 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 Funds, TempFund,         
Institutional Class  $ (576,054)  $ 3,046 
 (j) Represents the current yield as of report date.       

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


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, 2010 were as follows:       
      Receive      Notional   
      Fixed  Counter-  Credit        Amount  Unrealized 
  Issuer  Rate                  party       Expiration                Ratings1  (000)2  Appreciation 
  Ford Motor           
   Co.  3.80%           UBS AG       March 2010                CCC    USD 2,000  $ 1,712 
  1   Using Standard & Poor’s rating 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. See Note 2 of 
     the Notes to Financial Statements.     
  Foreign currency exchange contracts as of February 28, 2010 were as follows: 
  Currency    Currency    Settlement Unrealized 
  Purchased    Sold  Counterparty  Date  Appreciation 
  USD 301,128                             CAD 315,000  Goldman Sachs     
          Bank USA  4/21/10  $ 1,783 
  USD14,596,885                         EUR     10,155,500                                 CitiBank NA  3/24/10  769,245 
  USD 3,479,242                          GBP     2,149,000  Morgan Stanley     
          Capital Services, Inc.                       4/21/10          203,747 
  Total          $ 974,775 
  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.     
  Fair Value Measurements — Various inputs are used in determining the fair value of 
  investments, which are as follows:       
  Level 1 — price quotations inactive 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 face value of investments) 

The inputs or methodologies used for valuing securities are not necessarily an indi- 
cation 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 Note 1 of the Notes to Financial Statements. 
The following tables summarize the inputs used as of February 28, 2010 in deter- 
mining the fair valuation of the Fund’s investments:       
Investments in Securities

Valuation Inputs  Level 1  Level 2  Level 3    Total 
Assets:           
Long-Term           
   Investments:           
Common Stocks  $ 2,035,526  $ 321,252 $  62,123  $ 2,418,901 
Corporate Bonds    77,373,769  1,364,418    78,738,187 
Floating Rate           
   Loan Interests    194,094,273  37,499,417  231,593,690 
Other Interests      3,327,036    3,327,036 
Short-Term           
   Securities  1,442,325        1,442,325 
Total  $ 3,477,851  $271,789,294  $ 42,252,994  $317,520,139 
Other Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3    Total 
Assets    $ 980,287 $  7,813  $ 988,100 
Liabilities      (95,429)    (95,429) 
Total    $ 980,287 $     (87,616) $  892,671 
1 Other financial instruments are swaps, foreign currency exchange contracts, 
     options and unfunded loan commitments. Swaps, foreign currency exchange 
contracts and unfunded loan commitments are shown at the unrealized appre-      
     ciation/depreciation on the instrument and options are shown at value. 

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:       
    Investments in Securities   
  Common  Corporate  Floating Rate    Other   
  Stocks  Bonds  Loan Interests  Interests  Total 
Balance, as of August 31, 2009  $ 5,143  $ 2,823,032  $54,573,840  $ 262,849  $57,664,864 
Accrued discounts/premiums             
Realized gain (loss)    (7,066)  (9,560,443)    (14,550)  (9,582,059) 
Change in unrealized appreciation/depreciation2    77,444  18,099,332    409,442  18,586,218 
Net purchases (sales)    8,702  (15,924,503)      (15,915,801) 
Net transfers in/out of Level 3  56,980  (1,537,694)  (9,688,809)    2,669,295  (8,500,228) 
Balance, as of February 28, 2010  $ 62,123  $ 1,364,418  $37,499,417  $ 3,327,036  $42,252,994 
2 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in unrealized appreciation/depreciation on securities 
     still held at February 28, 2010 was $11,844,022.             
The following table is a reconciliation of Level 3 other financial instruments for which significant unobservable inputs were used to determine fair value:     

  Other Financial 
  Instruments3 
  Assets  Liabilities 
Balance, as of August 31, 2009    $ (49,905) 
Accrued discounts/premiums     
Realized gain (loss)     
Change in unrealized appreciation/depreciation     
Net purchases (sales)     
Net transfers in/out of Level 3  $ 7,813  (45,524) 
Balance as of February 28, 2010  $ 7,813  $ (95,429) 
 3 Other financial instruments are unfunded loan commitments.     

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 29


Schedule of Investments February 28, 2010 (Unaudited)

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

    Par   
Asset-Backed Securities    (000)  Value 
Ford Credit Auto Owner Trust, Series 2009-A,       
 Class A3B, 2.73%, 5/15/13 (a)  USD  9,135  $ 9,345,317 
Interest Only — 0.5%       
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%,       
 3/30/30    16,561  1,299,030 
Sterling Coofs Trust, Series 1, 2.36%, 4/15/29    14,233  1,467,809 
      2,766,839 
Total Asset-Backed Securities — 2.0%      12,112,156 
Common Stocks (b)    Shares   
Auto Components — 0.1%       
Lear Corp.    12,302  852,160 
Machinery — 0.1%       
Accuride Corp.  139,370  181,181 
Accuride Corp. — Restricted Shares  139,371  181,182 
      362,363 
Software — 0.0%       
Euramax International    234  7,011 
SIRVA    1,109  11,090 
USI United Subcontractors    6,116  79,503 
      97,604 
Specialty Retail — 0.0%       
Lazydays RV Center, Inc.    10,549  41,140 
Total Common Stocks — 0.2%      1,353,267 
    Par   
Corporate Bonds    (000)   
Air Freight & Logistics — 0.1%       
Park-Ohio Industries, Inc., 8.38%, 11/15/14  USD  905  733,050 
Airlines — 0.2%       
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16    1,444  1,487,320 
Auto Components — 0.0%       
Delphi International Holdings Unsecured, 12.00%,       
 10/06/14    65  64,613 
Building Products — 0.4%       
Building Materials Corp. of America, 7.00%, 2/15/20 (c)    1,875  1,875,000 
CPG International I, Inc., 10.50%, 7/01/13    750  735,000 
      2,610,000 
Capital Markets — 0.6%       
E*Trade Financial Corp., 3.99%, 8/31/19 (c)(d)(e)    249  378,480 
MU Finance Plc, 8.75%, 2/01/17 (c)  GBP  1,007  1,420,321 
Marsico Parent Co., LLC, 10.63%, 1/15/16    2,381  1,431,576 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (c)(f)    1,010  223,430 
Marsico Parent Superholdco, LLC, 14.50%,       
 1/15/18 (c)(f)    661  114,795 
      3,568,602 
Chemicals — 1.1%       
American Pacific Corp., 9.00%, 2/01/15  USD  1,100  1,086,250 
Ames True Temper, Inc., 4.25%, 1/15/12 (a)    2,085  1,949,475 
Huntsman International LLC, 5.50%, 6/30/16 (c)    1,385  1,218,800 
Innophos, Inc., 8.88%, 8/15/14    2,225  2,286,187 
      6,540,712 
Commercial Services & Supplies — 0.9%       
ACCO Brands Corp., 10.63%, 3/15/15 (c)    1,025  1,114,175 
DI Finance, Series B, 9.50%, 2/15/13    2,326  2,343,445 
Waste Services, Inc., 9.50%, 4/15/14    2,065  2,121,787 
      5,579,407 

    Par   
Corporate Bonds    (000)  Value 
Consumer Finance — 0.8%       
Ford Motor Credit Co. LLC:       
     7.38%, 2/01/11  USD  2,800  $ 2,856,070 
     3.00%, 1/13/12 (a)    565  529,688 
     7.80%, 6/01/12    1,665  1,682,597 
      5,068,355 
Containers & Packaging — 1.7%       
Berry Plastics Escrow LLC, 8.25%, 11/15/15 (c)    2,400  2,394,000 
Berry Plastics Holding Corp., 8.88%, 9/15/14    295  283,938 
Beverage Packaging Holdings Luxembourg II SA, 8.00%,       
 12/15/16  EUR  165  214,563 
Crown Americas LLC, 7.75%, 11/15/15  USD  885  913,762 
Impress Holdings BV, 3.38%, 9/15/13 (a)(c)    1,255  1,170,287 
Pregis Corp., 12.38%, 10/15/13    2,020  2,004,850 
Smurfit Kappa Acquisitions (c):       
     7.25%, 11/15/17  EUR  1,215  1,621,324 
     7.75%, 11/15/19    1,155  1,564,849 
      10,167,573 
Diversified Financial Services — 3.0%       
CIT Group, Inc., 7.00%, 5/01/17  USD  6,885  6,084,619 
GMAC LLC:       
     6.88%, 9/15/11    5,050  5,050,000 
     6.88%, 8/28/12 (c)    1,371  1,357,290 
     8.30%, 2/12/15 (c)    3,150  3,177,562 
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (c)    2,615  2,647,688 
      18,317,159 
Diversified Telecommunication Services — 3.0%       
Deutsche Telekom International Finance BV, 8.50%,       
 6/15/10    5,000  5,110,055 
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (c)    580  620,600 
PAETEC Holding Corp., 8.88%, 6/30/17 (c)    525  528,686 
Qwest Communications International, Inc.:       
     7.50% , 2/15/14    3,595  3,630,950 
     8.00%, 10/01/15 (c)    2,500  2,587,500 
Qwest Corp., 8.38%, 5/01/16    590  646,050 
Wind Acquisition Finance SA, 10.75%, 12/01/15    900  963,000 
Windstream Corp.:       
     8.13%, 8/01/13    590  613,600 
     8.63%, 8/01/16    690  702,075 
     7.88%, 11/01/17 (c)    2,500  2,443,750 
      17,846,266 
Electric Utilities — 0.0%       
Elwood Energy LLC, 8.16%, 7/05/26    129  123,887 
Energy Equipment & Services — 0.5%       
Compagnie Generale de Geophysique-Veritas:       
     7.50%, 5/15/15    255  249,900 
     7.75%, 5/15/17    420  411,600 
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (c)    2,500  2,487,500 
North American Energy Partners, Inc., 8.75%, 12/01/11    140  139,300 
      3,288,300 
Food & Staples Retailing — 0.1%       
Duane Reade, Inc., 11.75%, 8/01/15 (c)    455  573,300 
Food Products — 0.6%       
Bumble Bee Foods LLC, 7.75%, 12/15/15 (c)    1,040  1,042,600 
Smithfield Foods, Inc., 10.00%, 7/15/14 (c)    2,410  2,608,825 
      3,651,425 
Health Care Equipment & Supplies — 0.5%       
DJO Finance LLC, 10.88%, 11/15/14    2,780  2,974,600 

See Notes to Financial Statements.

30 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

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

    Par   
Corporate Bonds    (000)  Value 
Health Care Providers & Services — 2.2%       
Community Health Systems, Inc., 8.88%, 7/15/15  USD  450  $ 465,750 
DaVita, Inc., 6.63%, 3/15/13    1,980  1,984,950 
Tenet Healthcare Corp. (c):       
     9.00%, 5/01/15    812  850,570 
     10.00%, 5/01/18    6,682  7,350,200 
Viant Holdings, Inc., 10.13%, 7/15/17 (c)    2,948  2,874,300 
      13,525,770 
Health Care Technology — 0.8%       
IMS Health, Inc., 12.50%, 3/01/18 (c)    4,300  4,945,000 
Hotels Restaurants & Leisure — 0.0%       
Greektown Holdings, LLC, 10.75%, 12/01/13 (b)(c)(g)    1,059  63,540 
Tropicana Entertainment LLC, 9.63%, 12/15/14 (b)(g)    375  234 
      63,774 
Household Durables — 1.3%       
Beazer Homes USA, Inc., 12.00%, 10/15/17 (c)    3,800  4,237,000 
Berkline/BenchCraft, LLC, 4.50%, 11/03/12 (b)(c)(g)    200   
K. Hovnanian Enterprises, Inc., 10.63%, 10/15/16    3,300  3,448,500 
      7,685,500 
IT Services — 0.4%       
iPayment, Inc., 9.75%, 5/15/14    950  828,875 
iPayment Investors LP, 11.63%, 7/15/14 (c)(f)    1,337  1,069,747 
SunGard Data Systems, Inc., 4.88%, 1/15/14    215  200,756 
      2,099,378 
Independent Power Producers & Energy Traders — 3.1%       
The AES Corp., 8.75%, 5/15/13 (c)    2,803  2,852,053 
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (c)  3,550  3,594,375 
Energy Future Holdings Corp., 10.00%, 1/15/20 (c)    1,800  1,836,000 
NRG Energy, Inc.:       
     7.25%, 2/01/14    9,710  9,782,825 
     7.38%, 2/01/16    425  419,156 
      18,484,409 
Industrial Conglomerates — 1.5%       
Sequa Corp. (c):       
     11.75%, 12/01/15    2,950  2,891,000 
     13.50%, 12/01/15 (f)    5,870  5,884,674 
      8,775,674 
Machinery — 1.1%       
AGY Holding Corp., 11.00%, 11/15/14    1,500  1,200,000 
Accuride Corp., 7.50%, 2/26/20 (d)(f)    14  24,396 
Navistar International Corp., 8.25%, 11/01/21    2,700  2,740,500 
Sunstate Equipment Co. LLC, 10.50%, 4/01/13 (c)    2,935  2,546,113 
Synventive Molding Solutions Sub-Series A, 14.00%,       
1/14/11    760  22,795 
      6,533,804 
Marine — 0.2%       
Navios Maritime Holdings, Inc., 8.88%, 11/01/17 (c)    1,230  1,251,525 
Media — 6.3%       
Affinion Group, Inc., 10.13%, 10/15/13    2,825  2,853,250 
CCH II LLC, 13.50%, 11/30/16    1,406  1,660,882 
CMP Susquehanna Corp., 3.20%, 5/15/14 (c)    194  3,880 
Clear Channel Worldwide Holdings, Inc., 9.25%,       
12/15/17 (c)    5,850  6,003,877 
DISH DBS Corp.:       
     7.00%, 10/01/13    1,450  1,482,625 
     7.13%, 2/01/16    200  200,500 
Lighthouse International Co. SA:       
     8.00%, 4/30/14    613  521,684 
     8.00%, 4/30/14 (c)  EUR  235  199,993 
Network Communications, Inc., 10.75%, 12/01/13  USD  1,520  699,200 
Nielsen Finance LLC, 10.00%, 8/01/14    3,695  3,833,562 

    Par   
Corporate Bonds    (000)  Value 
Media (concluded)       
ProtoStar I Ltd., 18.00%, 10/15/12 (b)(c)(d)(g)  USD  3,454  $ 3,281,404 
Rainbow National Services LLC (c):       
     8.75%, 9/01/12    925  943,500 
     10.38%, 9/01/14    3,134  3,294,618 
Seat Pagine Gialle SpA, 10.50%, 1/31/17 (c)  EUR  2,060  2,596,599 
TL Acquisitions, Inc., 10.50%, 1/15/15 (c)  USD  4,815  4,387,669 
UPC Germany GmbH, 8.13%, 12/01/17 (c)    4,500  4,500,000 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18 (c)    1,500  1,477,500 
      37,940,743 
Metals & Mining — 1.3%       
Arch Western Finance LLC, 6.75%, 7/01/13    2,500  2,506,250 
Murray Energy Corp., 10.25%, 10/15/15 (c)    1,430  1,431,788 
New World Resources NV, 7.38%, 5/15/15  EUR  1,400  1,696,623 
Teck Resources Ltd., 10.75%, 5/15/19  USD  1,995  2,453,850 
      8,088,511 
Multiline Retail — 0.5%       
Dollar General Corp., 11.88%, 7/15/17 (f)    2,458  2,857,425 
Oil, Gas & Consumable Fuels — 2.1%       
Berry Petroleum Co., 8.25%, 11/01/16    550  551,375 
Chesapeake Energy Corp.:       
     6.38%, 6/15/15    335  324,113 
     7.25%, 12/15/18    2,500  2,462,500 
Crosstex Energy LP, 8.88%, 2/15/18 (c)    855  867,825 
Denbury Resources, Inc., 8.25%, 2/15/20    975  1,009,125 
EXCO Resources, Inc., 7.25%, 1/15/11    165  165,206 
El Paso Corp., 7.00%, 6/15/17    2,500  2,507,672 
Encore Acquisition Co., 6.00%, 7/15/15    250  251,875 
Overseas Shipholding Group, Inc., 8.75%, 12/01/13    1,190  1,261,400 
Sabine Pass LNG LP, 7.50%, 11/30/16    1,515  1,329,413 
SandRidge Energy, Inc., 8.63%, 4/01/15 (f)    180  177,300 
Whiting Petroleum Corp.:       
     7.25%, 5/01/12    75  75,375 
     7.25%, 5/01/13    1,390  1,403,900 
      12,387,079 
Paper & Forest Products — 1.7%       
Domtar Corp., 7.88%, 10/15/11    10  10,575 
NewPage Corp.:       
     6.50%, 5/01/12 (a)    1,500  795,000 
     10.00%, 5/01/12    190  109,250 
     11.38%, 12/31/14    9,845  9,401,975 
      10,316,800 
Pharmaceuticals — 0.2%       
Valeant Pharmaceuticals International, 8.38%,       
6/15/16 (c)    1,320  1,366,200 
Professional Services — 0.1%       
FTI Consulting, Inc., 7.75%, 10/01/16    350  350,875 
Semiconductors & Semiconductor Equipment — 0.3%       
Advanced Micro Devices, Inc., 8.13%, 12/15/17 (c)    1,545  1,564,312 
Software — 0.0%       
BMS Holdings, Inc., 7.89%, 2/15/12 (a)(c)(f)    594  11,888 
Specialty Retail — 1.5%       
General Nutrition Centers, Inc., 10.75%, 3/15/15    870  879,788 
Group 1 Automotive, Inc., 8.25%, 8/15/13    5,000  5,012,500 
Sonic Automotive, Inc., Series B, 8.63%, 8/15/13    3,135  3,142,837 
      9,035,125 
Textiles, Apparel & Luxury Goods — 0.7%       
Levi Strauss & Co., 8.63%, 4/01/13  EUR  2,400  3,284,314 
Quiksilver, Inc., 6.88%, 4/15/15  USD  1,410  1,202,025 
      4,486,339 
Tobacco — 0.2%       
Reynolds American, Inc., 7.63%, 6/01/16    1,000  1,128,801 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 31


Schedule of Investments (continued)

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

    Par   
Corporate Bonds    (000)  Value 
Wireless Telecommunication Services — 1.0%       
Cricket Communications, Inc.:       
     9.38%, 11/01/14  USD  30  $ 29,850 
     10.00%, 7/15/15    240  243,000 
     7.75%, 5/15/16 (c)    2,250  2,286,562 
Digicel Group Ltd. (c):       
     8.88%, 1/15/15    1,120  1,069,600 
     9.13%, 1/15/15 (f)    2,467  2,405,325 
MetroPCS Wireless, Inc., 9.25%, 11/01/14    270  269,325 
      6,303,662 
Total Corporate Bonds — 40.0%      241,797,163 
Floating Rate Loan Interests (a)       
Aerospace & Defense — 0.3%       
Hawker Beechcraft Acquisition Co. LLC:       
     Letter of Credit Facility Deposit, 2.25%, 3/26/14    156  114,523 
     Term Loan, 2.23% – 2.25%, 3/26/14    2,623  1,930,477 
      2,045,000 
Auto Components — 1.0%       
Allison Transmission, Inc., Term Loan, 2.98% – 3.00%,       
 8/07/14    3,983  3,647,109 
Dana Holding Corp., Term Advance, 4.48% – 6.50%,       
 1/30/15    1,772  1,725,777 
Dayco Products:       
     Term Loan B, 10.50%, 5/13/14    205  196,408 
     Term Loan C, 12.50%, 11/13/14 (f)    29  27,901 
Lear Corp., Loan (Closing Date Loan & Delayed       
 Draw Loan), 7.50%, 11/09/14    325  325,674 
      5,922,869 
Automobiles — 0.9%       
Ford Motor Co., Tranche B-1 Term Loan, 3.24% – 3.26%,       
 12/15/13    6,193  5,741,990 
Beverages — 0.2%       
Culligan International Co., Loan (Second Lien), 5.18%,       
 4/24/13  EUR  1,500  844,226 
Le-Nature’s, Inc., Tranche B Term Loan, 9.50%,       
 3/01/11 (b)(g)  USD  1,000  386,667 
      1,230,893 
Building Products — 1.7%       
Building Materials Corp. of America:       
     Second Lien Term Loan, 6.00%, 9/15/14    3,500  3,444,000 
     Term Loan Advance, 3.00%, 2/22/14    2,573  2,505,526 
Custom Building Products, Inc., Loan (Second Lien),       
 10.75%, 4/20/12    1,500  1,445,625 
Goodman Global, Inc., Term Loan, 6.25%, 2/13/14    1,343  1,348,245 
Momentive Performance Materials (Blitz 06-103 GmbH),       
 Tranche B-2 Term Loan, 2.67%, 12/04/13  EUR  992  1,212,267 
United Subcontractors, First Lien Term Loan, 1.76%,       
 6/30/15  USD  143  121,834 
      10,077,497 
Capital Markets — 0.2%       
Marsico Parent Co., LLC, Term Loan, 5.25% – 7.25%,       
 12/15/14    381  241,724 
Nuveen Investments, Inc., Term Loan, 3.25% – 3.32%,       
 11/13/14    1,359  1,182,497 
      1,424,221 

    Par   
Floating Rate Loan Interests (a)    (000)  Value 
Chemicals — 3.3%       
Ashland Inc., Term B Borrowing, 7.65%, 5/13/14  USD  548  $ 554,127 
Brenntag AG, Term Loan B, 2.77%, 11/24/37  EUR  276  364,972 
Brenntag Holding GmbH & Co. KG:       
     Facility 3A (Second Lien), 5.02%, 3/21/16    115  149,313 
     Facility 3B (Second Lien), 4.25%, 7/17/15  USD  500  476,875 
     Facility 3B (Second Lien), 5.02%, 3/15/16  EUR  385  500,026 
     Facility B6A and B6B, 2.77%, 11/24/37    213  282,559 
Chemtura Corp. Debtor in Possession Return of Capital       
 Term Loan, 6.00%, 1/26/11  USD  1,550  1,556,781 
 Cognis GmbH, Facility B (French):       
     2.71%, 11/16/13  EUR  197  254,339 
     2.71%, 11/17/13    803  1,038,553 
Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),       
 2.25%, 5/31/14  USD  447  355,577 
ElectricInvest Holding Co. Ltd. (Viridian Group PLC),       
 Junior Term Facility, 5.04%, 12/21/12  GBP  900  1,111,586 
Gentek Holding, LLC, Tranche B Term Loan, 7.00%,       
 10/29/14  USD  700  703,500 
Huish Detergents Inc., Tranche B Term Loan, 2.01%,       
 4/26/14    1,231  1,181,818 
Ineos US Finance LLC, Term A4 Facility, 7.00%,       
 12/14/12    294  278,172 
Nalco Co., Term Loan, 6.50%, 5/13/16    2,065  2,079,077 
PQ Corp. (fka Niagara Acquisition, Inc.), Original       
 Term Loan (First Lien), 3.48% – 3.50%, 7/30/14    3,940  3,605,100 
Rockwood Specialties Group, Inc., Term Loan H, 6.00%,       
 5/15/14    1,936  1,941,357 
Solutia Inc., Loan, 7.25%, 2/28/14    1,284  1,300,657 
Tronox Worldwide LLC, Tranche B-1 Term Loan, 9.00%,       
 6/24/10    1,900  1,949,780 
      19,684,169 
Commercial Services & Supplies — 1.6%       
ARAMARK Corp.:       
     Letter of Credit Facility, 2.11%, 1/26/14    185  176,173 
     US Term Loan, 2.13%, 1/26/14    2,808  2,678,830 
Casella Waste Systems, Inc, Term B Loan, 7.00%,       
 4/09/14    632  635,774 
SIRVA Worldwide, Inc., Loan (Second Lien), 12.00%,       
 5/12/15    275  27,487 
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.23%, 4/02/14    2,702  2,381,833 
West Corp., Incremental Term B-3 Loan, 7.25%,       
 10/24/13    3,458  3,492,662 
      9,392,759 
Construction & Engineering — 0.6%       
Safway First Out Term Loan, 9.00%, 12/14/17    3,750  3,750,000 
Consumer Finance — 1.6%       
Chrysler Financial Corp. Return of Capital, 4.24%,       
 8/03/12    2,750  2,650,313 
DaimlerChrysler Financial Services Americas LLC,       
 Term Loan (First Lien), 4.24%, 8/03/12    6,932  6,843,832 
      9,494,145 
Containers & Packaging — 0.6%       
Anchor Glass Term Loan B, 6.00%, 2/18/16    1,200  1,196,250 
Graham Packaging Co., LP, B Term Loan, 2.50%,       
 10/07/11    1,478  1,457,958 
Smurfit-Stone Container, Revolving Credit:       
     0.01% – 4.50%, 11/01/09    459  456,720 
     0.20% – 5.00%, 11/12/09    152  151,591 
Smurfit-Stone Container Canada, Inc.:       
     Tranche C, 2.50%, 11/01/11    198  195,419 
     Tranche C-1 Term Loan, 2.50%, 11/01/11    60  59,084 

See Notes to Financial Statements.

