CE Taxable 7 -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

  Investment Company Act file number 811-21506

Name of Fund: BlackRock Enhanced Capital and Income Fund, Inc. (CII)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 10/31/2008

Date of reporting period: 01/01/2008 – 10/31/2008

Item 1 – Report to Stockholders


EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS


Annual Report

OCTOBER 31, 2008

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

BlackRock Enhanced Capital and Income Fund, Inc. (CII)

BlackRock Global Floating Rate Income Trust (BGT)

BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW)

BlackRock Preferred and Equity Advantage Trust (BTZ)

BlackRock Preferred Income Strategies Fund, Inc. (PSY)

BlackRock Preferred Opportunity Trust (BPP)

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE


Table of Contents     
    Page 
 
A Letter to Shareholders    3 
Annual Report:     
Fund Summaries    4 
The Benefits and Risks of Leveraging    11 
Derivative Instruments    11 
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    46 
Financial Highlights    47 
Notes to Financial Statements    54 
Report of Independent Registered Public Accounting Firm    65 
Important Tax Information    66 
Disclosure of Investment Advisory Agreement and Subadvisory Agreement    67 
Automatic Dividend Reinvestment Plan    70 
Dividend Reinvestment Plan    71 
Officers and Directors/Trustees    72 
Additional Information    76 

2 ANNUAL REPORT

OCTOBER 31, 2008


A Letter to Shareholders

Dear Shareholder

It has been a tumultuous period for investors, marked by almost daily headlines of deepening turmoil in financial markets and

a darkening economic outlook. The news took an extraordinarily heavy tone late in the period as the credit crisis boiled over and

triggered unprecedented failures and consolidation in the financial sector, stoking fears of a market and economic collapse and

prompting a series of new government programs designed to contain and combat the fallout.

The Federal Reserve Board (the “Fed”) has taken decisive measures to restore liquidity and stabilize the financial system. Key

moves included slashing the target federal funds rate 250 basis points (2.50%) between November 2007 and April 2008 and

providing massive cash injections and lending programs. In October, as credit conditions further deteriorated, the central bank cut

the key interest rate by 50 basis points on two separate occasions — on October 8 in coordination with five other global central

banks, and again during its regularly scheduled meeting on October 29. This left the key short-term rate at just 1.0%, its lowest

level since 2004. While the U.S. economy appeared fairly resilient through the second quarter of 2008, the third quarter saw a

contraction of 0.5%, and a more significant decline is expected for the fourth quarter. Moreover, on December 1, the National

Bureau of Economic Research confirmed that the U.S. had entered a recession in December 2007.

Against this backdrop, U.S. equity markets experienced intense volatility, with periods of downward pressure punctuated by sharp

rebounds. Losses were significant and broad-based, though small-cap stocks fared moderately better than their larger counter-

parts. Non-U.S. markets decelerated at a considerably faster pace than domestic equities — a stark reversal of recent years’ trends,

when international stocks generally outpaced U.S. stocks.

Treasury issues also traded in a volatile fashion, but rallied overall (yields fell and prices correspondingly rose) and outperformed

other fixed income assets as investors continued their flight to higher quality and more liquid securities. Tax-exempt issues generally

underperformed, as problems among municipal bond insurers and the collapse in the market for auction rate securities afflicted

the group throughout the course of the past year. At the same time, the above mentioned economic headwinds and malfunctioning

credit markets plagued the high yield sector, with the third quarter of 2008 marking one of the worst periods in history for the

asset class.

Facing unprecedented volatility and macro pressures, the major benchmark indexes generally recorded losses for the six- and

12-month reporting periods:

Total Returns as of October 31, 2008    6-month    12-month 
U.S. equities (S&P 500 Index)    (29.28)%     (36.10)% 
Small cap U.S. equities (Russell 2000 Index)    (24.39)    (34.16) 
International equities (MSCI Europe, Australasia, Far East Index)    (41.21)    (46.62) 
Fixed income (Barclays Capital U.S. Aggregate Index*)    (3.63)    0.30 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index*)    (4.70)    (3.30) 
High yield bonds         
(Barclays Capital U.S. Corporate High Yield 2% Issuer Capped Index*)    (24.86)    (25.41) 

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

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

assets. For our most current views on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As

always, we thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the

months and years ahead.


THIS PAGE NOT PART OF YOUR FUND REPORT

3


Fund Summary as of October 31, 2008

BlackRock Broad Investment Grade 2009 Term Trust Inc.

Investment Objective

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT) (the “Fund”) seeks to manage a portfolio of fixed income securities
that will return $15 per share (the initial public offering price per share) to investors on or about December 31, 2009 while providing
high monthly income.

Performance

For the 12 months ended October 31, 2008, the Fund returned (13.82)% based on market price and (0.07)% based on net asset
value (“NAV”). For the same period, the closed-end Lipper U.S. Mortgage Funds category posted an average return of (10.48)% on a
NAV basis. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period-end, which
accounts for the difference between performance based on price and performance based on NAV. The Fund matures in December
2009 and has an effective duration of 0.72 years, which is shorter than its Lipper category peers. While its shorter duration hindered
performance versus funds investing in U.S. agency mortgage-backed securities (MBS), the Fund significantly outperformed funds that
invest in non-agency MBS.

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 American Stock Exchange                        BCT 
Initial Offering Date                    June 17, 1993 
Yield on Closing Market Price as of October 31, 2008 ($12.50)1                4.70% 
Current Monthly Distribution per share2                        $0.049 
Current Annualized Distribution per share2                    $0.588 

 
 
 
 
 
     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 Monthly Distribution per share was decreased to $0.00 due to a plan of liquidation. The Yield on Closing Market Price, Current Monthly 
         Distribution and Current Annualized Distribution do not reflect the new distribution rate. The new distribution rate is not constant and is subject 
to further change in the future.                         
The table below summarizes the changes in the Fund’s market price and net asset value per share:         

 
 
        10/31/08    10/31/07    Change    High    Low 
Market Price        $12.50    $15.15    (17.49)%    $15.24    $11.41 
Net Asset Value        $12.80    $13.38    (4.33)%    $13.58    $12.62 
 
The following unaudited chart shows the portfolio composition of the Fund’s long-term investments:         
 
     Portfolio Composition                         
    10/31/08    10/31/07                 
U.S. Government Obligations    72%                     
Non-U.S. Government Agency                         
   Mortgage-Backed Securities    11    23%                 
U.S. Government Agency                         
   Mortgage-Backed Securities —                         
   Collateralized Mortgage                         
   Obligations    7    47                 
Corporate Bonds    6    9                 
Taxable Municipal Bonds    3    18                 
U.S. Government Agency                         
   Mortgage-Backed Securities    1    3                 

4 ANNUAL REPORT

OCTOBER 31, 2008


Fund Summary as of October 31, 2008

BlackRock Enhanced Capital and Income Fund, Inc.

Investment Objective

BlackRock Enhanced Capital and Income Fund, Inc. (CII) (the “Fund”) seeks to provide investors with a combination of current
income and capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in a diversified portfolio
of common stocks in an attempt to generate current income and by employing a strategy of writing (selling) call options on equity
indexes in an attempt to generate gains from option premiums primarily on the S&P 500 Index.

Performance

The Fund recently changed its fiscal year end to October 31. For the 12 months ended October 31, 2008, the Fund returned (32.17)%
based on market price and (31.00)% based on NAV. For the same period, the benchmark S&P 500 Citigroup Value Index returned
(38.07)% . All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for
the difference between performance based on price and performance based on NAV. The Fund’s options investments were the most
significant contributor to performance over the period. From a sector perspective, stock selection in consumer staples, healthcare and
utilities proved advantageous, as did an underweight in financials and an overweight in energy. Conversely, stock selection in informa-
tion technology, materials, financials and energy hindered performance, as did an underweight in utilities.

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                        CII 
Initial Offering Date                    April 30, 2004 
Yield on Closing Market Price as of October 31, 2008 ($12.37)1                15.68% 
Current Quarterly Distribution per share2                    $0.485 
Current Annualized Distribution per share2                    $1.940 

 
 
 
 
 
   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.                     
The table below summarizes the changes in the Fund’s market price and net asset value per share:         
        10/31/08    12/31/07    Change    High    Low 
Market Price        $12.37    $20.06    (38.33)%    $20.06         $ 8.08 
Net Asset Value        $13.78    $21.36    (35.49)%    $21.36         $12.32 

 
 
 
 
 
 
The following unaudited chart shows the portfolio composition of the Fund’s long-term investments:         
     Portfolio Composition                         
    10/31/08    12/31/07                 
Common Stocks    100%    100%                 

ANNUAL REPORT

OCTOBER 31, 2008

5


Fund Summary as of October 31, 2008

BlackRock Global Floating Rate Income Trust

Investment Objective

BlackRock Global Floating Rate Income Trust (BGT) (the “Fund”) seeks to provide a high level of current income and to seek the
preservation of capital. The Fund seeks to achieve its objective by investing in a global portfolio of primarily floating and variable
rate securities.

Performance

The Fund recently changed its fiscal year end to October 31. For the 12 months ended October 31, 2008, the Fund returned (36.76)%
based on market price and (32.72)% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds category
posted an average return of (32.26)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which
widened during the period, accounts for the difference between performance based on price and performance based on NAV. The high
yield loan market came under intense pressure during the period due to adverse credit conditions and forced liquidations of loan port-
folios by financial institutions, hedge funds and other leveraged investors. The average price of a loan in the Barclays Capital High Yield
Loan Index dropped from 96.8 to 73.0.

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    BGT 
Initial Offering Date    August 30, 2004 
Yield on Closing Market Price as of October 31, 2008 ($9.63)1    13.08% 
Current Monthly Distribution per Common Share2    $0.105 
Current Annualized Distribution per Common Share2    $1.260 
Leverage as of October 31, 20083    41% 

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 November 3, 2008. The Monthly Distribution per share was decreased to $0.100. The Yield on
Closing Market Price, Current Monthly Distribution and Current Annualized Distribution do not reflect the new distribution rate. The new distribution
rate is not constant and is subject to further change in the future.
3 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any Auction Market Preferred Shares
(“AMPS”) and any borrowings that may be outstanding) minus the sum of accrued liabilities (other than AMPS and debt representing financial leverage).

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

    10/31/08    12/31/07    Change    High    Low 
Market Price    $ 9.63    $15.78    (38.97)%    $16.54    $ 6.70 
Net Asset Value    $11.24    $17.71    (36.53)%    $17.76    $11.07 

The following unaudited 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         
    10/31/08    12/31/07 
Floating Rate Loan Interests         79%       74% 
Corporate Bonds    14       14 
Foreign Government Obligations    7       12 

     Credit Quality Allocations4         
Credit Rating    10/31/08    12/31/07 
A/A         20%     
BBB/Baa         30    39% 
BB/Ba         16    26 
B/B         23    27 
CCC/Caa         10    8 
Not Rated    1     

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

6 ANNUAL REPORT

OCTOBER 31, 2008


Fund Summary as of October 31, 2008

BlackRock Preferred and Corporate Income Strategies Fund, Inc.

Investment Objective

BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW) (the “Fund”) seeks to provide shareholders with high current
income. The secondary objective of the Fund is to seek to provide shareholders with capital appreciation. The Fund seeks to achieve its
objectives by investing primarily in a portfolio of preferred securities and debt securities, including convertible securities that may be
converted into common stock or other securities of the same or a different issuer.

Performance

For the 12 months ended October 31, 2008, the Fund returned (55.38)% based on market price and (58.09)% based on NAV. For the
same period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of (47.54)% 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 contains both preferred bond and
equity funds, both of which suffered large losses as financial markets sold off sharply and preferred securities of financial issuers, who
make up a significant percentage of the market, came under extreme pressure due to uncertainty about their financial condition.

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    PSW 
Initial Offering Date    August 1, 2003 
Yield based on Closing Market Price as of October 31, 2008 ($7.00)1    17.71% 
Current Monthly Distribution per Common Share2    $0.1033 
Current Annualized Distribution per Common Share2    $1.2396 
Leverage as of October 31, 20083    49% 

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 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to AMPS and any borrowings that may be
outstanding) minus the sum of accrued liabilities (other than AMPS and debt representing financial leverage).

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

    10/31/08    10/31/07    Change    High    Low 
Market Price    $7.00    $17.29    (59.51)%    $17.50    $3.79 
Net Asset Value    $7.43    $19.54    (61.98)%    $19.57    $7.43 

The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the
Fund’s Capital Trust, Trust Preferred and Corporate Bond investments:

     Portfolio Composition         
    10/31/08    10/31/07 
Preferred Securities    98%    82% 
Corporate Bonds    2       17 
U.S. Government Obligations        1 

     Credit Quality Allocations4         
Credit Rating    10/31/08    10/31/07 
AAA/Aaa        4% 
AA/Aa    14%    17 
A/A    46    29 
BBB/Baa    36    42 
BB/Ba    4    5 
Not Rated        3 
   4 Using the higher of S&P’s or Moody’s ratings.     

ANNUAL REPORT

OCTOBER 31, 2008

7


Fund Summary as of October 31, 2008

BlackRock Preferred and Equity Advantage Trust

Investment Objective

BlackRock Preferred and Equity Advantage Trust (BTZ) (the “Fund”) seeks to achieve current income, current gains and capital
appreciation. The Fund will invest primarily in preferred and equity securities and derivatives with economic characteristics similar to
individual or groups of equity securities. The Fund will seek to generate income through an allocation of Qualified Dividend Income-
eligible preferreds, common stocks that generate qualified dividend income and an index options strategy.

Performance

For the 12 months ended October 31, 2008, the Fund returned (43.51)% based on market price and (44.27)% based on NAV. For the
same period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of (47.54)% 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 contains both preferred bond and
equity funds, both of which suffered large losses as financial markets sold off sharply and preferred securities of financial issuers, who
make up a significant percentage of the market, came under extreme pressure due to uncertainty about their financial condition.

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                    BTZ 
Initial Offering Date                December 27, 2006 
Yield on Closing Market Price as of October 31, 2008 ($9.36)1                    16.67% 
Current Monthly Distribution per Common Share2                    $0.13 
Current Annualized Distribution per Common Share2                    $1.56 
Leverage as of October 31, 20083                    45% 

 
 
 
 
 
     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 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to AMPS and any borrowings that may 
         be outstanding) minus the sum of accrued liabilities (other AMPS and debt representing financial leverage).             
The table below summarizes the changes in the Fund’s market price and net asset value per share:         

 
 
    10/31/08    10/31/07    Change    High    Low 
Market Price    $ 9.36    $18.65    (49.81)%    $18.65         $ 5.05 
Net Asset Value    $10.59    $21.39    (50.49)%    $21.39         $10.10 

The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the
Fund’s Capital Trust, Trust Preferred and Corporate Bond investments:

     Portfolio Composition         
    10/31/08    10/31/07 
Preferred Securities         75%       61% 
Common Stocks    20       28 
Corporate Bonds    5       11 

     Credit Quality Allocations4         
Credit Rating    10/31/08    10/31/07 
AA/Aa    21%    20% 
A/A    42    42 
BBB/Baa    34    29 
BB/Ba    3    1 
B/B        6 
CCC/Caa        1 
Not Rated        1 
   4 Using the higher of S&P’s or Moody’s ratings.     

8 ANNUAL REPORT

OCTOBER 31, 2008


Fund Summary as of October 31, 2008

BlackRock Preferred Income Strategies Fund, Inc.

Investment Objective

BlackRock Preferred Income Strategies Fund, Inc. (PSY) (the “Fund”) seeks to provide shareholders with high current income. The
secondary objective of the Fund is to seek to provide shareholders with capital appreciation. The Fund seeks to achieve its objectives
by investing primarily in a portfolio of preferred securities, including convertible preferred securities that may be converted into common
stock or other securities of the same or a different issuer.

Performance

For the 12 months ended October 31, 2008, the Fund returned (46.97)% based on market price and (55.71)% based on NAV. For the
same period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of (47.54)% on a NAV basis.
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. The Fund’s Lipper category contains both
preferred bond and equity funds, both of which suffered large losses as financial markets sold off sharply and preferred securities of
financial issuers, who make up a significant percentage of the market, came under extreme pressure due to uncertainty about their
financial condition.

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    PSY 
Initial Offering Date    March 28, 2003 
Yield on Closing Market Price as of October 31, 2008 ($8.10)1    16.98% 
Current Monthly Distribution per Common Share2    $0.114583 
Current Annualized Distribution per Common Share2    $1.374996 
Leverage as of October 31, 20083    50% 

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 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to AMPS and any borrowings that may
be outstanding) minus the sum of accrued liabilities (other than AMPS and debt representing financial leverage).

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

    10/31/08    10/31/07    Change    High    Low 
Market Price    $8.10    $16.94    (52.18)%    $17.65    $4.25 
Net Asset Value    $7.96    $19.93    (60.06)%    $19.95    $7.96 

The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the
Fund’s Capital Trust, Trust Preferred and Corporate Bond investments:

     Portfolio Composition         
    10/31/08    10/31/07 
Preferred Securities    97%    87% 
Corporate Bonds    3       12 
U.S. Government Obligations        1 

     Credit Quality Allocations4         
Credit Rating    10/31/08    10/31/07 
AAA/Aaa        1% 
AA/Aa    16%    18 
A/A    49    41 
BBB/Baa    28    33 
BB/Ba    7    3 
Not Rated        4 
   4 Using the higher of S&P’s or Moody’s ratings.     

ANNUAL REPORT

OCTOBER 31, 2008

9


Fund Summary as of October 31, 2008

BlackRock Preferred Opportunity Trust

Investment Objective

BlackRock Preferred Opportunity Trust (BPP) (the “Fund”) seeks high current income consistent with capital preservation by investing
primarily in preferred securities.

Performance

The Fund recently changed its fiscal year end to October 31. For the 12 months ended October 31, 2008, the Fund returned (52.70)%
based on market price and (55.09)% based on NAV. For the same period, the closed-end Lipper Income & Preferred Stock Funds cate-
gory posted an average return of (47.54)% 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 contains both preferred bond and equity funds, both of which suffered large losses as financial markets
sold off sharply and preferred securities of financial issuers, who make up a significant percentage of the market, came under extreme
pressure due to uncertainty about their financial condition.

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                    BPP 
Initial Offering Date                February 28, 2003 
Yield on Closing Market Price as of October 31, 2008 ($8.51)1                    17.63% 
Current Monthly Distribution per Common Share2                    $0.125 
Current Annualized Distribution per Common Share2                    $1.50 
Leverage as of October 31, 20083                    49% 

 
 
 
 
 
     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 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to AMPS and any borrowings that may 
         be outstanding minus the sum of accrued liabilities (other than AMPS and debt representing financial leverage).         
The table below summarizes the changes in the Fund’s market price and net asset value per share:         

 
 
    10/31/08    12/31/07    Change    High    Low 
Market Price    $8.51    $17.31    (50.84)%    $19.90    $5.90 
Net Asset Value    $8.77    $19.47    (54.96)%    $20.18    $8.28 

The following unaudited chart shows the portfolio composition of the Fund’s long-term investments and credit quality allocations of the
Fund’s Capital Trust, Trust Preferred and Corporate Bond investments:

     Portfolio Composition         
    10/31/08    12/31/07 
Preferred Securities    93%       72% 
Corporate Bonds    7       28 

     Credit Quality Allocations4         
Credit Rating    10/31/08    12/31/07 
AA/Aa         12%    26% 
A/A    11    39 
BBB/Baa    56    24 
BB/Ba    18    5 
B    3    6 
   4 Using the higher of S&P’s or Moody’s ratings.     

10 ANNUAL REPORT

OCTOBER 31, 2008


The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and NAV of their
Common Shares. However, these objectives cannot be achieved in all interest
rate environments.

To leverage, BlackRock Global Floating Rate Income Trust, BlackRock Preferred
and Corporate Income Strategies Fund, Inc., BlackRock Preferred and Equity
Advantage Trust, BlackRock Preferred Income Strategies Fund, Inc. and
BlackRock Preferred Opportunity Trust issue Preferred Shares, which pay
dividends at prevailing short-term interest rates. In addition, certain Funds
may utilize leverage through borrowings or issuance of short-term debt securi-
ties including reverse repurchase agreements and credit facility borrowings. 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 Common Shareholders
will benefit from the incremental yield.

The interest earned on securities purchased with the proceeds from leverage
is paid to Common Shareholders in the form of dividends, and the value of
these portfolio holdings is reflected in the per share NAV of each Fund’s
Common Shares. However, in order to benefit Common 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,
returns to Common Shareholders will be lower than if the Funds had not
used leverage.

To illustrate these concepts, assume a Fund’s Common Shares capitalization
is $100 million and it issues Preferred Shares for an additional $50 million,
creating a total value of $150 million available for investment in long-term
municipal bonds. 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 dividends on the $50 million of Preferred Shares based
on the lower short-term interest rates. At the same time, the Fund’s total port-
folio of $150 million earns the income based on long-term interest rates.
Conversely, if prevailing short-term interest rates rise above long-term interest
rates of 6%, the yield curve has a negative slope. In this case, the Fund pays
dividends on the higher short-term interest rates whereas the Fund’s total
portfolio earns income based on lower long-term interest rates.

In this case, the dividends paid to Preferred Shareholders are significantly
lower than the income earned on the fund’s long-term investments, and there-
fore the Common Shareholders are the beneficiaries of the incremental yield.
However, if short-term interest rates rise, narrowing the differential between
short-term and long-term interest rates, the incremental yield pickup on the
Common Shares will be reduced or eliminated completely.

Furthermore, the value of the Fund’s portfolio investments generally varies
inversely with the direction of long-term interest rates, although other factors
can influence the value of portfolio investments. In contrast, the redemption
value of the Fund’s Preferred Shares does not fluctuate in relation to interest
rates. As a result, changes in interest rates can influence the Fund’s NAV posi-
tively or negatively in addition to the impact on Fund performance from lever-
age from Preferred Shares or other methods discussed above.

The use of leverage may enhance opportunities for increased returns to the
Fund and Common Shareholders, but as described above, they also create
risks as short- or long-term interest rates fluctuate. Leverage also will generally
cause greater changes in a Fund’s 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 Fund’s net income will be greater than if leverage had not been used.
Conversely, if the income from the securities purchased is not sufficient to
cover the cost of leverage, the Fund’s net income will be less than if leverage
had not been used, and therefore the amount available for distribution to
shareholders will be reduced. The Fund may be required to sell portfolio secu-
rities at inopportune times or below fair market 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 a Fund’s ability to invest in certain types of
securities or use certain types of hedging strategies, such as in the case of
certain restrictions imposed by ratings agencies that rate preferred shares
issued by the Fund. The Fund will incur expenses in connection with the use
of leverage, all of which are borne by the holders of the Common Shares
and may reduce returns on the Common Shares.

