UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act File number 811-21506
Name of Fund: BlackRock Capital and Income Strategies Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock Capital and Income Strategies Fund, Inc., 800
Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O.
Box 9011, Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 12/31/2006
Date of reporting period: 07/01/06 - 09/30/06
Item 1 - Schedule of Investments
BlackRock Capital and Income Strategies Fund, Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Preferred Securities
Face
Industry Amount Capital Trusts Value
Commercial Banks - 2.7% $ 1,000,000 Dresdner Funding Trust I, 8.151% due 6/30/2031 (j) $ 1,184,343
2,000,000 Mizuho JGB Investment LLC, 9.87% (b)(i)(j) 2,142,084
2,000,000 SB Treasury Co. LLC, 9.40% (b)(i)(j) 2,125,358
2,000,000 Westpac Capital Trust III, 5.819% (b)(i)(j) 1,988,560
Total Capital Trusts (Cost - $7,690,510) - 2.7% 7,440,345
Shares
Held Preferred Stocks
Capital Markets - 2.3% 80,000 Goldman Sachs Group, Inc. Series A, 3.91% 2,066,400
40,000 Lehman Brothers Holdings, Inc., 6.50% 1,031,200
40,000 Lehman Brothers Holdings, Inc. Series G, 3% 1,017,500
80,000 Morgan Stanley Group, Inc. Series A, 6.186% 2,064,000
---------------
6,179,100
Commercial Banks - 4.9% 60,000 Banco Santander Central Hispano SA, 6.41% 1,536,000
27,734 First Republic Bank, 6.25% 688,150
1,674 First Tennessee Bank NA, 3.90% (b)(j) 1,724,220
80,000 HSBC USA, Inc., 3.50% 2,040,000
20,000 Royal Bank of Scotland Group Plc Series L, 5.75% 479,200
60,000 Royal Bank of Scotland Group Plc Series N, 6.35% 1,518,000
2,000 SG Preferred Capital II, 6.302% 2,120,000
40,000 Sovereign Bancorp, Inc. Series C, 7.30% (a) 1,072,000
40,000 SunTrust Banks, Inc., 5.92% 1,018,400
40,000 US Bancorp Series B, 5.56% 1,034,000
---------------
13,229,970
Diversified Financial 9,200 Bank of America Corp. Series D, 6.20% 234,784
Services - 0.6% 50,000 CIT Group, Inc. Series A, 6.35% 1,290,500
---------------
1,525,284
Electric Utilities - 3.4% 11,109 Connecticut Light & Power, 5.28% 500,599
11,394 Delmarva Power & Light, 4.20% 954,604
11,250 Delmarva Power & Light, 4.28% 836,368
20,000 Duquesne Light Co., 6.50% 985,200
6,800 Entergy Arkansas, Inc., 6.45% 172,125
12,000 Entergy Louisiana LLC, 6.95% 1,212,000
40,000 Interstate Power & Light Co. Series B, 8.375% 1,240,000
20,000 PPL Electric Utilities Corp., 6.25% 509,376
10,000 Peco Energy Co. Series D, 4.68% 811,500
20,000 Southern California Edison Co., 5.349% 2,020,000
---------------
9,241,772
Food Products - 1.5% 2,000 General Mills, Inc., 4.50% 1,987,600
20 HJ Heinz Finance Co., 6.226% (j) 2,060,000
---------------
4,047,600
Gas Utilities - 0.3% 35,000 Southern Union Co., 7.55% 902,300
Insurance - 4.9% 40,000 ACE Ltd. Series C, 7.80% 1,038,000
80,000 Aegon NV, 6.375% 2,023,200
40,000 Arch Capital Group Ltd., 8% 1,060,000
8,000 Axis Capital Holdings Ltd. Series A, 7.25% 202,000
48,000 Endurance Specialty Holdings Ltd., 7.75% 1,226,400
30,000 Genworth Financial, Inc. Series A, 5.25% 1,514,064
42,000 Metlife, Inc. Series B, 6.50% 1,088,220
32,000 Principal Financial Group Series B, 6.518% 880,000
80,000 Prudential Plc, 6.75% 2,037,600
2,200 Zurich RegCaPS Funding Trust, 6.58% (j) 2,282,500