32 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (a)    (000)  Value 
Containers & Packaging (concluded)       
Smurfit-Stone Container Enterprises, Inc.:       
     Deposit Funded Facility, 4.50%, 11/01/10  USD  92  $ 91,124 
     Tranche B, 2.50%, 11/01/11    105  103,702 
      3,711,848 
Diversified Consumer Services — 1.2%       
Coinmach Service Corp., Term Loan, 3.26%, 11/14/14    4,667  4,036,667 
Laureate Education Term Loan B, 7.00%, 8/15/14    3,491  3,459,567 
      7,496,234 
Diversified Financial Services — 1.0%       
CIT Group, Inc., Tranche 2A Term Loan, 9.50% – 9.75%,       
 1/20/12    4,338  4,443,227 
Professional Service Industries, Inc., Term Loan       
 (First Lien), 2.98%, 10/31/12    526  263,219 
Reynolds Group Holdings Inc., US Term Loan, 6.25%,       
 11/05/15    1,400  1,408,750 
      6,115,196 
Diversified Telecommunication Services — 1.3%       
Cavtel Holdings, LLC, Term Loan, 2.00% – 8.50%,       
 12/31/12 (f)    1,194  1,022,026 
Hawaiian Telcom Communications, Inc., Tranche C       
 Term Loan, 4.75%, 5/30/14    1,938  1,458,142 
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    1,467  1,466,576 
US Telepacific Corp., Second Lien Term Loan, 7.75%,       
 7/25/15    1,175  1,177,203 
Wind Telecomunicazioni SpA, A1 Term Loan Facility,       
 2.92%, 9/22/12  EUR  2,081  2,725,660 
      7,849,607 
Electric Utilities — 0.1%       
TPF Generation Holdings, LLC:       
     Synthetic Letter of Credit Deposit (First Lien),       
     2.25%, 12/15/13  USD  151  145,148 
     Synthetic Revolving Deposit, 2.25%, 12/15/11    47  45,501 
     Term Loan (First Lien), 2.23%, 12/15/13    390  375,623 
      566,272 
Electrical Equipment — 0.1%       
Electrical Components International Holdings Co. (ECI),       
 Term Loan (Second Lien), 11.50%, 5/01/14 (b)(g)    500  50,000 
Generac Acquisition Corp., Term Loan (First Lien),       
 2.75%, 11/10/13    682  625,142 
      675,142 
Electronic Equipment, Instruments &       
Components — 0.9%       
Flextronics International Ltd.:       
     A Closing Date Loan, 2.48% – 2.50%, 10/01/14    1,190  1,124,022 
     Term Loan B, 2.50%, 10/01/12    3,699  3,569,985 
Matinvest 2 SAS/ Butterfly Wendel US, Inc. (Deutsche       
 Connector):       
     B-2 Facility, 2.75%, 6/22/14    478  373,989 
     C-2 Facility, 3.00%, 6/22/15    829  648,863 
      5,716,859 
Energy Equipment & Services — 0.6%       
MEG Energy Corp., Tranche D Term Loan, 6.00%,       
 4/03/16    2,726  2,676,266 
Trinidad USA Partnership LP, US Term Loan, 2.73%,       
 5/01/11    1,014  938,389 
      3,614,655 
Food & Staples Retailing — 1.8%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.54%, 7/09/15  GBP  3,500  4,780,909 
DS Waters of America, Inc., Term Loan, 4.25%, 3/02/12 USD  400  352,000 

    Par   
Floating Rate Loan Interests (a)    (000)  Value 
Food & Staples Retailing (concluded)       
Pilot Travel Centers Term Loan B, 3.50%, 11/18/15  USD  3,500  $ 3,516,226 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/10/15  2,150  2,227,400 
      10,876,535 
Food Products — 1.7%       
Dole Food Co., Inc.:       
     Credit-Linked Deposit, 7.89%, 4/12/13    280  279,689 
     Term Loan B, 3.50%, 2/10/17    824  823,941 
     Term Loan C, 5.50%, 2/10/17    1,976  1,977,459 
     Tranche B Term Loan, 8.00%, 4/12/13    486  486,395 
Michael Foods, Term Loan B, 6.50% – 6.75%, 4/24/14  1,375  1,380,606 
Pilgrim’s Pride Corp. Term Loan A, 5.29%, 12/01/12    1,100  1,083,500 
Pinnacle Foods Finance LLC, Tranche C Term Loan,       
 7.50%, 4/02/14    2,800  2,811,500 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,       
 4/12/13    1,578  1,578,124 
      10,421,214 
Health Care Equipment & Supplies — 0.6%       
Biomet, Inc., Dollar Term Loan, 3.23% – 3.25%, 3/25/15  1,670  1,615,045 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.23%, 5/20/14    2,212  2,137,091 
      3,752,136 
Health Care Providers & Services — 2.0%       
CCS Medical, Inc. (Chronic Care), Loan (Debtor in       
 Possession), 13.00%, 3/31/10    31  31,247 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.50%, 7/25/14    274  256,333 
     Funded Term Loan, 2.48% – 2.50%, 7/25/14    5,371  5,018,083 
Catalent Pharma Solutions, Inc. (fka Cardinal       
 Health 409, Inc.), Euro Term Loan, 2.67%, 11/19/37 EUR  653  787,299 
DaVita Inc., Tranche B-1 Term Loan, 1.73% – 1.76%,       
 10/05/12    600  585,975 
HCA Inc., Tranche A-1 Term Loan, 1.75%, 11/16/12    2,324  2,195,189 
HealthSouth Corp., Term Loan, 2.51%, 3/10/13    1,261  1,219,679 
Vanguard Health Systems Term Loan B, 5.00%, 1/29/16  1,800  1,802,250 
      11,896,055 
Health Care Technology — 0.6%       
IMS Healthcare Term Loan B, 5.25%, 2/16/16    3,000  3,012,000 
Sunquest Information Systems, Inc. (Misys Hospital       
 Systems, Inc.), Term Loan, 3.48%, 10/13/14    368  337,566 
      3,349,566 
Hotels Restaurants & Leisure — 5.0%       
BLB Worldwide Holdings, Inc. (Wembley, Inc.), First       
 Priority Term Loan, 4.75%, 7/18/11 (b)(g)    1,989  1,362,469 
CCM Merger Inc. (Motor City Casino), Term B Loan,       
 8.50%, 7/13/12    1,481  1,459,568 
Cedar Fair LP Term Loan B, 4.00%, 2/04/16    2,250  2,246,485 
Green Valley Ranch Gaming, LLC, Loan (Second Lien),     
 3.50%, 8/16/14    1,500  150,000 
Harrah’s Operating Co., Inc.:       
     Term B-1 Loan, 3.25%, 1/28/15    449  361,615 
     Term B-3 Loan, 3.25%, 1/28/15    546  440,197 
     Term B-4 Loan, 9.50%, 10/31/16    1,250  1,246,527 
OSI Restaurant Partners, LLC, Pre-Funded Revolving       
 Credit Loan, 0.07% – 2.56%, 6/14/13    32  28,486 
Penn National Gaming, Inc., Term Loan B,       
 1.98% – 2.00%, 10/03/12    2,828  2,769,103 
QCE, LLC (Quiznos), Term Loan (Second Lien), 2.56%,     
 5/05/13    955  814,529 
SW Acquisitions Co., Inc., Term Loan, 5.75%, 6/01/16  3,250  3,264,219 
Six Flags Theme Parks, Inc. Term Loan, 4.50%, 6/13/15  7,750  7,678,312 
Travelport LLC (fka Travelport Inc.), Loan, 8.25%,       
 3/27/12    4,822  4,411,737 
Universal City Development Term Loan B, 7.75%,       
 11/06/14    3,750  3,771,094 
      30,004,341 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 33


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (a)    (000)  Value 
Household Durables — 0.0%       
Berkline/Benchcraft, LLC., Term Loan, 14.00%,       
 11/03/11 (b)(f)(g)  USD  116  $ 5,776 
Household Products — 0.2%       
Central Garden & Pet Co., Tranche B Term Loan, 3.75%,       
 9/30/12    985  930,466 
IT Services — 1.5%       
Amadeus IT Group SA / Amadeus Verwaltungs GmbH:       
     Term B3 Facility, 2.43%, 6/30/13  EUR  307  399,336 
     Term B4 Facility, 2.43%, 6/30/13    184  238,423 
     Term C3 Facility, 2.93% , 6/30/14    491  637,759 
Audio Visual Services Group, Inc., Loan (Second Lien),       
 5.76%, 8/28/14  USD  1,077  107,704 
Ceridian Corp., US Term Loan, 3.23% – 3.25%,       
 11/09/14    1,385  1,211,163 
First Data Corp.:       
     Initial Tranche B-1 Term Loan, 2.98%, 9/24/14    2,818  2,461,785 
     Initial Tranche B-2 Term Loan, 3.00%, 9/24/14    1,231  1,073,629 
     Initial Tranche B-3 Term Loan, 3.00%, 9/24/14    560  487,080 
RedPrairie Corp., Term Loan B, 3.31%, 7/20/12    564  546,680 
SunGard Data Systems, Inc. (Solar Capital Corp.),       
 Incremental Term Loan, 6.75%, 2/28/14    1,191  1,195,123 
Travelex Plc:       
     Term Loan B, 0.00%, 10/31/13    500  456,666 
     Term Loan C, 3.29%, 10/31/14    500  456,667 
      9,272,015 
Independent Power Producers & Energy Traders — 0.7%       
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-2 Term Loan, 3.73% – 3.75%,       
     10/10/14    2,571  2,067,244 
     Initial Tranche B-3 Term Loan, 3.73% – 3.75%,       
     10/10/14    2,719  2,174,968 
      4,242,212 
Leisure Equipment & Products — 0.1%       
24 Hour Fitness Worldwide, Inc., Tranche B Term Loan,       
 2.76%, 6/08/12    575  543,375 
Machinery — 1.4%       
Accuride Term Loan, 9.75%, 1/31/12    2,935  2,928,886 
Blount International Term Loan, 5.50% – 5.75%,       
 2/09/12    648  646,168 
Bucyrus International Term Loan C, 4.50%, 1/26/16    2,000  2,010,600 
LN Acquisition Corp. (Lincoln Industrial), Initial Term Loan       
 (Second Lien), 5.98%, 1/09/15    1,500  1,260,000 
Oshkosh Truck Corp., Term B Loan, 6.25% – 6.26%,       
 12/06/13    1,364  1,362,855 
      8,208,509 
Media — 10.2%       
Affinion Group Holdings, Inc., Loan, 7.89%, 3/01/12    1,091  1,030,755 
Alpha Topco Ltd. (Formula One), Facility D, 3.82%,       
 6/30/14    1,000  873,889 
Atlantic Broadband, Term Loan B, 6.75%, 6/01/13    931  927,809 
Atlantic Broadband Finance, LLC, Tranche B-2       
 Term Loan, 2.51%, 9/01/11    35  34,001 
Catalina Marketing Corp., Initial Term Loan, 2.98%,       
 10/01/14    587  566,420 
Cengage Learning Acquisitions, Inc. (Thomson Learning),       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    4,094  4,052,813 
Cequel Communications, LLC, Tranche B Term Loan       
 (Second Lien), 6.25%, 5/05/14    3,738  3,744,160 
Charter Communications Operating, LLC, New Term Loan,       
 2.23%, 3/06/14    7,000  6,529,404 
FoxCo Acquisition Sub, LLC, Term Loan, 7.50%, 7/14/15    1,888  1,812,806 

    Par   
Floating Rate Loan Interests (a)    (000)           Value 
Media (concluded)       
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.50% – 2.56%, 3/10/14  USD  2,707  $ 1,209,008 
HIT Entertainment, Inc., Term Loan (Second Lien),       
 5.75%, 2/26/13    1,000  572,500 
HMH Publishing Co. Ltd.:       
     Mezzanine, 17.50%, 11/14/14    2,007  247,581 
     Tranche A Term Loan, 5.48%, 6/12/14    1,641  1,380,154 
Harland Clarke Holdings Corp. (fka Clarke       
 American Corp.), Tranche B Term Loan,       
 2.73% – 2.75%, 6/30/14    1,462  1,278,383 
Insight Midwest Holdings, LLC, B Term Loan, 2.25%,       
 4/07/14    1,550  1,488,242 
Intelsat Corp. (fka PanAmSat Corp.):       
     Tranche B-2-A Term Loan, 2.73%, 1/03/14    584  555,635 
     Tranche B-2-B Term Loan, 2.73%, 1/03/14    584  555,465 
     Tranche B-2-C Term Loan, 2.73%, 1/03/14    584  555,465 
Lamar Media Corp.:       
     Series B Incremental Loan, 5.50% – 5.75%,       
     9/28/12    1,985  1,970,117 
     Term Loan, 5.50% – 5.75%, 9/28/12    1,732  1,718,825 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):       
     Facility B1, 3.34%, 6/30/15  EUR  337  314,143 
     Facility C1, 3.59%, 6/30/16    337  314,143 
     Facility D, 4.71%, 12/28/16    904  663,874 
MCC Iowa LLC (Mediacom Broadband Group), Tranche E       
 Term Loan, 6.50%, 1/03/16  USD  447  450,172 
MCNA Cable Holdings LLC (OneLink Communications),       
 Loan, 7.23%, 3/01/13 (f)    1,933  1,508,054 
Mediacom Illinois, LLC (fka Mediacom       
 Communications, LLC), Tranche D Term Loan, 5.50%,       
 3/31/17    998  996,243 
Metro-Goldwyn-Mayer Inc., Tranche B Term Loan,       
 20.50%, 4/09/12    1,019  612,415 
Multicultural Radio Broadcasting, Inc., Term Loan,       
 5.00%, 12/18/12    304  241,300 
New Vision Exit Term Loan, 13.00%, 10/01/12    160  160,850 
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13    4,505  4,814,719 
Nielsen Finance LLC:       
     Class A Dollar Term Loan, 2.23%, 8/09/13    1,026  965,947 
     Class B Dollar Term Loan, 3.98%, 5/01/16    2,704  2,618,271 
Penton Media, Inc.:       
     Loan (Second Lien), 9.25%, 2/01/14 (b)(g)    1,000  133,333 
     Term Loan (First Lien), 2.48% – 2.50%, 2/01/13    1,094  798,666 
Protostar Ltd., Debtor in Possession Term Loan, 18.00%,       
 3/15/10    692  691,656 
Springer Science+Business Media SA, Facility A1, 6.75%,     
 7/01/16  EUR  1,700  2,287,808 
Sunshine Acquisition Ltd. (aka HIT Entertainment),       
 Term Facility, 2.50%, 3/20/12  USD  2,407  2,116,241 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    1,488  1,491,780 
Telecommunications Management, LLC:       
     Multi-Draw Term Loan, 3.48%, 6/30/13    231  189,536 
     Term Loan, 3.48%, 6/30/13    917  751,735 
UPC Financing Partnership, Facility U, 4.99%,       
 12/31/17  EUR  1,838  2,331,070 
Virgin Media Investment Holdings Ltd., C Facility, 3.58%,       
 7/17/13  GBP  2,000  2,848,852 
Worldcolor Press, Inc. and Worldcolor (USA) Corp.       
 (fka Quebecor World, Inc.), Advance, 9.00%, 7/23/12  USD  1,295  1,308,259 
Yell Group Plc, Term Loan B, 3.98%, 7/31/14    1,817  1,365,829 
Yell Group Plc TPI Term Loan A, 7.12%, 8/09/11    898  859,788 
      61,938,116 

See Notes to Financial Statements.

34 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (a)    (000)  Value 
Multi-Utilities — 0.2%       
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     Synthetic Letter of Credit, 2.76%, 11/01/13  USD  83  $ 77,251 
     Term B Advance (First Lien), 2.75%, 11/01/13    899  839,093 
MACH Gen, LLC, Synthetic Letter of Credit Loan       
 (First Lien), 2.25%, 2/22/13    69  63,604 
      979,948 
Multiline Retail — 0.6%       
Dollar General Corp., Tranche B-2 Term Loan, 2.98%,       
 7/07/14    213  205,314 
Hema Holding BV, Facility D, 5.42%, 1/01/17  EUR  2,600  2,973,856 
The Neiman Marcus Group Inc., Term Loan, 2.25%,       
 4/06/13  USD  350  314,145 
      3,493,315 
Oil, Gas & Consumable Fuels — 1.5%       
Big West Oil, LLC:       
     Delayed Advance Loan, 4.50%, 5/15/14    1,268  1,242,334 
     Initial Advance Loan, 4.50%, 5/15/14    1,007  987,220 
     Initial Advance Loan, 9.75%, 1/26/15    2,250  2,261,250 
Coffeyville Resources, LLC, Tranche D Term Loan, 8.50%,       
 12/30/13    735  739,376 
Drummond Co., Inc., Term Advance, 1.48%, 2/14/11    825  800,250 
Niska Gas Storage Canada ULC, Canadian Term Loan B,       
 1.98%, 5/12/13    448  429,357 
Niska Gas Storage US, LLC, US Term B Loan, 1.98%,       
 5/12/13    47  45,107 
Niska Gas Storage US, LLC, Wild Goose Acquisition       
 Draw-US Term B, 1.98%, 5/12/13    32  30,555 
Turbo Beta Ltd., Dollar Facility, 14.50%, 3/15/18 (f)    3,107  2,330,043 
      8,865,492 
Paper & Forest Products — 0.8%       
Georgia-Pacific LLC, Term Loan B:       
     2.24% – 2.25%, 12/20/12    1,677  1,638,086 
     2.25% – 2.26%, 12/23/12    3,245  3,169,217 
Verso Paper Finance Holdings LLC, Loan,       
 6.50% – 7.25%, 2/01/13 (f)    621  341,337 
      5,148,640 
Personal Products — 0.3%       
American Safety Razor Co., LLC:       
     Term Loan (First Lien), 2.75% – 2.76%, 7/31/13    723  656,472 
     Loan (Second Lien), 6.51%, 1/30/14    1,925  1,126,125 
      1,782,597 
Pharmaceuticals — 0.6%       
Warner Chilcott Co., LLC, Term A Loan, 5.50%, 10/30/14    881  881,135 
Warner Chilcott Corp., Term B-1 Loan, 5.75%, 4/30/15    2,755  2,754,568 
      3,635,703 
Professional Services — 0.2%       
Booz Allen Hamilton, Inc., Term Loan C, 6.00%, 7/31/15    1,500  1,504,687 
Real Estate Management & Development — 1.1%       
Enclave, First Lien Term Loan, 6.14%, 3/01/12    3,000  325,689 
Georgian Towers, Term Loan, 2.25% – 2.26%, 3/01/12    3,000  310,104 
Pivotal Promontory, LLC, Second Lien Term Loan,       
 12.00%, 8/31/11 (b)(g)    750  37,500 
Realogy Corp.:       
     Delayed Draw Term B Loan, 3.25%, 10/10/13    2,618  2,308,867 
     Initial Term B Loan, 3.25%, 10/10/13    982  866,236 
     Synthetic Letter of Credit, 3.23%, 10/10/13    264  233,218 
     Term Loan (Second Lien), 13.50%, 10/15/17    2,250  2,446,875 
      6,528,489 

  Par   
Floating Rate Loan Interests (a)  (000)  Value 
Software — 0.1%     
Bankruptcy Management Solutions, Inc., Term Loan     
 (First Lien), 4.23%, 7/31/12  USD 935 $  631,293 
Specialty Retail — 0.8%     
Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan,     
 2.98%, 10/21/13  1,018  981,507 
Michaels Stores, Inc.:     
Term Loan B, 2.50% -2.56%, 10/31/13  1,798  1,619,617 
Term Loan B-1, 4.75% – 4.81%, 7/31/16  671  638,871 
Orchard Supply Hardware, Term Loan B, 2.68%,     
 12/21/13  1,500  1,340,100 
    4,580,095 
Textiles, Apparel & Luxury Goods — 0.1%     
St. John Knits International, Inc., Term Loan, 9.25%,     
 3/23/12  571  513,571 
Trading Companies & Distributors — 0.2%     
Beacon Sales Acquisition, Inc., Term B Loan,     
 2.23% – 2.25%, 9/30/13  1,160  1,089,933 
Wireless Telecommunication Services — 0.6%     
Digicel International Finance Ltd., Tranche A, 2.81%,     
 3/30/12  3,884  3,738,477 
Total Floating Rate Loan Interests — 50.1%    302,441,912 
Foreign Agency Obligations     
Peru Government International Bond, 8.38%, 5/03/16  4,871  5,930,443 
Turkey Government International Bond, 7.00%, 9/26/16  5,093  5,602,300 
Total Foreign Agency Obligations — 1.9%    11,532,743 
Non-Agency Mortgage Backed Securities     
Commercial Mortgage-Backed Securities — 2.6%     
Wachovia Bank Commercial Mortgage Trust,     
 Series 2007-C33, Class A2, 5.86%, 2/15/51 (a)(h)  15,000  15,576,712 
Total Non-Agency Mortgage Backed Securities — 2.6%    15,576,712 
  Beneficial   
  Interest   
Other Interests (i)  (000)   
Auto Components — 0.9%     
Dayco Products LLC Mark IV Industrials, Inc.  9  203,192 
Delphi Debtor in Possession Holding Co. LLP,     
 Class B Membership Interests  —(j)  5,338,579 
Lear Corp. Escrow  1,000  15,000 
    5,556,771 
Diversified Financial Services — 0.2%     
J.G. Wentworth LLC, Preferred Equity Interests  1  1,257,920 
Health Care Providers & Services — 0.0%     
Critical Care Systems International, Inc.  8  1,525 
Household Durables — 0.0%     
Berkline Benchcraft Equity LLC  3   
Total Other Interests — 1.1%    6,816,216 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 35


Schedule of Investments (continued)

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

Preferred Stocks    Shares  Value 
Media — 0.0%       
CMP Susquehanna Radio Holdings Corp. (k)    45,243  $ — 
Specialty Retail — 0.1%       
Lazydays RV Center, Inc. (b)    224  223,800 
Total Preferred Stocks — 0.1%      223,800 
U.S. Government Sponsored    Par   
Agency Securities    (000)   
Mortgaged-Backed Securities — 22.1%       
Fannie Mae Mortgage Backed Securities:       
     5.00%, 3/15/25 – 4/15/25 (l)  USD  121,000  127,354,002 
     5.50%, 12/01/28 – 11/01/33    5,780  6,119,189 
     5.50%, 3/01/32    226  240,118 
     5.50%, 7/01/33 (m)    15  15,433 
Total U.S. Government Sponsored       
Agency Securities — 22.1%      133,728,742 
U.S. Treasury Obligations       
U.S. Treasury Notes, 4.25%, 8/15/15    1,815  1,982,887 
Total U.S. Treasury Obligations — 0.3%      1,982,887 
Warrants (n)    Shares   
Machinery — 0.0%       
Synventive Molding Solutions (expires 1/15/13)    1   
Media — 0.0%       
CMP Susquehanna Radio Holdings Corp. (expires     
 3/26/19)    51,701   
Oil, Gas & Consumable Fuels — 0.0%       
Turbo Cayman Ltd. (no expiration)    2   
Total Warrants — 0.0%       
Total Long-Term Investments       
(Cost — $755,528,446) — 120.4%      727,565,598 
Short-Term Securities       
BlackRock Liquidity Funds, TempFund, Institutional     
 Class, 0.10% (o)(p)    32,179,987  32,179,987 
Total Short-Term Securities       
(Cost — $32,179,987) — 5.3%      32,179,987 
Options Purchased    Contracts   
Over-the-Counter Call Options — 0.0%       
Marsico Parent Superholdco LLC,       
 Strike Price $942.86, Expires 12/21/19,       
 Broker Goldman Sachs Bank USA    46  8,740 
Total Options Purchased       
(Cost — $44,978) — 0.0%      8,740 
Total Investments (Cost — $787,753,411*) — 125.7%    759,754,325 
Liabilities in Excess of Other Assets — (25.7)%      (155,382,595) 
Net Assets — 100.0%      $604,371,730 

* The cost and unrealized appreciation (depreciation) of investments as of February 28, 
  2010, as computed for federal income tax purposes, were as follows: 
  Aggregate cost          $ 788,309,025 
  Gross unrealized appreciation      $ 18,987,503 
  Gross unrealized depreciation      (47,542,203) 
  Net unrealized depreciation    $ (28,554,700) 
(a) Variable rate security. Rate shown is as of report date.     
(b) Non-income producing security.       
(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) Represents a zero-coupon bond. Rate shown reflects the current yield as of 
  report date.           
 (f) Represents a payment-in-kind security which may pay interest/dividends in 
  additional face/shares.         
(g) Issuer filed for bankruptcy and/or is in default of interest payments. 
(h) All or a portion of security has been pledged as collateral in connection with 
  TALF Program.           
 (i) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
  zation entities and are non-income producing.     
 (j) Amount is less than $1,000.       
(k) Security is perpetual in nature and has no stated maturity date.   
 (l) Represents or includes a “to-be-announced” (“TBA”) transaction. Unsettled TBA 
  transactions as of report date were as follows:     
              Unrealized 
  Counterparty        Value  Appreciation 
  Goldman Sachs & Co.    $ 127,354,002  $ 182,315 
(m) All or a portion of security has been pledged as collateral in connection with open 
  financial futures contracts.       
(n) Warrants entitle the Fund to purchase a predetermined number of shares of com- 
  mon stock and are non-income producing. The purchase price and number of 
  shares are subject to adjustment under certain conditions until the expiration date. 
(o) 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 Funds, TempFund,     
  Institutional Class    $ (64,491,579)  $ 41,202 
(p) Represents the current yield as of report date.     
   Foreign currency exchange contracts as of February 28, 2010 were as follows: 
              Unrealized 
  Currency  Currency    Settlement         Appreciation 
  Purchased    Sold  Counterparty  Date  (Depreciation) 
  USD     30,670,173    EUR     21,311,000 Citibank NA  3/24/10  $ 1,653,301 
  EUR  153,000   USD  209,882   Citibank NA  3/24/10  (1,149) 
  GBP  601,200   USD  943,411   Citibank NA  4/21/10  (27,065) 
  USD       1,593,960   GBP  988,000         Deutsche Bank AG        4/21/10  88,055 
  USD      10,076,687  GBP  6,224,000      Morgan Stanley   
          Capital Services, Inc.       4/21/10  590,097 
  Total            $ 2,303,239 
   Financial futures contracts purchased as of February 28, 2010 were as follows: 
           Expiration  Notional  Unrealized 
  Contracts  Issue        Date      Value  Appreciation 
  45  5-Year U.S. Treasury Bond   June 2010  USD  5,188,611            $ 28,377 

See Notes to Financial Statements.

36 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (concluded) BlackRock Limited Duration Income Trust (BLW)

  Credit default swaps on traded indexes — buy protection outstanding as of   
  February 28, 2010 were as follows:         
    Pay      Notional  Unrealized 
    Fixed      Amount  Appreciation 
  Issuer  Rate  Counterparty                             Expiration  (000)  (Depreciation) 
  K. Hovnanian  5.00%  Goldman Sachs                            December       
         Bank USA  2011     USD 800  $ (5,149) 
  K. Hovnanian  5.00%  Goldman Sachs                            December       
         Bank USA  2012     USD 600    4,118 
  Total          $ (1,031) 
  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.       
  Fair Value Measurements — Various inputs are used in determining the fair value of 
  investments, which are as follows:         
  Level 1 — price quotations inactive 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 face value of investments) 
  The inputs or methodologies used for valuing securities are not necessarily an indi- 
  cation 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 Note 1 of the Notes to Financial Statements.   