Under the Investment Company Act of 1940, BlackRock Global Floating Rate
Income Trust, BlackRock Preferred and Corporate Income Strategies Fund,
Inc., BlackRock Preferred and Equity Advantage Trust, BlackRock Preferred
Income Strategies Fund, Inc. and BlackRock Preferred Opportunity Trust are
permitted to issue Preferred Shares in an amount of up to 50% of their total
managed assets at the time of issuance. Under normal circumstances, each
Fund anticipates that the total economic leverage from Preferred Shares,
reverse repurchase agreements and credit facility borrowings will not exceed
50% of its total managed assets at the time such leverage is incurred. As of
October 31, 2008, the Funds had economic leverage from Preferred Shares,
reverse repurchase agreements and/or credit facility borrowings as a percent-
age of their total managed assets as follows:

    Percent of 
    Leverage 
BlackRock Global Floating Rate Income Trust    41% 
BlackRock Preferred and Corporate Income Strategies Fund, Inc    49% 
BlackRock Preferred and Equity Advantage Trust    45% 
BlackRock Preferred Income Strategies Fund, Inc    50% 
BlackRock Preferred Opportunity Trust    49% 

Derivative Instruments

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

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

ANNUAL REPORT

OCTOBER 31, 2008

11


Schedule of Investments October 31, 2008 BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)
(Percentages shown are based on Net Assets)

        Par     
Asset-Backed Securities        (000)             Value 
 
Global Rated Eligible Asset Trust Series 1998-A Class 1,         
 7.45%, 9/15/07 (a)(b)(c)(d)    $ 234    $ 23 
Structured Mortgage Asset Residential Trust Series 2,             
 8.24%, 11/07/07 (a)(b)(c)        568    57 
Total Asset-Backed Securities — 0.0%            80 
 
Corporate Bonds             
Media — 5.1%             
Comcast Corp., 5.119%, 7/14/09 (e)        2,000    1,916,132 
Total Corporate Bonds — 5.1%            1,916,132 
 
U.S. Government Agency Mortgage-Backed Securities         
Fannie Mae Guaranteed Pass Through Certificates:             
     5.50%, 1/01/17 – 2/01/17        250    251,460 
     6.50%, 7/01/29        14    14,259 
Total U.S. Government Agency Mortgage-Backed             
Securities — 0.7%            265,719 
 
U.S. Government Agency Mortgage-Backed Securities —         
Collateralized Mortgage Obligations             
Fannie Mae Trust:             
     Series G-21 Class L, 949.50%, 7/25/21 (f)        —(g)    4,452 
     Series 1992-174 Class S, 129.33%, 9/25/22 (e)(f)    2    8,656 
     Series 1993-49 Class L, 444.9167%, 4/25/13 (f)    2    11,157 
     Series 1993-214 Class SH, 9.868%, 12/25/08 (e)    3    2,548 
     Series 1993-214 Class SK, 10%, 12/25/08 (e)        4    3,540 
     Series 2004-13 Class IG, 5%, 10/25/22 (f)        373    4,916 
Freddie Mac Multiclass Certificates:             
     Series 65 Class I, 918.0295%, 8/15/20 (f)        1    14,219 
     Series 141 Class H, 1,060%, 5/15/21 (f)        1    3,423 
     Series 1510 Class G, 7.05%, 5/15/13        1,204    1,256,487 
     Series 1618 Class SA, 8.25%, 11/15/08 (e)        5    5,048 
     Series 1661 Class SB, 14.076%, 1/15/09 (e)        2    1,985 
     Series 2412 Class SE, 6.628%, 2/15/09 (e)        64    64,622 
     Series 2517 Class SE, 4.781%, 10/15/09 (e)        199    203,788 
     Series 2523 Class EH, 5.50%, 4/15/20 (f)        748    21,598 
     Series 2564 Class NC, 5%, 2/15/33        81    74,011 
     Series 2739 Class PI, 5%, 3/15/22 (f)        1,195    11,886 
     Series 2976 Class KI, 5.50%, 11/15/34 (f)        1,019    189,481 
     Series 3189 Class KI, 6%, 1/15/35 (f)        1,361    197,646 
     Series 3207 Class QI, 6%, 2/15/35 (f)        2,154    174,711 

 
 
 
Total U.S. Government Agency Mortgage-Backed             
Securities — Collateralized Mortgage Obligations — 6.0%        2,254,174 

        Par     
Taxable Municipal Bonds        (000)    Value 
Fresno, California, Taxable Pension Obligation Revenue             
 Bonds, 7.80%, 6/01/14 (h)(i)    $ 440    $ 489,443 
Kern County, California, Taxable Pension Obligation             
 Revenue Bonds, 6.98%, 8/15/09 (i)(j)        500    507,160 
Total Taxable Municipal Bonds — 2.6%            996,603 

 
 
 
Non-U.S. Government Agency Mortgage-Backed Securities         
Citicorp Mortgage Securities, Inc. Series 1993-14             
 Class A-4, 14.147%, 11/25/23 (e)        107    125,040 
JPMorgan Mortgage Trust Series 2006-A7 Class 2A2,             
 5.802%, 1/25/37 (e)        1,362    1,213,452 
Nomura Asset Acceptance Corp. Series 2004-AR4             
 Class 2A3, 3.594%, 12/25/34 (e)        77    48,570 
Residential Accredit Loans, Inc. Series 2002-QS16             
 Class A3, 9.809%, 10/25/17 (e)        495    516,312 
Salomon Brothers Mortgage Securities VI, Inc. Series             
 1987-3 Class A, 12.50%, 10/23/17 (k)        8    7,532 
Structured Adjustable Rate Mortgage Loan Trust Series             
 2004-11 Class A, 5.419%, 8/25/34 (e)        390    382,583 
Vendee Mortgage Trust Series 2002-1 Class 1IO, 0.043%,         
 10/15/31 (e)(f)        10,306    22,484 
WaMu Mortgage Pass-Through Certificates Series             
 2005-AR4 Class A3, 4.585%, 4/25/35 (e)        1,000    960,365 
Wells Fargo Mortgage Backed Securities Trust Series             
 2004-N Class A6, 4%, 8/25/34 (e)        500    482,583 
Total Non-U.S. Government Agency Mortgage-Backed             
Securities — 9.9%            3,758,921 
 
U.S. Government Agency Obligations (l)             
Fannie Mae, 5.967%, 10/09/19        50,000    23,818,000 
Total U.S. Government Agency Obligations — 62.9%            23,818,000 
Total Long-Term Investments (Cost — $35,337,491) — 87.2%        33,009,629 
 
Short-Term Securities             
U.S. Government Agency Obligations             
Fannie Mae Discount Note, 2.11%, 11/04/08 (i)(m)        3,100    3,099,822 
Total Short-Term Securities (Cost — $3,099,822) — 8.2%        3,099,822 
Total Investments (Cost — $38,437,313*) — 95.4%            36,109,451 
Other Assets Less Liabilities — 4.6%            1,753,772 
Net Assets — 100.0%            $ 37,863,223 

See Notes to Financial Statements.

12 ANNUAL REPORT

OCTOBER 31, 2008


Schedule of Investments (concluded)

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

* The cost and unrealized appreciation (depreciation) of investments as of October 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $ 38,437,313 
Gross unrealized appreciation    $ 575,661 
Gross unrealized depreciation    (2,903,523) 
Net unrealized depreciation    $ (2,327,862) 

(a) Security is fair valued.
(b) Issuer filed for bankruptcy and/or is in default of interest payments.
(c) Non-income producing security.
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(e) Variable rate security. Rate shown is as of report date.
(f) Represents the interest only portion of a mortgage-backed security and has either a
nominal or a notional amount of principal.
(g) Amount is less than $1,000.
(h) Security is collateralized by Municipal or U.S. Treasury Obligations.
(i) All or a portion of security has been pledged as collateral in connection with open
financial futures contracts.
(j) MBIA Insured.
(k) Represents the principal only portion of a mortgage-backed security.
(l) Represents a zero-coupon bond. Rate shown reflects the yield at time of purchase.
(m) Rate shown is the yield to maturity as of the date of purchase.

Financial futures contracts sold as of October 31, 2008 were as follows:     
                 Unrealized 
        Expiration    Face    Appreciation 
     Contracts    Issue    Date    Value    (Depreciation) 
82    2-Year U.S.    December             
    Treasury Bond    2008    $17,446,677    $ (169,229) 
380    10-Year U.S.    December             
    Treasury Bond    2008    $44,286,977    1,317,289 
     Total                $ 1,148,060 
Swaps outstanding as of October 31, 2008 were as follows:         
            Notional         
            Amount     Unrealized 
            (000)    Depreciation 
     Receive a fixed rate of 2.7425% and pay             
     a floating rate based on 3-month LIBOR             
     Broker, Deutsche Bank AG                 
     Expires October 2010        $ 2,100    $ (1,525) 
     Receive a fixed rate of 2.745% and pay             
     a floating rate based on 3-month LIBOR             
     Broker, Credit Suisse International                 
     Expires October 2010        $ 2,100    (1,424) 

 
 
 
 
     Total                $ (2,949) 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

13


Schedule of Investments October 31, 2008 BlackRock Enhanced Capital and Income Fund, Inc. (CII)
(Percentages shown are based on Net Assets)

Common Stocks    Shares    Value 
 
Aerospace & Defense — 4.4%         
Honeywell International, Inc.    43,000    $ 1,309,350 
Northrop Grumman Corp.    38,900    1,824,021 
Raytheon Co.    84,200    4,303,462 
        7,436,833 
Capital Markets — 1.9%         
The Bank of New York Mellon Corp.    95,925    3,127,155 
Chemicals — 2.0%         
E.I. du Pont de Nemours & Co.    107,600    3,443,200 
Commercial Banks — 0.1%         
Wells Fargo & Co.    2,700    91,935 
Computers & Peripherals — 4.2%         
Hewlett-Packard Co.    95,000    3,636,600 
International Business Machines Corp.    36,700    3,411,999 
        7,048,599 
Diversified Financial Services — 8.0%         
Bank of America Corp.    186,327    4,503,524 
Citigroup, Inc.    94,900    1,295,385 
JPMorgan Chase & Co.    183,472    7,568,220 
        13,367,129 
Diversified Telecommunication Services — 6.0%         
AT&T Inc.    139,570    3,736,289 
Qwest Communications International Inc.    1,083,800    3,099,668 
Verizon Communications, Inc.    111,800    3,317,106 
        10,153,063 
Electric Utilities — 3.6%         
FPL Group, Inc.    68,000    3,212,320 
The Southern Co.    82,400    2,829,616 
        6,041,936 
Energy Equipment & Services — 4.8%         
BJ Services Co.    305,000    3,919,250 
Halliburton Co.    209,300    4,142,047 
        8,061,297 
Food Products — 9.0%         
General Mills, Inc.    83,300    5,642,742 
Kraft Foods, Inc.    171,810    5,006,543 
Ralcorp Holdings, Inc. (a)    1    68 
Unilever NV (b)    186,100    4,475,705 
        15,125,058 
Health Care Equipment & Supplies — 2.3%         
Baxter International, Inc.    23,400    1,415,466 
Covidien Ltd.    53,925    2,388,338 
        3,803,804 
Health Care Providers & Services — 1.3%         
Cardinal Health, Inc.    56,900    2,173,580 
Household Products — 3.6%         
Clorox Co.    19,500    1,185,795 
Kimberly-Clark Corp.    78,900    4,835,781 
        6,021,576 
Industrial Conglomerates — 1.0%         
Tyco International Ltd.    67,825    1,714,616 

Common Stocks    Shares    Value 
 
Insurance — 6.1%         
Hartford Financial Services Group, Inc.    42,600    $ 439,632 
MetLife, Inc.    76,900    2,554,618 
Prudential Financial, Inc.    22,900    687,000 
The Travelers Cos., Inc.    155,800    6,629,290 
        10,310,540 
Machinery — 1.5%         
Deere & Co.    67,000    2,583,520 
Media — 6.2%         
Time Warner, Inc.    591,500    5,968,235 
Viacom, Inc. Class B (a)    80,600    1,629,732 
Walt Disney Co.    106,600    2,760,940 
        10,358,907 
Metals & Mining — 1.4%         
Alcoa, Inc.    208,100    2,395,231 
Multi-Utilities — 1.3%         
Dominion Resources, Inc.    59,400    2,155,032 
Multiline Retail — 0.2%         
Nordstrom, Inc.    22,900    414,261 
Office Electronics — 3.0%         
Xerox Corp.    623,800    5,002,876 
Oil, Gas & Consumable Fuels — 10.4%         
Anadarko Petroleum Corp.    45,200    1,595,560 
Chevron Corp.    43,900    3,274,940 
Exxon Mobil Corp.    118,400    8,775,808 
Marathon Oil Corp.    36,400    1,059,240 
Peabody Energy Corp.    78,300    2,702,133 
        17,407,681 
Pharmaceuticals — 11.0%         
Bristol-Myers Squibb Co.    345,800    7,106,190 
Johnson & Johnson    39,600    2,429,064 
Pfizer, Inc.    132,900    2,353,659 
Schering-Plough Corp.    234,800    3,402,252 
Wyeth    100,100    3,221,218 
        18,512,383 
Semiconductors & Semiconductor Equipment — 7.7%         
Analog Devices, Inc.    80,100    1,710,936 
Fairchild Semiconductor International, Inc. (a)    279,100    1,585,288 
Intel Corp.    153,400    2,454,400 
LSI Corp. (a)    927,700    3,571,645 
Micron Technology, Inc. (a)    767,800    3,616,338 
        12,938,607 
Software — 0.8%         
Microsoft Corp.    60,800    1,357,664 
Total Long-Term Investments         
(Cost — $227,407,947) — 101.8%        171,046,483 
 
 
    Beneficial     
    Interest     
Short-Term Securities    (000)     
BlackRock Liquidity Series, LLC Cash Sweep Series,         
    4.60% (c)(d)    $ 2,451    2,450,990 
Total Short-Term Securities (Cost — $2,450,990) — 1.5%        2,450,990 
Total Investments Before Options Written         
(Cost — $229,858,937*) — 103.3%        173,497,473 

See Notes to Financial Statements.

14 ANNUAL REPORT

OCTOBER 31, 2008


Schedule of Investments (concluded) BlackRock Enhanced Capital and Income Fund, Inc. (CII)
(Percentages shown are based on Net Assets)

Options Written    Contracts    Value 
 
Call Options         
S&P 500 Index:         
   expiring December 2008 at $965    145    $ (1,051,250) 
   expiring December 2008 at $1,005    1,010    (5,166,150) 
   expiring December 2008 at $1,070    70    (173,950) 
Total Options Written         
(Premiums Received — $3,449,258) — (3.8)%        (6,391,350) 
Total Investments, Net of Options Written — 99.5%        167,106,123 
Other Assets Less Liabilities — 0.5%        889,735 
Net Assets — 100.0%        $167,995,858 

* The cost and unrealized appreciation (depreciation) of investments as of October 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $230,310,635 
Gross unrealized appreciation    $ 4,788,296 
Gross unrealized depreciation     (61,601,458) 
Net unrealized depreciation    $ (56,813,162) 

(a) Non-income producing security.
(b) Depositary receipts.
(c) Represents the current yield as of report date.
(d) 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 Series, LLC Cash Sweep Series    $(11,221,904)    $206,280 

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. These industry classifications are unaudited.

Effective January 1, 2008, the Fund adopted Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 157, “Fair Value Measurements”
(“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for
measuring fair values and requires additional disclosures about the use of fair value
measurements. Various inputs are used in determining the fair value of investments,
which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are not active, inputs other than quoted
prices that are observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates)
or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstance, to the extent observable inputs are not available (including the Fund’s
own assumption used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication
of the risk associated with investing in those securities. For information about the
Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of October 31, 2008 in determining
the fair valuation of the Fund’s investments:

Valuation    Investments in    Other Financial 
Inputs    Securities    Instruments** 
Level 1    $171,046,483    $(6,391,350) 
Level 2    2,450,990     
Level 3         
Total    $173,497,473    $(6,391,350) 
 
 ** Other financial instruments are options.         

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

15


Schedule of Investments October 31, 2008 BlackRock Global Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

        Par     
Corporate Bonds        (000)             Value 
 
Air Freight & Logistics — 0.0%             
Park-Ohio Industries, Inc., 8.375%, 11/15/14    USD    125    $ 73,125 
Auto Components — 0.0%             
The Goodyear Tire & Rubber Co., 6.678%, 12/01/09 (a)    60    54,975 
Lear Corp., 8.75%, 12/01/16        60    22,200 
Metaldyne Corp., 10%, 11/01/13        120    25,200 
            102,375 
Building Products — 0.0%             
CPG International I, Inc., 10.50%, 7/01/13        90    58,050 
Capital Markets — 1.4%             
E*Trade Financial Corp., 12.50%, 11/30/17        2,500    2,250,000 
Marsico Parent Co., LLC, 10.625%, 1/15/16        1,501    915,610 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(c)        571    319,591 
Marsico Parent Superholdco, LLC 14.50%, 1/15/18 (b)(c)    386    196,996 
            3,682,197 
Chemicals — 0.6%             
American Pacific Corp., 9%, 2/01/15        125    110,000 
Ames True Temper, Inc., 8.753%, 1/15/12 (a)        1,100    649,000 
Hercules, Inc., 6.75%, 10/15/29        750    690,000 
Key Plastics LLC, 11.75%, 3/15/13 (c)        625    62,500 
            1,511,500 
Commercial Banks — 1.0%             
TuranAlem Finance BV, 5.434%, 1/22/09 (a)(c)        3,000    2,700,000 
Commercial Services & Supplies — 0.1%             
DI Finance Series B, 9.50%, 2/15/13        307    262,485 
Containers & Packaging — 0.1%             
Berry Plastics Holding Corp., 6.694%, 9/15/14 (a)        300    162,000 
Impress Holdings BV, 7.878%, 9/15/13 (a)(c)        150    97,500 
            259,500 
Diversified Telecommunication Services — 1.1%             
Cincinnati Bell, Inc., 7.25%, 7/15/13        310    235,600 
Qwest Communications International, Inc.,             
    6.304%, 2/15/09 (a)        784    756,560 
Qwest Corp., 6.069%, 6/15/13 (a)        2,500    1,812,500 
Wind Acquisition Finance SA, 10.75%, 12/01/15 (c)        150    115,500 
            2,920,160 
Electronic Equipment & Instruments — 0.3%             
Sanmina-SCI Corp., 8.125%, 3/01/16        1,120    705,600 
Energy Equipment & Services — 0.0%             
Compagnie Generale de Geophysique-Veritas:             
    7.50%, 5/15/15        70    46,900 
    7.75%, 5/15/17        50    33,500 
Grant Prideco, Inc. Series B, 6.125%, 8/15/15        40    34,948 
            115,348 
Health Care Equipment & Supplies — 0.5%             
DJO Finance LLC, 10.875%, 11/15/14        1,500    1,207,500 
Health Care Providers & Services — 0.1%             
Tenet Healthcare Corp., 6.50%, 6/01/12        250    208,750 
Hotels, Restaurants & Leisure — 0.1%             
American Real Estate Partners LP, 7.125%, 2/15/13        140    88,200 
Greektown Holdings, LLC, 10.75%, 12/01/13 (c)(d)        122    26,230 
Universal City Florida Holding Co. I, 7.943%, 5/01/10 (a)    80    59,200 
Wynn Las Vegas LLC, 6.625%, 12/01/14        20    14,750 
            188,380 
Household Durables — 0.0%             
Berkline/BenchCraft, LLC, 4.50%, 11/03/12 (b)(d)(e)        400    0 
Independent Power Producers & Energy Traders — 0.0%         
AES Ironwood LLC, 8.875%, 11/30/25        85    75,187 

        Par     
Corporate Bonds        (000)             Value 
 
Machinery — 0.2%             
Sunstate Equipment Co. LLC, 10.50%, 4/01/13 (c)    USD   210    $ 100,800 
Synventive Molding Solutions Sub-Series A, 14%, 1/14/11        897    376,729 
            477,529 
Media — 0.9%             
Affinion Group, Inc., 10.125%, 10/15/13        50    35,000 
Cablevision Systems Corp. Series B, 8.334%, 4/01/09 (a)        100    97,000 
Charter Communications Holdings II, LLC,             
 10.25%, 9/15/10        625    433,475 
EchoStar DBS Corp.:             
     6.375%, 10/01/11        135    120,150 
     7%, 10/01/13        158    131,140 
     7.125%, 2/01/16        230    184,575 
Nielsen Finance LLC, 10%, 8/01/14        410    297,250 
R.H. Donnelley Corp., 11.75%, 5/15/15 (c)        39    15,210 
Rainbow National Services LLC, 8.75%, 9/01/12 (c)        750    660,000 
Windstream Regatta Holdings, Inc., 11%, 12/01/17 (c)        977    459,190 
            2,432,990 
Metals & Mining — 0.4%             
AK Steel Corp., 7.75%, 6/15/12        495    396,000 
Foundation PA Coal Co., 7.25%, 8/01/14        505    402,738 
Freeport-McMoRan Copper & Gold, Inc.,             
 7.084%, 4/01/15 (a)        250    194,920 
            993,658 
Oil, Gas & Consumable Fuels — 9.7%             
Chaparral Energy, Inc., 8.50%, 12/01/15        135    68,850 
Morgan Stanley Bank AG for OAO Gazprom,             
 9.625%, 3/01/13        14,430    11,399,700 
Pemex Project Funding Master Trust:             
     9.375%, 12/02/08        404    404,000 
     6.553%, 10/15/09 (a)(f)        12,700    12,446,000 
SandRidge Energy, Inc., 7.508%, 4/01/14 (a)        1,400    1,118,515 
Whiting Petroleum Corp., 7.25%, 5/01/13        300    225,000 
            25,662,065 
Paper & Forest Products — 1.2%             
Abitibi-Consolidated, Inc., 6.319%, 6/15/11 (a)        840    176,400 
Ainsworth Lumber Co. Ltd., 11%, 7/29/15 (c)        460    322,347 
Bowater, Inc., 5.819%, 3/15/10 (a)        2,040    887,400 
Domtar Corp., 7.125%, 8/15/15        20    14,900 
NewPage Corp., 9.443%, 5/01/12 (a)        1,500    1,050,000 
Verso Paper Holdings LLC Series B, 6.551%, 8/01/14 (a)        1,215    704,700 
            3,155,747 
Pharmaceuticals — 0.4%             
Angiotech Pharmaceuticals, Inc., 6.56%, 12/01/13 (a)        1,750    1,067,500 
Real Estate Investment Trusts (REITs) — 0.8%             
Rouse Co. LP, 5.375%, 11/26/13        6,350    2,159,000 
Specialty Retail — 0.2%             
AutoNation, Inc.:             
     6.753%, 4/15/13 (a)        70    42,700 
     7%, 4/15/14        60    39,000 
General Nutrition Centers, Inc., 7.584%, 3/15/14 (a)(b)        500    315,000 
Lazy Days’ R.V. Center, Inc., 11.75%, 5/15/12        375    105,000 
Michaels Stores, Inc., 10%, 11/01/14        185    83,250 
            584,950 
Tobacco — 0.6%             
Reynolds American, Inc., 7.625%, 6/01/16        2,000    1,640,748 
Wireless Telecommunication Services — 1.4%             
Centennial Communications Corp., 9.633%, 1/01/13 (a)        1,250    950,000 
iPCS, Inc., 5.318%, 5/01/13 (a)        1,755    1,351,350 
Nordic Telephone Co. Holdings ApS,             
 10.107%, 5/01/16 (a)(f)    EUR   1,500    1,273,754 
            3,575,104 
Total Corporate Bonds — 21.1%            55,819,448 

See Notes to Financial Statements.