---------------
13,351,984
Multi-Utilities - 0.7% 80,000 Pacific Gas & Electric Co. Series A, 6% 1,984,000
Oil, Gas & Consumable 19,500 Apache Corp. Series B, 5.68% (a) 1,943,298
Fuels - 0.7%
Thrifts & Mortgage 45,000 Fannie Mae, 7% 2,382,187
Finance - 5.7% 25,000 Fannie Mae Series I, 5.375% 1,137,500
59,350 Fannie Mae Series L, 5.125% 2,620,302
150,000 Freddie Mac, 3.93% 6,337,500
40,000 Freddie Mac, 5.87% 2,050,000
40,000 Washington Mutual Capital Trust 2001 Series K, 6.09% 1,005,200
---------------
15,532,689
Total Preferred Stocks (Cost - $66,917,884) - 25.0% 67,937,997
Real Estate Investment Trusts
Real Estate Investment Trusts 52,000 Alexandria Real Estate Equities, Inc. Series C, 8.375% 1,362,400
(REITs) - 0.5%
Total Real Estate Investment Trusts
(Cost - $1,300,000) - 0.5% 1,362,400
Face
Amount Trust Preferreds
Gas Utilities - 0.4% $ 1,000,000 Southwest Gas Capital II, 7.70% due 9/15/2043 1,015,491
Insurance - 0.8% 2,000,000 ABN AMRO North America Capital Funding Trust I, 6.968%
due 9/15/2010 (b)(j) 2,096,452
Total Trust Preferreds (Cost - $3,115,751) - 1.2% 3,111,943
Total Preferred Securities (Cost - $79,024,145) - 29.4% 79,852,685
Corporate Bonds
Beverages - 0.1% 250,000 Coca-Cola Femsa SA de CV, 8.95% due 11/01/2006 250,000
Capital Markets - 0.8% 2,070,000 UBS Luxembourg SA for Sberbank, 7.24% due 10/24/2006 (b) 2,073,105
Commercial Banks - 2.2% 500,000 Alfa MTN Issuance Ltd., 7.75% due 2/09/2007 500,955
1,350,000 Bangkok Bank PCL, 8.75% due 3/15/2007 1,366,042
700,000 Export-Import Bank of Korea, 4.25% due 11/27/2007 690,767
750,000 ICICI Bank Ltd., 4.75% due 10/22/2008 735,002
575,000 Korea Development Bank, 5.25% due 11/16/2006 574,788
2,000,000 Lloyds TSB Bank Plc, 6.90% (i) 2,010,000
---------------
5,877,554
Diversified Financial 900,000 AC International Finance Ltd., 8.125% due 2/21/2008 921,153
Services - 1.0% 1,920,000 Salomon Brothers AG for OAO Gazprom,
9.125% due 4/25/2007 1,957,056
---------------
2,878,209
Diversified Telecommunication 750,000 Empresa Brasileira de Telecom SA Series B,
Services - 0.7% 11% due 12/15/2008 823,125
675,000 Excelcomindo Finance Co. BV, 8% due 1/27/2009 688,500
300,000 Philippine Long Distance Telephone Co., 7.85% due 3/06/2007 301,125
---------------
1,812,750
Electric Utilities - 0.3% 500,000 Tenaga Nasional Bhd, 7.20% due 4/29/2007 504,009
350,000 Tenaga Nasional Bhd, 7.50% due 11/01/2025 406,522
---------------
910,531
Independent Power Producers 150,000 Aes Dominicana Energia Finance SA, 11% due 12/13/2015 (j) 154,500
& Energy Traders - 0.0%
Metals & Mining - 0.6% 320,000 Cia Siderurgica Paulista, 7.25% due 11/07/2006 320,320
1,350,000 Freeport-McMoRan Copper & Gold, Inc.,
7.50% due 11/15/2006 1,351,688
---------------
1,672,008
Multiline Retail - 0.1% 250,000 SM Investments Corp., 8% due 10/16/2007 254,231
Oil, Gas & Consumable 630,000 Gazprom International SA, 7.201% due 2/01/2020 660,744
Fuels - 2.2% 750,000 MEI Euro Finance Ltd., 10% due 3/19/2007 753,750
900,000 Pemex Project Funding Master Trust, 8.85% due 9/15/2007 927,000
300,000 Pemex Project Funding Master Trust, 6.125% due 8/15/2008 301,800
610,000 Petrobras Energia SA, 9% due 1/30/2007 613,508
720,000 Petroliam Nasional BHD, 7.125% due 10/18/2006 720,553