The following tables summarize the inputs used as of February 28, 2010 in deter- 
mining the fair valuation of the Fund’s investments:       
Investments in Securities

Valuation Inputs    Level 1    Level 2  Level 3    Total 
Assets:               
Long-Term Investments:           
Asset-Backed               
   Securities      $ 9,345,317  $ 2,766,839  $ 12,112,156 
Common Stocks  $ 852,160    362,363  138,744    1,353,267 
Corporate Bonds      238,424,471  3,372,692  241,797,163 
Floating Rate               
   Loan Interests      228,933,277  73,508,635  302,441,912 
Foreign Agency               
   Obligations        11,532,743      11,532,743 
Non-Agency               
   Mortgage-Backed             
       Securities        15,576,712      15,576,712 
Other Interests        15,000  6,801,216    6,816,216 
Preferred Stocks          223,800    223,800 
U.S. Government               
   Sponsored Agency             
       Securities      133,728,742    133,728,742 
U.S. Treasury               
   Obligations        1,982,887      1,982,887 
Short Term               
   Securities    32,179,987          32,179,987 
Total  $ 33,032,147  $639,901,512  $ 86,811,926  $759,745,585 
Other Financial Instruments1

Valuation Inputs    Level 1    Level 2  Level 3    Total 
Assets  $ 28,377  $  2,344,311  $ 1,550  $ 2,374,238 
Liabilities        (33,363)  (82,039)    (115,402) 
Total  $ 28,377  $ 2,310,948  $ (80,489) $  2,258,836 
1 Other financial instruments are swaps, foreign currency exchange contracts, 
     options and unfunded loan commitments. Swaps, foreign currency exchange 
contracts and unfunded loan commitments are shown at the unrealized appre-          
     ciation/depreciation on the instrument and options are shown at value. 

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:     
      Investments in Securities     
  Asset-Backed  Common   Corporate  Floating Rate  Other  Preferred   
  Securities  Stocks  Bonds  Loan Interests  Interests  Stocks  Total 
Balance, as of August 31, 2009  $ 2,668,212  $ 81,956  $ 6,270,943  $83,910,390  $ 504,368    $ 93,435,869 
Accrued discounts/premiums               
Realized gain (loss)      (805,867)  (7,708,595)  (29,532)    (8,543,994) 
Change in unrealized appreciation/depreciation2  98,627  4,558  6,679,827  20,096,018  2,571,581    29,450,611 
Net purchases (sales)      (5,313,951)  (17,998,932)      (23,312,883) 
Net transfers in/out of Level 3    52,230  (3,458,260)  (4,790,246)  3,754,799  $ 223,800  (4,217,677) 
Balance, as of February 28, 2010  $ 2,766,839  $ 138,744  $ 3,372,692  $73,508,635  $ 6,801,216  $ 223,800  $ 86,811,926 
2 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in unrealized appreciation/depreciation on securities 
     still held at February 28, 2010 was $14,894,205.               

The following table is a reconciliation of Level 3 other financial instruments for which significant 
unobservable inputs were used to determine fair value:     
  Other Financial 
  Instruments3 
  Assets  Liabilities 
Balance, as of August 31, 2009  $ 63,812   
Accrued discounts/premiums     
Realized gain (loss)     
Change in unrealized appreciation/depreciation     
Net purchases (sales)     
Net transfers in/out of Level 3  (62,262)  $ (82,039) 
Balance as of February 28, 2010  $ 1,550  $ (82,039) 
 3 Other financial instruments are unfunded loan commitments.     

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 37


Statements of Assets and Liabilities         
    BlackRock  BlackRock   
  BlackRock  Diversified  Floating Rate  BlackRock 
  Defined  Income  Income  Limited 
  Opportunity  Strategies  Strategies  Duration 
  Credit Trust  Fund, Inc.  Fund, Inc.  Income Trust 
February 28, 2010 (Unaudited)  (BHL)  (DVF)  (FRA)  (BLW) 
     Assets         
Investments at value — unaffiliated1  $ 147,264,593  $ 160,134,341  $ 316,081,614  $ 727,574,338 
Investments at value — affiliated2  2,618,127  1,615,121  1,442,325  32,179,987 
Unrealized appreciation on foreign currency exchange contracts  756,237  410,722  974,775  2,331,453 
Unrealized appreciation on unfunded loan commitments  7,410  3,737  7,813  1,550 
Unrealized appreciation on swaps      1,712  4,118 
Foreign currency at value3  214,110  199,081  1,619,118  1,090,253 
Cash      496,388   
Cash pledged as collateral in connection with swaps    2,200,000     
Investments sold receivable  7,183,450  6,194,764  17,409,182  96,137,091 
Interest receivable  1,142,398  1,766,095  3,820,307  8,256,672 
Principal paydown receivable  144,438  195,776  183,355  820,421 
Swap premium paid    4,463    91,170 
Income receivable — affiliated        598 
Dividends receivable    16,822     
Swaps receivable    71,970  14,778   
Commitment fees receivable  468  344  1,692  21 
Margin variation receivable        11,250 
Prepaid expenses  48,790  43,771  88,878  60,055 
Other assets    63,900    492,614 
Total assets  159,380,021  172,920,907  342,141,937  869,051,591 
     Liabilities         
Bank overdraft        46,182 
Loan payable  23,000,000  26,000,000  46,000,000  12,744,165 
Unrealized depreciation on foreign currency exchange contracts  36,487      28,214 
Unrealized depreciation on unfunded loan commitments  16,408  16,408  95,429  82,039 
Unrealized depreciation on swaps    2,025,599    5,149 
Investments purchased payable  15,367,817  17,245,895  33,932,956  251,044,772 
Investment advisory fees payable  111,065  90,955  182,014  257,106 
Swaps payable    92,073    13,611 
Income dividends payable  76,964      96,812 
Interest expense payable  47,667  58,931  115,970  56,940 
Officer’s and Directors’ fees payable  218  215  738  141,088 
Other affiliates payable  466  426  2,270  4,545 
Other accrued expenses payable  214,878  93,987  104,864  157,342 
Other liabilities    399,955  101,768  1,896 
Total liabilities  38,871,970  46,024,444  80,536,009  264,679,861 
Net Assets  $ 120,508,051  $ 126,896,463  $ 261,605,928  $ 604,371,730 
     Net Assets Consist of         
Paid-in capital4,5,6  $ 127,810,765  $ 229,734,137  $ 349,990,822  $ 701,342,104 
Undistributed (distributions in excess of) net investment income  (417,467)  (1,069,852)  (1,389,038)  671,459 
Accumulated net realized loss  (8,843,702)  (79,799,548)  (68,976,767)  (72,426,242) 
Net unrealized appreciation/depreciation  1,958,455  (21,968,274)  (18,019,089)  (25,215,591) 
Net Assets  $ 120,508,051  $ 126,896,463  $ 261,605,928  $ 604,371,730 
Net asset value  $ 13.38  $ 10.30  $ 14.24  $ 16.38 
     1 Investment at cost — unaffiliated  $ 146,018,527  $ 180,502,330  $ 335,061,136  $ 755,573,424 
     2 Investment at cost — affiliated  $ 2,618,127  $ 1,615,121  $ 1,442,325  $ 32,179,987 
     3 Foreign currency at cost  $ 215,319  $ 200,369  $ 1,689,320  $ 1,088,344 
     4 Par value per share  $ 0.001  $ 0.10  $ 0.10  $ 0.001 
     5 Shares outstanding  9,008,704  12,322,083  18,371,617  36,889,650 
     6 Shares authorized  unlimited  200 million  200 million  unlimited 

See Notes to Financial Statements.

38 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Statements of Assets and Liabilities (concluded)     
  BlackRock    BlackRock 
  Senior Floating  Senior Floating 
February 28, 2010 (Unaudited)  Rate Fund, Inc.  Rate Fund II, Inc. 
     Assets     
Investment at value — Master Senior Floating Rate (the “Master LLC”)1  $ 306,223,524  $ 156,073,806 
Capital shares sold receivable  506,830  698,675 
Prepaid expenses  192,029  101,804 
Total assets  306,922,383  156,874,285 
     Liabilities     
Income dividends payable  1,065,616  501,379 
Contributions payable to the Master LLC  506,830  698,675 
Administration fees payable  58,069  47,175 
Other affiliates payable  4,102  750 
Officer’s and Directors’ fees payable  402  202 
Other accrued expenses payable  146,633  61,885 
Total liabilities  1,781,652  1,310,066 
Net Assets  $ 305,140,731  $ 155,564,219 
     Net Assets Consist of     
Paid-in capital2  $ 655,175,715  $ 224,431,161 
Undistributed net investment income  1,030,342  4,358 
Accumulated net realized loss allocated from the Master LLC  (328,655,275)  (59,386,708) 
Net unrealized appreciation/depreciation allocated from the Master LLC  (22,410,051)  (9,484,592) 
Net Assets  $ 305,140,731  $ 155,564,219 
Net asset value  $ 7.54  $ 8.17 
     1 Cost — investment in Master LLC  $ 328,633,575  $ 165,558,398 
     2 Shares outstanding, par value $0.10 per share, 1 billion shares authorized  40,453,407  19,044,477 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 39


Statements of Operations         
    BlackRock  BlackRock   
  BlackRock  Diversified  Floating Rate  BlackRock 
            Defined  Income       Income       Limited 
  Opportunity  Strategies  Strategies       Duration 
  Credit Trust  Fund, Inc.  Fund, Inc.  Income Trust 
Six Months Ended February 28, 2010 (Unaudited)             (BHL)  (DVF)         (FRA)         (BLW) 
     Investment Income         
Interest  $ 4,640,353  $ 5,922,488  $ 10,024,717  $ 20,517,199 
Facility and other fees  81,636  49,074  155,046  662,100 
Income — affiliated  2,405  2,200  3,046  47,811 
Total income  4,724,394  5,973,762  10,182,809  21,227,110 
     Expenses         
Investment advisory  709,522  541,770  1,129,581  1,604,714 
Borrowing costs1  84,610  74,834  137,203  12,195 
Professional  72,797  53,219  66,464  65,563 
Custodian  32,726  12,600  40,660  68,535 
Printing  18,446  12,402  24,157  118,889 
Accounting services  16,527  14,959  33,198  62,659 
Transfer agent  10,497  13,762  16,437  6,074 
Officer and Directors  6,852  6,802  12,496  43,260 
Registration  4,879  4,543  4,035  6,016 
Miscellaneous  26,750  25,504  49,097  51,047 
Total expenses excluding interest expense  983,606  760,395  1,513,328  2,038,952 
Interest expense  153,005  143,722  301,704  87,333 
Total expenses  1,136,611  904,117  1,815,032  2,126,285 
Less fees waived by advisor  (1,051)  (976)  (1,347)  (18,003) 
Total expenses after fees waived  1,135,560  903,141  1,813,685  2,108,282 
Net investment income  3,588,834  5,070,621  8,369,124  19,118,828 
     Realized and Unrealized Gain (Loss)         
Net realized gain (loss) from:         
   Investments  (413,154)  (10,900,510)  (10,278,981)  (6,058,606) 
   Financial futures contracts        146,933 
   Swaps    (643,991)  (1,205,766)  (246,028) 
   Foreign currency transactions  (424,620)  (114,599)  (754,689)  (678,118) 
  (837,774)  (11,659,100)  (12,239,436)  (6,835,819) 
Net change in unrealized appreciation/depreciation on:         
   Investments  7,101,599  28,613,664  34,227,210  53,147,641 
   Financial futures contracts        6,300 
   Swaps    2,117,407  1,110,590  82,828 
   Foreign currency transactions  943,834  520,006  1,495,221  2,985,372 
   Unfunded loan commitments  (69,515)  (50,681)  (37,711)  (144,301) 
  7,975,918  31,200,396  36,795,310  56,077,840 
Total realized and unrealized gain  7,138,144  19,541,296  24,555,874  49,242,021 
Net Increase in Net Assets Resulting from Operations  $ 10,726,978  $ 24,611,917  $ 32,924,998  $ 68,360,849 
     1 See Note 9 of the Notes to Financial Statements for details of borrowings.         

See Notes to Financial Statements.

40 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Statements of Operations (concluded)     
       BlackRock    Blackrock 
  Senior Floating  Senior Floating 
Six Months Ended February 28, 2010 (Unaudited)  Rate Fund, Inc.  Rate Fund II, Inc. 
     Investment Income     
Net Investment income allocated from the Master LLC:     
   Interest  $ 9,697,203  $ 4,820,149 
   Income — affiliated  9,913  5,061 
   Facility and other fees  123,431  61,219 
   Expenses  (1,622,682)  (806,759) 
Total income  8,207,865  4,079,670 
     Expenses     
Administration  380,282  302,477 
Transfer agent  143,097  42,519 
Tender offer  63,697  35,241 
Professional  49,836  29,513 
Printing  44,650  24,128 
Registration  18,835  13,828 
Officer and Directors  481  243 
Miscellaneous  6,729  6,417 
Total expenses  707,607  454,366 
Net investment income  7,500,258  3,625,304 
     Realized and Unrealized Gain (Loss) Allocated from the Master LLC     
Net realized loss from investments, swaps and foreign currency transactions  (13,667,157)  (6,770,208) 
Net change in unrealized appreciation/depreciation on investments, swaps and foreign currency transactions  30,014,754  14,797,879 
Total realized and unrealized gain  16,347,597  8,027,671 
Net Increase in Net Assets Resulting from Operations  $ 23,847,855  $ 11,652,975 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 41


Statements of Changes in Net Assets  BlackRock Defined Opportunity Credit Trust (BHL) 
  Six Months Ended   
  February 28,  Year Ended 
  2010      August 31, 
Increase (Decrease) in Net Assets:  (Unaudited)           2009 
     Operations     
Net investment income  $ 3,588,834  $ 7,823,996 
Net realized loss  (837,774)  (6,261,039) 
Net change in unrealized appreciation/depreciation  7,975,918  (7,306,747) 
Net increase (decrease) in net assets resulting from operations  10,726,978  (5,743,790) 
     Dividends and Distributions to Shareholders From     
Net investment income  (3,080,977)  (9,810,137) 
Tax return of capital    (88,324) 
Decrease in net assets resulting from dividends and distributions to shareholders  (3,080,977)  (9,898,461) 
     Capital Share Transactions     
Reinvestment of dividends    809,153 
     Net Assets     
Total increase (decrease) in net assets  7,646,001  (14,833,098) 
Beginning of period  112,862,050  127,695,148 
End of period  $ 120,508,051  $ 112,862,050 
Distributions in excess of net investment income  $ (417,467)  $ (925,324) 

  BlackRock Diversified Income Strategies Fund, Inc. (DVF) 
  Six Months Ended   
  February 28,  Year Ended 
  2010     August 31, 
Increase (Decrease) in Net Assets:  (Unaudited)  2009 
     Operations     
Net investment income  $ 5,070,621  $ 12,960,138 
Net realized loss  (11,659,100)  (51,026,972) 
Net change in unrealized appreciation/depreciation  31,200,396  (8,137,200) 
Net increase (decrease) in net assets resulting from operations  24,611,917  (46,204,034) 
     Dividends and Distributions to Shareholders From     
Net investment income  (5,430,266)  (13,947,075) 
Tax return of capital    (2,882,990) 
Decrease in net assets resulting from dividends and distributions to shareholders  (5,430,266)  (16,830,065) 
     Capital Share Transactions     
Reinvestment of dividends  158,417  883,415 
     Net Assets     
Total increase (decrease) in net assets  19,340,068  (62,150,684) 
Beginning of period  107,556,395  169,707,079 
End of period  $ 126,896,463  $ 107,556,395 
Distributions in excess of net investment income  $ (1,069,852)  $ (710,207) 

See Notes to Financial Statements.

42 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Statements of Changes in Net Assets  BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) 
  Six Months Ended   
  February 28,  Year Ended 
  2010        August 31, 
Increase (Decrease) in Net Assets:  (Unaudited)  2009 
     Operations     
Net investment income  $ 8,369,124  $ 20,915,709 
Net realized loss  (12,239,436)  (45,729,155) 
Net change in unrealized appreciation/depreciation  36,795,310  (9,488,290) 
Net increase (decrease) in net assets resulting from operations  32,924,998  (34,301,736) 
     Dividends to Shareholders From     
Net investment income  (8,971,165)  (23,842,077) 
     Capital Share Transactions     
Reinvestment of dividends  492,531  298,574 
     Net Assets     
Total increase (decrease) in net assets  24,446,364  (57,845,239) 
Beginning of period  237,159,564  295,004,803 
End of period  $ 261,605,928  $ 237,159,564 
Distributions in excess of net investment income  $ (1,389,038)  $ (786,997) 

  BlackRock Limited Duration Income Trust (BLW) 
  Six Months Ended   
  February 28,     Year Ended 
  2010          August 31, 
Increase (Decrease) in Net Assets:  (Unaudited)  2009 
     Operations     
Net investment income  $ 19,118,828  $ 37,187,662 
Net realized loss  (6,835,819)  (37,468,788) 
Net change in unrealized appreciation/depreciation  56,077,840  (21,814,023) 
Net increase (decrease) in net assets resulting from operations  68,360,849  (22,095,149) 
     Dividends and Distributions to Shareholders From     
Net investment income  (15,493,653)  (42,793,064) 
     Capital Share Transactions     
Reinvestment of dividends     
     Net Assets     
Total increase (decrease) in net assets  52,867,196  (64,888,213) 
Beginning of period  551,504,534  616,392,747 
End of period  $ 604,371,730  $ 551,504,534 
Undistributed (distributions in excess of) net investment income  $ 671,459  $ (2,953,716) 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 43


Statements of Changes in Net Assets  BlackRock Senior Floating Rate Fund, Inc. 
  Six Months Ended   
  February 28,  Year Ended 
  2010      August 31, 
Increase (Decrease) in Net Assets:  (Unaudited)  2009 
     Operations     
Net investment income  $ 7,500,258  $ 17,486,074 
Net realized loss  (13,667,157)  (34,004,504) 
Net change in unrealized appreciation/depreciation  30,014,754  (11,952,665) 
Net increase (decrease) in net assets resulting from operations  23,847,855  (28,471,095) 
     Dividends to Shareholders From     
Net investment income  (7,718,970)  (17,470,993) 
     Capital Share Transactions     
Net decrease in net assets resulting from capital share transactions  (22,650,549)  (41,795,738) 
     Net Assets     
Total decrease in net assets  (6,521,664)  (87,737,826) 
Beginning of period  311,662,395     399,400,221 
End of period  $ 305,140,731  $ 311,662,395 
Undistributed net investment income  $ 1,030,342  $ 1,249,054 

  BlackRock Senior Floating Rate Fund II, Inc. 
  Six Months Ended   
  February 28,  Year Ended 
  2010     August 31, 
Increase (Decrease) in Net Assets:  (Unaudited)  2009 
     Operations     
Net investment income  $ 3,625,304  $ 7,880,750 
Net realized loss  (6,770,208)  (15,895,082) 
Net change in unrealized appreciation/depreciation  14,797,879  (4,973,635) 
Net increase (decrease) in net assets resulting from operations  11,652,975  (12,987,967) 
     Dividends to Shareholders From     
Net investment income  (3,734,675)  (8,332,675) 
     Capital Share Transactions     
Net decrease in net assets resulting from capital share transactions  (2,701,126)  (14,969,362) 
     Net Assets     
Total increase (decrease) in net assets  5,217,174  (36,290,004) 
Beginning of period  150,347,045  186,637,049 
End of period  $ 155,564,219  $ 150,347,045 
Undistributed net investment income  $ 4,358  $ 113,729 

See Notes to Financial Statements.

44 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Statements of Cash Flows       
    BlackRock  BlackRock 
  BlackRock  Diversified  Floating Rate 
              Defined  Income  Income 
  Opportunity  Strategies  Strategies 
  Credit Trust  Fund, Inc.  Fund, Inc. 
February 28, 2010 (Unaudited)                (BHL)  (DVF)  (FRA) 
     Cash Provided by Operating Activities       
Net increase in net assets resulting from operations  $ 10,726,978  $ 24,611,917  $ 32,924,998 
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided       
by operating activities:       
     Decrease (increase) in interest receivable  (412,716)  502,591  (426,010) 
     Increase in cash pledged as collateral for swaps    (600,000)   
     Decrease in swap receivable    5,426  60,167 
     Increase in commitment fees receivable  (468)  (344)  (1,692) 
     Decrease in income receivable — affiliated  241     
     Decrease in other assets  106,457  17,692  61,990 
     Increase in other liabilties      101,768 
     Increase (decrease) in investment advisor payable  (3,474)  12,506  9,939 
     Increase in interest expense payable  22,687  40,235  77,480 
     Increase in other affiliates payable  36  60  1,420 
     Increase in accrued expenses payable  93,300  4,123  2,231 
     Decrease in swaps payable    (30,223)  (73,465) 
     Increase (decrease) in officer’s and directors’ payable  133  (43)  285 
     Decrease in deferred income  (120,455)  (80,469)  (79,562) 
     Swap premium received    50,292  234,207 
     Swap premium paid    (153,204)  (419,097) 
     Net realized and unrealized gain  (7,423,456)  (19,896,316)  (24,731,776) 
     Amortization of premium and discount on investments  (1,002,726)  (763,597)  (1,615,205) 
     Paid-in-kind income  (12,149)  (370,359)  (1,010,894) 
     Decrease in cash held as collateral on swaps      (100,000) 
Proceeds from sales and paydowns of long-term securities  74,784,863  81,212,859  144,027,399 
Purchases of long-term securities  (69,380,782)  (87,965,404)  (150,216,625) 
Net proceeds (purchases) from sales of short-term investments  (2,618,127)  756,456  576,054 
Cash provided by operating activities  4,760,342  (2,645,802)  (596,388) 
     Cash Used for Financing Activities       
Cash receipts from borrowings  56,000,000  78,000,000  126,000,000 
Cash payments from borrowings  (60,000,000)  (70,000,000)  (118,000,000) 
Cash dividends paid to shareholders  (3,104,411)  (5,272,571)  (8,643,137) 
Decrease in custodian bank payable      (43,905) 
Cash used for financing activities  (7,104,411)  2,727,429  (687,042) 
     Cash Impact from Foreign Exchange Fluctuations       
Cash impact from foreign exchange fluctuations  (1,277)  (1,702)  (77,217) 
     Cash       
Net increase (decrease) in cash  (2,345,346)  79,925  (1,360,647) 
Cash and foreign currency at beginning of period  2,559,456  119,156  3,476,153 
Cash and foreign currency at end of period  $ 214,110  $ 199,081  $ 2,115,506 
     Cash Flow Information       
Cash paid for interest  $ 130,318  $ 103,487  $ 224,224 
A Statement of Cash Flows is presented when a Fund has a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to 
average total assets.       

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 45


Financial Highlights  BlackRock Defined Opportunity Credit Trust (BHL) 
  Six Months    Period 
  Ended      January 31,   
  February 28,  Year Ended  20081 
  2010     August 31,  to August 31, 
  (Unaudited)  2009  2008 
     Per Share Operating Performance       
Net asset value, beginning of period  $ 12.53  $ 14.31  $ 14.332 
Net investment income3  0.40  0.87  0.47 
Net realized and unrealized gain (loss)  0.79  (1.55)  0.21 
Net increase (decrease) from investment operations  1.19  (0.68)  0.68 
Dividends and distributions from:       
   Net investment income  (0.34)  (1.09)  (0.62) 
   Tax return of capital    (0.01)  (0.06) 
Total dividends and distributions  (0.34)  (1.10)  (0.68) 
Capital charges with respect to issuance of shares      (0.02) 
Net asset value, end of period  $ 13.38  $ 12.53  $ 14.31 
Market price, end of period  $ 12.62  $ 11.03  $ 12.66 
     Total Investment Return4       
Based on net asset value  9.88%5  (2.16)%  4.79%5 
Based on market price  17.73%5  (2.65)%  (11.44)%5 
     Ratios to Average Net Assets       
Total expenses  1.95%6  2.39%  1.78%6 
Total expenses after fees waived and paid indirectly and excluding interest expense  1.69%6  1.94%  1.48%6 
Net investment income  6.16%6  8.11%  5.52%6 
     Supplemental Data       
Net assets, end of period (000)  $ 120,508  $ 112,862  $ 127,695 
Borrowings outstanding, end of period (000)  $ 23,000  $ 27,000  $ 38,500 
Average borrowings outstanding, during the period (000)  $ 25,633  $ 31,141  $ 13,788 
Portfolio turnover  56%  41%  18% 
Asset coverage, end of period per $1,000  $ 6,239  $ 5,180  $ 4,317 
   1 Commencement of operations.       
   2 Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from initial offering price of $15.00 per share.     
   3 Based on average shares outstanding.       
   4 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.   
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.         
   5 Aggregate total investment return.       
   6 Annualized.       

See Notes to Financial Statements.