16 ANNUAL REPORT

OCTOBER 31, 2008


Schedule of Investments (continued) BlackRock Global Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

        Par     
Foreign Government Obligations        (000)             Value 
 
Brazilian Government International Bond:             
     9.519%, 6/29/09 (a)    USD    9,435    $ 9,423,678 
     10.25%, 6/17/13        475    508,250 
Colombia Government International Bond,             
 8.541%, 3/17/13 (a)(f)        1,200    1,116,000 
Costa Rica Government International Bond,             
 9.335%, 5/15/09 (f)        3,200    3,200,000 
Malaysia Government International Bond,             
 8.75%, 6/01/09        800    807,633 
Mexican Bonos Series M, 9%, 12/22/11    MXN           13,520    1,077,397 
Republic of Venezuela, 6.18%, 4/20/11 (a)(f)    USD    4,000    2,680,000 
South Africa Government International Bond,             
 7.375%, 4/25/12        2,400    2,208,000 
Turkey Government International Bond, 7%, 9/26/16        2,735    2,215,350 
Ukraine Government International Bond (c):             
     6.45%, 8/05/09 (a)        3,100    2,418,000 
     6.875%, 3/04/11        2,800    1,736,000 
Uruguay Government International Bond,             
 6.875%, 1/19/16    EUR    950    944,442 
Total Foreign Government Obligations — 10.7%            28,334,750 
 
Floating Rate Loan Interests             
Aerospace & Defense — 1.6%             
Avio SpA Dollar Mezzanine Term Loan,             
 0.071%, 12/13/16    USD    1,017    610,351 
Hawker Beechcraft Acquisition Co. LLC:             
     LC Facility Deposit, 3.662%, 3/26/14        243    154,766 
     Term Loan, 5.762%, 3/26/14        4,152    2,642,368 
IAP Worldwide Services, Inc. First Lien Term Loan,             
 8.063%, 12/30/12        1,043    683,158 
Wesco Aircraft Hardware Corp. First Lien Term Loan,             
 5.37%, 9/30/13        23    17,550 
            4,108,193 
Airlines — 0.3%             
US Airways Group, Inc. Loan, 5.719%, 3/24/14        1,480    718,540 
Auto Components — 2.5%             
Allison Transmission Term Loan, 5.56% — 6.25%, 8/07/14        5,865    3,969,505 
Dana Holding Corp. Term Advance,             
 6.75% — 8.27%, 1/31/15        2,514    1,675,732 
Dayco Products LLC — (Mark IV Industries, Inc.) Replacement         
 Term Loan B, 8.34%, 6/21/11        864    285,138 
GPX International Tire Corp. Tranche B Term Loan,             
 9.81%, 3/30/12        627    470,465 
Metaldyne Company LLC:             
     DF Loan, 2.431% — 8.313%, 1/11/12        104    43,356 
     Initial Tranche B Term Loan, 7.875%, 1/11/14        706    294,819 
            6,739,015 
Beverages — 0.2%             
Culligan International Second Lien Loan, 9.711% —             
 9.866%, 5/24/13    EUR    1,000    127,455 
Le-Nature’s, Inc. Term Loan B, 9.50%, 12/28/12 (d)    USD    1,000    300,000 
            427,455 
Biotechnology — 0.3%             
Talecris Biotherapeutics Holdings Corp. First Lien Term Loan,         
 5.64%, 12/06/13        963    842,320 
Building Products — 2.4%             
Armstrong World Industries, Inc. Tranche B Term Loan,             
 4.943%, 10/02/13        194    165,892 
Building Material Corp. of America Term Loan Advance,             
 6.50%-6.625%, 2/24/14        2,706    1,864,401 
Custom Building Products, Inc. Second Lien Loan,             
 8%, 4/20/12        1,500    1,020,000 
Financiere Daunou 9 S.A.R.L. (Lafarge Roofing):             
     Tranche B1, 7.267%, 2/28/15    EUR    600    274,210 
     Tranche B2, 7.267%, 2/28/15        245    111,969 

        Par     
Floating Rate Loan Interests        (000)             Value 
Building Products (concluded)             
Financiere Daunou 9 S.A.R.L. (Lafarge Roofing) (concluded):             
     Tranche B4, 5.887%, 2/28/15    USD    230    $ 77,504 
     Tranche C1, 7.517%, 11/26/15    EUR    556    254,101 
     Tranche C2, 7.517%, 11/26/15        286    130,707 
     Tranche C4, 6.137%, 11/28/15    USD    230    77,504 
Momentive Performance Materials (Blitz 06-103 GMBH)             
 Tranche B-1, 5.375%, 12/04/13        1,474    1,131,951 
United Subcontractors Inc. Tranche B Term Loan,             
 8.14% — 9.34%, 12/27/12        2,270    1,134,869 
Capital Markets — 0.4%             
Marsico Parent Co., LLC Term Loan, 5.625% — 7.75%,             
 12/15/14        496    339,931 
Nuveen Investments, Inc. Term Loan, 6.118% —             
 6.769%, 11/13/14        1,496    841,635 
Chemicals — 10.3%             
Brenntag Holdings GMBH & Co. KG:             
     Acquisition Facility 1, 5.073%, 1/17/14        393    267,055 
     Facility 2 (Second Lien), 7.071%, 1/17/16        1,000    616,667 
     Facility B2, 5.073%, 1/17/14        1,607    1,092,945 
     Facility B6A, 7.163%, 1/20/14    EUR    282    269,993 
     Facility B6B, 7.163%, 1/20/14        218    209,026 
British Vita (U.K.) Limited Mezzanine Facility,             
 10.371%, 6/28/15        1,998    725,890 
Cognis GMBH:             
     Term Loan A, 6.958%, 9/15/13        803    630,673 
     Term Loan B, 6.958%, 9/15/13        197    154,451 
ElectricInvest Holding Company Limited             
 (Viridian Group Plc):             
     Junior Term Facility (Euro), 8.935%, 12/21/12        1,787    1,776,854 
     Junior Term Facility (GBP), 10.106%, 12/21/12    GBP    1,800    2,259,523 
Flint Group Holdings S.a.r.l. (formerly New Aster S.a.r.l.),             
 6.126%, 12/31/14    USD    1,000    610,000 
Huish Detergents, Inc.:             
     Second Lien Term Loan, 8.02%, 3/31/13        750    555,000 
     Tranche B Term Loan, 5.77%, 10/26/14        1,742    1,372,172 
Ineos U.S. Finance LLC:             
     Term Facility A4, 5.727% — 5.952%, 12/14/12        1,523    952,076 
     Term Facility B2, 5.727% — 5.952%, 12/16/13        1,648    884,343 
     Term Facility C2, 6.227% — 6.452%, 12/15/14        1,648    873,357 
Innophos Inc. Tranche B Term Loan, 6.762%, 8/13/10        2,309    1,962,727 
Invista Canada Co. Tranche B2 Term Loan,             
     4.921%, 11/28/14        676    554,573 
Invista S.a.r.l. Tranche B1 Term Loan, 4.921%, 4/29/11        2,310    1,893,968 
Lucite International Group Holdings Limited,             
 0%, 7/14/14 (b)    EUR    1,144    947,873 
Matrix Acquisition Corp. (MacDermid, Inc.) Tranche C             
 Term Loan, 7.389%, 4/11/14        1,790    1,517,351 
PQ Corp.(fka Niagara Acquisition, Inc.):             
     First Lien Term Loan, 6.72% — 7.02%, 7/30/14    USD    2,744    1,862,320 
     Second Lien Term Loan, 9.97%, 7/30/15        2,250    1,327,500 
Rockwood Specialties Group, Inc. Tranche E Term Loan,             
 4.618%, 7/30/12        2,762    2,283,820 
Solutia, Inc. Loan, 9.045%, 2/28/14        1,995    1,644,192 
            27,244,349 
Commercial Services & Supplies — 3.5%             
ARAMARK Corp.:             
     LC Facility Letter of Credit, 2.469%, 1/27/14        185    153,795 
     U.S. Term Loan, 5.637%, 1/27/14        2,907    2,420,836 
Brickman Group Holdings, Inc. Tranche B Term Loan,             
 5.118%, 1/23/14        1,034    801,544 
EnviroSolutions Real Property Holdings, Inc. Initial Term             
 Loan, 12.042%, 7/17/12        2,007    1,455,236 
John Maneely Co. Term Loan, 6.048% — 8%, 12/09/13        1,457    1,038,198 
Language Line, Inc. Tranche B1 Term Loan, 7.02%, 6/11/11        597    495,314 
Sirva Worldwide, Inc. Second Lien Term Loan,             
 12%, 5/15/15        119    23,873 
See Notes to Financial Statements. 

ANNUAL REPORT

OCTOBER 31, 2008

17


Schedule of Investments (continued) BlackRock Global Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

        Par     
Floating Rate Loan Interests        (000)             Value 
 
Commercial Services & Supplies (concluded)             
Synagro Technologies, Inc.:             
     First Lien Term Loan, 4.81% — 5.77%, 4/02/14    USD    1,991    $ 1,493,386 
     Second Lien Term Loan, 7.56%, 10/02/14        500    215,000 
West Corp. Term Loan B2, 5.375% — 5.65%, 10/24/13        1,948    1,236,734 
            9,333,916 
Communications Equipment — 0.3%             
Sorenson Communications, Inc. Tranche C Term Loan,             
 5.70%, 8/16/13        960    791,683 
Computers & Peripherals — 0.8%             
Dealer Computer Services, Inc. (Reynolds & Reynolds)             
 First Lien Term Loan, 5.171%, 10/26/12        1,016    645,163 
Intergraph Corp.:             
     Initial First Lien Term Loan, 4.809%, 4/07/14        1,169    888,205 
     Second Lien Term Loan, 8.809%, 5/29/14        750    566,250 
            2,099,618 
Construction & Engineering — 0.8%             
Airport Development and Investment Limited (BAA)             
 Second Lien Facility Term Loan, 10.052%, 4/07/11    GBP    566    546,341 
Brand Energy & Infrastructure Services, Inc. (FR Brand             
 Acquisition Corp.):             
     First Lien Term Loan B, 6.063%, 2/07/14        992    746,619 
     Second Lien Term Loan, 8.813% — 9%, 2/09/15        500    392,500 
     Synthetic L/C First Lien Term Loan, 3.688%, 2/07/14        500    376,250 
            2,061,710 
Construction Materials — 0.4%             
Headwaters, Inc. First Lien Term Loan B-1, 8.27%, 4/30/11    USD    1,250    1,125,000 
Containers & Packaging — 3.8%             
Atlantis Plastics Second Lien Term Loan,             
 12.25%, 3/22/12 (d)        500    25,000 
Consolidated Container Co. LLC Second Lien Loan, 8.31% —         
 9.262%, 9/28/14        550    178,750 
Graham Packaging Co. LP New Term Loan, 5.063% —             
 6.313%, 10/07/11        1,632    1,318,351 
Graphic Packaging International Inc. Incremental Term Loan,             
 5.884% — 7.50%, 5/16/14        2,714    2,287,996 
Modelo 3 S.a.r.l. (Mivisa):             
     Tranche B1 Term Facility, 7.376%, 6/30/15    EUR    826    789,584 
     Tranche B2 Term Facility, 7.376%, 6/30/15        174    166,329 
OI European Group B.V. Tranche D Term Loan,             
 6.618%, 11/01/13        1,915    1,977,020 
Pregis Corp. Term Loan B2, 7.639%, 10/12/12        485    482,163 
Smurfit Kappa Acquisitions (JSG):             
     Term B1, 6.648% — 7.22%, 12/02/13    EUR    750    613,150 
     Term Loan Facility C1, 6.898% — 7.443%, 12/01/14        750    613,150 
Smurfit-Stone Container Enterprises, Inc. Tranche B,             
 4.813% — 5.125%, 11/01/11    USD    140    109,622 
Solo Cup Co. Term Loan B1, 6.31% — 7.43%, 2/27/11        1,802    1,547,268 
Tegrant Corp. (SCA Packaging) Second Lien Term Loan,             
 9.27%, 3/18/15        500    50,000 
            10,158,383 
Distributors — 0.3%             
Keystone Automotive Operations, Inc. Loan, 6.50% —             
 7.593%, 1/12/12        1,668    917,579 
Diversified Consumer Services — 0.8%             
 Coinmach Corp. Term Loan, 5.81%, 11/14/14        2,985    2,238,722 
Diversified Financial Services — 0.9%             
JG Wentworth, LLC, First Lien Loan, 6.012%, 6/02/14        3,800    1,805,000 
Professional Services Industries, Inc. First Lien Term Loan,             
 5.97%, 10/31/12        733    637,930 
            2,442,930 
Diversified Telecommunication Services — 2.7%             
CavTel Holdings, LLC Term Loan, 9.25% — 10.50%,             
 12/31/12        388    178,501 
Hawaiian Telcom Communications, Inc. Tranche Term             
 Loan C, 6.262%, 5/30/14        1,204    637,969 
           

         Par     
Floating Rate Loan Interests        (000)             Value 
 
Diversified Telecommunication Services (concluded)             
Nordic Telephone Company Holdings APS:             
     Euro Facility C2, 7.175%, 1/30/13    EUR    1,058    $ 1,072,861 
     Euro Facility B2, 6.925%, 1/30/14        885    897,938 
PaeTec Communications Term Loan, 5.618%, 1/24/13        750    480,000 
Time Warner Telecom Holdings Inc. Term Loan B,             
   5.12%, 1/07/13    USD    1,481    1,199,766 
Wind Telecomunicazioni SpA:             
     Term Loan Facility A1, 6.435% — 6.973%, 5/25/12    EUR    848    846,789 
     Term Loan Facility B1, 7.723%, 5/26/13        2,000    1,939,138 
            7,252,962 
Electric Utilities — 0.7%             
Astoria Generating Company Acquisitions, LLC:             
     Second Lien Term Loan C, 6.96%, 8/23/13        1,000    753,750 
     Term B Facility, 4.96% — 5.25%, 2/23/13    USD    443    358,325 
TPF Generation Holdings, LLC:             
     First Lien Term Loan, 5.762%, 12/16/13        717    596,615 
     Synthetic LC Deposit (First Lien), 3.662%, 12/16/13        151    125,327 
     Synthetic Revolving Credit, 3.662%, 12/15/11        47    39,287 
            1,873,304 
Electrical Equipment — 0.4%             
Electrical Components International Holdings Company             
   (ECI) Second Lien Term Loan, 12.73%, 5/01/14        500    200,000 
Generac Acquisition Corp. First Lien Term Loan,             
   6.65%, 11/11/13        1,479    912,086 
            1,112,086 
Electronic Equipment & Instruments — 1.5%             
Matinvest 2 SAS (Deutsche Connector) Second Lien Facility,             
   7.384%, 11/09/09        500    300,000 
Flextronics International Ltd.:             
     Closing Date Loan A, 6.133% — 7.069%, 10/01/14        2,693    2,033,585 
     Delay Draw Loan A-1-A, 7.069%, 10/01/14        774    584,363 
SafeNet, Inc. Second Lien Loan, 11.25%, 4/12/15        1,000    550,000 
Tinnerman Palnut Engineered Products, LLC Second Lien             
   Term Loan, 13.75%, 11/01/11        2,215    487,386 
            3,955,334 
Energy Equipment & Services — 1.4%             
Dresser, Inc.:             
     Second Lien Term Loan, 8.557%, 5/15/15        1,500    900,000 
     Term Loan B, 5.057% — 5.368%, 5/04/14        1,471    1,056,058 
MEG Energy Corp. Initial Term Loan, 5.77%, 4/03/13        488    353,438 
Trinidad USA Partnership LLP U.S. Term Loan,             
   6.22%, 5/01/11        1,463    1,316,250 
            3,625,746 
Food & Staples Retailing — 3.0%             
AB Acquisitions UK Topco 2 Ltd. Facility B1, 7.8301%,             
   7/06/15    GBP    2,500    2,668,833 
Advantage Sales & Marketing, Inc. (ASM Merger Sub, Inc.)             
   Term Loan, 5% — 5.77%, 3/29/13        972    670,468 
DSW Holdings, Inc. Loan, 7%, 3/02/12        1,000    820,000 
Birds Eye Iglo Group Limited (Liberator Midco Limited):             
     Facility B1 (EUR), 6.754%, 10/27/14    EUR    500    489,109 
     Facility C1 (EUR), 7.129%, 10/27/15        489    478,068 
     Sterling Tranche Loan (Mezzanine), 9.665%, 10/31/16    GBP    395    447,241 
McJunkin Corp. Term Loan, 7.012%, 1/31/14    USD    983    801,720 
Roundy’s Supermarkets, Inc. Tranche B Term Loan, 5.97% —             
   6.47%, 11/03/11        505    398,561 
WM. Bolthouse Farms, Inc.:             
     First Lien Term Loan, 6.188%, 12/17/12        973    804,744 
     Second Lien Term Loan, 9.262%, 12/16/13        500    375,000 
            7,953,744 
Food Products — 2.8%             
Dole Food Co., Inc.:             
     Credit Linked Deposit, 4.689%, 4/12/13        139    100,493 
     Tranche B Term Loan, 5% — 5.313%, 4/12/13        246    178,115 
FSB Holdings, Inc. (Fresh Start Bakeries):             
     Second Lien Term Loan, 9.563%, 3/29/14        500    340,000 
     Tranche B Term Loan, 6.063%, 9/29/13        495    376,200 

See Notes to Financial Statements. 

18 ANNUAL REPORT

OCTOBER 31, 2008


Schedule of Investments (continued) BlackRock Global Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

        Par     
Floating Rate Loan Interests    (000)             Value 
 
Food Products (concluded)             
JRD Holdings, Inc. (Jetro Holdings) Term Loan, 6.26%,             
 7/02/14    USD    1,453    $ 1,089,844 
OSI Industries, LLC U.S. Term Loan, 5.762%, 9/02/11        598    585,639 
Solvest, Ltd. (Dole) Tranche C Term Loan, 5% — 6.813%,             
 4/12/13        1,015    734,856 
Sturm Foods, Inc.:             
     Initial First Lien Term Loan, 5.875% — 6%, 1/31/14 (b)        1,851    1,124,237 
     Initial Second Lien Term Loan, 9.50%, 7/31/14        750    367,500 
United Biscuits Hodco Limited:             
     Facility B2, 8.267%, 12/15/14    EUR    535    432,662 
     Facility B1, 8.267% — 8.505%, 12/14/14    GBP    1,651    1,670,738 
Wm. Wrigley Jr. Co. Term Loan, 7.75%, 10/06/14    USD    350    330,356 
            7,330,640 
Health Care Equipment & Supplies — 4.3%             
Arizant, Inc. Term Loan, 6.262% — 6.503%, 7/31/10        2,658    2,312,059 
Bausch & Lomb, Inc.:             
     Delay Draw Term Loan, 7.012%, 4/24/15        301    241,371 
     Parent Term Loan, 7.012%, 4/24/15        1,992    1,597,065 
Biomet, Inc.:             
     Dollar Term Loan, 6.762%, 3/25/15        496    429,000 
     Euro Term Loan, 8.139%, 3/25/15    EUR    2,547    2,743,254 
Hologic, Inc. Tranche B Term Loan, 6.25%, 3/31/13    USD    751    668,195 
Molnlycke Holding AB (Rotac Holding AB):             
     Facility B1, 6.504%, 3/30/15    EUR    1,500    1,338,279 
     Facility C1, 6.754%, 3/30/16        1,383    1,233,544 
Select Medical Corp. Tranche B Term Loan, 5,7225%,             
 2/24/12    USD    965    730,988 
            11,293,755 
Health Care Providers & Services — 3.9%             
CCS Medical, Inc. (Chronic Care) First Lien Term Loan,             
 7.02%, 9/30/12        717    449,297 
CHS/Community Health Systems, Inc. Funded Term Loan,             
 5.06% — 5.973%, 7/25/14    USD    4,573    3,652,211 
HealthSouth Corp. Term Loan, 5.50%, 3/11/13        2,299    1,894,508 
Opica AB (Capio) Tranche C2, 7.29%, 6/14/13    EUR    1,088    1,035,671 
Surgical Care Affiliates, LLC Term Loan, 5.762%, 12/29/14    USD    496    317,588 
US Oncology, Inc. Tranche B Term Loan, 6.178% —             
 6.512%, 8/20/11        2,746    2,272,699 
Vanguard Health Holding Company II, LLC (Vanguard             
 Health System, Inc.) Replacement Term Loan, 5.368% —             
 6.012%, 9/23/11        970    818,783 
            10,440,757 
Hotels, Restaurants & Leisure — 3.7%             
BLB Worldwide Holdings, Inc. (Wembley, Inc.):             
     First Priority Term Loan, 7.47% — 8.30%, 7/18/12        977    586,285 
     Second Priority Term Loan, 7.06%, 7/18/12 (d)        1,500    75,000 
Golden Nugget, Inc.:             
     Additional Term Advance (First Lien) Loan, 5.76% —             
     6.10%, 6/30/14        91    39,091 
     First Lien Term Advance, 5.22% — 5.26%, 6/30/14        477    205,227 
     Second Lien Term Loan, 6.51%, 12/31/14        1,000    350,000 
Green Valley Ranch Gaming, LLC:             
     New Term Loan, 4.75%, 2/16/14        474    222,930 
     Second Lien Term Loan, 6%, 8/16/14        1,500    577,500 
Harrah’s Operating Company, Inc.:             
 Term Loan B1, 6.535% — 6.762%, 1/28/15        316    215,541 
 Term Loan B2, 6.535% — 6.762%, 1/28/15        2,373    1,618,583 
 Term Loan B3, 6.259% — 6.762%, 1/28/15        906    616,979 
OSI Restaurant Partners, Inc.:             
     Incremental Term Loan, 5.25%, 6/16/14        402    204,889 
     Pre-Funded RC Loan, 2.639%, 6/14/13        39    19,896 
Penn National Gaming, Inc. Term Loan B, 4.55% —             
 5.29%, 10/03/12        4,384    3,619,210 
QCE, LLC (Quiznos) Second Lien Term Loan, 9.512%,             
 11/05/13        2,500    1,437,500 
            9,788,631 

        Par     
Floating Rate Loan Interests        (000)             Value 
 
Household Durables — 1.9%             
American Residential Services LLC Second Lien             
 Term Loan, 10%, 4/17/15 (e)    USD    2,010    $ 1,983,035 
Berkline Corp. First Lien Term Loan, 6.578%, 11/10/11 (e)        95    4,735 
Jarden Corp. Term Loan B3, 6.262%, 4/04/14        1,241    868,406 
Simmons Co. Tranche B Term Loan, 5.50%, 12/19/11        500    347,500 
Visant Corp. (fka Jostens). Tranche C Term Loan, 5.171%,             
 12/21/11        1,300    1,072,599 
Yankee Candle Co., Inc. Term Loan,             
 5.26% — 5.77%, 2/06/14        1,000    665,000 
            4,941,275 
Household Products — 0.4%             
VI-JON, Inc. (VJCS Acquisition, Inc.) Tranche B Term Loan,             
 6.528%, 4/24/14        1,100    946,000 
IT Services — 4.5%             
Activant Solutions Inc. Term Loan,             
 6.063% — 6.25%, 5/02/13        449    289,919 
Affiliated Computer Services, Inc. (ACS) Term Loan,             
 5.259%, 3/20/13        729    610,244 
Amadeus IT Group SA/Amadeus Verwaltungs GmbH:             
     Term B3 Facility, 7.09%, 7/01/13    EUR    615    437,879 
     Term B4 Facility, 7.09%, 7/01/13        496    353,559 
     Term C3 Facility, 7.59%, 7/01/14        615    437,879 
     Term C4 Facility, 7.59%, 7/01/14        496    353,559 
Audio Visual Services Group, Inc. Second Lien Term Loan,             
 9.27%, 8/28/14    USD    1,000    630,000 
Ceridian Corp. U.S. Term Loan, 6%, 11/09/14        2,000    1,600,000 
First Data Corp.:             
     Initial Tranche B1 Term Loan, 5.948% — 6.512%,             
     9/24/14        2,479    1,810,403 
     Initial Tranche B2 Term Loan,             
     5.948% — 6.512%, 9/24/14        497    364,232 
     Initial Tranche B3 Term Loan,             
     5.948% — 6.512%, 9/24/14        985    717,801 
RedPrairie Corp:             
     Second Lien Loan, 9.298%, 1/20/13        1,250    937,500 
     Term Loan, 6% — 6.313%, 7/20/12        978    782,000 
SunGard Data Systems Inc. (Solar Capital Corp.) New             
 U.S. Term Loan, 4.553%, 2/28/14        3,417    2,605,362 
            11,930,337 
Independent Power Producers & Energy Traders — 3.2%             
The AES Corp. Term Loan, 5.063% — 5.10%, 8/10/11        1,500    1,245,000 
Mirant North America, LLC Term Loan, 4.868%, 11/04/13        1,345    1,104,457 
Texas Competitive Electric Holdings Co., LLC (TXU):             
     Initial Tranche B1 Term Loan,             
     6.303% — 7.64%, 10/10/14        497    389,206 
     Initial Tranche B2 Term Loan,             
     6.303% — 7.64%, 10/10/14        2,483    1,935,315 
     Initial Tranche B3 Term Loan,             
     6.303% — 7.64%, 10/10/14        5,030    3,902,475 
            8,576,453 
Insurance — 0.8%             
Alliant Holdings I, Inc, Term Loan, 6.762%, 8/21/14        990    673,200 
Conseco, Inc. New Term Loan, 5.7088%, 10/10/13        735    474,085 
Sedgwick CMS Holdings, Inc. Term Loan B,             
 6.012%, 1/31/13        1,067    907,140 
            2,054,425 
Internet & Catalog Retail — 0.4%             
FTD Group, Inc. Tranche B Term Loan, 7.759% — 8.035%,             
 8/04/14        1,000    890,000 
Oriental Trading Company Inc. Second Lien Term Loan,             
 9.12%, 1/31/14        500    183,334 
            1,073,334 
Leisure Equipment & Products — 0.4%             
24 Hour Fitness Worldwide, Inc. Tranche B Term Loan,             
 5.62% — 6.71%, 6/08/12        975    711,750 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