175,000 Petroliam Nasional BHD, 7.75% due 8/15/2015 203,367
1,750,000 YPF SA Series A, 7.75% due 8/27/2007 1,776,775
---------------
5,957,497
Paper & Forest 250,000 SINO-FOREST Corp., 9.125% due 8/17/2011 (j) 259,375
Products - 0.1%
Wireless Telecommunication 625,000 Mobile Telesystems Finance SA, 9.75% due 1/30/2008 649,438
Services - 0.8% 1,425,000 Total Access Communication PCL, 8.375% due 11/04/2006 1,426,535
---------------
2,075,973
Total Corporate Bonds (Cost - $24,257,506) - 8.9% 24,175,733
Foreign Government Obligations
Foreign Government 153,750 Argentina Bonos, 5.59% due 8/03/2012 (b) 142,043
Obligations - 15.0% 1,376,500 Argentina Government International Bond,
1.33% due 12/31/2038 598,778
1,670,000 Brazilian Government International Bond, 10% due 1/16/2007 1,691,710
2,290,000 Brazilian Government International Bond,
11.50% due 3/12/2008 2,480,070
1,540,000 Brazilian Government International Bond, 10% due 8/07/2011 1,811,040
800,000 Brazilian Government International Bond,
10.50% due 7/14/2014 1,005,200
450,000 Brazilian Government International Bond, 8% due 1/15/2018 494,325
815,000 Brazilian Government International Bond,
10.125% due 5/15/2027 1,093,730
200,000 Brazilian Government International Bond,
8.25% due 1/20/2034 230,000
115,000 Brazilian Government International Bond,
7.125% due 1/20/2037 117,415
30,000 Bulgaria Government International Bond,
8.25% due 1/15/2015 35,286
1,000,000 Chile Government International Bond, 5.625% due 7/23/2007 1,001,300
110,000 Chile Government International Bond, 5.50% due 1/15/2013 110,660
500,000 Colombia Government International Bond,
7.625% due 2/15/2007 500,000
1,420,000 Colombia Government International Bond,
8.625% due 4/01/2008 1,491,000
340,000 Colombia Government International Bond, 10% due 1/23/2012 396,270
300,000 Colombia Government International Bond,
11.75% due 2/25/2020 420,000
142,087 Dominican Republic International Bond, 9.04% due 1/23/2018 158,072
325,000 Indonesia Government International Bond,
7.50% due 1/15/2016 (j) 346,937
1,170,000 Mexico Government International Bond,
9.875% due 1/15/2007 1,184,625
950,000 Mexico Government International Bond,
8.375% due 1/14/2011 1,060,200
525,000 Mexico Government International Bond Series A,
6.625% due 3/03/2015 557,812
1,150,000 Mexico Government International Bond Series A,
6.75% due 9/27/2034 1,220,725
450,000 Panama Government International Bond, 8.25% due 4/22/2008 465,750
150,000 Panama Government International Bond, 7.25% due 3/15/2015 160,125
435,000 Panama Government International Bond,
8.875% due 9/30/2027 538,312
1,090,000 Peru Government International Bond, 9.125% due 1/15/2008 1,139,050
240,000 Peru Government International Bond, 8.75% due 11/21/2033 294,000
250,000 Philippine Government International Bond,
5.625% due 11/19/2006 249,874
1,700,000 Philippine Government International Bond,
7.50% due 9/11/2007 1,725,255
611,102 Philippine Government International Bond,
6.188% due 6/01/2008 (b) 606,599
250,000 Philippine Government International Bond,
8.375% due 2/15/2011 270,000
180,000 Philippine Government International Bond,
8.875% due 3/17/2015 205,200
65,000 Philippine Government International Bond,
10.625% due 3/16/2025 86,612