46 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Financial Highlights    BlackRock Diversified Income Strategies Fund, Inc. (DVF) 
  Six Months            Period 
  Ended               January 31,      
  February 28,             20051 to 
      Year Ended August 31,     
  2010               August 31,        
  (Unaudited)  2009  2008  2007    2006     2005 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 8.74  $ 13.94  $ 17.50  $ 18.70  $ 18.38  $ 19.10 
Net investment income2  0.41  1.06  1.61  1.83    1.77  0.84 
Net realized and unrealized gain (loss)  1.59  (4.88)  (3.41)  (1.23)    0.25  (0.77) 
Net increase (decrease) from investment operations  2.00  (3.82)  (1.80)  0.60    2.02  0.07 
Dividends and distributions from:               
   Net investment income  (0.44)  (1.14)  (1.72)  (1.80)    (1.70)  (0.75) 
   Tax return of capital    (0.24)  (0.04)         
Total dividends and distributions  (0.44)  (1.38)  (1.76)  (1.80)    (1.70)  (0.75) 
Capital charges with respect to issuance of shares                 (0.00)3  (0.04) 
Net asset value, end of period  $ 10.30  $ 8.74  $ 13.94  $ 17.50  $ 18.70  $ 18.38 
Market price, end of period  $ 10.67  $ 8.80  $ 12.77  $ 17.16  $ 18.85  $ 17.53 
     Total Investment Return4               
Based on net asset value  23.33%5  (23.82)%  (10.17)%  3.00%    11.99%  0.42%5 
Based on market price  26.89%5  (16.27)%  (16.08)%  0.19%    18.36%  (8.53)%5 
     Ratios to Average Net Assets               
Total expenses  1.50%6  2.47%  2.77%  3.66%    3.17%  2.48%6 
Total expenses after fees waived and paid indirectly  1.50%6  2.47%  2.77%  3.66%    3.17%  2.20%6 
Total expenses after fees waived and paid indirectly and excluding               
   interest expense  1.26%6  1.57%  1.23%  1.30%    1.29%  1.00%6 
Net investment income  8.42%6  13.63%  10.40%  9.63%    9.57%  7.88%6 
     Supplemental Data               
Net assets, end of period (000)  $ 126,896  $ 107,556  $ 169,707  $ 212,792  $ 224,156  $ 219,748 
Borrowings outstanding, end of period (000)  $ 26,000  $ 18,000  $ 65,500  $ 72,000  $ 88,800  $ 101,400 
Average borrowings outstanding, during the period (000)  $ 24,177  $ 28,247  $ 64,335  $ 95,465  $ 86,132  $ 75,543 
Portfolio turnover  58%  45%  41%  72%    64%  17% 
Asset coverage, end of period per $1,000  $ 5,881  $ 6,975  $ 3,591  $ 3,955  $ 3,524  $ 3,167 
   1 Commencement of operations.               
   2 Based on average shares outstanding.               
   3 Amount is less than $(0.01) per share.               
   4 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.   
       Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.       
   5 Aggregate total investment return.               
   6 Annualized.               

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 47


Financial Highlights    BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) 
  Six Months           
  Ended               
  February 28,           
  2010          Year Ended August 31,   
  (Unaudited)  2009  2008  2007  2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of period  $ 12.93  $ 16.12  $ 18.25  $ 19.32  $ 19.35  $ 19.16 
Net investment income1  0.46  1.14  1.45  1.54  1.40  1.23 
Net realized and unrealized gain (loss)  1.34  (3.04)  (2.03)  (1.07)  (0.06)  0.08 
Net increase (decrease) from investment operations  1.80  (1.90)  (0.58)  0.47  1.34  1.31 
Dividends and distributions from:             
   Net investment income  (0.49)  (1.29)  (1.55)  (1.54)  (1.37)  (1.11) 
   Net realized gain            (0.01) 
Total dividends and distributions  (0.49)  (1.29)  (1.55)  (1.54)  (1.37)  (1.12) 
Net asset value, end of period  $ 14.24  $ 12.93  $ 16.12  $ 18.25  $ 19.32  $ 19.35 
Market price, end of period  $ 15.64  $ 12.26  $ 14.49  $ 16.70  $ 17.49  $ 17.85 
     Total Investment Return2             
Based on net asset value  14.12%3  (8.88)%  (2.56)%  2.74%  7.92%  7.27% 
Based on market price  32.19%3  (3.88)%  (4.28)%  3.85%  5.91%  (2.47)% 
     Ratios to Average Net Assets             
Total expenses  1.45%4  1.96%  2.61%  3.33%  2.54%  2.18% 
Total expenses after fees waived and paid indirectly  1.45%4  1.96%  2.60%  3.33%  2.54%  2.18% 
Total expenses after fees waived and paid indirectly and excluding             
   interest expense  1.21%4  1.31%  1.18%  1.20%  1.14%  1.22% 
Net investment income  6.67%4  10.18%  8.49%  7.88%  7.30%  6.34% 
     Supplemental Data             
Net assets, end of period (000)  $ 261,606  $ 237,160  $ 295,005  $ 334,065  $ 353,713  $ 354,114 
Borrowings outstanding, end of period (000)  $ 46,000  $ 38,000  $ 101,500  $ 107,000  $ 135,200  $ 123,600 
Average borrowings outstanding, during the period (000)  $ 50,740  $ 50,591  $ 102,272  $ 133,763  $ 101,916  $ 117,702 
Portfolio turnover  51%  58%  49%  69%  57%  48% 
Asset coverage, end of period per $1,000  $ 6,687  $ 7,241  $ 3,906  $ 4,122  $ 3,616  $ 3,865 
   1 Based on average shares outstanding.             
   2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.   
       Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.     
   3 Aggregate total investment return.             
   4 Annualized.             

See Notes to Financial Statements.

48 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Financial Highlights        BlackRock Limited Duration Income Trust (BLW) 
  Six Months    Period         
            Ended    November 1,         
  February 28,  Year Ended  2007 to         
             2010  August 31,  August 31,      Year Ended October 31,   
  (Unaudited)  2009  2008  2007  2006  2005  2004 
Per Share Operating Performance               
Net asset value, beginning of period  $ 14.95  $ 16.71  $ 18.52  $ 19.01  $ 19.17  $ 20.13  $ 19.74 
Net investment income  0.511  1.011  1.141  1.50  1.35  1.46  1.46 
Net realized and unrealized gain (loss)  1.34  (1.61)  (1.76)  (0.49)  0.03  (0.94)  0.43 
Net increase (decrease) from investment operations  1.85  (0.60)  (0.62)  1.01  1.38  0.52  1.89 
Dividends and distributions from:               
   Net investment income  (0.42)  (1.16)  (1.19)  (1.41)  (1.52)  (1.33)  (1.49) 
   Net realized gain        (0.06)    (0.15)  (0.01) 
   Tax return of capital        (0.03)  (0.02)     
Total dividends and distributions  (0.42)  (1.16)  (1.19)  (1.50)  (1.54)  (1.48)  (1.50) 
Net asset value, end of period  $ 16.38  $ 14.95  $ 16.71  $ 18.52  $ 19.01  $ 19.17  $ 20.13 
Market price, end of period  $ 15.64  $ 14.09  $ 14.57  $ 16.68  $ 18.85  $ 17.48  $ 19.95 
Total Investment Return2               
Based on net asset value  12.73%3  (1.57)%  (2.60)%3  5.66%  7.85%  2.93%  10.17% 
Based on market price  14.21%3  6.40%  (5.70)%3  (4.03)%  17.31%  (5.30)%  14.64% 
Ratios to Average Net Assets               
Total expenses  0.73%4  0.72%  1.39%4  2.16%  2.20%  1.71%  1.26% 
Total expenses after fees waived and before fees               
   paid indirectly  0.73%4  0.71%  1.39%4  2.16%  2.20%  1.71%  1.26% 
Total expenses after fees waived and paid indirectly  0.73%4  0.71%  1.38%4  2.14%  2.19%  1.71%  1.25% 
Total expenses after fees waived and paid indirectly and               
   excluding interest expense  0.70%4  0.69%  0.76%4  0.83%  0.91%  0.92%  0.90% 
Net investment income  6.61%4  7.42%  7.84%4  7.92%  7.10%  7.42%  7.34% 
Supplemental Data               
Net assets, end of period (000)  $ 604,372  $ 551,505  $ 616,393  $ 638,109  $ 699,206  $ 704,961  $ 739,225 
Borrowings outstanding, end of period (000)  $ 12,744  $ —  $ 64,538  $ 109,287  $ 220,000  $ 176,010  $ 159,416 
Average borrowings outstanding, during the period (000)  $ 4,871  $ 11,705  $ 120,295  $ 172,040  $ 179,366  $ 186,660  $ 195,845 
Portfolio turnover  156%5  287%6  191%7  65%  132%  70%  215% 
Asset coverage, end of period per $1,000  $ 48,423  $ —  $ 10,551  $ 7,251  $ 4,178  $ 5,005  $ 5,637 
   1 Based on average shares outstanding.               
   2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.   
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.          
   3 Aggregate total investment return.               
   4 Annualized.               
   5 Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 12%.       
   6 Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 79%.       
   7 Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 24%.         

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 49


Financial Highlights          BlackRock Senior Floating Rate Fund, Inc. 
  Six Months             
  Ended                
  February 28,             
  2010           Year Ended August 31,   
  (Unaudited)    2009  2008  2007  2006  2005 
Per Share Operating Performance               
Net asset value, beginning of period  $ 7.16  $ 7.98  $ 8.60  $ 8.92  $ 9.01  $ 8.91 
Net investment income1  0.18    0.39  0.51  0.60  0.52  0.37 
Net realized and unrealized gain (loss)  0.39    (0.83)  (0.62)  (0.32)  (0.08)  0.10 
Net increase (decrease) from investment operations  0.57    (0.44)  (0.11)  0.28  0.44  0.47 
Dividends from net investment income  (0.19)    (0.38)  (0.51)  (0.60)  (0.53)  (0.37) 
Net asset value, end of period  $ 7.54  $ 7.16  $ 7.98  $ 8.60  $ 8.92  $ 9.01 
     Total Investment Return2               
Based on net asset value  7.97%3    (4.69)%  (1.32)%4  3.07%  4.97%  5.38% 
     Ratios to Average Net Assets5               
Total expenses  1.53%6    1.53%  1.28%4  1.44%  1.43%  1.41% 
Net investment income  4.93%6    5.97%  6.16%  6.67%  5.84%  4.11% 
     Supplemental Data               
Net assets, end of period (000)  $ 305,141  $ 311,662  $ 399,400  $ 505,515  $ 601,807  $ 676,703 
Portfolio turnover for the Master LLC  56%    47%  56%  46%  54%  53% 
   1 Based on average shares outstanding.               
   2 Where applicable, total investment returns exclude the early withdrawal charge, but do include the reinvestment of dividends and distributions. The Fund is a continuously offered 
       closed-end fund, the shares of which are offered at net asset value. No secondary market for the Fund’s shares exists.       
   3 Aggregate total investment return.               
   4 During the year ended August 31, 2008, the Fund recorded a refund related to overpayments of prior years’ tender offer fees, which increased net investment income per 
       share $0.02 and increased total investment return 0.24%. The expense ratio excluding the refund was 1.46%.         
   5 Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income.           
   6 Annualized.               

See Notes to Financial Statements.

50 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Financial Highlights        BlackRock Senior Floating Rate Fund II, Inc. 
  Six Months             
  Ended                
  February 28,             
  2010            Year Ended August 31,   
  (Unaudited)    2009  2008  2007  2006  2005 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 7.76  $ 8.67  $ 9.35  $ 9.70  $ 9.79  $ 9.67 
Net investment income1  0.19    0.41  0.54  0.63  0.56  0.39 
Net realized and unrealized gain (loss)  0.42    (0.89)  (0.69)  (0.34)  (0.10)  0.11 
Net increase (decrease) from investment operations  0.61    (0.48)  (0.15)  0.29  0.46  0.50 
Dividends from net investment income  (0.20)    (0.43)  (0.53)  (0.64)  (0.55)  (0.38) 
Net asset value, end of period  $ 8.17  $ 7.76  $ 8.67  $ 9.35  $ 9.70  $ 9.79 
     Total Investment Return2               
Based on net asset value  7.88%3    (4.70)%  (1.61)%4  2.89%  4.90%  5.26% 
     Ratios to Average Net Assets5               
Total expenses  1.67%6    1.68%  1.50%4  1.59%  1.57%  1.54% 
Net investment income  4.79%6    5.79%  5.96%  6.53%  5.70%  4.03% 
     Supplemental Data               
Net assets, end of period (000)  $ 155,564  $ 150,347  $ 186,637  $ 247,861  $ 322,202  $ 355,108 
Portfolio turnover for the Master LLC  56%    47%  56%  46%  54%  53% 
   1 Based on average shares outstanding.               
   2 Where applicable, total investment returns exclude the early withdrawal charge, but do include the reinvestment of dividends and distributions. The Fund is a continuously offered 
       closed-end fund, the shares of which are offered at net asset value. No secondary market for the Fund’s shares exists.       
   3 Aggregate total investment return.               
   4 During the year ended August 31, 2008, the Fund recorded a refund related to overpayments of prior years’ tender offer fees, which increased net investment income per 
       share $0.02 and increased total investment return 0.11%. The expense ratio excluding the refund was 1.64%.         
   5 Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income.           
   6 Annualized.               

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 51


Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies:

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. (“Senior Floating Rate”)
and BlackRock Senior Floating Rate Fund II, Inc. (“Senior Floating Rate II”)
(collectively, referred to as the “Funds” or individually as the “Fund”) are
registered under the Investment Company Act of 1940, as amended (the
“1940 Act”). BHL and BLW are organized as Delaware Statutory trusts. DVF,
FRA, Senior Floating Rate and Senior Floating Rate II are organized as
Maryland corporations. BHL, DVF, FRA and BLW are registered as diversi-
fied, closed-end management investment companies. Senior Floating Rate
and Senior Floating Rate II are registered as continuously offered, nondiver-
sified, closed-end management investment companies. The Funds’ financial
statements are prepared in conformity with accounting principles generally
accepted in the United States of America, which may require the use of
management accruals and estimates. Actual results may differ from these
estimates. The Boards of Directors and the Boards of Trustees of the Funds
are referred to throughout this report as the “Board of Directors” or the
“Board.” The Funds determine and make available for publication the net
asset value of their shares on a daily basis.

Senior Floating Rate and Senior Floating Rate II seek to achieve their
investment objectives by investing all their assets in the Master Senior
Floating Rate LLC (the “Master LLC”), which has the same investment
objective and strategies as these Funds. The value of each Fund’s invest-
ment in the Master LLC reflects each Fund’s proportionate interest in the
net assets of the Master LLC. The performance of each Fund is directly
affected by the performance of the Master LLC. The financial statements of
the Master LLC, including the Schedule of Investments, are included else-
where in this report and should be read in conjunction with Senior Floating
Rate and Senior Floating Rate II’s financial statements. The percentage of
the Master LLC owned by Senior Floating Rate and Senior Floating Rate II
at February 28, 2010 was 66% and 34%, respectively.

The following is a summary of significant accounting policies followed by
the Funds:

Valuation: The Funds’ policy is to fair value their financial instruments at
market value. The Funds value their bond investments on the basis of last
available bid prices or current market quotations provided by dealers or
pricing services selected under the supervision of each Fund’s Board.
Floating rate loan interests are valued at the mean between the last avail-
able bid prices from one or more brokers or dealers as obtained from a
pricing service. In determining the value of a particular investment, pricing
services may use certain information with respect to transactions in such
investments, quotations from dealers, pricing matrixes, market transactions
in comparable investments, various relationships observed in the market
between investments and calculated yield measures based on valuation
technology commonly employed in the market for such investments. Asset-
backed and mortgage-backed securities are valued by independent pricing
services using models that consider estimated cash flows of each tranche
of the security, establishes a benchmark yield and develops an estimated
tranche specific spread to the benchmark yield based on the unique
attributes of the tranche. Financial futures contracts traded on exchanges

are valued at their last sale price. To be announced (“TBA”) commitments
are valued at the current market value of the underlying securities. Swap
agreements are valued utilizing quotes received daily by the Funds’ pricing
service or through brokers, which are derived using daily swap curves
and trades of underlying securities. Investments in open-end investment
companies are valued at net asset value each business day. Short-term
securities with remaining maturities of 60 days or less may be valued at
amortized cost, which approximates fair value.

Certain Funds value their investment in BlackRock Liquidity Series, LLC
Money Market Series (the "Money Market Series") at fair value, which is
ordinarily based upon their pro rata ownership in the net assets of the
underlying fund. The Money Market Series seeks current income consistent
with maintaining liquidity and preserving capital. Although the Money
Market Series is not registered under the 1940 Act, its investments will
follow the parameters of investments by a money market fund that is
subject to Rule 2a-7 promulgated by the Securities and Exchange
Commission (“SEC”) under the 1940 Act. The Funds may withdraw up to
25% of their investment daily, although the manager of the Money Market
Series, in its sole discretion, may permit an investor to withdraw more than
25% on any one day.

Equity investments traded on a recognized securities exchange or the
NASDAQ Global Market System are valued at the last reported sale price
that day or the NASDAQ official closing price, if applicable. For equity
investments traded on more than one exchange, the last reported sale
price on the exchange where the stock is primarily traded is used. Equity
investments traded on a recognized exchange for which there were no
sales on that day are valued at the last available bid price. If no bid price
is available, the prior day’s price will be used, unless it is determined that
such prior day’s price no longer reflects the fair value of the security.

Exchange-traded options are valued at the mean between the last bid
and ask prices at the close of the options market in which the options
trade. An exchange-traded option for which there is no mean price is
valued at the last bid price. If no bid price is available, the prior day’s price
will be used, unless it is determined that such day’s price no longer reflects
the fair value of the option. Over-the-counter (“OTC”) options and swap-
tions are valued by an independent pricing service using a mathematical
model which incorporates a number of market data factors, such as the
trades and prices of the underlying instruments.

Securities and other assets and liabilities denominated in foreign curren-
cies are translated into US dollars using exchange rates determined as of
the close of business on the New York Stock Exchange (“NYSE”). Foreign
currency exchange contracts are valued at the mid between the bid and
ask prices and are determined as of the close of business on the NYSE.
Interpolated values are derived when the settlement date of the contract
is an interim date for which quotations are not available.

In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment or is not available, the investment will be
valued by a method approved by each Fund’s Board as reflecting fair value
(“Fair Value Assets”). When determining the price for Fair Value Assets, the
investment advisor and/or the sub-advisor seeks to determine the price

52 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Notes to Financial Statements (continued)

that each Fund might reasonably expect to receive from the current sale
of that asset in an arm’s-length transaction. Fair value determinations shall
be based upon all available factors that the investment advisor and/or
sub-advisor deems relevant. The pricing of all Fair Value Assets is subse-
quently reported to the Board or a committee thereof.

Generally, trading in foreign instruments is substantially completed
each day at various times prior to the close of business on the NYSE.
Occasionally, events affecting the values of such instruments may occur
between the foreign market close and the close of business on the NYSE
that may not be reflected in the computation of a Fund’s net assets. If
events (for example, a company announcement, market volatility or a natu-
ral disaster) occur during such periods that are expected to materially
affect the value of such instruments, those instruments may be Fair Value
Assets and be valued at their fair value, as determined in good faith by the
Board or by the investment advisor using a pricing service and/or proce-
dures approved by the Board.

Senior Floating Rate and Senior Floating Rate II record their investments in
the Master LLC at fair value. Valuation of securities held by the Master LLC
is discussed in Note 1 of the Master LLC’s Notes to Financial Statements,
which are included elsewhere in this report.

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
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, pre-
payment 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)

The inputs or methodologies used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.

As of February 28, 2010, Senior Floating Rate and Senior Floating rate II’s
investment in the Master LLC was classified as level 2. More relevant dis-
closure regarding fair value measurements relates to the Master LLC, which
is disclosed in the Master LLC’s Schedule of Investments included else-
where in this report.

Foreign Currency Transactions: Foreign currency amounts are translated
into United States dollars on the following basis: (i) market value of in-
vestment securities, assets and liabilities at the current rate of exchange;
and (ii) purchases and sales of investment securities, income and ex-
penses at the rates of exchange prevailing on the respective dates of
such transactions.

The Funds report foreign currency related transactions as components of
realized gains for financial reporting purposes, whereas such components
are treated as ordinary income for federal income tax purposes.

Asset-Backed and Mortgaged-Backed Securities: Certain Funds may
invest in asset-backed securities. Asset-backed securities are generally
issued as pass-through certificates, which represent undivided fractional
ownership interests in an underlying pool of assets, or as debt instruments,
which are also known as collateralized obligations, and are generally issued
as the debt of a special purpose entity organized solely for the purpose of
owning such assets and issuing such debt. Asset-backed securities are
often backed by a pool of assets representing the obligations of a number
of different parties. The yield characteristics of certain asset-backed securi-
ties may differ from traditional debt securities. One such major difference
is that all or a principal part of the obligations may be prepaid at any time
because the underlying assets (i.e., loans) may be prepaid at any time. As
a result, a decrease in interest rates in the market may result in increases
in the level of prepayments as borrowers, particularly mortgagors, refinance
and repay their loans. An increased prepayment rate with respect to an
asset-backed security subject to such a prepayment feature will have the
effect of shortening the maturity of the security. If a Fund has purchased
such an asset-backed security at a premium, a faster than anticipated
prepayment rate could result in a loss of principal to the extent of the
premium paid.

Certain Funds may purchase certain mortgage pass-through securities.
There are a number of important differences among the agencies and
instrumentalities of the US Government that issue mortgage-related sec-
urities and among the securities that they issue. For example, mortgage-
related securities guaranteed by the Government National Mortgage
Association (“GNMA”) are guaranteed as to the timely payment of principal
and interest by GNMA and such guarantee is backed by the full faith and
credit of the United States. However, mortgage-related securities issued
by the Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal
National Mortgage Association (“FNMA”), including FNMA guaranteed
Mortgage Pass-Through Certificates which are solely the obligations of
the FNMA, are not backed by or entitled to the full faith and credit of the
United States and are supported by the right of the issuer to borrow from
the Treasury.

Certain Funds invest a significant portion of their assets in securities
backed by commercial or residential mortgage loans or in issuers that hold
mortgage and other asset-backed securities. Please see the Schedules of
Investments for these securities. Changes in economic conditions, including
delinquencies and/or defaults on assets underlying these securities, can
affect the value, income and/or liquidity of such positions.

Forward Commitments and When-Issued Delayed Delivery Securities:
Certain Funds may purchase securities on a when-issued basis and may
purchase or sell securities on a forward commitment basis. Settlement of
such transactions normally occurs within a month or more after the pur-
chase or sale commitment is made. The Funds may purchase securities
under such conditions with the intention of actually acquiring them, but
may enter into a separate agreement to sell the securities before the settle-
ment date. Since the value of securities purchased may fluctuate prior
to settlement, the Funds may be required to pay more at settlement than

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 53


Notes to Financial Statements (continued)

the security is worth. In addition, the purchaser is not entitled to any of
the interest earned prior to settlement. When purchasing a security on a
delayed delivery basis, the Funds assume the rights and risks of ownership
of the security, including the risk of price and yield fluctuations. In the event
of default by the counterparty, the Funds’ maximum amount of loss is the
unrealized gain of the commitment, which is shown on the Schedules of
Investments, if any.

Preferred Stock: Certain Funds may invest in preferred stocks. Preferred
stock has a preference over common stock in liquidation (and generally
in receiving dividends as well) but is subordinated to the liabilities of the
issuer in all respects. As a general rule, the market value of preferred stock
with a fixed dividend rate and no conversion element varies inversely with
interest rates and perceived credit risk, while the market price of convert-
ible preferred stock generally also reflects some element of conversion
value. Because preferred stock is junior to debt securities and other obliga-
tions of the issuer, deterioration in the credit quality of the issuer will cause
greater changes in the value of a preferred stock than in a more senior
debt security with similar stated yield characteristics. Unlike interest pay-
ments on debt securities, preferred stock dividends are payable only if
declared by the issuer’s board of directors. Preferred stock also may be
subject to optional or mandatory redemption provisions.

Floating Rate Loans: Certain Funds may invest in floating rate loans, which
are generally non-investment grade, made by banks, other financial institu-
tions, and privately and publicly offered corporations. Floating rate loans
are senior in the debt structure of a corporation. Floating rate loans gener-
ally pay interest at rates that are periodically determined by reference to
a base lending rate plus a premium. The base lending rates are generally
(i) the lending rate offered by one or more European banks, such as LIBOR
(London Inter Bank Offered Rate), (ii) the prime rate offered by one or
more US banks or (iii) the certificate of deposit rate. The Funds consider
these investments to be investments in debt securities for purposes of
their investment policies.

The Funds earn and/or pay facility and other fees on floating rate loans.
Other fees earned/paid include commitment, amendment, consent and
prepayment penalty fees. Facility, commitment and amendment fees are
typically amortized over the term of the loan. Consent fees and various
other fees are recorded as income. Prepayment penalty fees are recorded
as realized gains. When a Fund buys a floating rate loan it may receive a
facility fee and when it sells a floating rate loan it may pay a facility fee.
On an ongoing basis, the Funds may receive a commitment fee based on
the undrawn portion of the underlying line of credit portion of a floating
rate loan. In certain circumstances, the Funds may receive a prepayment
penalty fee upon the prepayment of a floating rate loan by a borrower.
Other fees received by the Funds may include covenant waiver fees and
covenant modification fees.

The Funds may invest in multiple series or tranches of a loan. A
different series or tranche may have varying terms and carry different
associated risks.

Floating rate loans are usually freely callable at the issuer’s option. The
Funds may invest in such loans in the form of participations in loans
(“Participations”) and assignments of all or a portion of loans from third

parties. Participations typically will result in the Funds having a contractual
relationship only with the lender, not with the borrower. The Funds will have
the right to receive payments of principal, interest and any fees to which
it is entitled only from the lender selling the Participation and only upon
receipt by the lender of the payments from the borrower.

In connection with purchasing Participations, the Funds generally will
have no right to enforce compliance by the borrower with the terms of the
loan agreement relating to the loans, nor any rights of offset against the
borrower, and the Funds may not benefit directly from any collateral sup-
porting the loan in which it has purchased the Participation.

As a result, the Funds will assume the credit risk of both the borrower and
the lender that is selling the Participation. The Funds’ investments in loan
participation interests involve the risk of insolvency of the financial interme-
diaries who are parties to the transactions. In the event of the insolvency of
the lender selling the Participation, the Funds may be treated as a general
creditor of the lender and may not benefit from any offset between the
lender and the borrower.

Mortgage Dollar Roll Transactions: Certain Funds may sell mortgage-
backed securities and simultaneously contract to repurchase substantially
similar (same type, coupon and maturity) securities on a specific future
date at an agreed-upon price. During the period between the sale and
repurchase, the Funds will not be entitled to receive interest and principal
payments on the securities sold. The Funds account for dollar roll transac-
tions as purchases and sales and realize gains and losses on these trans-
actions. Mortgage dollar rolls involve the risk that the market value of the
securities that the Funds are required to purchase may decline below the
agreed upon repurchase price of those securities.

Reverse Repurchase Agreements: Certain Funds may enter into reverse
repurchase agreements with qualified third party broker-dealers. In a
reverse repurchase agreement, the Funds sell securities to a bank or bro-
ker-dealer and agree to repurchase the securities at a mutually agreed
upon date and price. Certain agreements have no stated maturity and
can be terminated by either party at any time. Interest on the value of the
reverse repurchase agreements issued and outstanding is based upon
competitive market rates determined at the time of issuance. The Funds
may utilize reverse repurchase agreements when it is anticipated that the
interest income to be earned from the investment of the proceeds of the
transaction is greater than the interest expense of the transaction. Reverse
repurchase agreements involve leverage risk and also the risk that the
market value of the securities that the Funds are obligated to repurchase
under the agreement may decline below the repurchase price. In the event
the buyer of securities under a reverse repurchase agreement files for
bankruptcy or becomes insolvent, the Funds’ use of the proceeds of the
agreement may be restricted while the other party, or its trustee or receiver,
determines whether or not to enforce the Funds’ obligation to repurchase
the securities.