19


  Schedule of Investments (continued) BlackRock Global Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

        Par     
Floating Rate Loan Interests    (000)             Value 
 
Leisure Equipment & Products (concluded)             
Kerasotes Showplace Theatres LLC Term B2,             
 5.438%, 10/28/11    USD    555    $ 333,289 
            1,045,039 
Life Sciences Tools & Services — 1.4%             
Invitrogen Term Loan B, 0%, 6/11/15        4,000    3,700,000 
Machinery — 3.1%             
Big Dumpster Merger Sub, Inc.:             
     Delay Draw Term Loan, 6.012%, 2/05/13        287    200,991 
     Tranche B Term Loan, 6.012%, 2/05/13        682    477,353 
Blount, Inc. Term Loan B, 4%, 8/09/10        594    514,090 
CI Acquisition Inc. (Chart Industries), Term Loan B,             
 5.25%, 10/17/12        222    182,222 
LN Acquisition Corp. (Lincoln Industrial):             
     Delay Draw Term Loan, 5.50%, 6/01/14        269    215,455 
     Initial U.S. Term Loan, 5.50%, 7/11/14        718    574,545 
NACCO Materials Handling Group, Inc. Term Loan B:             
     4.828%, 12/18/12        156    107,585 
     4.804% — 5.118%, 3/21/13        333    229,653 
Navistar International Corp.:             
     Revolving Credit-Linked, 6.318% — 6.421%, 1/19/12        1,333    913,333 
     Term Advance, 6.421%, 1/19/12        3,667    2,511,667 
OshKosh Truck Corp. Term B Loan:             
     4.32%, 12/06/13        1,923    1,320,690 
     4.62% — 6.09%,12/06/13        302    207,409 
Standard Steel, LLC:             
     Delay Draw Term Loan, 5.62% — 5.72%, 7/02/12        79    57,529 
     Initial Term Loan, 6.27%, 7/02/12        390    284,698 
Trimas Co. LLC:             
     Tranche B Term Loan, 5.49% — 5.766%, 2/28/12        398    298,594 
     Tranche B-1 Loan, 2.463%, 2/28/12        94    70,313 
            8,166,127 
Marine — 1.0%             
Delphi Acquisition Holding I B.V. (fka Dockwise):             
     Facility B1, 6.0119%, 1/12/15        733    439,883 
     Facility B2, 6.0119%, 1/12/15        500    300,000 
     Facility C1, 6.6369%, 1/11/16        733    439,883 
     Facility C2, 6.6369%, 1/11/16        500    300,000 
     Facility D1, 8.2619%, 7/11/16        650    429,000 
     Facility D2, 8.2619%, 7/11/16        1,000    660,000 
            2,568,766 
Media — 30.6%             
Acosta, Inc. Term Loan, 5.37%, 7/28/13        1,466    1,055,700 
Affinion Group Holdings, Inc. Loan, 9.868%, 3/01/12        975    565,500 
Alix Partners LLP Term Loan B, 5% — 6.75%, 10/12/13        931    754,490 
Alpha Topco Limited (Formula One):             
     Facility B1, 5.368%, 12/31/13        571    392,381 
     Facility B2, 5.368%, 12/31/13        393    269,762 
Atlantic Broadband Finance, LLC Tranche B-2 Term             
 Loan, 6.02%, 9/01/11        1,955    1,769,482 
Bresnan Communications, LLC, Second Lien Term Loan,             
 7.58% — 7.61%, 3/29/14        250    175,000 
CSC Holdings (Cablevision) Incremental Term Loan, 4.569%,             
 3/29/13        2,651    2,281,459 
Casema NV (Essent Kablecom):             
     Term Loan B, 7.004%, 9/12/14    EUR    625    634,886 
     Term Loan C, 7.504%, 9/14/15        625    634,886 
Catalina Marketing Corp., Initial Term Loan, 6.762%,             
 10/01/14    USD          2,482   1,837,013 
Cengage Learning Acquisitions, Inc. (Thomson Learning):             
     Term Loan, 5.62%, 7/03/14        1,980    1,466,301 
     Tranche 1 Incremental Term, 7.50%, 7/04/14        3,741    3,291,750 
Cequel Communications LLC Term Loan, 4.804% —             
 6.334%, 11/05/13        4,900    3,575,684 
Charter Communications Operating, LLC, Replacement             
 Term Loan, 5% — 5.47%, 3/06/14        1,965    1,465,200 
Cinemark USA, Inc. Term Loan, 4.56% — 4.93%, 10/05/13        1,103    833,766 

        Par     
Floating Rate Loan Interests    (000)           Value 
 
Media (continued)             
Clarke American Corp. Tranche B Term Loan, 6.262% —             
 6.383%, 6/30/14    USD          1,977   $ 1,208,735 
Cumulus Media, Inc. Replacement Term Loan, 4.75% —             
 4.969%, 6/11/14        1,469    829,932 
Dex Media West LLC Tranche B Term Loan, 7% —             
 7.77%, 10/24/14        2,000    1,078,000 
Discovery Communications Holding, LLC Term B Loan,             
 5.762%, 5/14/14        1,980    1,613,669 
Emmis Operating Co. Tranche B Term Loan, 4.81% —             
 5.769%, 11/01/13        471    247,213 
FoxCo Acquisition Sub, LLC Term Loan, 7.25%, 7/14/15        500    382,500 
GateHouse Media Operating, Inc.:             
 Delay Draw Term Loan, 4.81% — 5%, 8/28/14        293    63,430 
 Initial Term Loan, 4.81%, 8/28/14        985    213,370 
Getty Images, Inc. Initial Term Loan, 8.053%, 7/02/15        2,000    1,798,000 
Gray Television, Inc. Term Loan B DD,             
 4.25% — 5.65%, 12/31/14        2,150    1,192,991 
HMH Publishing Company Limited (fka Education Media):             
     Incremental Term Loan B, 7.516%, 11/14/14        2,636    1,977,273 
     Mezzanine, 13.01625%, 11/14/14        7,063    4,944,188 
Hanley-Wood LLC Term Loan, 5.25% — 6.012%, 3/08/14        2,234    1,173,045 
Hargray Acquisition Co./DPC Acquisitions LLC/             
 HCP Acquisitions LLC:             
     First Lien Term Loan, 6.012%, 6/27/14        982    785,297 
     Second Lien Term Loan, 9.262%, 1/29/15        500    390,000 
Idearc, Inc (Verizon) Tranche B Term Loan,             
 5.12%, 11/17/14        1,508    636,034 
Insight Midwest Holdings LLC B Term Loan, 5.93%, 4/17/14        2,700    2,103,751 
Kabel Deutschland Holdings GMBH A Facility, 6.909%,             
 7/02/14    EUR           4,000   3,806,661 
Knology, Inc. Term Loan:             
     6.40%, 1/12/12    USD    1    700 
     6.40%, 6/30/12        493    344,925 
Lavena Holdings (ProSiebenSat 1 Media AG):             
     Term Loan B, 7.526%, 9/14/16    EUR    337    91,219 
     Term Loan C, 7.776%, 3/06/15        674    182,438 
Liberty Cablevision of Puerto Rico, Ltd. Initial Term Facility,             
 6.556%, 6/01/14    USD           1,481   1,036,875 
Local TV Finance, LLC Term Loan:             
     5.77%, 5/07/13        2    1,200 
     4.87%, 5/07/13        744    446,533 
MCC Iowa LLC (Mediacom Broadband Group):             
     Tranche D-1 Term Loan, 3.89%, 3/31/10        1,474    1,051,889 
     Tranche A Term Loan, 3.64%, 4/11/14        941    799,773 
Mediacom Illinois, LLC (fka Mediacom Communications LLC)             
 Tranche C Term Loan, 4.78%, 3/01/13        2,437    1,721,900 
Medianne Vaire Holdings (Page Jaunes):             
     Term Loan B2, 7.376%, 1/31/15    EUR    969    518,618 
     Term Loan C, 7.876%, 9/10/15        969    518,618 
     Term Loan D, 9.376%, 8/14/16        500    249,812 
Metro-Goldwyn-Mayer Inc. Tranche B Term Loan, 7.012%,             
 4/08/12    USD           1,925   942,047 
Mission Broadcasting Term Loan B, 5.512%, 1/03/13        1,888    1,283,526 
Multicultural Radio Broadcasting Inc. Term Loan,             
 6.795%, 12/04/13        338    256,880 
NV Broadcasting:             
     First Lien, 5.82%, 11/13/13        824    494,129 
     Second Lien Term Loan, 9.32%, 11/13/14        1,500    750,000 
National Cinemedia, LLC Term Loan, 4.57%, 11/04/10        1,000    675,833 
New Wave Communications:             
     Delay Draw Term Loan, 6.618%, 6/30/13        234    191,923 
     Term Loan B, 6.618%, 6/30/13        929    761,473 
Newsday LLC:             
     Fixed Rate Term Loan, 9.75%, 8/01/13        750    622,500 
     Floating Rate Term Loan, 9.008%, 8/01/13        1,250    1,037,500 
Nexstar Broadcasting, Inc. Term B Loan, 5.512%, 10/01/12        1,786    1,214,622 
Nielsen Finance LLC Dollar Term Loan, 4.803%, 10/01/12        3,828    2,757,715 
Parakim Broadcasting Term Loan B, 5.82%, 11/01/13        169    101,360 
Sunshine Acquisition Limited (aka HIT Entertainment):             
     Second Lien Term Loan, 8.30%, 2/26/13        1,000    520,000 
     Term Facility, 4.80%, 3/20/12        1,098    680,791 

See Notes to Financial Statements.

20 ANNUAL REPORT

OCTOBER 31, 2008


Schedule of Investments (continued) BlackRock Global Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

        Par     
Floating Rate Loan Interests        (000)             Value 
 
Media (concluded)             
MCNA Cable Holdings LLC (OneLink Communications)             
 Term Loan, 6.54%, 3/01/13 (b)    USD    1,769    $ 1,158,738 
Penton Media, Inc. Term Loan:             
     First Lien, 5.368% — 5.67%, 2/01/13        1,108    576,225 
     Second Lien, 8.42%, 2/01/14        1,000    480,000 
Puerto Rico Cable Acquisition Co., Inc. (Choice TV)             
 Term Loan (Second Lien), 11.313%, 2/15/12        692    436,154 
Quebecor Media Term Loan B, 6.819%, 1/17/13        729    576,206 
Sitel LLC (ClientLogic) U.S. Term Loan, 5.359% —             
 6.789%, 1/30/14        1,366    751,295 
TWCC Holding Corp. Term Loan, 7.25%, 9/14/15        1,000    921,667 
UPC Financing Partnership M Facility, 7.008%, 12/31/14    EUR    3,767    3,128,529 
Virgin Media Investment Holdings Limited, (NTL):             
     B1 Facility, 8.147%, 9/03/12    GBP    936    990,197 
     B2 Facility, 8.147%, 9/03/12        1,093    1,156,288 
     C Facility, 8.743%, 1/30/13        1,500    1,384,038 
Wallace Theater Corp. (Hollywood Theaters):             
     First Lien Term Loan, 6.56% — 7.02%, 7/31/09    USD    1,628    1,285,917 
     Second Lien Term Loan, 10.31%, 1/31/10        2,500    1,750,000 
Yell Group Plc Facility B2 (Euro), 7.504%, 10/27/12    EUR    1,750    1,552,403 
            80,849,805 
Metals & Mining — 1.1%             
Algoma Steel, Inc. Term Loan, 5.50%, 6/20/13    USD    1,954    1,562,932 
Compass Minerals International, Inc. Term Loan,             
 5.20%, 12/24/12        778    700,642 
Euramax International Holdings B.V. European Loan             
 (Second Lien), 11%, 6/29/13        734    330,395 
Euramax International, Inc. Domestic Loan (Second Lien),             
 11%, 6/29/13        480    216,034 
            2,810,003 
Multi-Utilities — 1.4%             
Coleto Creek Power, LP (Coleto Creek WLE, LP):             
     Synthetic Letter of Credit (First Lien), 3.662%, 6/28/13        127    93,631 
     Term Loan (First Lien), 6.512%, 6/28/13        1,803    1,325,110 
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):             
     First Lien Term Loan B, 5.75%, 11/01/13        1,230    1,002,803 
     Letter of Credit, 3.663%, 11/01/13        159    129,207 
     Second Lien Term Loan, 7.7113%, 5/01/14        750    555,000 
Mach Gen LLC:             
     Synthetic L/C Loan (First Lien), 3.512%, 2/22/13        70    64,266 
     Term Loan B (First Lien), 4.81%, 2/22/14        667    609,441 
            3,779,458 
Multiline Retail — 0.8%             
Dollar General Corp. Tranche B-1 Term Loan, 5.75% — 6.17%,         
 7/07/14        1,250    996,875 
The Neiman Marcus Group, Inc. Term Loan, 4.565%, 4/08/13    1,440    1,079,904 
            2,076,779 
Oil, Gas & Consumable Fuels — 2.3%             
Big West Oil LLC:             
     Delayed Advance Loan, 5.25%, 5/15/14        550    357,500 
     Initial Advance Loan, 5.25%, 5/15/14        438    284,375 
Niska Gas Storage Canada ULC:             
     Asset Sale Term Bridge Facility, 4.843%, 8/9/13        29    24,013 
     Canadian Term Loan B, 4.844%, 5/13/11        454    377,144 
Niksa Gas Storage U.S. LLC:             
     U.S. Term Loan B, 4.847%, 5/13/13        75    62,243 
     Wild Goose Acquisition Draw U.S. Term B, 4.847%, 5/13/13    51    42,163 
Coffeyville Resources LLC:             
     Letter of Credit, 3.783%, 12/28/10        324    257,297 
     Tranche D Term Loan, 5.75% — 6.633%, 12/30/13        1,047    830,775 
Drummond Co., Inc. Term Advance, 5.001%, 2/14/11        1,350    1,309,500 
MAPCO Express, Inc./MAPCO Family Centers, Inc. Term             
 Loan, 5.93%, 4/28/11        795    477,196 
Vulcan Energy Corp. (Plains Resources, Inc.) Term             
 Loan B3, 6.25%, 8/12/11        1,750    1,487,500 
Western Refining, Inc. Term Loan, 9.25%, 5/30/14        917    678,554 
            6,188,260 

        Par     
Floating Rate Loan Interests        (000)    Value 
 
Paper & Forest Products — 2.3%             
Boise Paper Holdings, LLC (Aldabra Sub LLC) Tranche B             
 Term Loan (First Lien), 7.50%, 2/05/15    USD    995    $ 815,071 
Georgia-Pacific LLC Term Loan B, 4.567% —             
 5.512%, 12/20/12        4,103    3,391,959 
NewPage Corp. Term Loan, 7%, 4/08/13        1,989    1,598,814 
Verso Paper Holdings Finance LLC Term Loan, 10.012%,             
 2/01/13        336    275,520 
            6,081,364 
Personal Products — 1.1%             
American Safety Razor Co. LLC Second Lien Term             
 Loan, 9.37% — 9.47%, 1/30/14        2,000    1,660,000 
Prestige Brands, Inc. Tranche B Term Loan, 5.421% —             
 6.012%, 4/06/11        1,460    1,153,734 
            2,813,734 
Pharmaceuticals — 1.5%             
Catalent Pharma Solutions, Inc. (Cardinal Health 409 Inc.)             
 EuroTerm Loan, 7.392%, 4/10/14    EUR    2,469    2,265,514 
Warner Chilcott Co., Inc.:             
     Tranche B Term Loan, 5.762%, 1/18/12    USD    1,375    1,118,264 
     Tranche C Term Loan, 5.762%, 1/18/12        583    473,894 
            3,857,672 
Professional Services — 0.2%             
Booz Allen Hamilton, Inc. Tranche B Term Loan,             
 7.50%, 7/31/15        500    435,938 
Real Estate Management & Development — 1.5%             
Capital Automotive L Term Loan, 5.47%, 12/16/10        1,675    1,020,075 
Enclave B4 Term Loan, 6.14%, 3/01/12        2,000    1,477,854 
Georgian Towers Term Loan B4 Participation, 6.14%, 3/01/12    2,000    1,432,458 
Pivotal Promontory Second Lien Term Loan, 12%, 8/11/11 (d)    750    112,500 
            4,042,887 
Road & Rail — 0.8%             
RailAmerica, Inc.:             
     Canadian Term Loan, 7.883%, 8/14/09        196    173,187 
     U.S.Term Loan, 7.883%, 8/14/09        2,054    1,818,063 
            1,991,250 
Semiconductors & Semiconductor Equipment — 0.2%             
Marvell Technology Group, Ltd. Term Loan, 5.50%, 12/15/14    479    407,469 
Software — 0.5%             
Bankruptcy Management Solutions, Inc.:             
     First Lien Term Loan, 7%, 7/31/12        980    735,000 
     Second Lien Term Loan, 9.75%, 7/31/13        490    245,000 
CCC Information Services Group, Inc. Term Loan,             
 6.02%, 2/10/13        414    330,815 
            1,310,815 
Specialty Retail — 2.4%             
Adesa, Inc. (KAR Holdings, Inc.) Initial Term Loan,             
 6.02%, 10/21/13        2,395    1,550,885 
Burlington Coat Factory Warehouse Corp. Term Loan,             
 5.06%, 5/28/13        517    277,549 
General Nutrition Centers, Inc. Term Loan, 6.012% —             
 6.303%, 9/16/13        997    679,941 
OSH Properties LLC (Orchard Supply) B-Note (Participation 1),         
 4.938%, 12/09/11        1,500    1,050,000 
Rent-A-Center, Inc. Tranche B Term Loan, 5.25%,             
 6/29/12        1,193    954,147 
Sensata Technology BV/Sensata Technology Finance             
 Company LLC:             
     Euro Term Loan, 6.738% — 6.912%, 4/29/13    EUR    1,466    1,345,566 
     U.S. Term Loan, 5.115% — 5.258%, 4/29/13    USD    970    610,201 
            6,468,289 
Textiles, Apparel & Luxury Goods — 0.4%             
Hanesbrands, Inc. Term Loan B (First Lien), 4.75% —             
 5.266%, 9/05/13        1,000    844,583 
Renfro Corp. Tranche B Term Loan, 6.06% —             
 7.02%, 10/04/13        462    276,978 
            1,121,561 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

21


Schedule of Investments (continued) BlackRock Global Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

        Par     
Floating Rate Loan Interests        (000)    Value 
 
Trading Companies & Distributors — 0.3%             
Beacon Sales Acquisition, Inc. Term Loan B, 5.769% —             
 6.053%, 9/30/13    USD    1,225    $ 857,500 
Wireless Telecommunication Services — 4.4%             
Alltel Communications, Inc.:             
     Initial Tranche B2 Term Loan, 5.316%, 5/15/15        1,489    1,413,169 
     Initial Tranche B3 Term Loan, 5.50%, 5/15/15        950    904,597 
BCM Ireland Holdings Limited (Eircom):             
     Facility B, 6.379%, 9/30/15    EUR    2,000    1,594,606 
     Facility C, 6.629%, 9/30/16        2,000    1,594,606 
     Facility D, 8.754%, 3/31/16        1,000    640,462 
Centennial Cellular Operating Co. New Term Loan,             
 5.118% — 5.762%, 2/09/11        2,169    1,837,240 
Cricket Communications, Inc. (aka Leap Wireless) Term             
 Loan B, 7.262%, 6/16/13        923    778,313 
IPC Systems, Inc. Tranche B1 Term Loan, 6.012%,             
 5/31/14    USD    499    249,369 
MetroPCS Wireless, Inc. New Tranche B Term Loan, 5.063% —         
 5.375%, 11/04/13        1,622    1,334,352 
Ntelos, Inc. Term B1 Facility, 5.37%, 8/24/11        1,682    1,427,268 
            11,773,982 
Total Floating Rate Loan Interests — 122.9%            325,169,568 
 
Common Stocks       Shares     
Capital Markets — 0.1%             
E*Trade Financial Corp. (g)    121,011    220,240 
Commercial Services & Supplies — 0.0%             
Sirva Common Stock        554    11,080 
Paper & Forest Products — 0.1%             
Ainsworth Lumber Co. Ltd. (g)        55,855    74,146 
Ainsworth Lumber Co. Ltd. (c)(g)        62,685    82,490 
            156,636 
Total Common Stocks — 0.2%            387,956 
 
Preferred Stocks             
Capital Markets — 0.0%             
Marsico Parent Superholdco, LLC, 16.75% (c)(g)        100    72,000 
Total Preferred Stocks — 0.0%            72,000 
 
Warrants (h)             
Machinery — 0.0%             
Synventive Molding Solutions (expires 1/15/13)        2    0 
Total Warrants — 0.0%            0 
 
Other Interests (i)             
Health Care Providers & Services — 0.0%             
Critical Care Systems International, Inc. (e)        947    318 
Household Durables — 0.0%             
Berkline Benchcraft Equity LLC (e)        6,155    0 
Total Other Interests — 0.0%            318 
Total Long-Term Investments             
(Cost — $568,253,955) — 154.9%            409,784,040 

  Par   
Short-Term Securities  (000)  Value 
 
U.S. Government Agency Obligations — 0.6%     
Federal Home Loan Banks Discount Notes, 1.24%,     
    11/28/08 (j)(k)  USD         1,500  $ 1,499,792 
Total Short-Term Securities (Cost — $1,498,750) — 0.6%    1,499,792 
 
Options Purchased  Contracts   
Call Options     
Marsico Parent Superholdco LLC, expiring     
 December 2019 at USD 942.86  26  43,810 
Total Options Purchased (Cost — $25,422) — 0.0%    43,810 
Total Investments (Cost — $569,778,127*) — 155.5%    411,327,642 
Liabilities in Excess of Other Assets — (33.3)%    (87,916,829) 
Preferred Shares, at Redemption Value — (22.2)%    (58,820,925) 
Net Assets Applicable to Common Shares — 100.0%    $ 264,589,888 

* The cost and unrealized appreciation (depreciation) of investments as of October 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $ 569,819,646 
Gross unrealized appreciation    $ 469,810 
Gross unrealized depreciation    (158,961,814) 
Net unrealized depreciation    $(158,492,004) 

(a) Variable rate security. Rate shown is as of report date.
(b) Represents a payment-in-kind security which may pay interest/dividends in additional
par/shares.
(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) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) Security is fair valued.
(f) Restricted securities as to resale, representing 7.8% of net assets, were as follows:

Acquisition
Issue    Date(s)    Cost    Value 
Colombia Government             
   International Bond,             
   8.541%, 3/17/13    2/15/06    $ 1,304,742    $ 1,116,000 
Costa Rica Government             
   International Bond,    8/30/04 –         
   9.335%, 5/15/09    11/01/04    3,237,475    3,200,000 
Nordic Telephone             
   Co. Holdings ApS,             
   10.107%, 5/01/16    4/26/06    1,867,951    1,273,754 
Pemex Project             
   Funding Master Trust,    8/27/04 –         
   6.553%, 10/15/09    12/15/04    12,832,908    12,446,000 
Republic of Venezuela,             
   6.18%, 4/20/11    10/26/04    3,746,288    2,680,000 
Total        $22,989,364    $20,715,754 

(g) Non-income producing security.
(h) Warrants entitle the Fund to purchase a predetermined number of shares of common
stock and are non-income producing. The purchase price and number of shares are
subject to adjustment under certain conditions until the expiration date.