750,000 Philippine Government International Bond,
9.50% due 2/02/2030 924,375
430,000 Philippine Government International Bond,
7.75% due 1/14/2031 448,812
134,400 Republic of Peru, Front-Loaded Interest Rate Reduction
Bonds, 5% due 3/07/2017 (b)(e) 132,048
2,595,000 Russia Government International Bond,
10% due 6/26/2007 2,677,781
975,000 Russia Government International Bond, 11% due 7/24/2018 1,403,805
530,000 Russia Government International Bond, 5% due 3/31/2030 591,533
100,000 Russian Federation Bonds (Regulation S),
12.75% due 6/24/2028 179,450
1,000,000 South Africa Government International Bond,
8.375% due 10/17/2006 1,000,000
650,000 Turkey Government International Bond,
11.375% due 11/27/2006 655,688
1,000,000 Turkey Government International Bond, 10% due 9/19/2007 1,037,442
715,000 Turkey Government International Bond, 11.50% due 1/23/2012 860,216
500,000 Turkey Government International Bond,
7.375% due 2/05/2025 493,750
225,000 Turkey Government International Bond,
11.875% due 1/15/2030 331,594
930,000 Turkey Government International Bond,
6.875% due 3/17/2036 843,975
345,432 Ukraine Government International Bond,
11% due 3/15/2007 352,742
50,000 Ukraine Government International Bond,
7.65% due 6/11/2013 (j) 52,750
375,000 United Mexican States, 8.125% due 12/30/2019 (e) 450,000
200,000 Uruguay Government International Bond,
9.25% due 5/17/2017 232,500
273,345 Uruguay Government International Bond,
7.875% due 1/15/2033 (g) 282,912
1,710,000 Venezuela Government International Bond,
9.125% due 6/18/2007 1,748,475
360,000 Venezuela Government International Bond,
5.375% due 8/07/2010 349,200
725,000 Venezuela Government International Bond,
10.75% due 9/19/2013 886,313
495,000 Venezuela Government International Bond,
9.375% due 1/13/2034 611,820
285,682 Venezuela Government International Bond Series DL,
6.438% due 12/18/2007 (b) 284,968
Total Foreign Government Obligations
(Cost - $39,631,569) - 15.0% 40,720,124
Municipal Bonds
Municipal Bonds - 0.7% 500,000 Dresdner Bank AG for City of Kiev, 8.75% due 8/08/2008 514,800
450,000 Dresdner Bank AG for Kyivstar GSM, 10.375% due 8/17/2009 488,354
100,000 Dresdner Bank AG for Kyivstar GSM,
7.75% due 4/27/2012 101,750
793,000 Santa Fe de Bogota DC, 9.50% due 12/12/2006 793,000
Total Municipal Bonds (Cost - $1,914,271) - 0.7% 1,897,904
Shares
Held Common Stocks
Aerospace & Defense - 5.6% 74,000 Honeywell International, Inc. 3,026,600
32,100 Lockheed Martin Corp. 2,762,526
62,300 Northrop Grumman Corp. 4,240,761
108,300 Raytheon Co. 5,199,483
---------------
15,229,370
Beverages - 1.1% 145,000 Coca-Cola Enterprises, Inc. 3,020,350
Capital Markets - 4.0% 145,000 The Bank of New York Co., Inc. 5,112,700
80,100 Morgan Stanley 5,840,091
---------------
10,952,791
Chemicals - 1.0% 61,400 E.I. du Pont de Nemours & Co. 2,630,376
Commercial Banks - 2.5% 187,500 Wells Fargo & Co. 6,783,750
Communications 49,300 Motorola, Inc. 1,232,500
Equipment - 0.5%
Computers & Peripherals - 4.3% 74,700 Hewlett-Packard Co. 2,740,743
79,200 International Business Machines Corp. 6,489,648
481,600 Sun Microsystems, Inc. (d) 2,393,552
---------------
11,623,943
Diversified Financial 117,727 Bank of America Corp. 6,306,635
Services - 7.1% 99,290 Citigroup, Inc. 4,931,734