TBA Commitments: Certain Funds may enter into TBA commitments to pur-
chase or sell securities for a fixed price at a future date. TBA commitments
involve a risk of loss if the value of the security to be purchased or sold
declines or increases prior to settlement date, which is in addition to the
risk of decline in the value of the Funds’ other assets.

54 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Notes to Financial Statements (continued)

Segregation and Collateralization: In cases in which the 1940 Act and
the interpretive positions of the SEC require that the Funds either deliver
collateral or segregate assets in connection with certain investments
(e.g., dollar rolls, TBAs beyond normal settlement, financial futures con-
tracts, foreign currency exchange contracts and swaps), or certain borrow-
ings (e.g., reverse repurchase agreements and loan payable) each Fund
will, consistent with SEC rules and/or certain interpretive letters issued by
the SEC, segregate collateral or designate on its books and records cash or
other liquid securities having a market value at least equal to the amount
that would otherwise be required to be physically segregated. Furthermore,
based on requirements and agreements with certain exchanges and third
party broker-dealers, each party has requirements to deliver/deposit secu-
rities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses
on investment transactions are determined on the identified cost basis.
Dividend income is recorded on the ex-dividend dates. Dividends from
foreign securities where the ex-dividend date may have passed are sub-
sequently recorded when the Funds have determined the ex-dividend date.
Interest income is recognized on the accrual basis. The Funds amortize
all premiums and discounts on debt securities. Consent fees are compen-
sation for agreeing to changes in the terms of debt instruments and are
included in interest income in the Statements of Operations.

Senior Floating Rate and Senior Floating Rate II record daily their propor-
tionate share of the Master LLC’s income, expenses and realized and unre-
alized gains and losses. In addition, both Funds accrue their own expenses.

Dividends and Distributions: Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on
the ex-dividend dates. If the total dividends and distributions made in any
tax year exceed net investment income and accumulated realized capital
gains, a portion of the total distribution may be treated as a tax return
of capital.

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

Each Fund files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on the Funds’ US federal tax returns remains open for the two periods
ended August 31, 2009 for BHL, the four years ended August 31, 2009
for DVF, FRA, Senior Floating Rate and Senior Floating Rate II, and the two
years ended October 31, 2007 and the two periods ended August 31,
2009 for BLW. The statutes of limitations on the Funds’ state and local
tax returns may remain open for an additional year depending upon
the jurisdiction.

Recent Accounting Standards: In June 2009, amended guidance was
issued by the Financial Accounting Standards Board (“FASB”) for transfers

of financial assets. This guidance is intended to improve the relevance,
representational faithfulness and comparability of the information that
a reporting entity provides in its financial statements about a transfer of
financial assets; the effects of a transfer on its financial position, financial
performance, and cash flows; and a transferor’s continuing involvement, if
any, in transferred financial assets. The amended guidance is effective for
financial statements for fiscal years and interim periods beginning after
November 15, 2009. Earlier application is prohibited. The recognition and
measurement provisions of this guidance must be applied to transfers
occurring on or after the effective date. Additionally, the enhanced disclo-
sure provisions of the amended guidance should be applied to transfers
that occurred both before and after the effective date of this guidance.
The impact of this guidance on the Funds’ financial statements and dis-
closures, if any, is currently being assessed.

In January 2010, the FASB issued amended guidance to improve dis-
closure about fair value measurements which will require additional dis-
closures about transfers into and out of Levels 1 and 2 and separate
disclosures about purchases, sales, issuances and settlements in the
reconciliation for fair value measurements using significant unobservable
inputs (Level 3). It also clarifies existing disclosure requirements relating
to the levels of disaggregation for fair value measurement and inputs and
valuation techniques used to measure fair value. The amended guidance
is effective for financial statements for fiscal years and interim periods
beginning after December 15, 2009 except for disclosures about pur-
chases, sales, issuances and settlements in the rollforward of activity
in Level 3 fair value measurements, which are effective for fiscal years
beginning after December 15, 2010 and for interim periods within
those fiscal years. The impact of this guidance on the Funds’ financial
statements and disclosures is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by each
Fund’s Board, non-interested Directors (“Independent Directors”) may defer
a portion of their annual complex-wide compensation. Deferred amounts
earn an approximate return as though equivalent dollar amounts had been
invested in common shares of other certain BlackRock Closed-End Funds
selected by the Independent Directors. This has approximately the same
economic effect for the Independent Directors as if the Independent
Directors had invested the deferred amounts directly in other certain
BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations there under
represent general unsecured claims against the general assets of each
Fund. Each Fund may, however, elect to invest in common shares of other
certain BlackRock Closed-End Funds selected by the Independent Directors
in order to match its deferred compensation obligations. Investments to
cover each Fund’s deferred compensation liability, if any, are included in
other assets in the Statements of Assets and Liabilities. Dividends and dis-
tributions from the BlackRock Closed-End Funds investments under the
plan are included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a Fund are charged to that Fund. Other
operating expenses shared by several funds are pro rated among those
funds on the basis of relative net assets or other appropriate methods.
The Funds have an arrangement with the custodians whereby fees may be

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 55


Notes to Financial Statements (continued)

reduced by credits earned on uninvested cash balances, which if applica-
ble are shown as fees paid indirectly in the Statements of Operations. The
custodians impose fees on overdrawn cash balances, which can be offset
by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Funds may engage in various portfolio investment strategies both to
increase the returns of the Funds and to economically hedge, or protect,
their exposure to certain risks such as credit risk, equity risk, interest rate
risk and foreign currency exchange rate risk. Losses may arise if the value
of the contract decreases due to an unfavorable change in the price of the
underlying instrument or if the counterparty does not perform under the
contract. The Funds may mitigate counterparty risk through master netting
agreements included within an International Swap and Derivatives Asso-
ciation, Inc. (“ISDA”) Master Agreement between a Fund and each of its
counterparties. The ISDA Master Agreement allows each Fund to offset with
its counterparty certain derivative financial instrument’s payables and/or
receivables with collateral held with each counterparty. The amount of col-
lateral moved to/from applicable counterparties is based upon minimum
transfer amounts of up to $500,000. To the extent amounts due to the
Funds from their counterparties are not fully collateralized contractually or
otherwise, the Funds bear the risk of loss from counterparty non-perform-
ance. See Note 1 “Segregation and Collateralization” for information with
respect to collateral practices.

The Fund’s maximum risk of loss from counterparty credit risk on OTC
derivatives is generally the aggregate unrealized gain in excess of any
collateral pledged by the counterparty to the Funds. For OTC options pur-
chased, the Funds bear the risk of loss in the amount of the premiums
paid and change in market value of the options should the counterparty
not perform under the contracts. Options written by the Funds do not give
rise to counterparty credit risk, as options written obligate the Funds to
perform and not the counterparty. Certain ISDA Master Agreements allow
counterparties to OTC derivatives to terminate derivative contracts prior to
maturity in the event a Fund’s net assets decline by a stated percentage or
a Fund fails to meet the terms of its ISDA Master Agreements, which would
cause a Fund to accelerate payment of any net liability owed to the coun-
terparty. Counterparty risk related to exchange-traded financial futures con-
tracts and options is minimal because of the protection against defaults
provided by the exchange on which they trade.

Financial Futures Contracts: The Funds may purchase or sell financial
futures contracts and options on financial futures contracts to gain
exposure to, or economically hedge against, changes in interest rates
(interest rate risk) or foreign currencies (foreign currency exchange rate
risk). Financial futures contracts are contracts for delayed delivery of
securities or currencies at a specific future date and at a specific price or
yield. Pursuant to the contract, the Funds agree to receive from or pay to
the broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as margin variation and are
recognized by the Funds as unrealized gains or losses. When the contract
is closed, the Funds record a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value
at the time it was closed. The use of financial futures transactions involves
the risk of an imperfect correlation in the movements in the price of finan-

cial futures contracts, interest or foreign currency exchange rates and the
underlying assets.

Foreign Currency Exchange Contracts: The Funds may enter into foreign
currency exchange contracts as an economic hedge against either specific
transactions or portfolio positions (foreign currency exchange rate risk). A
foreign currency exchange contract is an agreement between two parties
to buy and sell a currency at a set exchange rate on a future date. Foreign
currency exchange contracts, when used by the Funds, help to manage the
overall exposure to the currency backing some of the investments held by
the Funds. The contract is marked-to-market daily and the change in mar-
ket value is recorded by the Funds as an unrealized gain or loss. When the
contract is closed, the Funds record a realized gain or loss equal to the dif-
ference between the value at the time it was opened and the value at the
time it was closed. The use of foreign currency exchange contracts involves
the risk that counterparties may not meet the terms of the agreement or
unfavorable movements in the value of a foreign currency relative to the
US dollar.

Options: The Funds may purchase and write call and put options to
increase or decrease their exposure to underlying instruments (equity risk)
and/or, in the case of options written, to generate gains from options pre-
miums. A call option gives the purchaser of the option the right (but not
the obligation) to buy, and obligates the seller to sell (when the option is
exercised), the underlying instrument at the exercise price at any time or at
a specified time during the option period. A put option gives the holder the
right to sell and obligates the writer to buy the underlying instrument at the
exercise price at any time or at a specified time during the option period.
When a Fund purchases (writes) an option, an amount equal to the pre-
mium paid (received) by a Fund is reflected as an asset (liability). The
amount of the asset (liability) is subsequently marked-to-market to reflect
the current market value of the option purchased (written).When an instru-
ment is purchased or sold through an exercise of an option, the related
premium paid (or received) is added to (or deducted from) the basis of the
instrument acquired or deducted from (or added to) the proceeds of the
instrument sold. When an option expires (or a Fund enters into a closing
transaction), a Fund realizes a gain or loss on the option to the extent of
the premiums received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium received or paid). When a Fund
writes a call option, such option is “covered,” meaning that a Fund holds
the underlying instrument subject to being called by the option counter-
party, or cash in an amount sufficient to cover the obligation. When a Fund
writes a put option, such option is covered by cash in an amount sufficient
to cover the obligation.

Options on swaps (swaptions) are similar to options on securities except
that instead of selling or purchasing the right to buy or sell a security, the
writer or purchaser of the swap option is granting or buying the right to
enter into a previously agreed upon interest rate swap agreement at any
time before the expiration of the option.

In purchasing and writing options, a Fund bears the risk of an unfavorable
change in the value of the underlying instrument or the risk that a Fund
may not be able to enter into a closing transaction due to an illiquid mar-
ket. Exercise of an option written could result in a Fund purchasing or

56 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Notes to Financial Statements (continued)

selling a security at a price different from the current market value. The
Funds may execute transactions in both listed and OTC options.

Swaps: Each Fund may enter into swap agreements, in which a Fund
and a counterparty agree to make periodic net payments on a specified
notional amount. These periodic payments received or made by the Funds
are recorded in the Statements of Operations as realized gains or losses,
respectively. Any upfront fees paid are recorded as assets and any upfront
fees received are recorded as liabilities and amortized over the term of
the swap. Swaps are marked-to-market daily and changes in value are
recorded as unrealized appreciation (depreciation). When the swap is ter-
minated, the Fund will record a realized gain or loss equal to the difference
between the proceeds from (or cost of) the closing transaction and the
Fund’s basis in the contract, if any. Swap transactions involve, to varying
degrees, elements of interest rate, credit and market risk in excess of the
amounts recognized in the Statements of Assets and Liabilities. Such risks
involve the possibility that there will be no liquid market for these agree-
ments, that the counterparty to the agreements may default on its obliga-
tion to perform or disagree as to the meaning of the contractual terms in
the agreements, and that there may be unfavorable changes in interest
rates and/or market values associated with these transactions.

Credit default swaps — Each Fund may enter into credit default swaps
to manage its exposure to the market or certain sectors of the market,
to reduce its risk exposure to defaults of corporate and/or sovereign
issuers or to create exposure to corporate and/or sovereign issuers to
which it is not otherwise exposed (credit risk). The Funds enter into
credit default agreements to provide a measure of protection against
the default of an issuer (as buyer protection) and/or gain credit expo-
sure to an issuer to which it is not otherwise exposed (as seller of pro-
tection). The Fund may either buy or sell (write) credit default swaps on
single-name issuers (corporate or sovereign) or traded indexes. Credit
default swaps on single-name issuers are agreements in which the
buyer pays fixed periodic payments to the seller in consideration for a

guarantee from the seller to make a specific payment should a negative
credit event take place (e.g., bankruptcy, failure to pay, obligation accel-
erators, repudiation, moratorium or restructuring). Credit default swaps
on traded indexes are agreements in which the buyer pays fixed peri-
odic payments to the seller in consideration for a guarantee from the
seller to make a specific payment should a write-down, principal or
interest shortfall or default of all or individual underlying securities
included in the index occurs. As a buyer, if an underlying credit event
occurs, a Fund will either receive from the seller an amount equal to
the notional amount of the swap and deliver the referenced security or
underlying securities comprising of an index or receive a net settlement
of cash equal to the notional amount of the swap less the recovery
value of the security or underlying securities comprising of an index.
As a seller (writer), if an underlying credit event occurs, a Fund will
either pay the buyer an amount equal to the notional amount of the
swap and take delivery of the referenced security or underlying securi-
ties comprising of an index or pay a net settlement of cash equal to
the notional amount of the swap less the recovery value of the security
or underlying securities comprising of an index.

Interest rate swaps — Each Fund may enter into interest rate swaps to
manage duration, the yield curve or interest rate risk by economically
hedging the value of the fixed rate bonds which may decrease when
interest rates rise (interest rate risk). Interest rate swaps are agreements
in which one party pays a floating rate of interest on a notional princi-
pal amount and receives a fixed rate of interest on the same notional
principal amount for a specified period of time. Interest rate floors,
which are a type of interest rate swap, are agreements in which one
party agrees to make payments to the other party to the extent that
interest rates fall below a specified rate or floor in return for a premium.
In more complex swaps, the notional principal amount may decline (or
amortize) over time.

Derivative Instruments Categorized by Risk Exposure:             
Values of Derivative Instruments as of February 28, 2010

Asset Derivatives

Statements of Assets
    and Liabilities Location    BHL  DVF  FRA  BLW 
Interest rate contracts                 Net unrealized appreciation/depreciation*        $ 28,377 
Foreign currency exchange contracts                 Unrealized appreciation on foreign           
                   currency exchange contracts  $ 756,237  $ 410,722  $ 974,774  2,331,453 
Credit contracts                 Unrealized appreciation on swaps        1,712  4,118 
Equity contracts                 Investments at value — unaffiliated**    2,470  3,800  8,740 
Total    $ 756,237  $ 413,192  $ 980,286  $2,372,688 
Liability Derivatives

Statements of Assets
    and Liabilities Location      BHL  DVF  BLW 
Interest rate contracts                 Net unrealized appreciation/depreciation*      $1,842,608   
Foreign currency exchange contracts                 Unrealized depreciation on foreign           
                   currency exchange contracts      $ 36,487    $ 28,214 
Credit contracts                 Unrealized depreciation on swaps        182,991  5,149 
Total        $ 36,487  $2,025,599  $ 33,363 
 *  Includes cumulative unrealized appreciation/depreciation of financial futures contracts as reported in the Schedules of Investments. Only current day’s margin variation is reported 
  within the Statements of Assets and Liabilities.             
**  Includes options purchased at value as reported in the Schedules of Investments.           

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 57


Notes to Financial Statements (continued)           
                                                                                               The Effect of Derivative Instruments on the Statements of Operations       
  Six Months Ended February 28, 2010           
  Net Realized Gain (Loss) from           
    BHL    DVF  FRA  BLW 
     Interest rate contracts:             
         Financial futures contracts            $ 146,933 
     Foreign currency exchange contracts:             
         Foreign currency transactions  $ (369,932)  $ (128,085)  $ (759,427)  (767,789) 
     Credit contracts:             
         Swaps        (643,991)  (1,205,766)  (246,028) 
     Total  $ (369,932)  $ (772,076)  $(1,965,193)  $ (866,884) 
  Net Change in Unrealized Appreciation/Depreciation on         
    BHL    DVF  FRA  BLW 
     Interest rate contracts:             
         Financial futures contracts            $ 6,299 
         Swaps      $ (91,419)     
     Foreign currency exchange contracts:             
         Foreign currency transactions  $ 940,037    503,439  $1,354,167  2,808,305 
     Credit contracts:             
         Swaps        2,208,826  1,110,590  82,828 
     Equity contracts:             
         Options***        (10,530)  (16,200)  (37,260) 
     Total  $ 940,037  $ 2,610,316  $2,448,557  $ 2,860,172 
 *** Includes options purchased which are shown in the net change in unrealized appreciation/depreciation on investments.         
For the six months ended February 28, 2010, the average quarterly balance of outstanding derivative financial instruments was as follows:     
    BHL    DVF  FRA  BLW 
     Financial futures contracts:             
         Average number of contracts purchased            46 
         Average number of contracts sold             
         Average notional value of contracts purchased            $ 37,872 
         Average notional value of contracts sold             
     Foreign currency exchange contracts:             
         Average number of contracts—US dollars purchased    6    8  7  6 
         Average number of contracts—US dollars sold    1    1    1 
         Average US dollar amounts purchased  $14,477,955  $ 9,113,336  $19,496,844  $40,158,206 
         Average US dollar amounts sold  $ 635,924  $ 135,242    $ 576,646 
     Options purchased:             
         Average number of contracts        13  20  46 
         Average premium      $ 12,711  $ 19,556  $ 44,978 
     Credit default swaps:             
         Average number of contracts—buy protection        3  2  3 
         Average number of contracts—sell protection        2  1   
         Average notional value—buy protection      $ 787,500  $ 1,425,000  $ 2,250,000 
         Average notional value—sell protection      $ 7,211,269  $ 2,000,000   
     Interest rate swaps:             
         Average number of contracts—pays fixed rate        1     
         Average number of contracts—receives fixed rate             
         Average notional value—pays fixed rate      $20,000,000     
         Average notional value—receives fixed rate             

3. Investment Advisory Agreement and Other Transactions
with Affiliates:

The PNC Financial Services Group, Inc. ("PNC"), Bank of America
Corporation ("BAC") and Barclays Bank PLC ("Barclays") are the largest
stockholders of BlackRock, Inc. ("BlackRock"). Due to the ownership
structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays
are not.

BHL, DVF, FRA and BLW have entered into an Investment Advisory
Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’
investment advisor, an indirect, wholly owned subsidiary of BlackRock, to
provide investment advisory and administration services.

The Manager is responsible for the management of each Fund’s portfolio
and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of each Fund. For such services,
each Fund pays the Manager a monthly fee of each Fund’s average daily
value of its respective net assets plus the proceeds of any outstanding
borrowings at the following annual rates:

BHL  1.00% 
DVF  0.75% 
FRA  0.75% 
BLW  0.55% 

The Manager has voluntarily agreed to waive its advisory fees by the
amount of investment advisory fees each Fund pays to the Manager

58 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Notes to Financial Statements (continued)

indirectly through its investment in affiliated money market funds; however,
the Manager does not waive its advisory fees by the amount of investment
advisory fees through its investment in other affiliated investment comp-
anies. These amounts are included in fees waived by advisor in the
Statements of Operations. For the six months ended February 28, 2010,
the amounts waived were as follows:

  Fees Waived 
  by Manager 
BHL  $ 1,051 
DVF  $ 976 
FRA  $ 1,347 
BLW  $18,003 

The Manager, on behalf of BHL, DVF, FRA and BLW has entered into a
separate sub-advisory agreement with BlackRock Financial Management,
Inc. (“BFM”), an affiliate of the Manager, under which the Manager pays
BFM for services it provides, a monthly fee that is a percentage of the
investment advisory fee paid by each Fund to the Manager.

For the six months ended February 28, 2010, certain Funds reimbursed
the Manager for certain accounting services, which are included in
accounting services in the Statements of Operations.

  Accounting 
  Services 
BHL  $1,453 
DVF  $1,289 
FRA  $2,415 
BLW  $5,260 

Senior Floating Rate and Senior Floating Rate II have entered into an
Administration Agreement with the Manager. The administration fee paid
to the Manager is calculated daily and paid monthly based on an annual
rate of 0.25% and 0.40%, respectively, of the average daily value of these
Fund’s net assets for the performance of administrative services (other
than investment advice and related portfolio activities) necessary for the
operation of these Funds.

Senior Floating Rate and Senior Floating Rate II entered into a separate
Distribution Agreement and Distribution Plan with BlackRock Investments,
LLC (“BRIL”), which is an affiliate of BlackRock.

For the six months ended February 28, 2010, BRIL received early with-
drawal charges for Senior Floating Rate and Senior Floating Rate II in the
amount of $154,083 and $22,869, respectively, relating to the tender of
each Fund’s shares.

PNC Global Investment Servicing (U.S.) Inc., an indirect, wholly owned sub-
sidiary of PNC and an affiliate of the Manager, is the transfer agent and
dividend disbursing agent for Senior Floating Rate and Senior Floating Rate
II. Transfer agency fees borne by the Funds are comprised of those fees
charged for all shareholder communications including mailing of share-
holder reports, dividend and distribution notices, and proxy materials for
shareholder meetings, as well as per account and per transaction fees
related to servicing and maintenance of shareholder accounts, including
the issuing, redeeming and transferring of shares, check writing, anti-money
laundering services, and customer identification services.

Senior Floating Rate and Senior Floating Rate II may earn income on posi-
tive cash balances in demand deposit accounts that are maintained by
the transfer agent on behalf of the Funds. These amounts are included in
income — affiliated in the Statements of Operations.

Certain officers and/or directors of the Funds are officers and/or directors
of BlackRock or its affiliates. The Funds reimburse the Manager for com-
pensation paid to the Funds’ Chief Compliance Officer.

4. Investments:

Purchases and sales of investments (including paydowns and mortgage
dollar roll transactions and excluding short-term securities and US
government securities) for the six months ended February 28, 2010, were
as follows:

  Purchases  Sales 
BHL  $ 79,601,150  $ 80,273,519 
DVF  $ 100,130,378  $ 86,983,707 
FRA  $ 167,412,050  $ 155,107,562 
BLW  $1,149,665,741  $1,049,052,368 

For the six months ended February 28, 2010, sales of US government
securities for BLW were $3,482,797.

For the six months ended February 28, 2010, purchases and sales
for BLW attributable to mortgage dollar rolls were $966,354,141 and
$968,993,352, respectively.

5. Commitments:

Certain Funds may invest in floating rate loans. In connection with these
investments, the Funds may also enter into unfunded corporate loans
(“commitments”). Commitments may obligate the Funds to furnish tempo-
rary financing to a borrower until permanent financing can be arranged.
In connection with these commitments, the Funds earn a commitment fee,
typically set as a percentage of the commitment amount. Such fee income,
which is classified in the Statements of Operations as facility and other
fees, is recognized ratably over the commitment period. As of February 28,
2010, the Funds had the following unfunded loan commitments:

Borrower     
    Value of 
  Unfunded  Underlying 
  Commitment     Loans 
BHL  (000)     (000) 
CloverHill  $ 232  $ 236 
Delphi  $ 123  $ 107 
New Vision  $ 99  $ 102 
DVF     
CII Investment  $ 196  $ 179 
Delphi  $ 123  $ 127 
FRA     
CloverHill  $ 411  $ 419 
Delphi A-1  $ 8  $ 7 
Delphi A-2  $ 19  $ 17 
Delphi B-1  $ 84  $ 72 
Delphi B-2  $ 196  $ 169 
Vought Aircraft  $1,148  $1,094 
BLW     
Delphi  $ 614  $ 532 
New Vision  $ 50  $ 52 

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 59


Notes to Financial Statements (continued)

6. Capital Loss Carryforwards:

As of August 31, 2009, the Funds had capital carry loss carryforwards
available to offset future realized capital gains through the indicated
expiration dates:

Expires August 31,  BHL  DVF  FRA  BLW 
2013      $ 691,829   
2014    $ 1,755,694     
2015    2,237,399     
2016    1,444,704  475,453  $ 21,933,927 
2017  $ 1,063,204  20,249,830  20,954,032  9,996,868 
Total  $ 1,063,204  $ 25,687,627  $ 22,121,314  $ 31,930,795 
      Senior  Senior 
      Floating Rate  Floating Rate 
Expires August 31,      Fund  Fund II 
2010      $ 87,904,309  $ 864,375 
2011      53,409,203  17,719,049 
2012      34,221,818  6,383,383 
2013      56,166,095   
2014      945,546   
2015      2,561,691   
2016      31,419,599  4,923,144 
2017      16,221,457  7,728,284 
Total      $282,849,718  $ 37,618,235 

7. Market and Credit Risk:

In the normal course of business, the Funds invest in securities and enter
into transactions where risks exist due to fluctuations in the market (market
risk) or failure of the issuer of a security to meet all its obligations (credit
risk). The value of securities held by the Funds may decline in response to
certain events, including those directly involving the issuers whose securi-
ties are owned by the Funds; conditions affecting the general economy;
overall market changes; local, regional or global political, social or eco-
nomic instability; and currency and interest rate and price fluctuations.
Similar to credit risk, the Funds may be exposed to counterparty risk, or

the risk that an entity with which the Funds have unsettled or open trans-
actions may default. Financial assets, which potentially expose the Funds
to credit and counterparty risks, consist principally of investments and
cash due from counterparties. The extent of the Funds’ exposure to credit
and counterparty risks with respect to these financial assets is generally
approximated by their value recorded in the Funds’ Statements of Assets
and Liabilities, less any collateral held by the Funds.

8. Capital Share Transactions:

BHL and BLW are authorized to issue an unlimited number of shares, par
value $0.001, all of which were initially classified as Common Shares. DVF
and FRA are authorized to issue 200 million shares, par value $0.10, all of
which were initially classified as Common Shares. The Board is authorized,
however, to classify and reclassify any unissued shares without approval of
Common Shareholders.