See Notes to Financial Statements.

22 ANNUAL REPORT

OCTOBER 31, 2008


Schedule of Investments (concluded) BlackRock Global Floating Rate Income Trust (BGT)

(i) Other interests represent beneficial interest in liquidation trusts and other reorganiza-
tion entities and are non-income producing.
( j) Rate shown is the yield to maturity as of the date of purchase.
( k) All or a portion of security held as collateral in connection with swaps.
Foreign currency exchange contracts as of October 31, 2008 were as follows:

     Currency    Currency    Settlement    Unrealized 
     Purchased    Sold        Date    Appreciation 
     EUR    7,500,000    USD     9,440,040     11/06/08    $ 114,813 
     GBP    2,000,000    USD     3,180,040     11/06/08    36,658 
  USD                                 72,945,560   EUR   53,391,832     11/06/08    4,925,409 
   USD                                17,205,150    GBP     9,974,000     11/06/08    1,163,479 
     USD    855,879    MXN   11,028,000     11/10/08    1,793 
     Total                    $ 6,242,152 
 
Swaps outstanding as of October 31, 2008 were as follows:     

 
            Notional     
            Amount    Unrealized 
                (000)    Depreciation 
     Sold credit default protection on BAA Ferovial             
     Junior Term Loan and receive 2.0% (e)             
     Broker, Deutsche Bank AG                 
     Expires March 2012        GBP         1,800    $ (543,254) 
     Sold credit default protection on ITRAXX LEVX             
     Senior Series 3 and receive 5.75%             
     Broker, Deutsche Bank AG                 
     Expires December 2013        EUR         2,000    (277,287) 
     Total                    $ (820,541) 
 
Currency Abbreviations:                 
     EUR    Euro                 
     GBP    British Pound                 
     MXN    Mexican New Peso                 
     USD    U.S. Dollar                 
 
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. These industry classifications are unaudited. 

Effective January 1, 2008, the Fund adopted Financial Accounting Standards Board 
     Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” 
     (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for 
     measuring fair values and requires additional disclosures about the use of fair value 
     measurements. Various inputs are used in determining the fair value of investments, 
     which are as follows:             
 
   Level 1 — price quotations in active markets/exchanges for identical securities 
   Level 2 — other observable inputs (including, but not limited to: quoted prices for 
    similar assets or liabilities in markets that are not active, inputs other than quoted 
      prices that are observable for the assets or liabilities (such as interest rates, yield 
     curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) 
    or other market-corroborated inputs)             
 
   Level 3 — unobservable inputs based on the best information available in the 
      circumstance, to the extent observable inputs are not available (including the Fund’s 
     own assumption used in determining the fair value of investments)     
     The inputs or methodology used for valuing securities are not necessarily an indication 
     of the risk associated with investing in those securities. For information about the 
     Fund’s policy regarding valuation of investments and other significant accounting 
     policies, please refer to Note 1 of the Notes to Financial Statements.         
     The following table summarizes the inputs used as of October 31, 2008 in determining 
     the fair valuation of the Fund’s investments:             

 
 
 
     Valuation    Investments in    Other Financial 
     Inputs    Securities        Instruments* 
     Level 1    $ 294,386    $ 43,810 
     Level 2    290,209,309        5,964,865 
     Level 3    120,780,137        (543,254) 
     Total    $ 411,283,832    $ 5,465,421 
 
     The following is a reconciliation of investments for unobservable inputs (Level 3) that 
     were used in determining fair value:             
    Investments in    Other Financial 
    Securities        Instruments* 
     Balance, as of December 31, 2007    $ 163,425,498        $(119,977) 
     Accrued discounts/premiums    26,715         
     Realized gain (loss)    (5,340,204)         
     Change in unrealized appreciation             
           (depreciation)    (109,699,613)        (423,277) 
     Net purchases (sales)    (24,255,859)         
     Net transfers in/out of Level 3    96,623,600         
     Balance, as of October 31, 2008    $ 120,780,137        $(543,254) 
 
* Other financial instruments are swaps, foreign currency exchange contracts and 
options.             

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2008 23


Schedule of Investments October 31, 2008 BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW)
(Percentages shown are based on Net Assets)

Preferred Securities             
        Par     
Capital Trusts        (000)    Value 
 
Building Products — 0.6%             
C8 Capital SPV Ltd., 6.64% (a)(b)(c)    USD    980    $ 460,394 
Capital Markets — 6.7%             
Ameriprise Financial, Inc., 7.518%, 6/01/66 (c)        1,900    948,518 
Credit Suisse Guernsey Ltd., 5.86% (b)(c)        1,970    1,125,177 
Lehman Brothers Holdings Capital Trust V, 3.64% (b)(c)(d)(e)    1,600    160 
State Street Capital Trust III, 8.25% (b)(c)        980    844,045 
State Street Capital Trust IV, 3.819%, 6/01/67 (c)        3,390    2,170,695 
            5,088,595 
Commercial Banks — 25.1%             
Abbey National Capital Trust I, 8.963% (b)(c)(f)        725    547,807 
BB&T Capital Trust IV, 6.82%, 6/12/77 (c)        4,600    2,562,108 
BNP Paribas, 7.195% (a)(b)(c)        3,800    2,426,627 
Bank of Ireland Capital Funding II, LP, 5.571% (a)(b)(c)        2,015    664,003 
Bank of Ireland Capital Funding III, LP, 6.107% (a)(b)(c)        2,150    708,597 
Barclays Bank Plc, 7.434% (a)(b)(c)        325    205,186 
Credit Agricole SA, 6.637% (a)(b)(c)        7,945    3,806,529 
First Empire Capital Trust II, 8.277%, 6/01/27        910    657,521 
Huntington Capital III, 6.65%, 5/15/37 (c)        975    394,790 
National City Preferred Capital Trust I, 12% (b)(c)        300    273,291 
Regions Financing Trust II, 6.625%, 5/15/47 (c)        985    337,915 
Royal Bank of Scotland Group Plc (b):             
     7.648% (c)        980    540,125 
     9.118%        1,200    1,111,285 
     Series MTN, 7.64% (c)        1,900    909,089 
SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(b)(c)        875    814,836 
Standard Chartered Bank, 7.014% (a)(b)(c)        2,350    1,262,584 
SunTrust Preferred Capital I, 5.853% (b)(c)        1,050    578,812 
Wachovia Corp. Series K, 7.98% (b)(c)        1,855    1,401,044 
            19,202,149 
Consumer Finance — 0.9%             
MBNA Capital A, 8.278%, 12/01/26        910    712,697 
Diversified Financial Services — 8.8%             
Citigroup, Inc.(c)(g):             
     8.30%, 12/21/77        1,317    904,068 
     Series E, 8.40% (b)        3,700    2,571,870 
Farm Credit Bank of Texas Series 1, 7.561% (b)(c)        1,000    599,960 
JPMorgan Chase Capital XXIII, 3.149%, 5/15/77 (c)        1,830    832,178 
JPMorgan Chase Capital XXV, 6.80%, 10/01/37 (f)        2,525    1,817,349 
            6,725,425 
Electric Utilities — 1.2%             
PPL Capital Funding, 6.70%, 3/30/67 (c)        1,500    870,000 
Insurance — 50.7%             
AON Corp., 8.205%, 1/01/27        3,990    2,759,719 
Ace Capital Trust II, 9.70%, 4/01/30 (f)        1,510    1,193,270 
The Allstate Corp.(c):             
     6.50%, 5/15/57 (f)        3,200    1,750,240 
     Series B, 6.125%, 5/15/67 (g)        2,625    1,467,323 
American International Group, Inc.:             
     8.175%, 5/15/58 (a)(c)        4,275    683,030 
     6.25%, 3/15/87 (g)        2,800    377,524 
Chubb Corp., 6.375%, 3/29/67 (c)(k)        4,475    2,857,780 
Everest Reinsurance Holdings, Inc., 6.60%, 5/01/67 (c)        3,560    1,634,752 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)        9,110    6,125,455 
Genworth Financial, Inc., 6.15%, 11/15/66 (c)        750    175,383 
Liberty Mutual Group, Inc.(a)(c):             
     7%, 3/15/37        2,550    1,374,297 
     10.75%, 6/15/88        2,000    1,050,000 
Lincoln National Corp.(c):             
     7%, 5/17/66        3,000    1,410,000 
     6.05%, 4/20/67        1,250    575,000 
Nationwide Life Global Funding I, 6.75%, 5/15/67 (f)        2,450    1,316,213 
Oil Casualty Insurance Ltd., 8%, 9/15/34 (a)        915    835,720 
Progressive Corp., 6.70%, 6/15/37 (c)        2,900    1,727,008 

    Par     
Capital Trusts    (000)    Value 
 
Insurance (concluded)         
QBE Capital Funding II LP, 6.797% (a)(b)(c)(f)    USD     2,120    $ 901,000 
Reinsurance Group of America, 6.75%, 12/15/65 (c)    700    403,296 
Swiss Re Capital I LP, 6.854% (a)(b)(c)    2,225    1,218,733 
The Travelers Cos., Inc., 6.25%, 3/15/67 (c)    5,750    3,427,305 
ZFS Finance (USA) Trust II, 6.45%, 12/15/65 (a)(c)    1,800    1,114,684 
ZFS Finance (USA) Trust IV, 5.875%, 5/09/32 (a)(c)    500    345,170 
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)    4,355    2,351,700 
Zenith National Insurance Capital Trust I, 8.55%,         
   8/01/28 (a)    1,000    947,500 
XL Capital Ltd., 6.102%, 7/15/33 (a)(c)    120    750,540 
        38,772,642 
Multi-Utilities — 1.9%         
Dominion Resources Capital Trust I, 7.50%, 12/01/27 (c)    1,200    1,077,275 
Puget Sound Energy, Inc. Series A, 6.974%, 6/01/67 (c)    475    396,625 
        1,473,900 
Oil, Gas & Consumable Fuels — 4.6%         
Enterprise Products Operating LP, 8.375%, 8/01/66 (c)    825    612,562 
Southern Union Co., 7.20%, 11/01/66 (c)    2,350    1,457,750 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (c)    2,150    1,468,967 
        3,539,279 
Thrifts & Mortgage Finance — 0.4%         
Webster Capital Trust IV, 7.65%, 6/15/37 (c)    975    292,917 
Total Capital Trusts — 100.9%        77,137,998 
 
Preferred Stocks    Shares     
Capital Markets — 0.3%         
Deutsche Bank Contingent Capital Trust II, 6.55%    15,000    224,100 
Commercial Banks — 12.3%         
Barclays Bank Plc, 8.125%    50,000    806,000 
First Tennessee Bank NA, 3.90% (a)(c)    1,176    381,098 
HSBC USA, Inc. Series H, 6.50%    168,000    3,339,840 
Provident Financial Group, Inc., 7.75%    42,000    759,940 
Royal Bank of Scotland Group Plc:         
     Series L, 5.75%    5,000    52,500 
     Series M, 6.40%    5,000    54,300 
Santander Finance Preferred SA Unipersonal:         
     6.50%    134,000    2,135,625 
     6.80%    110,000    1,873,443 
        9,402,746 
Diversified Financial Services — 7.2%         
Citigroup, Inc. Series AA, 8.125%    130,000    2,190,500 
Cobank ACB, 7% (a)(l)    38,000    1,526,840 
JPMorgan Chase Capital XXI Series U, 4.143% (c)    3,870,000    1,798,706 
        5,516,046 
Electric Utilities — 3.0%         
Alabama Power Co., 6.50%    25,000    502,500 
Entergy Arkansas, Inc., 6.45%    28,800    660,600 
Entergy Louisiana LLC, 6.95%    22,650    1,132,500 
        2,295,600 
Insurance — 18.0%         
AXA SA, 6.379% (a)(c)    3,585,000    1,819,065 
Aspen Insurance Holdings Ltd., 7.401% (c)    55,000    715,000 
Axis Capital Holdings Ltd.:         
     Series A, 7.25%    35,000    570,500 
     Series B, 7.50% (c)    9,000    744,750 
Endurance Specialty Holdings Ltd. Series A, 7.75%    35,200    554,048 
Financial Security Assurance Holdings Ltd., 6.40% (a)(c)    1,740,000    520,451 
Great West Life & Annuity Insurance Co., 7.153% (a)(c)    2,000,000    1,357,540 
MetLife, Inc.:         
     6.40%    4,225,000    2,103,120 
     Series B, 6.50%    170,000    2,791,400 

See Notes to Financial Statements.

24 ANNUAL REPORT OCTOBER 31, 2008


Schedule of Investments (continued) BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW)
(Percentages shown are based on Net Assets)

Preferred Stocks    Shares    Value 
 
Insurance (concluded)         
PartnerRe Finance II, 6.44% (c)    1,450,000    $ 763,012 
RenaissanceRe Holding Ltd. Series D, 6.60%    110,000    1,796,300 
        13,735,186 
Multi-Utilities — 1.5%         
Dominion Resources, Inc., 7.50% (c)    2,100,000    1,155,000 
Real Estate Investment Trusts (REITs) — 7.3%         
BRE Properties, Inc. Series D, 6.75%    10,000    159,900 
First Industrial Realty Trust, Inc., 6.236% (c)    610    622,581 
HRPT Properties Trust:         
     Series B, 8.75%    97,917    1,223,963 
     Series C, 7.125%    125,000    1,325,000 
iStar Financial, Inc. Series I, 7.50%    59,500    175,525 
Public Storage:         
     Series F, 6.45%    10,000    167,500 
     Series M, 6.625%    20,000    346,000 
     Series I, 7.25%    40,000    796,252 
Weingarten Realty Investors Series F, 6.50%    50,000    762,500 
        5,579,221 
Thrifts & Mortgage Finance — 0.0%         
Sovereign Bancorp, Inc. Series C, 7.30% (h)    1,400    21,980 
Wireless Telecommunication Services — 3.0%         
Centaur Funding Corp., 9.08% (a)    2,720    2,291,600 
Total Preferred Stocks — 52.6%        40,221,479 
 
    Par     
Trust Preferreds    (000)     
Capital Markets — 1.0%         
Deutsche Bank Contingent Capital Trust V, 8.05% (b)    USD     1,100    799,129 
Consumer Finance — 2.0%         
Capital One Capital II, 7.50%, 6/15/66    2,326    1,492,971 
Diversified Financial Services — 2.1%         
Citigroup Capital XVII, 6.35%, 3/15/67    1,980    1,161,571 
ING Groep NV, 7.20% (b)    875    471,894 
        1,633,465 
Electric Utilities — 1.6%         
PPL Energy Supply LLC, 7%, 7/15/46    1,235    1,201,131 
Insurance — 4.3%         
ABN AMRO North America Capital Funding Trust II,         
   2.874% (a)(b)(c)    2,000    1,886,552 
Lincoln National Capital VI Series F, 6.75%, 9/11/52    2,250    1,397,168 
        3,283,720 
Thrifts & Mortgage Finance — 0.2%         
Countrywide Capital V, 7%, 11/01/66    215    143,970 
Total Trust Preferreds — 11.2%        8,554,386 
Total Preferred Securities — 164.7%        125,913,863 

    Par     
Corporate Bonds    (000)    Value 
 
Commercial Banks — 3.5%         
Societe Generale, 5.922% (a)(b)(c)    USD     4,600    $ 2,692,109 
Insurance — 0.7%         
Oil Insurance Ltd., 7.558% (a)(b)(c)             1,000    505,980 
Total Corporate Bonds — 4.2%        3,198,089 
Total Long Term Investments         
(Cost — $220,515,468) — 168.9%        129,111,952 
 
    Beneficial     
    Interest     
Short-Term Securities    (000)     
BlackRock Liquidity Series, LLC         
   Cash Sweep Series, 4.60% (i)(j)    15,938    15,938,424 
Total Short-Term Securities         
(Cost — $15,938,424) — 20.9%        15,938,424 
Total Investments (Cost — $236,453,892*) — 189.8%        145,050,376 
Liabilities in Excess of Other Assets — (0.4)%        (335,887) 
Preferred Shares, at Redemption Value — (89.4)%        (68,284,629) 
Net Assets Applicable to Common Shares — 100.0%        $ 76,429,860 

* The cost and unrealized appreciation (depreciation) of investments as of October 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate cost                                $235,996,307
Gross unrealized appreciation               $ 325,712
Gross unrealized depreciation            (91,271,643)
Net unrealized depreciation            $ (90,945,931)

(a) 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.
(b) Security is perpetual in nature and has no stated maturity date.
(c) Variable rate security. Rate shown is as of report date.
(d) Non-income producing security.
(e) Issuer filed for bankruptcy and/or is in default of interest payments.
(f) All or a portion of security held as collateral in connection with open reverse
repurchase agreements.
(g) All or a portion of security has been pledged as collateral in connection with open
financial futures contracts.
(h) Depositary receipts.

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2008 25


Schedule of Investments (concluded) BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW)

(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     
    Activity    Income 
     BlackRock Liquidity Series, LLC         
         Cash Sweep Series    $(7,017,671)    $ 1,040,956 
( j) Represents the current yield as of report date.         
(k) All or a portion of security has been pledged as collateral in connection with open 
     swaps.         
(l) Security is fair valued.         

Financial futures contracts sold as of October 31, 2008 were as follows:

                 Unrealized 
        Expiration    Face    Appreciation 
Contracts    Issue    Date    Value    (Depreciation) 
432    2-Year U.S.    December         
    Treasury Bond    2008    $93,026,524     $ 220,774 
856    5-Year U.S.    December         
    Treasury Bond    2008    $96,238,737    (709,951) 
Total                 $ (489,177) 

Foreign currency exchange contracts as of October 31, 2008 were as follows:

             Unrealized 
Currency    Currency    Settlement    Appreciation 
Purchased    Sold    Date    (Depreciation) 
 
USD 94,938    EUR   70,100    11/06/08    $ 5,632 
EUR 72,400    USD   93,581    11/06/08    (1,345) 
Total            $ 4,287 

Currency Abbreviations:
EUR Euro
USD U.S. Dollar
Reverse repurchase agreements outstanding as of October 31, 2008 were as follows:

    Interest    Trade    Maturity    Net Closing    Face 
Counterparty    Rate    Date    Date    Amount    Amount 
Barclays Bank Plc    3.563%    9/04/08    12/04/08    $4,060,242    $4,024,000 

Swaps outstanding as of October 31, 2008 were as follows:

    Notional    Unrealized 
    Amount    Appreciation 
        (000)    (Depreciation) 
Receive a fixed rate of 2.85102% and pay             
a floating rate based on 3-month LIBOR             
Broker, JPMorgan Chase Bank N.A.             
Expires October 2010    USD    39,900    $ 23,242 
Receive a fixed rate of 2.776% and pay             
a floating rate based on 3-month LIBOR             
Broker, Deutsche Bank AG             
Expires October 2010    USD    23,900    (19,850) 
Receive a fixed rate of 2.835% and pay             
a floating rate based on 3-month LIBOR             
Broker, Credit Suisse International             
Expires October 2010    USD    39,900    11,242 
Receive a fixed rate of 3.8825% and pay             
a floating rate based on 3-month LIBOR             
Broker, Citibank N.A.             
Expires October 2013    USD    18,700    (28,721) 
Receive a fixed rate of 3.665% and pay             
a floating rate based on 3-month LIBOR             
Broker, Deutsche Bank AG             
Expires October 2013    USD    16,300    (163,681) 
Receive a fixed rate of 3.80% and pay             
a floating rate based on 3-month LIBOR             
Broker, Credit Suisse International             
Expires October 2013    USD    16,300    (70,630) 
Bought credit default protection on             
Carnival Corp. and pay 2.35%             
Broker, The Goldman Sachs Group, Inc.             
Expires December 2013    USD    1,000    2,120 
Bought credit default protection on             
Mack-Cali Realty, L and pay 3.10%             
Broker, The Goldman Sachs Group, Inc.             
Expires March 2018    USD    1,000    133,958 
Total            $ (112,320) 

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. These industry classifications are unaudited.

See Notes to Financial Statements.