169,872 JPMorgan Chase & Co. 7,977,189
---------------
19,215,558
Diversified Telecommunication 166,500 AT&T, Inc. 5,421,240
Services - 5.0% 76,600 BellSouth Corp. 3,274,650
130,300 Verizon Communications, Inc. 4,838,039
---------------
13,533,929
Electric Utilities - 2.5% 65,100 FPL Group, Inc. 2,929,500
108,000 The Southern Co. 3,721,680
---------------
6,651,180
Energy Equipment & 42,600 BJ Services Co. 1,283,538
Services - 2.3% 70,400 GlobalSantaFe Corp. 3,519,296
52,100 Halliburton Co. 1,482,245
---------------
6,285,079
Food & Staples Retailing - 0.3% 29,600 The Kroger Co. 684,944
Food Products - 4.1% 11,100 Cadbury Schweppes Plc (a) 474,747
83,000 General Mills, Inc. 4,697,800
45,100 Kraft Foods, Inc. 1,608,266
170,700 Unilever NV (a) 4,188,978
---------------
10,969,791
Health Care Equipment & 113,000 Baxter International, Inc. 5,136,980
Supplies - 1.9%
Hotels, Restaurants & 82,500 McDonald's Corp. 3,227,400
Leisure - 1.2%
Household Durables - 0.9% 73,400 Koninklijke Philips Electronics NV 2,569,734
Household Products - 1.7% 70,300 Kimberly-Clark Corp. 4,594,808
IT Services - 0.9% 427,900 Unisys Corp. (d) 2,421,914
Industrial Conglomerates - 3.5% 140,900 General Electric Co. 4,973,770
162,500 Tyco International Ltd. 4,548,375
---------------
9,522,145
Insurance - 8.6% 38,100 The Allstate Corp. 2,390,013
92,100 American International Group, Inc. 6,102,546
71,600 Genworth Financial, Inc. Class A 2,506,716
38,600 Hartford Financial Services Group, Inc. 3,348,550
76,400 Marsh & McLennan Cos., Inc. 2,150,660
100,100 The St. Paul Travelers Cos., Inc. 4,693,689
32,700 XL Capital Ltd. Class A 2,246,490
---------------
23,438,664
Machinery - 0.8% 25,800 Deere & Co. 2,164,878
Media - 6.0% 99,900 Comcast Corp. Special Class A (d) 3,677,319
28,900 Gannett Co., Inc. 1,642,387
276,300 Interpublic Group of Cos., Inc. (d) 2,735,370
286,400 Time Warner, Inc. 5,221,072
99,400 Walt Disney Co. 3,072,454
---------------
16,348,602
Metals & Mining - 1.4% 134,800 Alcoa, Inc. 3,779,792
Multi-Utilities - 1.5% 50,500 Consolidated Edison, Inc. 2,333,100
23,500 Dominion Resources, Inc. 1,797,515
---------------
4,130,615
Office Electronics - 1.0% 180,900 Xerox Corp. (d) 2,814,804
Oil, Gas & Consumable 39,000 Chevron Corp. 2,529,540
Fuels - 4.6% 149,900 Exxon Mobil Corp. 10,058,290
---------------
12,587,830
Pharmaceuticals - 5.4% 67,000 GlaxoSmithKline Plc (a) 3,566,410
40,600 Johnson & Johnson 2,636,564
181,800 Pfizer, Inc. 5,155,848
146,700 Schering-Plough Corp. 3,240,603
---------------
14,599,425
Semiconductors & Semiconductor 42,400 Applied Materials, Inc. 751,752
Equipment - 3.2% 156,300 Fairchild Semiconductor International, Inc. (d) 2,922,810
113,000 Intel Corp. 2,324,410
334,900 LSI Logic Corp. (d) 2,752,878
---------------
8,751,850
Specialty Retail - 0.9% 124,000 The Gap, Inc. 2,349,800
Total Common Stocks (Cost - $200,616,901) - 83.8% 227,252,802
Beneficial
Industry Interest Other Interests (f)
Foreign Government $ 300,000 Argentina Government International Bond 29,700
Obligations - 0.0%
Total Other Interests (Cost - $13,883) - 0.0% 29,700
Short-Term Securities
7,307,858 BlackRock Liquidity Series, LLC Cash Sweep
Series I, 5.18% (c)(h) 7,307,858