During the six months ended February 28, 2010 and the year ended
August 31, 2009, the shares issued and outstanding increased by the
following amounts as a result of dividend reinvestments:

  Six Months Ended  Year Ended 
  February 28, 2010  August 31, 2009 
BHL    84,923 
DVF  15,929  129,277 
FRA  34,797  31,791 

Shares issued and outstanding remained constant during the six months
ended February 28, 2010 and the year ended August 31, 2009 for BLW.

At February 28, 2010, the shares owned by affiliates of the Manager of the
Funds were as follows:

  Shares 
BHL  8,517 
FRA  8,726 
BLW  6,021 

Transactions in capital shares, with respect to Senior Floating Rate and Senior Floating Rate II, were as follows:       
           Six Months Ended  Year Ended   
           February 28, 2010  August 31, 2009 
Senior Floating Rate  Shares       Amount  Shares    Amount 
Shares sold  975,726  $ 7,282,805  3,495,709  $ 22,066,554 
Shares issued to shareholders in reinvestment of dividends  73,448  547,445  189,466    1,198,984 
Total issued  1,049,174  7,830,250  3,685,175    23,265,538 
Shares tendered  (4,116,162)  (30,480,799)  (10,231,989)    (65,061,276) 
Net decrease  (3,066,988)  $ (22,650,549)  (6,546,814)  $ (41,795,738) 
Senior Floating Rate II           
Shares sold  940,702  $ 7,602,535  3,475,221  $ 23,697,009 
Shares issued to shareholders in reinvestment of dividends  52,402  422,993  83,856    580,777 
Total issued  993,104  8,025,528  3,559,077    24,277,786 
Shares tendered  (1,335,186)  (10,726,654)  (5,697,156)    (39,247,148) 
Net decrease  (342,082)  $ (2,701,126)  (2,138,079)  $ (14,969,362) 

60 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Notes to Financial Statements (concluded)

9. Borrowings

On December 22, 2009, BLW borrowed under the Term Asset-Backed
Securities Loan Facility (“TALF”). The TALF program was launched by the
U.S. Department of Treasury and the Federal Reserve Board as a credit
facility designed to restore liquidity to the market for asset-backed securi-
ties. The Federal Reserve Bank of New York (“FRBNY”) will provide up to $1
trillion in non-recourse loans to support the issuance of certain AAA-rated
asset-backed securities and commercial mortgage-backed securities
(“Eligible Securities”). The Fund posted as collateral already-held Eligible
Securities, which were all commercial mortgage-backed securities, in return
for non-recourse, 5-year term loans (“TALF loans”) in an amount equal to
approximately 85% of the value of such Eligible Securities. The TALF loans
are shown as loan payable on the Statements of Assets and Liabilities. The
following is a summary of the outstanding TALF loans and related informa-
tion as of February 28, 2010:

  Aggregate        Value of 
  Number  Amount  Maturity  Interest  Eligible 
  of Loans  of Loans  Date(s)  Rates  Securities 
BLW  1  $12,744,165  12/22/14   3.62%  $15,576,712 

The non-recourse provision of the TALF loans allows the Fund to satisfy loan
obligations with Eligible Securities, subject to certain conditions, even if the
value of the Eligible Securities falls below the outstanding amount of the
loan. The Fund can repay TALF loans prior to the maturity dates with no
penalty. Principal and interest due on the loans will typically be paid with
principal paydowns and interest received from the Eligible Securities. Credit
agreements underlying each loan contain provisions to address instances
in which interest payments on Eligible Securities fall short of amounts due
to the FRBNY. The Fund paid to the FRBNY a one time administration fee
of 0.20% of the amount borrowed, which was expensed as incurred in
the current period by the Fund and is included in borrowing costs in the
Statements of Operations. The Fund also pays a financing fee equal to
the 5-year LIBOR swap rate plus 1.00% on the outstanding loan amount
payable monthly, which is included in interest expense in the Statements
of Operations.

Since the Fund has the ability to potentially satisfy TALF loan obligations
by surrendering Eligible Securities, potential losses by the Fund associated
with the TALF loans are limited to the difference between the amount of
Eligible Securities posted at the time of loan initiation and the loan pro-
ceeds received by the Fund.

The Fund has elected to account for the outstanding TALF loans at fair
value. The Fund elected to fair value its TALF loans to more closely align
changes in the value of the TALF loans with changes in the value of the
Eligible Securities and to reduce the potential volatility in the Statements
of Operations which could result if only the Eligible Securities were fair val-
ued. In fair valuing TALF loans, the Fund considers various factors such as
observable market transactions, if available, changes in the value of Eligible
Securities, interest rate movements, and the potential likelihood and timing
of loan repayments. Any change in unrealized gain or loss associated with
fair valuing TALF loans will be reflected in the Statements of Operations. As
of February 28, 2010, the fair value of the Fund’s TALF loan obligation was
determined to be equal to its face value and as a result there were no
unrealized gains or losses recorded by the Fund.

On March 5, 2009, BHL, DVF, and FRA entered into a senior committed
secured, 364-day revolving line of credit and a separate security agreement

(the “SSB Agreement”) with State Street Bank and Trust Company (“SSB”).
The Funds have granted a security interest in substantially all of their
assets to SSB. The agreement allowed for the following maximum
commitment amounts:

  Commitment Amount 
BHL  $ 55,000,000 
DVF  $ 50,000,000 
FRA  $103,000,000 

Advances are made by SSB to the Funds, at the Funds option (a) the
higher of (i) 1.0% above the Fed Effective Rate and (ii) 1.0% above the
Overnight LIBOR or (b) 1.0% above 7-day, 30-day, 60-day or 90-day LIBOR.
In addition, the Funds pay a facility fee and a commitment fee based upon
SSB’s total commitment to the Funds. The fees associated with each of the
agreements are included in the Statements of Operations as borrowing
costs. Advances to the Funds as of February 28, 2010 are shown in the
Statements of Assets and Liabilities as loan payable. The SSB Agreement
was renewed for 364 days under substantially the same terms effective
March 4, 2010. The SSB Agreement allows for the following maximum
commitment amounts:

  Commitment Amount 
BHL  $ 55,000,000 
DVF  $ 55,000,000 
FRA  $103,000,000 

The Funds may not declare dividends or make other distributions on shares
or purchase any such shares if, at the time of the declaration, distribution
or purchase, asset coverage with respect to the outstanding short—term
borrowings is less than 300%.

For the six months ended February 28, 2010, the daily weighted average
interest rates for funds with loans under the revolving credit agreements
were as follows:

  Daily Weighted 
  Average 
  Interest Rate 
BHL  1.20% 
DVF  1.20% 
FRA  1.20% 

For the six months ended February 28, 2010, the daily weighted average
interest rates for funds with reverse repurchase agreements were
as follows:

  Daily Weighted 
  Average 
  Interest Rate 
BLW  0.18% 

10. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the
Funds’ financial statements was completed through the date the financial
statements were issued and the following items were noted:

Each Fund paid a net investment income dividend on March 31, 2010 to
Common Shareholders of record on March 15, 2010 as follows:

BHL  $0.0540 
DVF  $0.0685 
FRA  $0.0815 
BLW  $0.0750 

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 61


Master Portfolio Summary as of February 28, 2010 Master Senior Floating Rate LLC

Portfolio Composition     
  Percent of 
     Long-Term Investments 
Asset Mix  2/28/2010  8/31/09 
Floating Rate Loan Interests       82%  91% 
Corporate Bonds       18  9 

62 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments February 28, 2010 (Unaudited)

Master Senior Floating Rate LLC
(Percentages shown are based on Net Assets)

Common Stocks (a)    Shares  Value 
Chemicals — 0.0%       
GEO Specialty Chemicals, Inc. (b)    39,151  $ 15,030 
Wellman Holdings, Inc.    5,206  1,302 
      16,332 
Paper & Forest Products — 0.3%       
Ainsworth Lumber Co. Ltd.  335,138  703,911 
Ainsworth Lumber Co. Ltd. (b)  376,109  789,964 
      1,493,875 
Software — 0.0%       
SIRVA    1,817  18,170 
Total Common Stocks — 0.3%      1,528,377 
    Par   
Corporate Bonds    (000)   
Building Products — 0.3%       
Building Materials Corp. of America, 7.00%,       
2/15/20 (b)  USD  1,425  1,425,000 
Chemicals — 1.8%       
GEO Specialty Chemicals, Inc.:       
     7.50%, 3/31/15 (b)(c)    2,555  1,660,565 
     10.00%, 3/31/15    2,515  1,634,464 
Hexion Finance Escrow LLC, 8.88%, 2/01/18 (b)    1,110  1,037,850 
Nalco Co., 8.25%, 5/15/17 (b)    1,015  1,083,513 
Wellman Holdings, Inc. (c):       
     5.00%, 1/29/19    2,322  1,161,342 
     10.00%, 1/29/19    2,000  2,000,000 
      8,577,734 
Commercial Services & Supplies — 0.6%       
Clean Harbors, Inc., 7.63%, 8/15/16 (b)    1,600  1,616,000 
The Geo Group, Inc., 7.75%, 10/15/17 (b)    1,050  1,063,125 
      2,679,125 
Communications Equipment — 0.1%       
Brocade Communications Systems, Inc. (b):       
     6.63%, 1/15/18    275  277,750 
     6.88%, 1/15/20    190  193,800 
      471,550 
Consumer Finance — 0.5%       
Inmarsat Finance Plc, 7.38%, 12/01/17 (b)    2,300  2,357,500 
Containers & Packaging — 0.9%       
Berry Plastics Escrow LLC, 8.25%, 11/15/15 (b)    1,700  1,695,750 
Crown Americas LLC, 7.63%, 5/15/17 (b)    1,190  1,237,600 
Owens-Brockway Glass Container, Inc., 7.38%,       
 5/15/16    1,210  1,249,325 
      4,182,675 
Diversified Financial Services — 0.9%       
FCE Bank Plc:       
     7.88%, 2/15/11  GBP  100  153,624 
     7.13%, 1/16/12  EUR  1,300  1,754,575 
     7.13%, 1/15/13    200  266,885 
GMAC, Inc., 8.30%, 2/12/15 (b)  USD  2,100  2,118,375 
      4,293,459 

    Par   
Corporate Bonds    (000)  Value 
Diversified Telecommunication Services — 1.4%       
Cincinnati Bell, Inc., 8.25%, 10/15/17  USD  1,800  $ 1,800,000 
PAETEC Holding Corp.:       
     8.88%, 6/30/17    373  375,797 
     8.88%, 6/30/17 (b)    2  2,015 
Qwest Communications International, Inc., 8.00%,       
10/01/15 (b)    1,200  1,242,000 
Qwest Corp., 8.38%, 5/01/16    990  1,084,050 
Windstream Corp., 7.88%, 11/01/17 (b)    2,250  2,199,375 
      6,703,237 
Energy Equipment & Services — 0.4%       
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (b)    1,750  1,741,250 
Food Products — 0.6%       
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)    2,390  2,587,175 
Health Care Providers & Services — 0.4%       
DaVita, Inc., 6.63%, 3/15/13    1,660  1,664,150 
Hotels Restaurants & Leisure — 0.9%       
Icahn Enterprises LP (b):       
     7.75%, 1/15/16    1,125  1,057,500 
     8.00%, 1/15/18    2,250  2,115,000 
MGM Mirage, 11.13%, 11/15/17 (b)    1,030  1,112,400 
      4,284,900 
Household Durables — 0.6%       
Beazer Homes USA, Inc., 12.00%, 10/15/17 (b)    2,300  2,564,500 
Household Products — 0.1%       
Libbey Glass, Inc., 10.00%, 2/15/15 (b)    245  253,575 
IT Services — 0.3%       
SunGard Data Systems, Inc., 4.88%, 1/15/14    1,429  1,334,329 
Independent Power Producers & Energy Traders — 2.1%       
Calpine Construction Finance Co. LP, 8.00%,       
 6/01/16 (b)    3,770  3,817,125 
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)    1,400  1,428,000 
NRG Energy, Inc., 7.25%, 2/01/14    4,300  4,332,250 
      9,577,375 
Media — 1.4%       
Clear Channel Worldwide Holdings, Inc., 9.25%,       
12/15/17 (b)    3,675  3,770,550 
UPC Germany GmbH, 8.13%, 12/01/17 (b)    2,750  2,750,000 
      6,520,550 
Paper & Forest Products — 2.1%       
NewPage Corp.:       
     6.50%, 5/01/12 (e)    650  344,500 
     11.38%, 12/31/14    8,450  8,069,750 
Verso Paper Holdings LLC, Series B, 4.00%, 8/01/14 (e)    1,670  1,348,525 
      9,762,775 
Real Estate Investment Trusts (REITs) — 0.2%       
Omega Healthcare Investors, Inc., 7.50%, 2/15/20 (b)    1,100  1,111,000 
Textiles, Apparel & Luxury Goods — 0.6%       
Levi Strauss & Co., 8.63%, 4/01/13  EUR  2,000  2,736,928 
Wireless Telecommunication Services — 0.9%       
Cricket Communications, Inc., 7.75%, 5/15/16  USD  4,250  4,319,063 
Total Corporate Bonds — 17.1%      79,147,850 

     Portfolio Abbreviations         
To simplify the listings of portfolio holdings in the  CAD  Canadian Dollar  GBP  Pound Sterling 
Schedule of Investments, the names and descriptions of  EUR  Euro  USD  US Dollar 
many of the securities have been abbreviated according         
to the following list:         

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 63


Schedule of Investments (continued)

Master Senior Floating Rate LLC
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)  Value 
Aerospace & Defense — 0.9%       
Hawker Beechcraft Acquisition Co. LLC:       
     Letter of Credit Facility Deposit, 2.25%, 3/26/14  USD  121  $ 88,762 
     Term Loan, 2.23% – 2.25%, 3/26/14    1,985  1,460,696 
TASC, Inc.:       
     Tranche A Term Loan, 5.50%, 12/18/14    850  853,542 
     Tranche B Term Loan, 5.75%, 12/18/15    1,650  1,661,000 
      4,064,000 
Airlines — 0.3%       
Delta Air Lines, Inc., Credit-Linked Deposit Loan,       
 0.08% – 2.25%, 4/30/12    1,470  1,373,226 
Auto Components — 2.5%       
Affinion Group Holdings, Inc., Tranche B Term Loan,       
 2.73%, 10/17/12    851  825,852 
Allison Transmission, Inc., Term Loan, 2.98% – 3.00%,       
 8/07/14    6,315  5,783,011 
Dana Holding Corp., Term Advance, 4.48% – 6.50%,       
 1/30/15    1,869  1,820,440 
Exide Technologies, Term Loan, 3.91%, 5/15/12  EUR  575  704,293 
Lear Corp., Loan (Closing Date Loan & Delayed       
 Draw Loan), 7.50%, 11/09/14  USD  2,375  2,379,928 
      11,513,524 
Automobiles — 0.9%       
Ford Motor Co., Tranche B-1 Term Loan, 3.24% – 3.26%,       
 12/15/13    4,538  4,198,048 
Building Products — 2.5%       
Building Materials Corp. of America:       
     Second Lien Term Loan, 6.00%, 9/15/14    2,500  2,460,000 
     Term Loan Advance, 3.00%, 2/22/14    1,993  1,940,592 
Goodman Global, Inc., Term Loan, 6.25%, 2/13/14    5,206  5,226,288 
Momentive Performance Materials (Blitz 06-103 GmbH):       
     Tranche B-1 Term Loan, 2.50%, 12/04/13    967  882,614 
     Tranche B-2 Term Loan, 2.67%, 12/04/13  EUR  964  1,178,561 
      11,688,055 
Capital Markets — 0.5%       
Marsico Parent Co., LLC, Term Loan, 5.25% – 7.25%,       
 12/15/14  USD  766  486,623 
Nuveen Investments, Inc., Term Loan, 3.25% – 3.32%,       
 11/13/14    2,068  1,798,902 
      2,285,525 
Chemicals — 5.7%       
Ashland Inc., Term B Borrowing, 7.65%, 5/13/14    1,260  1,274,491 
Brenntag Holding GmbH & Co. KG:       
     Acquisition Facility 1, 2.00% – 2.14%, 1/20/14    125  121,864 
     Facility B2, 1.98% – 2.00%, 1/20/14    1,831  1,780,234 
Chemtura Corp. Debtor in Possession Return of Capital       
 Term Loan, 6.00%, 1/26/11    2,800  2,812,250 
Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),       
 2.25%, 5/31/14    731  582,258 
Gentek Holding, LLC, Tranche B Term Loan, 7.00%,       
 10/29/14    1,300  1,306,500 
Huish Detergents, Inc.:       
     Loan (Second Lien), 4.51%, 10/26/14    750  709,688 
     Tranche B Term Loan, 2.01%, 4/26/14    618  593,461 
Matrix Acquisition Corp. (fka MacDermid, Inc.),       
 Tranche C Term Loan, 2.63%, 12/15/13  EUR  1,045  1,159,294 
Nalco Co., Term Loan, 6.50%, 5/13/16  USD  3,607  3,632,123 
PQ Corp. (fka Niagara Acquisition, Inc.), Original       
 Term Loan (First Lien), 3.48% – 3.50%, 7/30/14    4,942  4,522,290 
Rockwood Specialties Group, Inc., Term Loan H, 6.00%,       
 5/15/14    2,681  2,688,764 
Solutia Inc., Loan, 7.25%, 2/28/14    3,054  3,093,371 
Tronox Worldwide LLC, Tranche B-1 Term Loan, 9.00%,       
 6/24/10    2,300  2,360,260 
      26,636,848 

    Par   
Floating Rate Loan Interests    (000)  Value 
Commercial Services & Supplies — 2.9%       
Advanced Disposal Services, Inc., Term B Loan, 6.00%,       
 1/14/15  USD  1,300  $ 1,300,000 
Alliance Laundry Systems LLC, Term Loan, 2.74%,       
 1/27/12    511  491,128 
ARAMARK Corp.:       
     Letter of Credit Facility, 2.11%, 1/26/14    136  129,598 
     US Term Loan, 2.13%, 1/26/14    2,066  1,970,629 
Casella Waste Systems, Inc, Term B Loan, 7.00%,       
 4/09/14    1,244  1,251,523 
John Maneely Co., Term Loan, 3.50%, 12/09/13    954  893,962 
Johnson Diversey, Inc. Term Loan B, 5.50%, 11/24/15    1,600  1,612,000 
SIRVA Worldwide, Inc., Loan (Second Lien), 12.00%,       
 5/12/15    450  45,045 
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.23%, 4/02/14    2,702  2,382,380 
West Corp., Incremental Term B-3 Loan, 7.25%,       
 10/24/13    3,434  3,468,123 
      13,544,388 
Construction & Engineering — 0.7%       
Safway First Out Term Loan, 9.00%, 12/14/17    1,500  1,500,000 
Welding Services Term Loan B, 9.35%, 12/16/13    1,495  1,502,394 
      3,002,394 
Consumer Finance — 1.5%       
DaimlerChrysler Financial Services Americas LLC,       
 Term Loan (First Lien), 4.24% – 6.25%, 8/03/12    6,870  6,781,953 
Containers & Packaging — 1.7%       
Anchor Glass Term Loan B, 6.00%, 2/18/16    2,300  2,277,000 
Berry Plastics Holding Corp., Term C Loan, 2.25%,       
 4/03/15    2,856  2,555,320 
Graham Packaging Co., LP:       
     B Term Loan, 2.50%, 10/07/11    1,435  1,415,434 
     C Term Loan, 6.75%, 4/05/14    750  753,602 
Smurfit-Stone Container, Revolving Credit:       
     0.01% – 4.50%, 11/01/09    313  311,791 
     0.20% – 5.00%, 11/12/09    104  103,487 
Smurfit-Stone Container Canada, Inc.:       
     Tranche C, 2.50%, 11/01/11    135  133,408 
     Tranche C-1 Term Loan, 2.50%, 11/01/11    41  40,335 
Smurfit-Stone Container Enterprises, Inc.:       
     Deposit Funded Facility, 4.50%, 11/01/10    63  62,208 
     Tranche B, 2.50%, 11/01/11    72  70,794 
      7,723,379 
Diversified Consumer Services — 2.0%       
Coinmach Service Corp., Term Loan, 3.26%, 11/14/14    3,930  3,399,298 
Laureate Education Term Loan B, 7.00%, 8/15/14    5,985  5,930,686 
      9,329,984 
Diversified Financial Services — 1.7%       
CIT Group, Inc., Tranche 2A Term Loan, 9.50% – 9.75%,       
 1/20/12    3,303  3,382,998 
Reynolds Group Holdings Inc., US Term Loan, 6.25%,       
 11/05/15    4,600  4,628,750 
      8,011,748 
Diversified Telecommunication Services — 2.0%       
Cavtel Holdings, LLC, Term Loan, 10.50%, 12/31/12    746  638,766 
Hawaiian Telcom Communications, Inc., Tranche C       
 Term Loan, 4.75%, 5/30/14    1,629  1,225,546 
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    2,030  2,028,655 
Level 3 Communications, Incremental Term Loan, 7.59%,       
 3/13/14    1,975  1,779,558 

See Notes to Financial Statements.

64 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

Master Senior Floating Rate LLC
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)  Value 
Diversified Telecommunication Services (concluded)       
US Telepacific Corp., Term Loan (Second Lien), 7.75%,       
 7/25/15  USD  875  $ 876,641 
Wind Finance SL SA, Euro Facility (Second Lien),       
 7.67%, 12/17/14  EUR  2,000  2,712,380 
      9,261,546 
Electrical Equipment — 0.6%       
Baldor Electric Co., Term Loan, 5.25%, 1/31/14  USD  2,690  2,694,080 
Electronic Equipment, Instruments &       
Components — 1.2%       
Flextronics International Ltd.:       
     A Closing Date Loan, 2.48% – 2.50%, 10/01/14    311  294,081 
     Term Loan B, 2.50%, 10/01/12    1,614  1,557,510 
L-1 Identity Solutions Operating Co., Term Loan, 6.75%,       
 8/05/13    2,327  2,326,421 
Safenet, Inc., Loan (Second Lien), 6.23%, 4/12/15    1,250  1,154,166 
      5,332,178 
Energy Equipment & Services – 0.5%       
Dresser, Inc., Term Loan (Second Lien), 6.00%, 5/04/15    500  467,500 
MEG Energy Corp., Tranche D Term Loan, 6.00%,       
 4/03/16    1,930  1,894,869 
      2,362,369 
Food & Staples Retailing — 3.6%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.54%, 7/09/15  GBP  2,800  3,824,727 
Bolthouse Farms, Inc. Term Loan B, 5.50%, 2/04/16  USD  1,900  1,900,000 
DS Waters of America, Inc., Term Loan:       
     4.25%, 3/02/12    400  352,000 
     2.50%, 10/29/12    1,375  1,285,723 
Pierre Foods Term Loan B, 8.50%, 9/30/14    1,254  1,250,865 
Pilot Travel Centers Term Loan B, 3.50%, 11/18/15    3,500  3,516,226 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/10/15    3,175  3,289,300 
SUPERVALU Inc., Term B Advance, 1.48%, 6/02/12    1,256  1,218,115 
      16,636,956 
Food Products — 3.2%       
Dole Food Co., Inc.:       
     Credit-Linked Deposit, 7.89%, 4/12/13    442  442,020 
     Term Loan B, 5.50% , 2/10/17    1,618  1,618,456 
     Term Loan C, 5.50% , 2/10/17    3,882  3,884,294 
     Tranche B Term Loan, 8.00%, 4/12/13    607  606,922 
Pilgrim’s Pride Corp. Term Loan A, 5.29%, 12/01/12    1,800  1,773,000 
Pinnacle Foods Finance LLC, Tranche C Term Loan,       
 7.50%, 4/02/14    4,400  4,418,071 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,       
 4/12/13    1,969  1,969,175 
      14,711,938 
Health Care Equipment & Supplies — 1.3%       
Biomet, Inc., Dollar Term Loan, 3.23% – 3.25%,       
 3/25/15    3,645  3,525,866 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.23%, 5/20/14    2,654  2,564,509 
Hologic, Inc., Tranche B Term Loan, 3.50%, 3/29/13  USD  121  120,193 
      6,210,568 
Health Care Providers & Services — 4.7%       
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.50%, 7/25/14    316  295,341 
     Funded Term Loan, 2.48% – 2.50%, 7/25/14    6,184  5,778,329 
DaVita, Inc., Tranche B-1 Term Loan, 1.73% – 1.76%,       
 10/05/12    600  585,975 
Fresenius SE:       
     Tranche B1 Term Loan, 6.75%, 9/10/14    2,080  2,090,614 
     Tranche B2 Term Loan, 6.75%, 9/10/14    1,313  1,319,869 