26 ANNUAL REPORT OCTOBER 31, 2008


Schedule of Investments October 31, 2008 BlackRock Preferred and Equity Advantage Trust (BTZ)
(Percentages shown are based on Net Assets)

Preferred Securities             
        Par     
Capital Trusts        (000)    Value 
 
Building Products — 0.3%             
C8 Capital SPV Ltd., 6.64% (a)(b)(c)    USD    3,160    $ 1,484,536 
Capital Markets — 4.2%             
Credit Suisse Guernsey Ltd., 5.86% (b)(c)(d)        7,000    3,998,092 
State Street Capital Trust III, 8.25% (b)(c)(e)        3,100    2,669,937 
State Street Capital Trust IV, 3.819%, 6/01/67 (c)(e)        25,245    16,164,954 
            22,832,983 
Commercial Banks — 20.1%             
Abbey National Capital Trust I, 8.963% (b)(c)(e)        2,375    1,794,541 
BB&T Capital Trust IV, 6.82%, 6/12/77 (c)(e)        15,300    8,521,794 
BNP Paribas, 7.195% (a)(b)(c)(d)(e)        20,100    12,835,579 
Bank of Ireland Capital Funding II, LP, 5.571% (a)(b)(c)        6,685    2,202,908 
Barclays Bank Plc (a)(c)(e):             
     5.926% (b)        3,500    1,878,898 
     6.86%, 9/29/49        11,500    6,553,563 
Commonwealth Bank of Australia, 6.024%, (a)(b)(c)(e)        20,000    12,116,240 
HBOS Plc, 6.657% (a)(b)(c)(e)        10,000    4,382,500 
HSBC Capital Funding LP/Jersey Channel Islands,             
   10.176% (a)(b)(c)(d)(e)        7,000    5,561,185 
Huntington Capital III, 6.65%, 5/15/37 (c)        3,250    1,315,967 
Lloyds TSB Group Plc, 6.267% (a)(b)(c)(e)        12,500    5,671,863 
Regions Financing Trust II, 6.625%, 5/15/47 (c)        3,065    1,051,482 
Royal Bank of Scotland Group Plc (b)(c):             
     7.648%        3,130    1,725,093 
     Series MTN, 7.64% (e)        6,300    3,014,348 
SMFG Preferred Capital USD 1 Ltd., 6.078% (a)(b)(c)        10,000    6,875,000 
SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(b)(c)        3,850    3,585,279 
Shinsei Finance II (Cayman) Ltd., 7.16% (a)(b)(c)        1,005    407,340 
Societe Generale, 5.922% (a)(b)(c)(e)        11,850    6,935,106 
Wachovia Corp. Series K, 7.98% (b)(c)(e)        27,000    20,392,560 
Wells Fargo Capital XIII Series GMTN, 7.70% (b)(c)(d)        3,900    3,188,398 
            110,009,644 
Diversified Financial Services — 0.4%             
C10 Capital SPV Ltd., 6.722% (a)(b)(c)        5,000    2,346,500 
Electric Utilities — 0.4%             
PPL Capital Funding, 6.70%, 3/30/67 (c)        3,900    2,262,000 
Insurance — 20.2%             
AXA SA, 6.463% (a)(b)(c)(e)        12,000    6,586,440 
The Allstate Corp. (c)(e):             
     6.50%, 5/15/57        8,675    4,744,791 
     Series B, 6.125%, 5/15/67 (j)        8,725    4,877,100 
American International Group, Inc.:             
     8.175%, 5/15/58 (a)(c)        13,400    2,140,958 
     6.25%, 3/15/87 (e)        13,225    1,783,127 
Chubb Corp., 6.375%, 3/29/67 (c)(e)        15,300    9,770,733 
Everest Reinsurance Holdings, Inc., 6.60%, 5/01/67 (c)(e)        12,025    5,521,880 
Liberty Mutual Group, Inc.(a)(c):             
     7%, 3/15/37        11,600    6,251,704 
     10.75%, 6/15/88        6,200    3,255,000 
Lincoln National Corp.(c):             
     7%, 5/17/66        4,255    1,999,850 
     6.05%, 4/20/67        4,730    2,175,800 
MetLife, Inc., 6.40%, 12/15/66        4,550    2,264,899 
Nationwide Life Global Funding I, 6.75%, 5/15/67        8,025    4,311,271 
Progressive Corp., 6.70%, 6/15/37 (c)(e)        19,675    11,716,856 
QBE Capital Funding II LP, 6.797% (a)(b)(c)        7,105    3,019,625 
Reinsurance Group of America, 6.75%, 12/15/65 (c)(e)        15,000    8,642,055 
Swiss Re Capital I LP, 6.854% (a)(b)(c)(e)        27,475    15,049,294 
The Travelers Cos., Inc., 6.25%, 3/15/67 (c)        9,000    5,364,477 
White Mountains Re Group Ltd., 7.506% (a)(b)(c)        4,400    2,725,833 
ZFS Finance (USA) Trust IV, 5.875%, 5/09/32 (c)        2,050    1,415,197 
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)(e)        13,220    7,138,800 
            110,755,690 

    Par     
Capital Trusts    (000)    Value 
 
Multi-Utilities — 0.2%         
Puget Sound Energy, Inc. Series A, 6.974%, 6/01/67 (c)    USD    1,575    $ 1,315,125 
Oil, Gas & Consumable Fuels — 2.1%         
Enterprise Products Operating LP, 8.375%, 8/01/66 (c)    4,500    3,341,250 
Southern Union Co., 7.20%, 11/01/66 (c)    5,000    3,101,595 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (c)    7,325    5,084,729 
        11,527,574 
Thrifts & Mortgage Finance — 0.2%         
Webster Capital Trust IV, 7.65%, 6/15/37 (c)    3,225    968,880 
Total Capital Trusts — 48.1%        263,502,932 
 
Preferred Stocks         Shares     
Commercial Banks — 6.6%         
HSBC USA, Inc. Series H, 6.50%    977,766    19,437,988 
Royal Bank of Scotland Group Plc:         
     Series L, 5.75%    92,200    968,100 
     Series M, 6.40%    15,000    162,900 
     Series S, 6.60%    10,000    109,700 
Santander Finance Preferred SA Unipersonal:         
     6.50%    322,000    5,131,875 
     6.80%    628,000    10,695,656 
        36,506,219 
Diversified Financial Services — 11.6%         
Bank of America Corp. (c)(e):         
     Series K, 8%    20,605,000    15,427,170 
     Series M, 8.125%    11,900,000    9,221,667 
Citigroup, Inc.:         
     Series AA, 8.125%    390,000    6,571,500 
     Series E, 8.40% (c)(e)    17,450,000    12,129,495 
     Series T, 6.50% (f)(g)    90,000    2,898,900 
Cobank ACB, 7% (i)    150,000    6,027,000 
ING Groep NV:         
     6.125%    200,000    2,476,000 
     7.05%    5,800    79,228 
     7.375%    1,000,000    576,192 
JPMorgan Chase & Co., 7.90% (c)(e)    10,225,000    8,286,749 
        63,693,901 
Diversified Telecommunication Services — 0.1%         
AT&T Inc., 6.375%    750,000    716,180 
Electric Utilities — 4.4%         
Alabama Power Co., 6.50%    100,000    2,010,000 
Entergy Louisiana LLC, 6.95%    40,000    2,000,000 
Interstate Power & Light Co. Series B, 8.375%    785,000    19,821,250 
        23,831,250 
Insurance — 9.1%         
Aegon NV, 6.50%    400,000    3,960,000 
Arch Capital Group Ltd.:         
     Series A, 8%    100,000    1,915,000 
     Series B, 7.875%    160,000    2,889,600 
Aspen Insurance Holdings Ltd., 7.401% (c)    655,000    8,515,000 
Axis Capital Holdings Ltd. Series B, 7.50% (c)    180,000    14,895,000 
Endurance Specialty Holdings Ltd. Series A, 7.75%    369,000    5,808,060 
PartnerRe Ltd. Series C, 6.75%    265,600    4,648,000 
RenaissanceRe Holding Ltd. Series D, 6.60%    285,000    4,654,050 
XL Capital Ltd.    400,000    2,501,800 
        49,786,510 

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2008 27


Schedule of Investments (continued) BlackRock Preferred and Equity Advantage Trust (BTZ)
(Percentages shown are based on Net Assets)

Preferred Stocks    Shares    Value 
 
Real Estate Investment Trusts (REITs) — 2.5%         
BRE Properties, Inc. Series D, 6.75%    30,000    $ 479,700 
iStar Financial, Inc. Series I, 7.50%    55,000    162,250 
Public Storage:         
   Series F, 6.45%    30,000    502,500 
   Series M, 6.625%    55,000    951,500 
Sovereign Real Estate Investment Corp., 12%    10,000    9,500,000 
Weingarten Realty Investors Series F, 6.50%    140,000    2,135,000 
        13,730,950 
Wireless Telecommunication Services — 1.5%         
Centaur Funding Corp., 9.08%    10,000    8,425,000 
Total Preferred Stocks — 35.8%        196,690,010 
 
    Par     
Trust Preferreds    (000)     
Capital Markets — 0.5%         
Credit Suisse Guernsey Ltd., 7.90%, 3/28/13    USD     250    188,796 
Deutsche Bank Contingent Capital Trust V, 8.05% (b)    3,375    2,451,873 
        2,640,669 
Commercial Banks — 4.1%         
Citizens Funding Trust I, 7.50%    5,250,000    2,301,159 
Kazkommerts Finance 2 BV, 9.20% (b)(c)    500    82,500 
KeyCorp Capital IX, 6.75%    9,083    5,097,865 
Mizuho Capital Investment 1 Ltd., 6.686% (a)(b)(c)(e)    21,000    11,556,972 
National City Preferred Capital Trust I, 12% (b)    3,713    3,382,432 
        22,420,928 
Diversified Financial Services — 3.0%         
JPMorgan Chase Capital XXI Series U,         
4.143%, 2/02/37 (c)(e)    12,875    5,984,068 
JPMorgan Chase Capital XXIII, 3.149%, 5/15/77 (c)(e)    13,800    6,275,440 
JPMorgan Chase Capital XXV, 6.80%, 10/01/37 (d)    5,650    4,066,542 
        16,326,050 
Electric Utilities — 1.3%         
PPL Energy Supply LLC, 7%, 7/15/46    7,200    7,002,548 
Insurance — 5.7%         
AON Corp., 8.205%, 1/01/27 (e)    18,273    12,638,685 
Ace Capital Trust II, 9.70%, 4/01/30 (e)    17,000    13,434,165 
ING Groep NV, 7.20% (b)    5,325    2,855,703 
W.R. Berkley Capital Trust II, 6.75%, 7/26/45    4,268    2,480,080 
        31,408,633 
Media — 6.4%         
Comcast Corp., 6.625%, 5/15/56    48,750    35,259,916 
Oil, Gas & Consumable Fuels — 0.4%         
Nexen, Inc., 7.35%, 11/01/43    3,000    2,161,202 
Thrifts & Mortgage Finance — 2.2%         
Countrywide Capital V, 7%, 11/01/66    378    252,781 
Countrywide Financial Corp., 6.75%, 4/01/33    18,125    11,747,364 
        12,000,145 
Total Trust Preferreds — 23.6%        129,220,091 
Total Preferred Securities — 107.5%        589,413,033 
 
Common Stocks    Shares     
Aerospace & Defense — 0.4%         
General Dynamics Corp.    2,800    168,896 
Honeywell International, Inc.    6,000    182,700 
Lockheed Martin Corp.    13,500    1,148,175 
Northrop Grumman Corp.    18,200    853,398 
        2,353,169 
Air Freight & Logistics — 0.3%         
United Parcel Service, Inc. Class B    34,800    1,836,744 

Common Stocks    Shares    Value 
 
Auto Components — 0.0%         
Johnson Controls, Inc.    12,200    $ 216,306 
Beverages — 0.6%         
The Coca-Cola Co.    55,300    2,436,518 
PepsiCo, Inc.    17,800    1,014,778 
        3,451,296 
Biotechnology — 0.7%         
Amgen, Inc. (g)    22,500    1,347,525 
Biogen Idec, Inc. (g)    8,200    348,910 
Celgene Corp. (g)    11,500    738,990 
Genzyme Corp. (g)    5,400    393,552 
Gilead Sciences, Inc. (g)    23,200    1,063,720 
        3,892,697 
Building Products — 0.0%         
Masco Corp.    29,800    302,470 
Capital Markets — 0.5%         
The Goldman Sachs Group, Inc.    12,220    1,130,350 
Morgan Stanley    33,400    583,498 
T. Rowe Price Group, Inc.    20,900    826,386 
        2,540,234 
Chemicals — 0.7%         
Air Products & Chemicals, Inc.    3,200    186,016 
The Dow Chemical Co.    54,300    1,448,181 
E.I. du Pont de Nemours & Co.    32,800    1,049,600 
Monsanto Co.    9,500    845,310 
PPG Industries, Inc.    9,100    451,178 
        3,980,285 
Commercial Banks — 1.3%         
BB&T Corp.    50,000    1,792,500 
SunTrust Banks, Inc.    32,100    1,288,494 
U.S. Bancorp    66,600    1,985,346 
Wells Fargo & Co.    64,200    2,186,010 
        7,252,350 
Commercial Services & Supplies — 0.2%         
Waste Management, Inc.    38,700    1,208,601 
Communications Equipment — 0.6%         
Cisco Systems, Inc. (e)(g)    87,800    1,560,206 
Corning, Inc.    28,500    308,655 
Motorola, Inc.    114,500    614,865 
QUALCOMM, Inc.    29,100    1,113,366 
        3,597,092 
Computers & Peripherals — 1.2%         
Apple, Inc. (g)    24,600    2,646,714 
Dell, Inc. (g)    49,200    597,780 
EMC Corp. (g)    83,100    978,918 
Hewlett-Packard Co.    24,400    934,032 
International Business Machines Corp.    16,600    1,543,302 
        6,700,746 
Diversified Financial Services — 1.1%         
Bank of America Corp.    121,200    2,929,404 
JPMorgan Chase & Co.    71,300    2,941,125 
        5,870,529 
Diversified Telecommunication Services — 1.0%         
AT&T Inc.    131,387    3,517,230 
Embarq Corp.    10,300    309,000 
Verizon Communications, Inc.    53,700    1,593,279 
        5,419,509 
Electric Utilities — 0.6%         
American Electric Power Co., Inc.    7,100    231,673 
FirstEnergy Corp.    4,500    234,720 
Progress Energy, Inc.    34,300    1,350,391 
The Southern Co.    49,000    1,682,660 
        3,499,444 

See Notes to Financial Statements.

28 ANNUAL REPORT OCTOBER 31, 2008


Schedule of Investments (continued) BlackRock Preferred and Equity Advantage Trust (BTZ)
(Percentages shown are based on Net Assets)

Common Stocks    Shares             Value 
 
Electrical Equipment — 0.3%         
Emerson Electric Co.    29,300    $ 958,989 
Rockwell Automation, Inc.    18,000    498,060 
        1,457,049 
Electronic Equipment & Instruments — 0.1%         
Tyco Electronics Ltd.    17,100    332,424 
Energy Equipment & Services — 0.6%         
Baker Hughes, Inc.    5,600    195,720 
National Oilwell Varco, Inc. (g)    18,500    552,965 
Schlumberger Ltd.    18,000    929,700 
Smith International, Inc.    17,718    610,917 
Transocean, Inc.    10,263    844,953 
        3,134,255 
Food & Staples Retailing — 0.9%         
SYSCO Corp.    44,200    1,158,040 
Wal-Mart Stores, Inc.    60,400    3,370,924 
Walgreen Co.    20,900    532,114 
        5,061,078 
Food Products — 0.4%         
Kraft Foods, Inc.    38,035    1,108,340 
Sara Lee Corp.    73,900    826,202 
        1,934,542 
Health Care Equipment & Supplies — 0.5%         
Baxter International, Inc.    6,300    381,087 
Becton Dickinson & Co.    13,100    909,140 
Boston Scientific Corp. (g)    19,400    175,182 
Covidien Ltd.    17,100    757,359 
Zimmer Holdings, Inc. (g)    7,400    343,582 
        2,566,350 
Health Care Providers & Services — 0.4%         
Aetna, Inc.    7,800    193,986 
Express Scripts, Inc. (g)    12,900    781,869 
Medco Health Solutions, Inc. (g)    14,200    538,890 
WellPoint, Inc. (g)    14,600    567,502 
        2,082,247 
Hotels, Restaurants & Leisure — 0.6%         
Carnival Corp.    37,100    942,340 
McDonald’s Corp.    37,300    2,160,789 
        3,103,129 
Household Durables — 0.5%         
Fortune Brands, Inc.    12,300    469,122 
KB Home    53,700    896,253 
Leggett & Platt, Inc.    52,200    906,192 
Whirlpool Corp.    10,400    485,160 
        2,756,727 
Household Products — 0.7%         
The Procter & Gamble Co.    57,200    3,691,688 
IT Services — 0.2%         
Automatic Data Processing, Inc.    22,000    768,900 
Cognizant Technology Solutions Corp. (g)    10,900    209,280 
        978,180 
Industrial Conglomerates — 1.1%         
3M Co.    27,200    1,748,960 
General Electric Co.    217,000    4,233,670 
        5,982,630 
Insurance — 0.7%         
The Allstate Corp.    28,400    749,476 
American International Group, Inc.    49,700    94,927 
Lincoln National Corp.    27,000    465,480 
Marsh & McLennan Cos., Inc.    40,900    1,199,188 
The Travelers Cos., Inc.    35,300    1,502,015 
        4,011,086 

Common Stocks    Shares             Value 
 
Internet & Catalog Retail — 0.2%         
Amazon.com, Inc. (f)(g)    15,300    $ 875,772 
Internet Software & Services — 0.5%         
eBay, Inc. (g)    52,000    794,040 
Google, Inc. Class A (g)    3,840    1,379,942 
Yahoo! Inc. (g)    31,800    407,676 
        2,581,658 
Leisure Equipment & Products — 0.2%         
Eastman Kodak Co.    35,600    326,808 
Mattel, Inc.    45,600    684,912 
        1,011,720 
Life Sciences Tools & Services — 0.1%         
Thermo Fisher Scientific, Inc. (g)    8,600    349,160 
Machinery — 0.3%         
Caterpillar, Inc.    23,600    900,812 
Cummins, Inc.    13,900    359,315 
Deere & Co.    9,300    358,608 
        1,618,735 
Media — 0.2%         
CBS Corp. Class B    47,700    463,167 
The DIRECTV Group, Inc. (g)    25,000    547,250 
        1,010,417 
Metals & Mining — 0.1%         
Alcoa, Inc.    16,900    194,519 
Freeport-McMoRan Copper & Gold, Inc. Class B    14,500    421,950 
        616,469 
Multi-Utilities — 0.7%         
Ameren Corp.    20,600    668,470 
Consolidated Edison, Inc.    23,100    1,000,692 
Dominion Resources, Inc.    7,200    261,216 
Public Service Enterprise Group, Inc.    35,000    985,250 
Xcel Energy, Inc.    58,800    1,024,296 
        3,939,924 
Oil, Gas & Consumable Fuels — 3.3%         
Anadarko Petroleum Corp.    16,600    585,980 
Apache Corp.    6,100    502,213 
Chevron Corp.    49,800    3,715,080 
ConocoPhillips    37,400    1,945,548 
Devon Energy Corp.    7,500    606,450 
EOG Resources, Inc.    2,500    202,300 
Exxon Mobil Corp.    91,300    6,767,156 
Hess Corp.    13,100    788,751 
Massey Energy Co.    17,500    404,075 
Peabody Energy Corp.    20,400    704,004 
Southwestern Energy Co. (g)    27,900    993,798 
Spectra Energy Corp.    11,500    222,295 
XTO Energy, Inc.    27,900    1,003,005 
        18,440,655 
Paper & Forest Products — 0.3%         
International Paper Co.    37,000    637,140 
Weyerhaeuser Co.    22,600    863,772 
        1,500,912 
Pharmaceuticals — 2.4%         
Abbott Laboratories    16,900    932,035 
Bristol-Myers Squibb Co.    95,700    1,966,635 
Eli Lilly & Co.    34,200    1,156,644 
Johnson & Johnson    63,400    3,888,956 
Merck & Co., Inc.    61,300    1,897,235 
Pfizer, Inc. (d)    176,500    3,125,815 
Schering-Plough Corp.    42,900    621,621 
Wyeth    8,000    257,440 
        13,846,381 

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2008 29


Schedule of Investments (continued) BlackRock Preferred and Equity Advantage Trust (BTZ)
(Percentages shown are based on Net Assets)

Common Stocks    Shares    Value 
 
Real Estate Investment Trusts (REITs) — 0.4%         
Developers Diversified Realty Corp.    2,700    $ 35,559 
Plum Creek Timber Co., Inc.    27,800    1,036,384 
Vornado Realty Trust    13,500    952,425 
        2,024,368 
Road & Rail — 0.1%         
Norfolk Southern Corp.    5,900    353,646 
Semiconductors & Semiconductor Equipment — 0.8%         
Applied Materials, Inc.    17,400    224,634 
Intel Corp.    110,300    1,764,800 
Linear Technology Corp.    29,200    662,256 
Microchip Technology, Inc.    34,100    839,883 
National Semiconductor Corp.    31,500    414,855 
Texas Instruments, Inc.    30,400    594,624 
        4,501,052 
Software — 1.0%         
Autodesk, Inc. (g)    25,200    537,012 
Electronic Arts, Inc. (g)    10,000    227,800 
Microsoft Corp.    151,400    3,380,762 
Oracle Corp. (g)    69,300    1,267,497 
        5,413,071 
Specialty Retail — 0.4%         
Home Depot, Inc.    47,000    1,108,730 
Staples, Inc.    48,100    934,583 
        2,043,313 
Textiles, Apparel & Luxury Goods — 0.1%         
VF Corp.    15,200    837,520 
Tobacco — 0.7%         
Altria Group, Inc.    94,900    1,821,131 
Philip Morris International, Inc.    19,400    843,318 
Reynolds American, Inc.    21,400    1,047,744 
        3,712,193 
Wireless Telecommunication Services — 0.1%         
Sprint Nextel Corp.    142,400    445,712 
Total Common Stocks — 28.1%        154,335,535 
 
    Par     
Corporate Bonds    (000)     
Capital Markets — 0.0%         
Lehman Brothers Holdings, Inc. (h):         
    3.95%, 11/10/09    USD      105    13,650 
    4.375%, 11/30/10    325    42,250 
        55,900 
Commercial Banks — 4.9%         
Bank of Ireland Capital Funding III, LP, 6.107% (a)(b)(c)(e)    26,600    8,766,828 
Credit Agricole SA, 6.637% (a)(b)(c)(e)    27,495    13,173,129 
Standard Chartered Bank, 7.014% (a)(b)(c)    5,125    2,753,509 
Wachovia Corp., 5.50%, 5/01/13 (d)(j)    2,200    2,065,468 
        26,758,934 
Computers & Peripherals — 1.1%         
International Business Machines Corp., 8%, 10/15/38 (e)    6,000    6,223,380 
Diversified Financial Services — 1.1%         
ING Groep NV, 5.775% (b)(c)(e)    10,000    5,500,000 
Stan IV Ltd., 4.821%, 7/20/11 (c)(i)    283    268,850 
        5,768,850 

    Par     
Corporate Bonds    (000)    Value 
 
Metals & Mining — 0.3%         
Aleris International, Inc., 10%, 12/15/16    USD      5,000    $ 1,625,000 
Paper & Forest Products — 0.4%         
International Paper Co., 8.70%, 6/15/38 (d)    3,100    2,376,087 
Total Corporate Bonds — 7.8%        42,808,151 
Total Long-Term Investments         
(Cost — $1,240,839,833) — 143.4%        786,556,719 
 
Short-Term Securities    Shares     
Money Market Fund — 33.3%         
SSgA Money Market Fund, 2.02%, 12/31/30    182,964,147    182,964,147 
    Par     
    (000)     
U.S. Government Agency Obligations — 3.8%         
Fannie Mae Discount Notes, 2.11%, 11/04/08    USD      11,300    11,299,351 
Federal Home Loan Bank Discount Notes:         
     1.28%, 11/24/08 (d)    5,000    4,996,354 
     0.93%, 12/03/08    500    499,625 
Freddie Mac Discount Notes, 2.09%, 11/04/08 (j)    4,000    3,999,772 
        20,795,102 
Total Short-Term Securities         
(Cost — $203,759,249) — 37.1%        203,759,249 
Total Investments Before Options Written         
(Cost — $1,444,599,082*) — 180.5%        990,315,968 
 
Options Written    Contracts     
Call Options Written         
S&P 500 Index:         
     expiring December 2008 at $ 965    440    (3,190,000) 
     expiring December 2008 at $ 1,005    445    (2,276,175) 
     expiring December 2008 at $ 1,070    265    (658,525) 
Total Options Written         
(Premiums Received — $4,556,037) — (1.1)%        (6,124,700) 
Total Investments, Net of Options Written         
(Cost — $1,440,043,045) — 179.4%        984,191,268 
Liabilities in Excess of Other Assets — (37.2)%        (204,481,140) 
Preferred Shares, at Redemption Value — (42.2)%        (231,098,081) 
Net Assets Applicable to Common Shares — 100.0%        $ 548,612,047 

* The cost and unrealized appreciation (depreciation) of investments as of October 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $1,444,411,687 
Gross unrealized appreciation    $ 3,529,763 
Gross unrealized depreciation    (457,625,482) 
Net unrealized depreciation    $ (454,095,719) 

(a) 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.
(b) Security is perpetual in nature and has no stated maturity date. In certain instances,
a final maturity date may be extended and/or the final payment may be deferred at the
issuer’s option for a specified time without default.
(c) Variable rate security. Rate shown is as of report date.
(d) All or a portion of the security has been pledged as collateral in connection with open
financial futures contracts.