Total Short-Term Securities (Cost - $7,307,858) - 2.7% 7,307,858
Total Investments (Cost - $352,766,133) - 140.5% 381,236,806
Number of
Contracts Options Written
Call Options Written 2,000 Wells Fargo & Co., expiring October 2006 at USD 35, Broker
Morgan Stanley Capital Services, Inc. (292,600)
Total Options Written
(Premiums Received - $122,008) - (0.1%) (292,600)
Total Investments, Net of Options Written
(Cost - $352,644,125*) - 140.4% 380,944,206
Liabilities in Excess of Other Assets - (40.4%) (109,545,283)
---------------
Net Assets - 100.0% $ 271,398,923
===============
* The cost and unrealized appreciation (depreciation) of investments,
net of options written, as of September 30, 2006, as computed for
federal income tax purposes, were as follows:
Aggregate cost $ 352,838,235
=================
Gross unrealized appreciation $ 33,209,025
Gross unrealized depreciation (5,103,054)
-----------------
Net unrealized appreciation $ 28,105,971
=================
(a) Depositary receipts.
(b) Floating rate security.
(c) 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 Interest
Affiliate Activity Income
BlackRock Liquidity Series, LLC
Cash Sweep Series I $(4,841,347) $159,443
(d) Non-income producing security.
(e) Brady Bonds are securities which have been issued to refinance
commercial bank loans and other debt. The risk associated with
these instruments is the amount of any uncollateralized principal
or interest payments since there is a high default rate of commercial
bank loans by countries issuing these securities.
(f) Other interests represent beneficial interest in liquidation trusts
and other reorganization entities and are non-income producing.
(g) Represents a pay-in-kind security which may pay interest/dividends in
additional face/shares.
(h) Represents the current yield as of September 30, 2006.
(i) The security is a perpetual bond and has no definite maturity date.
(j) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
o For Fund compliance purposes, the Fund's industry classifications
refer to any one or more of the industry sub-classifications used by
one or more widely recognized market indexes or ratings group indexes,
and/or as defined by Fund management. This definition may not apply for
purposes of this report, which may combine industry sub-classifications
for reporting ease. Industries are shown as a percent of net assets.
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our
evaluation of these controls and procedures as of a date within 90
days prior to the filing date of this report.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter of
the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Capital and Income Strategies Fund, Inc.
By: /s/ Robert C. Doll, Jr.
----------------------
Robert C. Doll, Jr.
Chief Executive Officer
BlackRock Capital and Income Strategies Fund, Inc.
Date: November 17, 2006
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/ Robert C. Doll, Jr.
----------------------
Robert C. Doll, Jr.
Chief Executive Officer
BlackRock Capital and Income Strategies Fund, Inc.
Date: November 17, 2006
By: /s/ Donald C. Burke
----------------------
Donald C. Burke
Chief Financial Officer
BlackRock Capital and Income Strategies Fund, Inc.
Date: November 17, 2006