    Par   
Floating Rate Loan Interests    (000)  Value 
Health Care Providers & Services (concluded)       
HCA Inc., Tranche A-1 Term Loan, 1.75%, 11/16/12  USD  7,895  $ 7,456,219 
HealthSouth Corp., Term Loan, 2.51%, 3/10/13    659  637,225 
Vanguard Health Systems, Inc., Term Loan B, 5.00%,       
 1/29/16    3,400  3,404,250 
      21,567,822 
Health Care Technology — 1.0%       
IMS Healthcare, Term Loan B, 5.25%, 2/16/16    4,400  4,417,600 
Hotels Restaurants & Leisure — 4.2%       
CCM Merger Inc. (Motor City Casino), Term B Loan,       
 8.50%, 7/13/12    1,688  1,662,946 
Cedar Fair LP, Term Loan B, 4.00%, 2/04/16    1,750  1,747,267 
Green Valley Ranch Gaming, LLC, Loan (Second Lien),     
 3.50%, 8/16/14    1,750  175,000 
Harrah’s Operating Co., Inc.:       
     Term B-2 Loan, 3.25%, 1/28/15    1,856  1,498,045 
     Term B-4 Loan, 9.50%, 10/31/16    3,000  2,991,666 
Lake at Las Vegas Joint Venture / LLV-1, LLC (a)(f):       
     Mezzanine, 20.00%, 10/01/10    8  74 
     Revolving Loan Credit-Linked Deposit Account,       
     14.35%, 6/20/12    361  3,611 
     Term Loan, 14.35% – 20.00%, 6/20/12    3,934  39,343 
Penn National Gaming, Inc., Term Loan B,       
 1.98% – 2.00%, 10/03/12    1,653  1,619,142 
QCE, LLC (Quiznos), Term Loan (Second Lien), 2.56%,     
 5/05/13    728  621,316 
SW Acquisitions Co., Inc., Term Loan, 5.75%, 6/01/16  2,875  2,887,578 
Six Flags Theme Parks, Inc., Term Loan, 4.50%, 6/13/15  4,750  4,706,062 
VML US Finance LLC (aka Venetian Macau), Term B       
 Funded Project Loan, 4.76%, 5/27/13    1,355  1,289,649 
      19,241,699 
Household Durables — 0.2%       
American Achievement Corp., Tranche B Term Loan,       
 6.25% -6.50%, 3/25/11    576  541,318 
Jarden Corp., Term Loan B3, 2.75%, 1/24/12    595  590,485 
      1,131,803 
IT Services — 3.0%       
Audio Visual Services Group, Inc.:       
     Loan (Second Lien), 5.76%, 8/28/14    1,616  161,556 
     Tranche B Term Loan (First Lien), 2.51%, 2/28/14  1,343  940,191 
Ceridian Corp., US Term Loan, 3.23% – 3.25%,       
 11/09/14    2,213  1,935,010 
First Data Corp., Initial Tranche B-2 Term Loan, 3.00%,     
 9/24/14    8,204  7,154,413 
RedPrairie Corp., Term Loan B:       
     3.25%, 7/20/12    242  234,574 
     3.31%, 7/20/12    402  389,926 
SunGard Data Systems, Inc., (Solar Capital Corp.),       
 Incremental Term Loan, 6.75%, 2/28/14    2,982  2,992,825 
      13,808,495 
Independent Power Producers & Energy Traders — 1.4%     
Dynegy Holdings Inc.:       
     Term Letter of Credit Facility Term Loan, 3.98%,       
     4/02/13    1,897  1,850,999 
     Tranche B Term Loan, 3.98%, 4/02/13    153  149,005 
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-2 Term Loan, 3.73% – 3.75%,       
     10/10/14    4,412  3,547,996 
     Initial Tranche B-3 Term Loan, 3.73% – 3.75%,       
     10/10/14    1,126  901,043 
      6,449,043 
Industrial Conglomerates — 1.0%       
Sequa Corp., Term Loan, 3.51% – 3.94%, 12/03/14    4,808  4,397,632 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 65


Schedule of Investments (continued)

Master Senior Floating Rate LLC
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)  Value 
Insurance — 0.4%       
Alliant Holdings I, Inc., Term Loan, 3.25%, 8/21/14  USD  1,704  $ 1,608,572 
Internet Software & Services — 0.0%       
Channel Master Holdings, Inc. (a)(f)(g):       
     Revolver, 8.31%, 11/15/04    128   
     Term Loan, 9.00%, 11/15/04    1,014   
       
Leisure Equipment & Products — 0.4%       
Fender Musical Instruments Corp.:       
     Delayed Draw Loan, 2.51%, 6/09/14    658  557,454 
     Initial Loan, 2.51%, 6/09/14    1,302  1,103,589 
True Temper Sports Debtor in Possession Term Loan,       
 13.00%, 10/14/13    344  326,791 
      1,987,834 
Machinery — 1.8%       
Accuride, Term Loan, 9.75%, 1/31/12    2,290  2,285,230 
Bucyrus International, Term Loan C, 4.50%, 1/26/16    2,500  2,513,250 
Oshkosh Truck Corp., Term B Loan, 6.25% – 6.26%,       
 12/06/13    3,591  3,587,756 
      8,386,236 
Media — 16.6%       
Alpha Topco Ltd. (Formula One), Facility D, 3.82%,       
 6/30/14    1,000  873,889 
Catalina Marketing Corp., Initial Term Loan, 2.98%,       
 10/01/14    433  417,414 
Cengage Learning Acquisitions, Inc. (Thomson Learning),     
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14  7,500  7,424,895 
Cequel Communications, LLC, Tranche A Term Loan       
 (Second Lien), 4.75%, 5/05/14    5,000  4,870,500 
Charter Communications Operating, LLC, New Term Loan,     
 2.23%, 3/06/14    8,675  8,091,797 
FoxCo Acquisition Sub, LLC, Term Loan, 7.50%, 7/14/15  1,332  1,278,424 
HMH Publishing Co. Ltd., Mezzanine, 17.50%, 11/14/14  1,186  146,269 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.50% – 2.56%, 3/10/14    2,210  987,325 
Harland Clarke Holdings Corp. (fka Clarke       
 American Corp.), Tranche B Term Loan,       
 2.73% – 2.75%, 6/30/14    2,272  1,987,045 
Insight Midwest Holdings, LLC, B Term Loan, 2.25%,       
 4/07/14    2,075  1,992,324 
Intelsat Corp. (fka PanAmSat Corp.):       
     Tranche B-2-A Term Loan, 2.73%, 1/03/14    575  546,439 
     Tranche B-2-B Term Loan, 2.73%, 1/03/14    574  546,116 
     Tranche B-2-C Term Loan, 2.73%, 1/03/14    574  546,116 
Intelsat Subsidiary Holding Co. Ltd., Tranche B       
 Term Loan, 2.73%, 1/03/14    207  197,079 
Lamar Media Corp.:       
     Series B Incremental Loan, 5.50% – 5.75%,       
     9/28/12    1,417  1,406,278 
     Series E Incremental Loan, 5.50% – 5.75%,       
     3/31/13    940  939,772 
     Term Loan, 5.50% 5.75%, 9/28/12    3,598  3,571,470 
Local TV Finance, LLC, Term Loan, 2.26%, 5/07/13    689  595,675 
MCC Iowa LLC (Mediacom Broadband Group),       
 Tranche E Term Loan, 6.50%, 1/03/16    2,382  2,400,919 
MCNA Cable Holdings LLC (OneLink Communications),     
 Loan, 7.23%, 3/01/13 (h)    1,289  1,005,369 
Mediacom Illinois, LLC (fka Mediacom       
 Communications, LLC), Tranche D Term Loan, 5.50%,     
 3/31/17    1,496  1,494,365 
Metro-Goldwyn-Mayer Inc., Tranche B Term Loan,       
 20.50%, 4/09/12    1,421  853,895 
Multicultural Radio Broadcasting, Inc., Term Loan,       
 2.98%, 12/18/12    494  392,112 

    Par   
Floating Rate Loan Interests    (000)  Value 
Media (concluded)       
New Vision Exit Term Loan, 13.00%, 10/01/12  USD  130  $ 130,212 
Newsday, LLC, Floating Rate Term Loan, 6.50%, 8/01/13    2,500  2,506,250 
Nielsen Finance LLC:       
     Class A Dollar Term Loan, 2.23%, 8/09/13    446  419,995 
     Class B Dollar Term Loan, 3.98%, 5/01/16    4,123  3,992,251 
Penton Media, Inc.:       
     Loan (Second Lien), 9.25%, 2/01/14 (a)(f)    500  66,666 
     Term Loan (First Lien), 2.48% – 2.50%, 2/01/13    486  354,962 
Sinclair Television Group, Inc., Tranche B Term Loan,       
 6.50%, 10/29/15    2,250  2,261,250 
Springer Science+Business Media SA, Facility A1,       
 6.75%, 7/01/16  EUR  3,400  4,575,616 
Sunshine Acquisition Ltd. (aka HIT Entertainment),       
 Term Facility, 2.50%, 3/20/12  USD  4,243  3,730,465 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    3,667  3,676,287 
UPC Financing Partnership, Facility U, 4.99%,       
 12/31/17  EUR  2,100  2,664,080 
Virgin Media Investment Holdings Ltd.:       
     B1 Facility, 4.17%, 7/30/12  GBP  653  985,603 
     B1 Facility, 4.43%, 7/30/12    906  1,366,091 
     B7 Facility, 4.40%, 9/03/12    4246  630,106 
     C Facility, 4.40% , 9/03/12    1,028  1,527,924 
     C Facility, 3.58%, 7/17/13    600  854,656 
Worldcolor Press, Inc. and Worldcolor (USA) Corp.       
 (fka Quebecor World, Inc.), Advance, 9.00%, 7/23/12    2,386  2,410,141 
Yell Group Plc TPI, Term Loan A, 2.48%, 8/09/11    1,750  1,675,625 
      76,393,667 
Multi-Utilities — 0.6%       
Energy Transfer Equity, LP, Term Loan, 1.98%, 11/01/12  USD  750  739,682 
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     Synthetic Letter of Credit, 2.81%, 11/01/13    139  129,566 
     Term B Advance (First Lien), 2.75%, 11/01/13    1,528  1,425,749 
Mach Gen, LLC, Synthetic Letter of Credit Loan       
 (First Lien), 2.25%, 2/22/13    69  63,604 
USPF Holdings, LLC, Term Loan, 1.98%, 4/11/14    607  599,898 
      2,958,499 
Multiline Retail — 0.6%       
Dollar General Corp.:       
     Tranche B-1 Term Loan, 2.98% – 3.00%, 7/07/14    1,963  1,904,868 
     Tranche B-2 Term Loan, 2.98%, 7/07/14    427  410,628 
The Neiman Marcus Group Inc., Term Loan, 2.26%,       
 4/06/13    745  668,679 
      2,984,175 
Oil, Gas & Consumable Fuels — 0.8%       
Big West Oil, LLC,:       
     Delayed Draw Loan, 4.50%, 1/26/15    1,517  1,487,145 
     Initial Advance Loan, 4.50% , 5/15/14    1,207  1,182,758 
     Initial Advance Loan, 9.75% , 5/15/14    1,075  1,080,375 
      3,750,278 
Paper & Forest Products — 0.8%       
Georgia-Pacific LLC, Term Loan B:       
     2.24% – 2.25%, 12/20/12    1,342  1,310,469 
     2.25% – 2.26%, 12/23/12    2,615  2,553,743 
      3,864,212 
Personal Products — 0.5%       
American Safety Razor Co., LLC:       
     Loan (Second Lien), 6.51%, 1/30/14    1,600  936,000 
     Term Loan (First Lien), 2.75% -2.76%, 7/31/13    824  747,515 
Revlon Consumer Products Corp., Term Loan, 4.26%,       
 1/15/12    500  492,032 
      2,175,547 

See Notes to Financial Statements.

66 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Schedule of Investments (continued)

Master Senior Floating Rate LLC
(Percentages shown are based on Net Assets)

  Par   
Floating Rate Loan Interests  (000)  Value 
Pharmaceuticals — 1.2%     
Warner Chilcott Co., LLC, Term A Loan, 5.50%,     
 10/30/14  USD 1,729  $ 1,728,382 
Warner Chilcott Corp., Term B-1 Loan, 5.75%, 4/30/15  3,836  3,834,495 
    5,562,877 
Professional Services — 0.5%     
Booz Allen Hamilton, Inc., Tranche B Term Loan, 7.50%,     
 7/31/15  2,362  2,377,152 
Real Estate Management & Development — 1.0%     
Mattamy Funding Partnership, Loan, 2.56%, 4/11/13  888  812,063 
Realogy Corp.:     
     Delayed Draw Term Loan B, 3.25% , 10/10/13  1,197  1,055,482 
     Initial Term B Loan, 3.25% , 10/10/13  2,554  2,252,214 
     Synthetic Letter of Credit, 3.25%, 10/10/13  688  606,365 
    4,726,124 
Specialty Retail — 1.0%     
Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan,     
 2.98%, 10/21/13  611  588,904 
General Nutrition Centers, Inc., Term Loan,     
 2.48% – 2.51%, 9/16/13  546  518,684 
Michaels Stores, Inc.:     
     Term Loan B, 2.50% – 2.56%, 10/31/13  1,521  1,370,137 
     Term Loan B-1, 4.75% – 4.81%, 7/31/16  2,004  1,909,100 
    4,386,825 
Textiles, Apparel & Luxury Goods — 0.3%     
Hanesbrands, Inc., New Term Loan, 5.25%, 12/10/15  1,500  1,511,250 
Trading Companies & Distributors — 0.2%     
Beacon Sales Acquisition, Inc., Term B Loan,     
 2.23% – 2.25%, 9/30/13  928  871,947 
Wireless Telecommunication Services — 1.5%     
Digicel International Finance Ltd., Tranche A, 2.81%,     
 3/30/12  5,154  4,960,957 
MetroPCS Wireless, Inc., Tranche B Term Loan, 2.50%,     
 11/03/13  2,214  2,133,430 
    7,094,387 
Total Floating Rate Loan Interests — 79.9%    369,016,383 
  Beneficial   
  Interest   
Other Interests (i)  (000)   
Diversified Financial Services — 0.4%     
J.G. Wentworth LLC Preferred Equity Interests  1  1,944,443 
Total Other Interests — 0.4%    1,944,443 
Warrants (j)  Shares   
Media — 0.0%     
Cumulus Media (expires 12/31/19)  1,543  2,377 
New Vision Holdings LLC (expires 9/30/14)  48,636  486 
Total Warrants — 0.0%    2,863 
Total Long-Term Investments     
(Cost — $485,119,192) — 97.7%    451,639,916 

Short-Term Securities        Shares    Value 
BlackRock Liquidity Funds, TempFund,         
 Institutional Class, 0.11% (k)(l)                     36,095,866  $ 36,095,866 
Total Short-Term Securities           
(Cost — $36,095,866) — 7.8%        36,095,866 
Total Investments (Cost — $521,215,058*) — 105.5%    487,735,782 
Liabilities in Excess of Other Assets — (5.5)%      (25,438,452) 
Net Assets — 100.0%          $462,297,330 
* The cost and unrealized appreciation (depreciation) of investments as of February 28, 
  2010, as computed for federal income tax purposes, were as follows:   
  Aggregate cost          $ 521,284,614 
  Gross unrealized appreciation      $ 9,925,386 
  Gross unrealized depreciation        (43,474,218) 
  Net unrealized depreciation      $ (33,548,832) 
(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) Convertible security.           
(d) Represents a payment-in-kind security which may pay interest/dividends in addi- 
  tional face/shares.             
 (e) Variable rate security. Rate shown is as of report date.       
 (f) Issuer filed for bankruptcy and/or is in default of interest payments.   
 (g) As a result of bankruptcy proceedings, the company did not repay the principal 
  amount of the security upon maturity.         
(h) Represents a payment-in-kind security which may pay interest/dividends in addi- 
  tional par/shares.             
 (i) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
  zation entities and are non-income producing.       
 (j) Warrants entitle the Fund to purchase a predetermined number of shares of com- 
  mon stock and are non-income producing. The purchase price and number of 
  shares are subject to adjustment under certain conditions until the expiration date. 
 (k) 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 Funds, TempFund,         
  Institutional Class         USD 2,487,443    $ 14,974 
 (l) Represents the current yield as of report date.       
   Foreign currency exchange contracts as of February 28, 2010 were as follows: 
                Unrealized 
  Currency    Currency    Settlement      Appreciation 
  Purchased    Sold  Counterparty  Date  (Depreciation) 
     USD   19,197,704   EUR 13,292,500  CitiBank NA  3/24/10  $ 1,098,752 
  GBP   1,438,500       USD 2,257,313  CitiBank NA  4/21/10    (64,758) 
    USD 592,696  CAD          620,000    Goldman Sachs       
          Bank USA  4/21/10    3,510 
    USD 803,493  GBP 503,000  CitiBank NA  4/21/10    36,823 
  USD    8,489,253      GBP 5,243,500  Morgan Stanley       
          Capital       
          Services, Inc.  4/21/10    497,135 
  Total            $ 1,571,462 
   For Master LLC compliance purposes, the Master LLC’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 Master LLC 
  management. This definition may not apply for purposes of this report, which may 
  combine such industry sub-classifications for reporting ease.     

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 67


Schedule of Investments (concluded) Master Senior Floating Rate LLC

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations inactive 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
Master LLC’s own assumptions used in determining the face value of invest-
ments)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Master LLC’s policy regarding valuation of investments and other significant
accounting policies, please refer to the Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of February 28, 2010 in 
determining the fair valuation of the Master LLC’s investments:     
Investments in Securities

Valuation Inputs  Level 1  Level 2    Level 3    Total 
Assets:             
Long-Term             
   Investments:             
Common Stocks  $ 703,911  $ 789,964  $ 34,502  $ 1,528,377 
Corporate Bonds    72,691,479    6,456,371    79,147,850 
Floating Rate             
   Loan Interests    314,769,878  54,246,505  369,016,383 
Other Interests        1,944,443    1,944,443 
Warrants    2,377    486    2,863 
Short-Term             
   Securities  36,095,866          36,095,866 
Total  $36,799,777  $388,253,698  $62,682,307  $487,735,782 
Other Financial Instruments1

Valuation Inputs  Level 1  Level 2    Level 3    Total 
Assets    $ 1,636,220  $ 2,039  $ 1,638,259 
Liabilities    (64,758)    (103,303)    (168,061) 
Total    $ 1,571,462  $ (101,264) $  1,470,198 
 1 Other financial instruments are unfunded loan commitments and foreign 
     currency exchange contracts, 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 to determine fair value:     
      Investments in Securities   
  Common  Corporate  Floating Rate    Other     
  Stocks  Bonds  Loan Interests    Interests  Warrants  Total 
Balance, as of August 31, 2009  $ 16,332  $ 6,417,361  $ 97,288,159  $ 777,120    $104,498,972 
Accrued discounts/premiums               
Realized gain (loss)    (3,718)  (11,699,270)    (44,038)    (11,747,026) 
Change in unrealized appreciation/depreciation2    3,717  23,786,736    1,211,361    25,001,814 
Net purchases (sales)    39,011  (37,558,238)        (37,519,227) 
Net transfers in/out of Level 3  18,170    (17,570,882)      $ 486  (17,552,226) 
Balance, as of February 28, 2010  $ 34,502  $ 6,456,371  $ 54,246,505  $ 1,944,443  $ 486  $ 62,682,307 
2 Included in the related net change in unrealized appreciation/depreciation in the Statement of Operations. The change in unrealized appreciation/depreciation on securites still 
     held at February 28, 2010 was $11,128,072.               

The following table is a reconciliation of Level 3 other financial instruments for which significant 
unobservable inputs were used to determine fair value:     
  Other Financial 
  Instruments3 
  Assets  Liabilities 
Balance, as of August 31, 2009    $ (112,385) 
Accrued discounts/premiums     
Realized gain (loss)     
Change in unrealized appreciation/depreciation     
Net purchases (sales)     
Net transfers in/out of Level 3  $ 2,039  9,082 
Balance as of February 28, 2010  $ 2,039  $ (103,303) 
 3 Other financial instruments are unfunded loan commitments.     

See Notes to Financial Statements.

68 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Statement of Assets and Liabilities  Master Senior Floating Rate LLC 
February 28, 2010 (Unaudited)   
Assets   
Investments at value - unaffiliated (cost — $485,119,192)  $ 451,639,916 
Investments at value - affiliated (cost — $36,095,866)  36,095,866 
Unrealized appreciation on foreign currency exchange contracts  1,636,220 
Unrealized appreciation on unfunded loan commitments  2,039 
Cash  1,065,997 
Foreign currency at value — (cost — $771,509)  767,029 
Investments sold receivable  19,126,745 
Interest receivable  4,637,475 
Contributions receivable from investors  1,205,505 
Principal paydown receivable  12,500 
Commitment fees receivable  1,792 
Prepaid expenses  18,214 
Other assets  5,001 
Total assets  516,214,299 
Liabilities   
Unrealized depreciation on foreign currency exchange contracts  64,758 
Unrealized depreciation on unfunded loan commitments  103,303 
Investments purchased payable  53,352,591 
Investment advisory fees payable  332,834 
Other affiliates payable  3,660 
Officer's and Directors' fees payable  512 
Other accrued expenses payable  55,284 
Other liabilities  4,027 
Total liabilities  53,916,969 
Net Assets  $ 462,297,330 
Net Assets Consist of   
Investors' capital  $ 494,191,973 
Net unrealized appreciation/depreciation  (31,894,643) 
Net Assets  $ 462,297,330 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 69


Statement of Operations  Master Senior Floating Rate LLC 
Six Months Ended February 28, 2010 (Unaudited)   
     Investment Income   
Interest  $ 14,517,352 
Income - affiliated  14,974 
Facility and other fees  184,650 
Total income  14,716,976 
Expenses   
Investment advisory  2,165,409 
Professional  84,391 
Accounting services  79,597 
Custodian  24,279 
Officer and Directors  21,782 
Printing  3,190 
Miscellaneous  41,472 
Total expenses excluding interest expense  2,420,120 
Interest expense  16,110 
Total expenses  2,436,230 
Less fees waived by advisor  (6,789) 
Total expenses after fees waived  2,429,441 
Net investment income  12,287,535 
     Realized and Unrealized Gain (Loss)   
Net realized loss from:   
   Investments  (19,313,686) 
   Swaps  (500,317) 
   Foreign currency transactions  (623,362) 
  (20,437,365) 
Net change in unrealized appreciation/depreciation on:   
   Investments  42,601,613 
   Swaps  290,086 
   Foreign currency transactions  1,909,813 
   Unfunded loan commitments  11,121 
  44,812,633 
Total realized and unrealized gain  24,375,268 
Net Increase in Net Assets Resulting from Operations  $ 36,662,803 

Statement of Changes in Net Assets  Master Senior Floating Rate LLC 
  Six Months Ended   
  February 28,  Year Ended 
  2010  August 31, 
Increase (Decrease) in Net Assets:  (Unaudited)  2009 
     Operations     
Net investment income  $ 12,287,535  $ 27,640,754 
Net realized loss  (20,437,365)  (49,899,586) 
Net change in unrealized appreciation/depreciation  44,812,633  (16,926,300) 
Net increase (decrease) in net assets resulting from operations  36,662,803  (39,185,132) 
     Capital Transactions     
Proceeds from contributions  14,885,341  45,763,562 
Value of withdrawals  (52,534,771)  (132,042,492) 
Net decrease in net assets derived from capital transactions  (37,649,430)  (86,278,930) 
     Net Assets     
Total decrease in net assets  (986,627)  (125,464,062) 
Beginning of period  463,283,957  588,748,019 
End of period  $ 462,297,330  $ 463,283,957 
See Notes to Financial Statements.     

70 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Statement of Cash Flows  Master Senior Floating Rate LLC 
Six Months Ended February 28, 2010 (Unaudited)   
     Cash Provided by Operating Activities   
Net increase in net assets resulting from operations, excluding dividends to Preferred Shareholders  $ 36,662,803 
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:   
   Increase in interest receivable  (666,329) 
   Increase in commitment fees receivable  (1,792) 
   Decrease in other assets  184,285 
   Decrease in investment advisor payable  (34,691) 
   Increase in other affiliates payable  2,218 
   Decrease in accrued expenses payable  (54,809) 
   Decrease in deferred income  (142,136) 
   Decrease in swaps payable  (32,025) 
   Decrease in other liabilities  (11,575) 
   Decrease in officers and directors payable  (213) 
   Swap premium received  52,260 
   Realized and unrealized gain-net  (24,128,369) 
   Amortization of premium and discount on investments  (2,669,933) 
   Paid-in-kind income  (197,900) 
Proceeds from sales and paydowns of long-term investments  256,294,242 
Purchases of long-term investments  (222,971,306) 
Net Purchases of short-term securities  (2,487,443) 
Cash provided by operating activities  39,797,287 
     Cash Used for Financing Activities   
Proceeds from issuance of Common Stock  14,428,091 
Cash Payments on Common Stock  (52,534,771) 
Cash receipts from borrowings  32,000,000 
Cash payments from borrowings  (32,000,000) 
Cash used for financing activities  (38,106,680) 
     Cash Impact From Foreign Exchange Fluctuations   
Cash impact from foreign exchange fluctuations  (4,465) 
     Cash   
Net increase in cash  1,686,142 
Cash at beginning of period  146,884 
Cash at end of period  $ 1,833,026 
     Cash Flow Information   
Cash paid for interest  $ 16,110 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 71


Financial Highlights        Master Senior Floating Rate LLC 
  Six Months           
  Ended           
  February 28,           
  2010      Year Ended August 31,   
  (Unaudited)  2009  2008  2007  2006  2005 
     Total Investment Return             
Total investment return  8.21%1  (4.23)%  (1.08)%  3.49%  5.37%  5.78% 
     Ratios to Average Net Assets             
Total expenses  1.07%2  1.05%  1.04%  1.04%  1.04%  1.01% 
Total expenses after fees waived  1.07%2  1.05%  1.04%  1.04%  1.04%  1.01% 
Total expenses after fees waived and excluding interest expense  1.06%2  1.04%  1.04%  1.02%  1.03%  1.01% 
Net investment income  5.42%2  6.44%  6.41%  7.07%  6.22%  4.52% 
     Supplemental Data             
Net assets, end of period (000)  $ 462,297  $ 463,284  $ 588,748  $ 758,328  $ 925,910  $ 1,032,819 
Portfolio turnover  56%  47%  56%  46%  54%  53% 
Average loan outstanding during the period (000)  $ 2,105  $ 420    $ 2,255  $ 1,932   
   1 Aggregate total investment return.             
   2 Annualized.             

See Notes to Financial Statements.

72 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Notes to Financial Statements (Unaudited) Master Senior Floating Rate LLC

1. Organization and Significant Accounting Policies:

Master Senior Floating Rate LLC (the “Master LLC”) is registered under
the Investment Company Act of 1940, as amended (the “1940 Act”),
and is organized as a Delaware limited liability company. The Master LLC’s
Limited Liability Company Agreement permits the Board of Directors of
the Master LLC (the “Board”) to issue nontransferable interests, subject
to certain limitations. The Master LLC’s financial statements are prepared
in conformity with accounting principles generally accepted in the United
States of America, which may require the use of management accruals
and estimates. Actual results may differ from these estimates.

The following is a summary of significant accounting policies followed by
the Master LLC:

Valuation: The Master LLC’s policy is to fair value its financial instruments
at market value. The Master LLC values its bond investments on the basis
of last available bid prices or current market quotations provided by deal-
ers or pricing services selected under the supervision of the Master LLC’s
Board. Floating rate loan interests are valued at the mean between the
last available bid prices from one or more brokers or dealers as obtained
from a pricing service. In determining the value of a particular investment,
pricing services may use certain information with respect to transactions
in such investments, quotations from dealers, pricing matrixes, market
transactions in comparable investments, various relationships observed in
the market between investments and calculated yield measures based on
valuation technology commonly employed in the market for such invest-
ments. Swap agreements are valued utilizing quotes received daily by the
Master LLC’s pricing service or through brokers which are derived using
daily swap curves and trades of underlying securities. Investments in open-
end investment companies are valued at net asset value each business
day. Short-term securities with remaining maturities of 60 days or less may
be valued at amortized cost, which approximates fair value.