See Notes to Financial Statements.

30 ANNUAL REPORT OCTOBER 31, 2008


Schedule of Investments (concluded) BlackRock Preferred and Equity Advantage Trust (BTZ)

(e) All or a portion of security held as collateral in connection with open reverse
repurchase agreements.
(f) Convertible security.
(g) Non-income producing security.
(h) Issuer filed for bankruptcy and/or is in default of interest payments.
(i) Security is fair valued.
(j) All or a portion of security has been pledged as collateral in connection with open
swaps.
Financial futures contracts purchased as of October 31, 2008 were as follows:

                            Unrealized 
            Expiration        Face    Appreciation 
Contracts        Issue    Date        Value    (Depreciation) 
226           S & P EMINI    December             
            2008        $10,200,585    $ 729,905 
833           10-Year U.S.    December             
           Treasury Bond    2008        $96,720,273    (2,526,195) 
Total                            $(1,796,290) 
 
Financial futures contracts sold as of October 31, 2008 were as follows: 
            Expiration        Face    Unrealized 
     Contracts        Issue    Date        Value    Depreciation 
4,624        2-Year U.S.    December             
          Treasury Bond    2008         $992,624,303    $ (740,952) 
4,367        5-Year U.S.    December             
          Treasury Bond    2008         $491,025,908    (3,570,962) 
     Total                            $(4,311,914) 
 
Foreign currency exchange contracts as of October 31, 2008 were as follows: 
     Currency                     Currency            Settlement    Unrealized 
     Purchased                     Sold            Date    Appreciation 
 
     USD 275,225        EUR 210,000            11/06/08    $ 7,689 
 
Reverse repurchase agreements outstanding as of October 31, 2008 were as follows: 
        Interest    Trade    Maturity               Net Closing    Face 
     Counterparty        Rate    Date    Date        Amount    Amount 
     Barclays Bank Plc    3.560%    9/03/08         12/02/08                        $ 43,230,106                 $ 42,848,752 
     Barclays Bank Plc    3.564%    9/05/08    12/04/08         58,264,553    57,750,000 
     Barclays Bank Plc    3.565%    9/08/08    12/08/08         58,462,577    57,940,445 
     Barclays Bank Plc    3.565%    9/09/08    12/09/08         58,270,416    57,750,000 
     Barclays Bank Plc    3.560%    9/19/08    12/02/08           7,275,730    7,222,875 
     Total                                 $225,503,382                $223,512,072 

Swaps outstanding as of October 31, 2008 were as follows:

    Notional    Unrealized 
    Amount    Appreciation 
    (000)    (Depreciation) 
Receive a fixed rate of 3.085% and pay             
a floating rate based on 3-month LIBOR             
Broker, Citibank N.A.             
Expires October 2010    USD    230,900    $ 890,446 
Receive a fixed rate of 3.150% and pay             
a floating rate based on 3-month LIBOR             
Broker, JPMorgan Chase Bank N.A.             
Expires October 2010    USD    207,800    1,057,979 
Receive a fixed rate of 2.851% and pay             
a floating rate based on 3-month LIBOR             
Broker, JPMorgan Chase Bank N.A.             
Expires October 2010    USD    215,400    125,474 
Receive a fixed rate of 3.168% and pay             
a floating rate based on 3-month LIBOR             
Broker, Deutsche Bank AG             
Expires October 2010    USD    69,300    376,565 
Receive a fixed rate of 2.776%% and pay             
a floating rate based on 3-month LIBOR             
Broker, Deutsche Bank AG             
Expires October 2010    USD    129,300    (107,391) 
Receive a fixed rate of 2.835% and pay             
a floating rate based on 3-month LIBOR             
Broker, Credit Suisse International             
Expires October 2010    USD    215,400    60,689 
Receive a fixed rate of 3.069% and pay             
a floating rate based on 3-month LIBOR             
Broker, Credit Suisse International             
Expires October 2010    USD    46,200    164,377 
Receive a fixed rate of 3.883% and pay             
a floating rate based on 3-month LIBOR             
Broker, Citibank N.A.             
Expires October 2013    USD    101,300    (155,584) 
Receive a fixed rate of 3.665% and pay             
a floating rate based on 3-month LIBOR             
Broker, Deutsche Bank AG             
Expires October 2013    USD    83,300    (836,483) 
Receive a fixed rate of 3.800% and pay             
a floating rate based on 3-month LIBOR             
Broker, Credit Suisse International             
Expires October 2013    USD    82,900    (359,216) 
Bought credit default protection on Carnival Corp.             
and pay 2.350%             
Broker, The Goldman Sachs Group, Inc.             
Expires December 2013    USD    4,000    8,480 
Bought credit default protection on Mack-Cali             
Realty, L and pay 3.100%             
Broker, The Goldman Sachs Group, Inc.             
Expires March 2018    USD    3,000    401,874 
Total            $ 1,627,210 

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. These industry classifications are unaudited.

Currency Abbreviations:
EUR Euro
USD U.S. Dollar

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2008 31


Schedule of Investments October 31, 2008 BlackRock Preferred Income Strategies Fund, Inc. (PSY)
(Percentages shown are based on Net Assets)

Preferred Securities             
        Par     
Capital Trusts        (000)    Value 
 
Building Products — 0.6%             
C8 Capital SPV Ltd., 6.64% (a)(b)(c)    USD    3,915    $ 1,839,228 
Capital Markets — 6.3%             
Ameriprise Financial, Inc., 7.518%, 6/01/66 (c)        7,600    3,794,072 
Credit Suisse Guernsey Ltd., 5.86% (b)(c)(f)        9,045    5,166,106 
Lehman Brothers Holdings Capital Trust V,             
 3.64% (b)(c)(d)(e)        6,400    640 
State Street Capital Trust III, 8.25% (b)(c)        4,000    3,445,080 
State Street Capital Trust IV, 3.819%, 6/01/67 (c)        12,535    8,026,449 
            20,432,347 
Commercial Banks — 33.9%             
ABN AMRO North America Holding Preferred Capital             
Repackaging Trust I, 6.523% (a)(b)(c)(f)        12,035    10,433,960 
Abbey National Capital Trust I, 8.963% (b)(c)        2,811    2,123,980 
BB&T Capital Trust IV, 6.82%, 6/12/77 (c)        18,350    10,220,583 
BNP Paribas, 7.195% (a)(b)(c)        10,075    6,433,754 
Bank One Capital III, 8.75%, 9/01/30        2,000    1,723,436 
Bank of Ireland Capital Funding II, LP, 5.571% (a)(b)(c)    8,065    2,657,659 
Bank of Ireland Capital Funding III, LP, 6.107% (a)(b)(c)    8,575    2,826,148 
Barclays Bank Plc, 7.434% (a)(b)(c)        750    473,505 
Credit Agricole SA, 6.637% (a)(b)(c)        31,800    15,235,698 
First Empire Capital Trust II, 8.277%, 6/01/27        3,630    2,622,857 
HBOS Plc, 6.657% (a)(b)(c)        5,000    2,191,250 
HSBC America Capital Trust I, 7.808%, 12/15/26 (a)        2,000    1,755,482 
HSBC Capital Funding LP/Jersey Channel Islands,             
 10.176% (a)(b)(c)        4,835    3,841,190 
HSBC Finance Capital Trust IX, 5.911%, 11/30/35 (c)    7,300    3,987,537 
Huntington Capital III, 6.65%, 5/15/37 (c)        3,850    1,558,915 
National City Preferred Capital Trust I, 12% (b)(c)        1,100    1,002,067 
NationsBank Capital Trust III, 5.303%, 1/15/27 (c)(f)        13,470    9,344,179 
Regions Financing Trust II, 6.625%, 5/15/47 (c)        3,935    1,349,945 
Royal Bank of Scotland Group Plc (b):             
     7.648% (c)        3,930    2,166,012 
     9.12%        4,800    4,445,141 
     Series MTN, 7.64% (c)        7,500    3,588,510 
SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(b)(c)        3,550    3,305,906 
Standard Chartered Bank, 7.014% (a)(b)(c)        9,575    5,144,360 
SunTrust Preferred Capital I, 5.853% (b)(c)        4,175    2,301,469 
Wachovia Corp. Series K, 7.98% (b)(c)        7,845    5,925,172 
Wells Fargo Capital XIII Series GMTN, 7.70% (b)(c)        3,525    2,881,821 
            109,540,536 
Consumer Finance — 1.1%             
MBNA Capital A, 8.278%, 12/01/26        4,630    3,626,142 
Diversified Financial Services — 9.8%             
AgFirst Farm Credit Bank, 8.393%, 12/15/16 (c)(f)        4,000    2,771,636 
Bank of America Corp. Series K, 8% (b)(c)(f)        8,745    6,547,469 
Citigroup, Inc. (c):             
     8.30%, 12/21/77        4,000    2,745,840 
     Series E, 8.40% (b)(f)        4,400    3,058,440 
Farm Credit Bank of Texas Series 1, 7.561% (b)(c)        2,500    1,499,900 
ING Capital Funding Trust III, 8.439% (b)(c)        6,066    4,721,410 
JPMorgan Chase & Co., 7.90% (b)(c)        2,500    2,026,100 
JPMorgan Chase Capital XXIII, 3.804%, 5/15/77 (c)        8,375    3,808,464 
JPMorgan Chase Capital XXV, 6.80%, 10/01/37 (g)        6,150    4,426,413 
            31,605,672 
Electric Utilities — 1.1%             
PPL Capital Funding, 6.70%, 3/30/67 (c)        5,925    3,436,500 
Insurance — 45.6%             
AON Corp., 8.205%, 1/01/27 (f)        12,175    8,420,948 
Ace Capital Trust II, 9.70%, 4/01/30        11,300    8,929,769 
The Allstate Corp. (c):             
     6.50%, 5/15/57        12,775    6,987,286 
     Series B, 6.125%, 5/15/67 (f)        10,450    5,841,341 

        Par     
Capital Trusts        (000)    Value 
 
Insurance (concluded)             
American International Group, Inc.:             
     8.175%, 5/15/58 (a)(c)    USD    17,125    $ 2,736,113 
     6.25%, 3/15/87        11,220    1,512,793 
Chubb Corp., 6.375%, 3/29/67 (c)(f)        17,700    11,303,397 
Everest Reinsurance Holdings, Inc., 6.60%, 5/01/67 (c)(f)    14,280    6,557,376 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)        15,000    10,085,820 
GE Global Insurance Holding Corp., 7.75%, 6/15/30        10,000    8,930,580 
Genworth Financial, Inc., 6.15%, 11/15/66 (c)        3,000    701,532 
Liberty Mutual Group, Inc. (a)(c):             
     7%, 3/15/37        10,150    5,470,241 
     10.75%, 6/15/88        7,925    4,160,625 
Lincoln National Corp. (c):             
     7%, 5/17/66 (f)        12,000    5,640,000 
     6.05%, 4/20/67        5,025    2,311,500 
Nationwide Life Global Funding I, 6.75%, 5/15/67        9,675    5,197,700 
Oil Casualty Insurance Ltd., 8%, 9/15/34 (a)        3,605    3,292,645 
Principal Life Insurance Co., 8%, 3/01/44 (a)        6,325    4,924,784 
Progressive Corp., 6.70%, 6/15/37 (c)        11,650    6,937,808 
QBE Capital Funding II LP, 6.797% (a)(b)(c)        8,525    3,623,125 
Reinsurance Group of America, 6.75%, 12/15/65 (c)    3,000    1,728,411 
Swiss Re Capital I LP, 6.854% (a)(b)(c)        8,875    4,861,237 
The Travelers Cos., Inc., 6.25%, 3/15/67 (c)(f)        22,850    13,619,811 
ZFS Finance (USA) Trust IV, 5.875%, 5/09/32 (c)        1,300    897,442 
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)(f)        17,110    9,239,400 
Zenith National Insurance Capital Trust I, 8.55%,             
    8/01/28 (a)        3,750    3,553,125 
            147,464,809 
Multi-Utilities — 3.2%             
Dominion Resources Capital Trust I, 7.83%, 12/01/27    10,000    8,977,290 
Puget Sound Energy, Inc. Series A, 6.974%, 6/01/67 (c)    1,826    1,523,875 
            10,501,165 
Oil, Gas & Consumable Fuels — 5.5%             
Enterprise Products Operating LP, 8.375%, 8/01/66 (c)    4,225    3,137,062 
Southern Union Co., 7.20%, 11/01/66 (c)        14,400    8,932,594 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (c)        8,300    5,761,536 
            17,831,192 
Road & Rail — 0.7%             
BNSF Funding Trust I, 6.613%, 12/15/55 (c)        3,750    2,276,061 
Thrifts & Mortgage Finance — 0.4%             
Webster Capital Trust IV, 7.65%, 6/15/37 (c)        3,875    1,164,159 
Total Capital Trusts — 108.2%            349,717,811 
 
Preferred Stocks        Shares     
Capital Markets — 0.3%             
Deutsche Bank Contingent Capital Trust II, 6.55%        72,200    1,078,668 
Commercial Banks — 12.0%             
Barclays Bank Plc, 8.125%        225,000    3,627,000 
First Tennessee Bank NA, 3.90% (a)(c)        4,650    1,506,891 
HSBC USA, Inc. Series H, 6.50%        120,000    2,385,600 
Provident Financial Group, Inc., 7.75%        166,800    3,018,046 
Royal Bank of Scotland Group Plc:             
     Series L, 5.75%        20,000    210,000 
     Series M, 6.40%        15,000    162,900 
SG Preferred Capital II, 6.302% (c)(k)        23,000    18,147,000 
Santander Finance Preferred SA Unipersonal:             
     6.5%        374,000    5,960,625 
     6.8%        208,600    3,552,729 
            38,570,791 

See Notes to Financial Statements.

32 ANNUAL REPORT OCTOBER 31, 2008


Schedule of Investments (continued) BlackRock Preferred Income Strategies Fund, Inc. (PSY)
(Percentages shown are based on Net Assets)

Preferred Stocks           Shares    Value 
 
Diversified Financial Services — 5.8%         
Citigroup, Inc. Series AA, 8.125%    326,400    $ 5,499,840 
Cobank ACB, 7% (a)(k)    152,000    6,107,360 
JPMorgan Chase Capital XXI Series U,         
    4.143%, 2/02/37 (c)(g)(h)    15,525,000    7,215,741 
        18,822,941 
Electric Utilities — 3.2%         
Alabama Power Co.:         
     5.83%    14,000    303,240 
     6.50%    145,000    2,914,500 
Entergy Arkansas, Inc., 6.45%    114,400    2,624,050 
Entergy Louisiana LLC, 6.95%    49,850    2,492,500 
Interstate Power & Light Co. Series B, 8.375%    80,000    2,020,000 
        10,354,290 
Insurance — 20.6%         
AXA SA, 6.379% (a)(c)(d)(f)    13,470,000    6,834,813 
Aspen Insurance Holdings Ltd., 7.401% (c)    194,000    2,522,000 
Axis Capital Holdings Ltd.:         
     Series A, 7.25%    129,300    2,107,590 
     Series B, 7.50% (c)    36,000    2,979,000 
Endurance Specialty Holdings Ltd. Series A, 7.75%    139,200    2,191,008 
Financial Security Assurance Holdings Ltd., 6.40% (a)(c)    6,930,000    2,072,832 
Great West Life & Annuity Insurance Co., 7.153% (a)(c)    7,500,000    5,090,775 
MetLife, Inc.:         
     6.40%    16,825,000    8,375,149 
     Series B, 6.50%    904,400    14,850,248 
PartnerRe Finance II, 6.44% (c)    5,700,000    2,999,426 
Prudential Plc, 6.50%    92,400    1,260,336 
RenaissanceRe Holding Ltd. Series D, 6.60%    435,000    7,103,550 
Zurich RegCaPS Funding Trust, 6.58% (a)(c)    9,800    8,045,188 
        66,431,915 
Multi-Utilities — 2.5%         
Dominion Resources, Inc., 7.50% (c)    8,400,000    4,620,000 
Pacific Gas & Electric Co. Series A, 6%    140,000    3,329,200 
        7,949,200 
Real Estate Investment Trusts (REITs) — 6.3%         
BRE Properties, Inc. Series D, 6.75%    35,000    559,650 
Developers Diversified Realty Corp., 8%    400,000    4,380,000 
First Industrial Realty Trust, Inc., 6.236% (c)    2,390    2,439,294 
Firstar Realty LLC, 8.875% (a)    4,000    3,751,250 
Kimco Realty Corp. Series F, 6.65%    50,000    875,000 
Public Storage:         
     Series F, 6.45%    40,000    670,000 
     Series M, 6.625%    71,900    1,243,870 
     Series I, 7.25%    160,000    3,185,008 
Regency Centers Corp. Series D, 7.25%    100,000    1,678,000 
Weingarten Realty Investors Series F, 6.50%    100,000    1,525,000 
        20,307,072 
Thrifts & Mortgage Finance — 0.2%         
Sovereign Bancorp, Inc. Series C, 7.30% (h)    48,000    753,600 
Wireless Telecommunication Services — 0.6%         
Centaur Funding Corp., 9.08% (a)    2,423    2,041,378 
Total Preferred Stocks — 51.5%        166,309,855 
 
    Par     
Trust Preferreds    (000)     
Capital Markets — 1.0%         
Deutsche Bank Contingent Capital Trust V, 8.05% (b)    USD      4,263    3,096,624 
Commercial Banks — 0.3%         
KeyCorp Capital IX, 6.75%, 12/15/66    1,868    1,048,199 

        Par     
Trust Preferreds        (000)    Value 
 
Communications Equipment — 0.3%             
Corporate-Backed Trust Certificates, Motorola Debenture             
 Backed Series 2002-14, 8.375%, 11/15/28    USD    2,000    $ 1,093,712 
Consumer Finance — 3.3%             
Capital One Capital II, 7.50%, 6/15/66        16,703    10,554,058 
Diversified Financial Services — 1.4%             
Citigroup Capital XVII, 6.35%, 3/15/67        4,548    2,667,800 
ING Groep NV, 7.20% (b)        3,500    1,887,429 
            4,555,229 
Electric Utilities — 2.7%             
Georgia Power Co. Series O, 1.475%, 4/15/33        1,250    1,090,692 
HECO Capital Trust III, 6.50%, 3/18/34        1,250    1,029,911 
National Rural Utilities Cooperative Finance Corp.,             
 6.75%, 2/15/43        1,250    979,158 
PPL Energy Supply LLC, 7%, 7/15/46        5,835    5,674,981 
            8,774,742 
Gas Utilities — 4.2%             
Southwest Gas Capital II, 7.70%, 9/15/43        15,125    13,503,494 
Insurance — 5.5%             
ABN AMRO North America Capital Funding Trust II,             
 2.874% (a)(b)(c)        11,000    10,376,037 
Lincoln National Capital VI Series F, 6.75%, 9/11/52        5,000    3,104,818 
W.R. Berkley Capital Trust II, 6.75%, 7/26/45        7,375    4,281,183 
            17,762,038 
Thrifts & Mortgage Finance — 3.4%             
Countrywide Capital V, 7%, 11/01/66        870    584,751 
Countrywide Financial Corp., 6.75%, 4/01/33        16,201    10,497,802 
            11,082,553 
Total Trust Preferreds — 22.1%            71,470,649 
Total Preferred Securities — 181.8%            587,498,315 
 
Corporate Bonds             
Commercial Banks — 3.6%             
Societe Generale, 5.922% (a)(b)(c)        17,250    10,095,407 
Wachovia Corp., 5.50%, 5/01/13        1,800    1,689,927 
            11,785,334 
Computers & Peripherals — 0.9%             
International Business Machines Corp., 8%, 10/15/38        2,750    2,852,382 
Insurance — 0.9%             
Oil Insurance Ltd., 7.558% (a)(b)(c)        5,000    2,529,900 
Structured Asset Repackaged Trust Series 2004-1,             
 4.919%, 4/21/11 (c)        454    308,816 
            2,838,716 
Total Corporate Bonds — 5.4%            17,476,432 
Total Long-Term Investments             
(Cost — $973,003,951) — 187.2%            604,974,747 
 
    Beneficial     
        Interest     
Short-Term Securities        (000)     
BlackRock Liquidity Series,             
 LLC Cash Sweep Series, 4.60% (i)(j)        28,803    28,803,004 
Total Short-Term Securities             
(Cost — $28,803,004) — 8.9%            28,803,004 
Total Investments (Cost — $1,001,806,955*) — 196.1%            633,777,751 
Liabilities in Excess of Other Assets — (10.9)%            (35,291,815) 
Preferred Shares, at Redemption Value — (85.2)%            (275,353,694) 
Net Assets Applicable to Common Shares — 100.0%            $ 323,132,242 

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2008 33


Schedule of Investments (concluded) BlackRock Preferred Income Strategies Fund, Inc. (PSY)

* The cost and unrealized appreciation (depreciation) of investments as of October 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $1,002,863,231 
Gross unrealized appreciation    $ 2,725,880 
Gross unrealized depreciation    (371,811,360) 
Net unrealized depreciation    $ (369,085,480) 

(a) 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 institu-
tional investors.
(b) Security is a perpetual in nature and has no stated maturity date.
(c) Variable rate security. Rate shown is as of report date.
(d) Non-income producing security.
(e) Issuer filed for bankruptcy and/or is in default of interest payments.
(f) All or a portion of security held as collateral in connection with open reverse repur-
chase agreements.
(g) All or a portion of security has been pledged as collateral in connection with open
financial futures contracts.
(h) Depositary receipts.
(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     
    Activity    Income 
BlackRock Liquidity Series, LLC         
   Cash Sweep Series    $(25,462,243)    $2,450,384 
(j) Represents the current yield as of report date.         
  (k) Security is fair valued.         