Equity investments traded on a recognized securities exchange or the
NASDAQ Global Market System are valued at the last reported sale price
that day or the NASDAQ official closing price, if applicable. For equity
investments traded on more than one exchange, the last reported sale
price on the exchange where the stock is primarily traded is used. Equity
investments traded on a recognized exchange for which there were no
sales on that day are valued at the last available bid price. If no bid price
is available, the prior day’s price will be used, unless it is determined that
such prior day’s price no longer reflects the fair value of the security.

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

Generally, trading in foreign instruments is substantially completed
each day at various times prior to the close of business on the NYSE.
Occasionally, events affecting the values of such instruments may occur
between the foreign market close and the close of business on the NYSE
that may not be reflected in the computation of the Master LLC’s net
assets. If events (for example, a company announcement, market volatility
or a natural disaster) occur during such periods that are expected to
materially affet the value of such instruments, those instruments may be
Fair Value Assets and be valued at their fair value, as determined in good
faith by the Board or by the investment advisor using a pricing service
and/or procedures approved by the Board.

Foreign Currency Transactions: Foreign currency amounts are translated
into United States dollars on the following basis: (i) market value of in-
vestment securities, assets and liabilities at the current rate of exchange;
and (ii) purchases and sales of investment securities, income and
expenses at the rates of exchange prevailing on the respective dates
of such transactions.

The Master LLC reports foreign currency related transactions as compo-
nents of realized gains for financial reporting purposes, whereas such com-
ponents are treated as ordinary income for federal income tax purposes.

Floating Rate Loans: The Master LLC may invest in floating rate loans,
which are generally non-investment grade, made by banks, other financial
institutions and privately and publicly offered corporations. Floating rate
loans are senior in the debt structure of a corporation. Floating rate loans
generally pay interest at rates that are periodically determined by reference
to a base lending rate plus a premium. The base lending rates are gener-
ally (i) the lending rate offered by one or more European banks, such as
LIBOR (London InterBank Offered Rate), (ii) the prime rate offered by one
or more US banks or (iii) the certificate of deposit rate. The Master LLC
considers these investments to be investments in debt securities for pur-
poses of their investment policies.

The Master LLC earns and/or pays facility and other fees on floating rate
loans. Other fees earned/paid include commitment, amendment, consent
and prepayment penalty fees. Facility, commitment and amendment fees
are typically amortized over the term of the loan. Consent fees and various
other fees are recorded as income. Prepayment penalty fees are recorded
as realized gains. When the Master LLC buys a floating rate loan it may
receive a facility fee and when it sells a floating rate loan it may pay a
facility fee. On an ongoing basis, the Master LLC may receive a commit-
ment fee based on the undrawn portion of the underlying line of credit
portion of a floating rate loan. In certain circumstances, the Master LLC
may receive a prepayment penalty fee upon the prepayment of a floating
rate loan by a borrower. Other fees received by the Master LLC may include
covenant waiver fees and covenant modification fees.

The Master LLC may invest in multiple series or tranches of a loan. A
different series or tranche may have varying terms and carry different
associated risks.

Floating rate loans are usually freely callable at the issuer’s option. The
Master LLC may invest in such loans in the form of participations in loans

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 73


Notes to Financial Statements (continued) Master Senior Floating Rate LLC

(“Participations”) and assignments of all or a portion of loans from third
parties. Participations typically will result in the Master LLC having a con-
tractual relationship only with the lender, not with the borrower. The Master
LLC will have the right to receive payments of principal, interest and any
fees to which it is entitled only from the lender selling the Participation and
only upon receipt by the lender of the payments from the borrower.

In connection with purchasing Participations, the Master LLC generally will
have no right to enforce compliance by the borrower with the terms of the
loan agreement relating to the loans, nor any rights of offset against the
borrower, and the Master LLC may not benefit directly from any collateral
supporting the loan in which it has purchased the Participation.

As a result, the Master LLC will assume the credit risk of both the borrower
and the lender that is selling the Participation. The Master LLC’s invest-
ments in loan participation interests involve the risk of insolvency of the
financial intermediaries who are parties to the transactions. In the event of
the insolvency of the lender selling the Participation, the Master LLC may
be treated as a general creditor of the lender and may not benefit from any
offset between the lender and the borrower.

Segregation and Collateralization: In cases in which the 1940 Act and the
interpretive positions of the SEC require that the Master LLC either delivers
collateral or segregates assets in connection with certain investments (e.g.,
swaps and foreign currency exchange contracts), the Master LLC will, con-
sistent with SEC rules and/or certain interpretive letters issued by the SEC,
segregate collateral or designate on its books and records cash or other
liquid securities having a market value at least equal to the amount that
would otherwise be required to be physically segregated. Furthermore,
based on requirements and agreements with certain exchanges and third
party broker-dealers, each party has requirements to deliver/deposit secu-
rities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses
on investment transactions are determined on the identified cost basis.
Interest income is recognized on the accrual basis. The Master LLC amor-
tizes all premiums and discounts on debt securities.

Income Taxes: The Master LLC is classified as a partnership for federal
income tax purposes. As such, each investor in the Master LLC is treated
as owner of its proportionate share of the net assets, income, expenses
and realized and unrealized gains and losses of the Master LLC. Therefore,
no federal income tax provision is required. It is intended that the Master
LLC’s assets will be managed so an investor in the Master LLC can satisfy
the requirements of Subchapter M of the Internal Revenue Code.

The Master LLC files US federal and various state and local tax returns.
No income tax returns are currently under examination. The statute of limi-
tations on the Master LLC’s US federal tax returns remains open for each
of the four years ended August 31, 2009. The statutes of limitations on the
Master LLC’s state and local tax returns may remain open for an additional
year depending upon the jurisdiction.

Recent Accounting Standards: In June 2009, amended guidance was
issued by the Financial Accounting Standards Board (“FASB”) for transfers
of financial assets. This guidance is intended to improve the relevance,
representational faithfulness and comparability of the information that a
reporting entity provides in its financial statements about a transfer of
financial assets; the effects of a transfer on its financial position, financial
performance, and cash flows; and a transferor’s continuing involvement, if
any, in transferred financial assets. The amended guidance is effective for
financial statements issued for fiscal years and interim periods beginning
after November 15, 2009. Earlier application is prohibited. The recognition
and measurement provisions of this guidance must be applied to transfers
occurring on or after the effective date. Additionally, the enhanced disclo-
sure provisions of the amended guidance should be applied to transfers
that occurred both before and after the effective date of this guidance. The
impact of this guidance on the Master LLC’s financial statements and dis-
closures, if any, is currently being assessed.

In January 2010, the FASB issued amended guidance to improve
disclosure about fair value measurements which will require additional
disclosures about transfers into and out of Levels 1 and 2 and separate
disclosures about purchases, sales, issuances and settlements in the
reconciliation for fair value measurements using significant unobservable
inputs (Level 3). It also clarifies existing disclosure requirements relating
to the levels of disaggregation for fair value measurement and inputs and
valuation techniques used to measure fair value. The amended guidance is
effective for financial statements for fiscal years and interim periods begin-
ning after December 15, 2009 except for disclosures about purchases,
sales, issuances and settlements in the rollforward of activity in Level 3 fair
value measurements, which are effective for fiscal years beginning after
December 15, 2010, and for interim periods within those fiscal years. The
impact of this guidance on the Master LLC’s financial statements and dis-
closures is currently being assessed.

Other: Expenses directly related to the Master LLC are charged to the
Master LLC. Other operating expenses shared by several funds are pro
rated among those funds on the basis of relative net assets or other
appropriate methods. The Master LLC has an arrangement with its custo-
dian whereby fees may be reduced by credits earned on uninvested cash
balances, which if applicable are shown as fees paid indirectly in the
Statement of Operations. The custodian imposes fees on overdrawn cash
balances, which can be offset by accumulated credits earned or may result
in additional custody charges.

2. Derivative Financial Instruments:

The Master LLC may engage in various portfolio investment strategies
both to increase the return of the Master LLC and to economically hedge,
or protect, its exposure to certain risks such as credit risk and foreign
currency exchange rate risk. Losses may arise if the value of the contract
decreases due to an unfavorable change in the price of the underlying
instrument or if the counterparty does not perform under the contract. The
Master LLC may mitigate counterparty risk through master netting agree-
ments included within an International Swap and Derivatives Association,
Inc. (“ISDA”) Master Agreement between the Master LLC and each of its
counterparties. The ISDA Master Agreement allows the Master LLC to offset

74 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Notes to Financial Statements (continued) Master Senior Floating Rate LLC

with its counterparty certain derivative financial instrument’s payables
and/or receivables with collateral held with each counterparty. The amount
of collateral moved to/from applicable counterparties is based upon mini-
mum transfer amounts of up to $500,000. To the extent amounts due to
the Master LLC from its counterparties are not fully collateralized contractu-
ally or otherwise, the Master LLC bears the risk of loss from counterparty
non-performance. See Note 1 “Segregation and Collateralization” for infor-
mation with respect to collateral practices.

The Master LLC’s maximum risk of loss from counterparty credit risk on
over-the counter (“OTC”) derivatives is generally the aggregate unrealized
gain in excess of any collateral pledged by the counterparty to the Master
LLC. Certain ISDA Master Agreements allow counterparties to OTC deriva-
tives to terminate derivative contracts prior to maturity in the event the
Master LLC’s net assets decline by a stated percentage or the Master LLC
fails to meet the terms of its ISDA Master Agreements, which would
cause the Master LLC to accelerate payment of any net liability owed to
the counterparty.

Foreign Currency Exchange Contracts: The Master LLC may enter into for-
eign currency exchange contracts as an economic hedge against either
specific transactions or portfolio positions (foreign currency exchange rate
risk). A foreign currency exchange contract is an agreement between two
parties to buy and sell a currency at a set exchange rate on a future date.
Foreign currency exchange contracts, when used by the Master LLC, help to
manage the overall exposure to the foreign currency backing some of the
investments held by the Master LLC. The contract is marked-to-market daily
and the change in market value is recorded by the Master LLC as an unre-
alized gain or loss. When the contract is closed, the Master LLC records a
realized gain or loss equal to the difference between the value at the time
it was opened and the value at the time it was closed. The use of foreign
currency exchange contracts involves the risk that counterparties may not
meet the terms of the agreement or unfavorable movements in the value
of a foreign currency relative to the US dollar.

Swaps: The Master LLC may enter into swap agreements, in which the
Master LLC and a counterparty agree to make periodic net payments on
a specified notional amount. These periodic payments received or made
by the Master LLC are recorded in the Statement of Operations as realized
gains or losses, respectively. Any upfront fees paid are recorded as assets
and any upfront fees received are recorded as liabilities and amortized
over the term of the swap. Swaps are marked-to-market daily and changes
in value are recorded as unrealized appreciation (depreciation). When
the swap is terminated, the Master LLC will record a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Master LLC’s basis in the contract, if any. Swap trans-
actions involve, to varying degrees, elements of interest rate, credit and
market risk in excess of the amounts recognized in the Statement of Assets
and Liabilities. Such risks involve the possibility that there will be no liquid
market for these agreements, that the counterparty to the agreements may
default on its obligation to perform or disagree as to the meaning of the
contractual terms in the agreements, and that there may be unfavorable
changes in interest rates and/or market values associated with these
transactions.

Credit default swaps — The Master LLC may enter into credit default
swaps to manage its exposure to the market or certain sectors of the
market, to reduce its risk exposure to defaults of corporate and/or
sovereign issuers or to create exposure to corporate and/or sovereign
issuers to which it is not otherwise exposed (credit risk). The Master LLC
enters into credit default agreements to provide a measure of protec-
tion against the default of an issuer (as buyer protection) and/or gain
credit exposure to an issuer to which it is not otherwise exposed (as
seller of protection). The Master LLC may either buy or sell (write)
credit default swaps on single-name issuers (corporate or sovereign) or
traded indexes. Credit default swaps on single-name issuers are agree-
ments in which the buyer pays fixed periodic payments to the seller in
consideration for a guarantee from the seller to make a specific pay-
ment should a negative credit event take place (e.g., bankruptcy, failure
to pay, obligation accelerators, repudiation, moratorium or restructuring).
Credit default swaps on traded indexes are agreements in which the
buyer pays fixed periodic payments to the seller in consideration for a
guarantee from the seller to make a specific payment should a write-
down, principal or interest shortfall or default of all or individual under-
lying securities included in the index occurs. As a buyer, if an underlying
credit event occurs, the Master LLC will either receive from the seller an
amount equal to the notional amount of the swap and deliver the refer-
enced security or underlying securities comprising of an index or receive
a net settlement of cash equal to the notional amount of the swap less
the recovery value of the security or underlying securities comprising of
an index. As a seller (writer), if an underlying credit event occurs, the
Master LLC will either pay the buyer an amount equal to the notional
amount of the swap and take delivery of the referenced security or
underlying securities comprising of an index or pay a net settlement of
cash equal to the notional amount of the swap less the recovery value
of the security or underlying securities comprising of an index.

Derivatives Instruments Categorized by Risk Exposure:     
Values of Derivative Instruments as of February 28, 2010

  Asset Derivatives        Liability     Derivatives 
  Statement   Statement   
  of Assets and  of Assets and   
  Liabilities   Liabilities   
  Location Value  Location  Value 
  Unrealized  Unrealized   
  appreciation  depreciation   
  on foreign  on foreign   
  currency  curency   
Foreign currency exchange  exchange  exchange   
   contracts  contracts $1,636,220  contracts  $64,758 
         The Effect of Derivative Instruments on the Statement of Operations 
Six Months Ended February 28, 2010

Net Realized Gain (Loss) from

Foreign currency exchange contracts:     
   Foreign currency transactions  $ (516,772) 
Credit contracts:       
   Swaps      (500,317) 
Total    $(1,017,089) 

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 75


Notes to Financial Statements (continued) Master Senior Floating Rate LLC

                           Net Change in Unrealized Appreciation/Depreciation on 
Foreign currency exchange contracts:   
Foreign currency transactions  $ 1,772,384 
Credit contracts:   
Swaps  290,086 
Total  $ 2,062,470 
For the six months ended February 28, 2010, the average quarterly 
balance of outstanding derivative financial instruments was as follows: 
     Foreign currency exchange contracts:   
         Average number of contracts—US dollars purchased  7 
         Average number of contracts—US dollars sold  1 
         Average US dollar amounts purchased  $28,717,937 
         Average US dollar amounts sold  $ 1,128,656 

3. Investment Advisory Agreements and Other Transactions
with Affiliates:

The PNC Financial Services Group, Inc. ("PNC"), Bank of America
Corporation ("BAC"), and Barclays Bank PLC ("Barclays") are the largest
stockholders of BlackRock, Inc. ("BlackRock"). Due to the ownership
structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays
are not.

The Master LLC has entered into an Investment Advisory Agreement with
BlackRock Advisors, LLC (the “Manager”), the Master LLC’s investment
advisor, an indirect, wholly owned subsidiary of BlackRock, to provide
investment advisory and administration services.

The Manager is responsible for the management of the Master LLC’s portfo-
lio and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Master LLC. For such
services, the Master LLC pays the Manager a monthly fee at an annual
rate of 0.95% of the average daily value of the Master LLC’s net assets.

The Manager has entered into a separate sub-advisory agreement with
BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Manager,
under which the Manager pays BFM for services it provides, a monthly fee
that is a percentage of the investment advisory fees paid by the Master LLC
to the Manager.

The Manager has voluntarily agreed to waive its advisory fees by the
amount of investment advisory fees the Master LLC pays to the Manager
indirectly through its investment in affiliated money market funds; however,
the Manager does not waive its advisory fees by the amount of investment
advisory fees through its investment in other affiliated investment compa-
nies. This amount is shown as fees waived by advisor in the Statement
of Operations.

For the six months ended February 28, 2010, the Master LLC reimbursed
the Manager $3,951 for certain accounting services, which is included in
accounting services in the Statement of Operations.

Certain officers and/or directors of the Master LLC are officers and/or
directors of BlackRock or its affiliates.

4. Investments:

Purchases and sales of investments, including paydowns and excluding
short-term securities, for the six months ended February 28, 2010 were
$253,714,452 and $271,526,468, respectively.

5. Borrowings:

The Master LLC, along with certain other funds managed by the Manager
and its affiliates, is a party to a $500 million credit agreement with a group
of lenders, which was renewed until November 2010. The Master LLC may
borrow under the credit agreement to fund shareholder redemptions and
for other lawful purposes other than for leverage. The Master LLC may bor-
row up to the maximum amount allowable under the Master LLC’s current
Prospectus and Statement of Additional Information, subject to various
other legal, regulatory or contractual limits. Prior to its renewal the credit
agreement had the following terms: 0.02% upfront fee on the aggregate
commitment amount which was allocated to the Master LLC based on
its net assets as of October 31, 2008; a commitment fee of 0.08% per
annum based on the Master LLC’s pro rata share of the unused portion of
the credit agreement, which is included in miscellaneous in the Statement
of Operations, and interest at a rate equal to the higher of the (a) federal
funds effective rate and (b) reserve adjusted one-month LIBOR, plus, in
each case, the higher of (i) 1.50% and (ii) 50% of the CDX Index (as
defined in the credit agreement) on amounts borrowed. Effective November
2009, the credit agreement was renewed with the following terms: 0.02%
upfront fee on the aggregate commitment amount which was allocated to
the Master LLC based on its net assets as of October 31, 2009, a commit-
ment fee of 0.10% per annum on the Master LLC’s pro rata share of the
unused portion of the credit agreement and interest at a rate equal to the
higher of the (a) one-month LIBOR plus 1.25% per annum and (b) the
Fed Funds rate plus 1.25% per annum on amounts borrowed. For the six
months ended February 28, 2010, the daily average weighted interest
rate was 1.54%.

6. Market and Credit Risk:

In the normal course of business, the Master LLC invests in securities and
enters into transactions where risks exist due to fluctuations in the market
(market risk) or failure of the issuer of a security to meet all its obligations
(credit risk). The value of securities held by the Master LLC may decline in
response to certain events, including those directly involving the issuers
whose securities are owned by the Master LLC; conditions affecting the
general economy; overall market changes; local, regional or global political,
social or economic instability; and currency and interest rate and price
fluctuations. Similar to credit risk, the Master LLC may be exposed to coun-
terparty risk, or the risk that an entity with which the Master LLC has unset-
tled or open transactions may default. Financial assets, which potentially
expose the Master LLC to credit and counterparty risks, consist principally
of investments and cash due from counterparties. The extent of the Master
LLC’s exposure to credit and counterparty risks with respect to these finan-
cial assets is generally approximated by their value recorded in the Master
LLC’s Statement of Assets and Liabilities, less any collateral held by the
Master LLC.

76 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Notes to Financial Statements (concluded) Master Senior Floating Rate LLC

7. Commitments:

The Master LLC may invest in floating rate loans. In connection with these
investments, the Mater LLC may also enter into unfunded corporate loans
(“commitments”). Commitments may obligate the Master LLC to furnish
temporary financing to a borrower until permanent financing can be
arranged. In connection with these commitments, the Master LLC earns a
commitment fee, typically set as a percentage of the commitment amount.

Such fee income, which is classified in the Statement of Operations as
facility and other fees, is recognized ratably over the commitment period.
As of February 28, 2010, the Master LLC had the following unfunded
loan commitments:

    Value of 
  Unfunded  Underlying 
  Commitment  Loan 
Borrower  (000)  (000) 
New Vision  $2,185  $2,082 
Vought Aircraft Industries, Inc  $ 40  $ 42 

8. Subsequent Events:

Management has evaluated the impact of all subsequent events on the
Master LLC through the date that the financial statements were issued and
has determined that there were no subsequent events requiring adjustment
or additional disclosure in the financial statements.

Officers and Directors

Richard E. Cavanagh, Chairman of the Board and Director
Karen P. Robards, Vice Chair of the Board, Chair of the Audit Committee
and Director
G. Nicholas Beckwith, III, Director
Richard S. Davis, Director
Frank J. Fabozzi, Director and Member of the Audit Committee
Kathleen F. Feldstein, Director
James T. Flynn, Director and Member of the Audit Committee
Henry Gabbay, Director
Jerrold B. Harris, Director
R. Glenn Hubbard, Director
W. Carl Kester, Director and Member of the Audit Committee
Anne Ackerley, Fund President and Chief Executive Officer
Brendan Kyne, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer of the Funds
Howard Surloff, Secretary

Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisor
BlackRock Financial
Management, Inc.
New York, NY 10055

Custodians
State Street Bank and Trust Company1
Boston, MA 02111

The Bank of New York Mellon2
New York, NY 10286

Transfer Agents
Common Shares
Computershare Trust Company, N.A.1
Providence, RI 02940

PNC Global Investment Servicing
(U.S.) Inc.2
Wilmington, DE 19809

Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540

Independent Registered Public
Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540

Legal Counsel
Skadden, Arps, Slate, Meagher
& Flom LLP
New York, NY 10036

Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809
1 For BHL, DVF, FRA, and BLW.
2 For Senior Floating Rate and
Senior Floating Rate II.

Effective January 1, 2010, Kent Dixon, a Director of the Funds, retired.

Effective March 31, 2010, G. Nicholas Beckwith, III, a Director of the Funds, resigned.

The Funds’ Board of Directors wishes both Mr. Dixon and Mr. Beckwith well.

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 77


Additional Information

Dividend Policy

The Funds’ dividend policy is to distribute all or a portion of their net
investment income to its shareholders on a monthly basis. In order to pro-
vide shareholders with a more stable level of dividend distributions, the
Funds may at times pay out less than the entire amount of net investment
income earned in any particular month and may at times in any particular
month pay out such accumulated but undistributed income in addition to

net investment income earned in that month. As a result, the dividends
paid by the Funds for any particular month may be more or less than the
amount of net investment income earned by the Funds during such month.
The Funds’ current accumulated but undistributed net investment income,
if any, is disclosed in the Statements of Assets and Liabilities, which com-
prises part of the financial information included in this report.

General Information

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ web-
sites or shareholders can sign up for e-mail notifications of quarterly state-
ments, annual and semi-annual reports by enrolling in the Funds’ electronic
delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks
or Brokerages:

Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including
annual and semi-annual reports and proxy statements, to shareholders
with multiple accounts at the same address. This practice is commonly
called “householding” and is intended to reduce expenses and eliminate
duplicate mailings of shareholder documents. Mailings of your shareholder
documents may be householded indefinitely unless you instruct us
otherwise. If you do not want the mailing of these documents to be
combined with those for other members of your household, please
call (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Fund/Master LLC files its complete schedule of portfolio holdings
with the Securities and Exchange Commission (“SEC”) for the first and third
quarters of each fiscal year on Form N-Q. The Funds’/Master LLC’s Forms
N-Q are available on the SEC’s website at http://www.sec.gov and may
also be reviewed and copied at the SEC’s Public Reference Room in
Washington, DC. Information on the operation of the Public Reference
Room may be obtained by calling (202) 551-8090. Each Fund’s/Master
LLC’s Forms N-Q may also be obtained upon request and without charge
by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that each Fund/Master LLC
uses to determine how to vote proxies relating to portfolio securities is
available (1) without charge, upon request, by calling (800) 441-7762; (2)
at www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds/Master LLC voted proxies relating to
securities held in each Fund’s/Master LLC’s portfolio during the most
recent 12-month period ended June 30 is available upon request and
without charge (1) at www.blackrock.com or by calling (800) 441-7762
and (2) on the SEC’s website at http://www.sec.gov.

78 SEMI-ANNUAL REPORT FEBRUARY 28, 2010


Additional Information (concluded)

Section 19(a) Notices

These reported amounts and sources of distributions are estimates and are not provided for tax reporting purposes. The actual amounts and sources for tax
reporting purposes will depend upon each Fund’s investment results during the year and may be subject to changes based on tax regulations. Each Fund
will provide a Form 1099-DIV for the calendar year that will explain the character of these dividends and distributions for federal income tax purposes.

February 28, 2010                 
    Total Cumulative Distributions    % Breakdown of the Total Cumulative 
    for the Fiscal Year-to-Date    Distributions for the Fiscal Year-to-Date 
  Net  Net Realized    Total Per  Net  Net Realized    Total Per 
  Investment  Capital  Return of  Common  Investment  Capital  Return of  Common 
  Income  Gains  Capital  Share  Income  Gains  Capital  Share 
BHL  $0.34200      $0.34200  100%      100% 
DVF  $0.37571    $0.06529  $0.44100  85%    15%  100% 
FRA  $0.42400    $0.06500  $0.48900  87%    13%  100% 
BLW  $0.42000      $0.42000  100%      100% 

Each Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be
a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in a Fund is returned to the shareholder.
A return of capital does not necessarily reflect a Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’

BlackRock Privacy Principles

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

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

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

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

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2010 79



This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a represen-
tation of future performance. BlackRock Defined Opportunity Credit Trust, BlackRock Diversified Income Strategies Fund, Inc., BlackRock Floating Rate
Income Strategies Fund, Inc., BlackRock Limited Duration Income Trust, BlackRock Senior Floating Rate Fund, Inc. and BlackRock Senior Floating Rate
Fund II, Inc. leverage their Common Shares, which creates risk for Common Shareholders, including the likelihood of greater volatility of net asset value and
market price of the Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and
other information herein are as dated and are subject to change.



Item 2 – Code of Ethics – Not Applicable to this semi-annual report

Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 – Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to
Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since
the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies – Not Applicable to this semi-annual report

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable to
this semi-annual report

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers – Not Applicable

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

Item 11 – Controls and Procedures

11(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 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.

11(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 second fiscal quarter
of the period covered by this report that have materially affected, or are reasonably likely to
materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits attached hereto

12(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

12(a)(2) – Certifications – Attached hereto

12(a)(3) – Not Applicable

12(b) – Certifications – Attached hereto


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

BlackRock Limited Duration Income Trust

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock Limited Duration Income Trust

Date: April 28, 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 Limited Duration Income Trust

Date: April 28, 2010

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

Date: April 28, 2010