Financial futures contracts sold as of October 31, 2008 were as follows:

        Expiration    Face    Unrealized 
Contracts    Issue    Date    Amount    Depreciation 
 
3,581    2-Year U.S.    December         
    Treasury Notes    2008    $768,700,864    $ (598,655) 
3,549    5-Year U.S.    December         
    Treasury Notes    2008    $399,013,051    (2,938,927) 
Total                $(3,537,582) 

Foreign currency exchange contracts as of October 31, 2008 were as follows:

            Unrealized 
Currency    Currency    Settlement    Appreciation 
Purchased    Sold    Date    (Depreciation) 
 
USD    615,760    EUR    450,700    11/06/08    $ 41,577 
EUR    463,600    USD    599,231    11/06/08    (8,613) 
Total            $ 32,964 

Currency Abbreviations:
EUR Euro
USD U.S. Dollar
Reverse repurchase agreements outstanding as of October 31, 2008 were as follows:

    Interest    Trade    Maturity    Net Closing    Face 
Counterparty    Rate    Date    Date    Amount    Amount 
 
Barclays Bank Plc    3.564%    9/05/08    12/04/08    $ 5,653,125    $ 5,603,200 
Barclays Bank Plc    3.564%    9/05/08    12/04/08    17,628,533    17,472,850 
Barclays Bank Plc    3.569%    9/15/08    12/15/08    9,315,278    9,231,990 
Barclays Bank Plc    3.563%    9/26/08    12/04/08    13,008,100    12,919,869 
Barclays Bank Plc    3.564%    9/26/08    12/04/08    9,203,210    9,140,769 
Total                $54,808,246    $54,368,678 

Swaps outstanding as of October 31, 2008 were as follows:

    Notional    Unrealized 
    Amount    Appreciation 
        (000)    (Depreciation) 
Receive a fixed rate of 3.085% and pay a             
floating rate based on 3-month USD LIBOR             
Broker, Citibank N.A.             
Expires October 2010    USD    180,400    $ 695,698 
Receive a fixed rate of 3.15% and pay a             
floating rate based on 3-month USD LIBOR             
Broker, JPMorgan Chase Bank N.A.             
Expires October 2010    USD    162,400    826,832 
Receive a fixed rate of 2.85102% and pay a             
floating rate based on 3-month USD LIBOR             
Broker JPMorgan Chase Bank N.A.             
Expires October 2010    USD    165,000    96,115 
Receive a fixed rate of 3.168% and pay a             
floating rate based on 3-month USD LIBOR             
Broker, Deutsche Bank AG             
Expires October 2010    USD    54,100    293,970 
Receive a fixed rate of 2.776% and pay a             
floating rate based on 3-month USD LIBOR             
Broker, Deutsche Bank AG             
Expires October 2010    USD    99,000    (82,225) 
Receive a fixed rate of 2.835% and pay a             
floating rate based on 3-month USD LIBOR             
Broker, Credit Suisse International             
Expires October 2010    USD    165,000    46,489 
Receive a fixed rate of 3.069350% and pay a             
floating rate based on 3-month USD LIBOR             
Broker, Credit Suisse International    USD    36,100    128,442 
Expires October 2010             
Receive a fixed rate of 3.8825% and pay a             
floating rate based on 3-month USD LIBOR             
Broker, Citibank N.A.             
Expires October 2013    USD    78,000    (119,798) 
Receive a fixed rate of 3.665% and pay a             
floating rate based on 3-month USD LIBOR             
Broker, Deutsche Bank AG             
Expires October 2013    USD    67,700    (679,831) 
Receive a fixed rate of 3.80% and pay a             
floating rate based on 3-month USD LIBOR             
Broker, Credit Suisse International             
Expires October 2013    USD    68,000    (294,653) 
Bought credit default protection on Carnival Corp.             
and pay 2.35%             
Broker, The Goldman Sachs Group, Inc.             
Expires December 2013    USD    3,000    6,360 
Bought credit default protection on Mack-Cali             
Realty, L and pay 3.1%             
Broker, The Goldman Sachs Group, Inc.             
Expires March 2018    USD    5,000    669,790 
Total            $ 1,587,189 

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 defini-
tion may not apply for purposes of this report, which may combine industry sub-classi-
fications for reporting ease. These industry classifications are unaudited.

See Notes to Financial Statements.

34 ANNUAL REPORT OCTOBER 31, 2008


Schedule of Investments October 31, 2008 BlackRock Preferred Opportunity Trust (BPP)
(Percentages shown are based on Net Assets)

Preferred Securities             
        Par     
Capital Trusts        (000)    Value 
Building Products — 0.6%             
C8 Capital SPV Ltd., 6.64% (a)(b)(d)    USD    1,945    $ 913,741 
Capital Markets — 5.1%             
Credit Suisse Guernsey Ltd., 5.86% (b)(d)        3,880    2,216,085 
State Street Capital Trust III, 8.25% (b)(d)        1,920    1,653,638 
State Street Capital Trust IV, 3.819%, 6/01/67 (d)        6,725    4,306,172 
            8,175,895 
Commercial Banks — 22.2%             
Abbey National Capital Trust I, 8.963% (b)(d)        1,425    1,076,724 
BB&T Capital Trust IV, 6.82%, 6/12/77 (d)        9,150    5,096,367 
BNP Paribas, 7.195% (a)(b)(c)(d)        12,175    7,774,784 
Bank of Ireland Capital Funding II, LP, 5.571% (a)(b)        4,015    1,323,063 
Barclays Bank Plc (a)(b)(d):             
     5.926% (c)        3,185    1,709,797 
     7.434%        580    366,177 
FCB/NC Capital Trust I, 8.05%, 3/01/28        1,100    838,251 
Huntington Capital III, 6.65%, 5/15/37 (d)        1,925    779,458 
Lloyds TSB Bank Plc, 6.90% (b)        6,399    3,839,400 
NBP Capital Trust III, 7.375% (b)        2,000    820,000 
Regions Financing Trust II, 6.625%, 5/15/47 (d)        1,970    675,830 
Royal Bank of Scotland Group Plc (b)(d):             
     7.648%        1,960    1,080,250 
     Series MTN, 7.64%        3,700    1,770,332 
Societe Generale, 5.922% (a)(b)(d)        6,575    3,847,960 
SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(b)(d)        1,725    1,606,391 
Wells Fargo Capital XIII Series GMTN, 7.70% (b)(h)        1,700    1,389,815 
Westpac Capital Trust IV, 5.256% (a)(b)(d)        3,000    1,760,790 
            35,755,389 
Diversified Financial Services — 3.6%             
Bank of America Corp. Series M, 8.125% (b)(c)(d)        7,500    5,811,975 
Electric Utilities — 1.0%             
PPL Capital Funding, 6.70%, 3/30/67 (d)        2,675    1,551,500 
Insurance — 41.4%             
AFC Capital Trust I Series B, 8.207%, 2/03/27 (c)        4,500    2,970,000 
AXA SA, 6.379% (a)(b)(d)        7,150    3,627,981 
The Allstate Corp. (d):             
     6.50%, 5/15/57        6,350    3,473,133 
     Series B, 6.125%, 5/15/67 (c)        5,200    2,906,696 
American General Institutional Capital A, 7.57%,             
     12/01/45 (a)        9,605    2,388,975 
American International Group, Inc.:             
     8.75%, 5/15/58 (a)(d)        8,390    1,340,495 
     6.25%, 3/15/87        5,555    748,981 
Chubb Corp., 6.375%, 3/29/67 (c)(d)        9,025    5,763,455 
Everest Re Capital Trust, 6.20%, 3/29/34        750    436,704 
Everest Reinsurance Holdings, Inc., 6.60%, 5/01/67 (d)        7,135    3,276,392 
Financial Security Assurance Holdings Ltd., 5.60%, 7/15/03        380    83,413 
Genworth Financial, Inc., 6.15%, 11/15/66 (d)        1,475    344,920 
Liberty Mutual Group, Inc. (a)(d):             
     10.75%, 6/15/88        3,875    2,034,375 
     7%, 3/15/37        5,025    2,708,174 
Lincoln National Corp. (d):             
     7%, 5/17/66 (c)        3,370    1,583,900 
     6.05%, 4/20/67        2,500    1,150,000 
MetLife, Inc., 6.40%, 12/15/66        6,375    3,173,348 
Nationwide Life Global Funding I, 6.75%, 5/15/67        4,850    2,605,566 
PartnerRe Finance II, 6.44% (d)        2,850    1,499,713 
Progressive Corp., 6.70%, 6/15/37 (d)        5,775    3,439,128 
QBE Capital Funding II LP, 6.797% (a)(b)(d)        4,250    1,806,250 
Reinsurance Group of America, 6.75%, 12/15/65 (d)        1,300    748,978 
Swiss Re Capital I LP, 6.854% (a)(b)(c)(d)        9,425    5,162,497 
The Travelers Cos., Inc., 6.25%, 3/15/67 (c)(d)        11,350    6,765,202 
White Mountains Re Group Ltd., 7.506% (a)(b)(d)        2,600    1,610,720 
ZFS Finance (USA) Trust IV, 5.875%, 5/09/32 (a)(d)        650    448,721 
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)(d)        8,765    4,733,100 
            66,830,817 

        Par     
Capital Trusts        (000)    Value 
 
Multi-Utilities — 0.4%             
Puget Sound Energy, Inc. Series A, 6.974%, 6/01/67 (d)    USD    925    $ 772,375 
Oil, Gas & Consumable Fuels — 1.9%             
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (d)        4,325    3,002,246 
Thrifts & Mortgage Finance — 0.3%             
Webster Capital Trust IV, 7.65%, 6/15/37 (d)        1,925    578,324 
Total Capital Trusts — 76.5%            123,392,262 
 
Preferred Stocks         Shares     
Capital Markets — 0.0%             
Lehman Brothers Holdings Inc. Series D, 5.67% (e)(f)        31,100    109 
Commercial Banks — 22.4%             
Banesto Holdings, Ltd. Series A, 10.50%        30,000    784,689 
Bank of Ireland Capital Funding III, LP, 6.107% (a)(d)    4,275,000    1,408,954 
Barclays Bank Plc, 8.125%    100,000    1,612,000 
Credit Agricole SA, 6.637% (a)(d)    16,385,000    7,850,217 
First Republic Preferred Capital Corp., 7.25%    120,000    2,016,000 
HSBC USA, Inc. Series H, 6.50%    330,000    6,560,400 
Royal Bank of Scotland Group Plc:             
     Series L, 5.75%        10,000    105,000 
     Series M, 6.40%        10,000    108,600 
Santander Finance Preferred SA Unipersonal:             
     6.50%    258,000    4,111,875 
     6.80%        85,000    1,447,661 
Standard Chartered Bank, 7.014% (a)(d)    2,950,000    1,584,947 
Union Planter Preferred Funding Corp., 7.75%        60    2,100,000 
Wachovia Corp. Series K, 7.98% (d)    8,475,000    6,400,998 
            36,091,341 
Diversified Financial Services — 19.1%             
Bank of America Corp. Series K, 8% (c)(d)    10,575,000    7,917,608 
Citigroup, Inc.:             
     Series AA, 8.125%    245,000    4,128,250 
     Series T, 6.50% (g)        65,000    2,093,650 
     Series E, 8.40% (c)(d)    8,750,000    6,082,125 
JPMorgan Chase & Co.:             
     7.90% (c)(d)    9,275,000    7,516,831 
     Series E, 6.15%        75,000    3,146,250 
            30,884,714 
Electric Utilities — 0.6%             
Alabama Power Co., 6.50%        50,000    1,005,000 
Insurance — 15.6%             
Arch Capital Group Ltd. Series A, 8%    117,414    2,248,478 
Aspen Insurance Holdings Ltd., 7.401% (d)    115,000    1,495,000 
Endurance Specialty Holdings Ltd. Series A, 7.75%    172,400    2,713,576 
MetLife, Inc. Series B, 6.50%    314,500    5,164,090 
PartnerRe Ltd. Series C, 6.75%    209,400    3,664,500 
Prudential Plc:             
     6.50%    6,000,000    2,700,000 
     6.50%        62,000    845,680 
RenaissanceRe Holding Ltd. Series D, 6.60%    210,000    3,429,300 
XL Capital Ltd., 6.102% (a)(d)    200,000    1,250,900 
Zurich RegCaPS Funding Trust, 6.58% (a)(d)        2,000    1,641,875 
            25,153,399 
Real Estate Investment Trusts (REITs) — 3.4%             
BRE Properties, Inc. Series D, 6.75%        20,000    319,800 
Public Storage Series F, 6.45%        20,000    335,000 
Public Storage Series M, 6.625%        35,000    605,500 
SunTrust Real Estate Investment Trust, 9%        30    2,731,875 
Weingarten Realty Investors Series F, 6.50%        95,000    1,448,750 
            5,440,925 
Total Preferred Stocks — 61.1%            98,575,488 

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2008 35


Schedule of Investments (continued) BlackRock Preferred Opportunity Trust (BPP)
(Percentages shown are based on Net Assets)

        Par     
Trust Preferreds        (000)    Value 
 
Capital Markets — 2.0%             
Deutsche Bank Contingent Capital Trust V, 8.05% (b)    USD    2,063    $ 1,498,367 
Structured Asset Trust Unit Repackagings (SATURNS),             
 Credit Suisse First Boston (USA), Inc. Debenture Backed             
 Series 2003-13, 6.25%, 7/15/32        278    176,809 
Structured Asset Trust Unit Repackagings (SATURNS),             
 Goldman Sachs Group, Inc. Debenture Backed             
 Series 2003-06, 6%, 2/15/33        2,573    1,613,875 
            3,289,051 
Commercial Banks — 3.6%             
Keycorp Capital V, 5.875%, 7/30/33        2,550    1,432,505 
Mizuho Capital Investment 1 Ltd., 6.686% (a)(b)(d)        5,000    2,751,660 
National City Preferred Capital Trust I, 12% (b)        600    546,582 
SunTrust Preferred Capital I, 5.853% (b)(d)        2,050    1,130,063 
            5,860,810 
Diversified Financial Services — 6.0%             
ING Groep NV, 7.20% (b)        1,750    943,788 
JPMorgan Chase Capital XXI Series U, 4.143%,             
 2/02/37 (d)        7,730    3,592,765 
JPMorgan Chase Capital XXIII, 3.804%, 5/15/77 (c)(d)        2,670    1,214,161 
JPMorgan Chase Capital XXV, 6.80%, 10/01/37 (c)        5,075    3,652,691 
PPLUS Trust Certificates Series VAL-1             
 Class A, 7.25%, 4/15/32        277    223,725 
            9,627,130 
Food Products — 1.2%             
Corporate-Backed Trust Certificates, Kraft Foods, Inc.             
 Debenture Backed Series 2003-11, 5.875%, 11/01/31        2,500    1,974,189 
Insurance — 1.9%             
PLC Capital Trust IV, 7.25%, 9/25/32        460    208,609 
The Phoenix Cos., Inc., 7.45%, 1/15/32        1,985    1,238,711 
Zenith National Insurance Capital Trust I, 8.55%,             
 8/01/28 (a)        1,800    1,705,500 
            3,152,820 
Media — 6.0%             
Comcast Corp.:             
   7%, 9/15/55        1,250    991,701 
   6.625%, 5/15/56        11,750    8,507,000 
Corporate-Backed Trust Certificates, News America             
 Debenture Backed Series 2002-9, 8.125%, 12/01/45        180    125,286 
            9,623,987 
Oil, Gas & Consumable Fuels — 1.8%             
Nexen, Inc. 7.35%, 11/01/43        3,875    2,791,551 
Thrifts & Mortgage Finance — 3.4%             
Countrywide Capital V, 7%, 11/01/66        420    281,240 
Countrywide Financial Corp., 6.75%, 4/01/33        8,015    5,194,765 
            5,476,005 
Wireless Telecommunication Services — 0.6%             
Structured Repackaged Asset-Backed Trust Securities,             
 Sprint Capital Corp. Debenture Backed Series 2004-2,             
 6.50%, 11/15/28        2,585    998,237 
Total Trust Preferreds — 26.5%            42,793,780 
Total Preferred Securities — 164.1%            264,761,530 
 
Corporate Bonds             
Auto Components — 0.0%             
Metaldyne Corp., 10%, 11/01/13        125    26,250 
Chemicals — 0.0%             
Key Plastics LLC, 11.75%, 3/15/13 (a)        630    63,000 
Commercial Banks — 3.3%             
CBA Capital Trust I, 5.805% (a)(b)(c)        5,000    3,426,101 
RESPARCS Funding LP I, 8% (b)        4,000    1,200,000 
Wachovia Corp., 5.50%, 5/01/13        800    751,079 
            5,377,180 

    Par     
Corporate Bonds    (000)    Value 
 
Computers & Peripherals — 0.8%         
International Business Machines Corp., 8%, 10/15/38    USD        1,250   $  1,296,537 
Containers & Packaging — 0.1%         
Impress Holdings BV, 7.878%, 9/15/13 (a)(d)    240    156,000 
Diversified Telecommunication Services — 0.2%         
Qwest Corp., 6.069%, 6/15/13 (d)    460    333,500 
Energy Equipment & Services — 0.1%         
Grant Prideco, Inc. Series B, 6.125%, 8/15/15    100    87,371 
Hotels, Restaurants & Leisure — 0.1%         
Greektown Holdings, LLC, 10.75%, 12/01/13 (a)(e)(f)    361    77,830 
Wynn Las Vegas LLC, 6.625%, 12/01/14    40    29,500 
        107,330 
Insurance — 3.3%         
Kingsway America, Inc., 7.50%, 2/01/14    9,000    5,400,000 
Machinery — 0.2%         
AGY Holding Corp., 11%, 11/15/14    460    322,000 
Media — 2.6%         
CMP Susquehanna Corp., 9.875%, 5/15/14 (a)    110    22,000 
Comcast Holdings Corp., 2%, 11/15/29 (g)    110    3,750,731 
R.H. Donnelley Corp., 11.75%, 5/15/15 (a)    14    5,460 
Windstream Regatta Holdings, Inc., 11%, 12/01/17 (a)    902    423,940 
        4,202,131 
Metals & Mining — 0.8%         
Freeport-McMoRan Copper & Gold, Inc.:         
     7.084%, 4/01/15 (d)    200    155,936 
     8.375%, 4/01/17    1,400    1,099,000 
        1,254,936 
Oil, Gas & Consumable Fuels — 0.1%         
EXCO Resources, Inc., 7.25%, 1/15/11    74    60,750 
Paper & Forest Products — 0.4%         
International Paper Co., 8.70%, 6/15/38    900    689,832 
Professional Services — 0.1%         
FTI Consulting, Inc., 7.75%, 10/01/16    100    92,750 
Specialty Retail — 0.2%         
Lazy Days’ R.V. Center, Inc., 11.75%, 5/15/12    1,182    330,960 
Total Corporate Bonds — 12.3%        19,800,527 
Total Long-Term Investments         
(Cost — $477,216,131) — 176.4%        284,562,057 
 
    Beneficial     
    Interest     
Short-Term Securities    (000)     
U.S. Government Agency Obligations (i) — 5.7%         
Freddie Mac Discount Notes, 2.09%, 11/04/08 (h)    USD       4,000    3,999,772 
Freddie Mac Discount Notes, 2.38%, 11/17/08 (h)    5,200    5,195,288 
Total Short-Term Securities (Cost — $9,195,060) — 5.7%        9,195,060 
Total Investments (Cost — $486,411,191*) — 182.1%        293,757,117 
Liabilities in Excess of Other Assets — (13.6)%        (21,996,257) 
Preferred Shares, at Redemption Value — (68.5)%    (110,450,025) 
Net Assets Applicable to Common Shares — 100.0%    $ 161,310,835 
 
   * The cost and unrealized appreciation (depreciation) of investments as of October 31, 
2008, as computed for federal income tax purposes, were as follows:     
       Aggregate cost    $ 485,403,222 
       Gross unrealized appreciation    $ 1,021,357 
       Gross unrealized depreciation    (192,667,462) 
       Net unrealized depreciation    $(191,646,105) 

See Notes to Financial Statements.

36 ANNUAL REPORT OCTOBER 31, 2008


Schedule of Investments (concluded) BlackRock Preferred Opportunity Trust (BPP)

(a) 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 institu-
tional investors.
(b) Security is perpetual in nature and has no stated maturity date.
(c) All or a portion of security held as collateral in connection with open reverse repur-
chase agreements.
(d) Variable rate security. Rate shown is as of report date.
(e) Non-income producing security.
(f) Issuer filed for bankruptcy and/or is in default of interest payments.
(g) Convertible security.
(h) All or a portion of security, pledged as collateral in connection with open financial
future contracts.
(i) Rate shown is the yield to maturity as of the date of purchase
Financial futures contracts sold as of October 31, 2008 were as follows:

        Expiration    Face    Unrealized 
Contracts    Issue    Date    Value    Depreciation 
 
1,745    2-Year U.S.    December         
    Treasury Bond    2008    $374,573,385    $ (301,695) 
1,693    5-Year U.S.    December         
    Treasury Bond    2008    $190,349,792    (1,395,686) 
Total                $(1,697,381) 

Foreign currency exchange contracts as of October 31, 2008 were as follows:

Currency    Currency    Settlement    Unrealized 
Purchased    Sold    Date    Appreciation 
 
USD 38,007    EUR 29,000    11/06/08    $ 1,062 

Reverse repurchase agreements outstanding as of October 31, 2008 were as follows:

    Interest    Trade    Maturity    Net Closing    Face 
Counterparty    Rate    Date    Date    Amount    Amount 
 
Barclays Bank Plc    3.564%    9/25/08    12/04/08    $ 3,640,052    $ 3,615,000 
Barclays Bank Plc    3.564    9/26/08    12/04/08    3,801,922    3,776,127 
Barclays Bank Plc    3.565    9/26/08    12/08/08    17,558,103    17,432,086 
Barclays Bank Plc    3.565    9/26/08    12/09/08    12,461,631    12,370,976 
Barclays Bank Plc    3.564    10/20/08    12/04/08    5,404,530    5,380,560 
Barclays Bank Plc    3.565    10/22/08    12/08/08    1,713,739    1,705,800 
Total                $44,579,977    $44,280,549 

  Swaps outstanding as of October 31, 2008 were as follows:

    Notional    Unrealized 
    Amount    Appreciation 
        (000)    (Depreciation) 
Receive a fixed rate of 3.085% and pay a             
floating rate based on 3-month LIBOR             
Broker, Citibank N.A.             
Expires October 2010    USD       88,700    $ 349,665 
Receive a fixed rate of 3.150% and pay a             
floating rate based on 3-month LIBOR             
Broker, JPMorgan Chase & Co. Bank N.A.             
Expires October 2010    USD       79,800    413,271 
Receive a fixed rate of 2.851% and pay a             
floating rate based on 3-month LIBOR             
Broker, JPMorgan Chase Bank N.A.             
Expires October 2010    USD       79,700    52,738 
Receive a fixed rate of 3.168% and pay a             
floating rate based on 3-month LIBOR             
Broker, Deutsche Bank AG             
Expires October 2010    USD       26,600    146,881 
Receive a fixed rate of 2.776% and pay a             
floating rate based on 3-month LIBOR             
Broker, Deutsche Bank AG             
Expires October 2010    USD       47,800    (36,015) 

Swaps outstanding as of October 31, 2008 were as follows (concluded): 
 
    Notional    Unrealized 
    Amount    Appreciation 
        (000)    (Depreciation) 
Receive a fixed rate of 2.835% and pay a             
floating rate based on 3-month LIBOR             
Broker, Credit Suisse International             
Expires October 2010    USD    79,700    $ 28,732 
Receive a fixed rate of 3.069% and pay a             
floating rate based on 3-month LIBOR             
Broker, Credit Suisse International             
Expires October 2010    USD    17,700    64,484 
Receive a fixed rate of 3.883% and pay a             
floating rate based on 3-month LIBOR             
Broker, Citibank N.A.             
Expires October 2013    USD    37,000    (52,837) 
Receive a fixed rate of 3.665% and pay a             
floating rate based on 3-month LIBOR             
Broker, Deutsche Bank AG             
Expires October 2013    USD    32,700    (325,038) 
Receive a fixed rate of 3.800% and pay a             
floating rate based on 3-month LIBOR             
Broker, Credit Suisse International             
Expires October 2013    USD    32,800    (138,664) 
Bought credit default protection on             
Carnival Corp. and pay 2.350%             
Broker, The Goldman Sachs Group, Inc.             
Expires December 2013    USD    2,000    4,240 
Bought credit default protection on             
Mack-Cali Realty, L and pay 3.100%             
Broker, The Goldman Sachs Group, Inc.             
Expires March 2018    USD    1,000    133,958 
Total            $ 641,415 

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. These industry classifications are unaudited.
Effective January 1, 2008, the Fund adopted Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 157, “Fair Value Measurements”
(“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for
measuring fair values and requires additional disclosures about the use of fair value
measurements. Various inputs are used in determining the fair value of investments,
which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are not active, inputs other than quoted
prices that are observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks, and default
rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumption used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of October 31, 2008 in determin-
ing the fair valuation of the Fund’s investments:

Valuation    Investments in    Other Financial 
Inputs    Securities    Instruments* 
 
Level 1    $ 61,877,680    $(1,697,381) 
Level 2    231,879,437    642,477 
Level 3         
Total    $293,757,117    $(1,054,904) 
   * Other financial instruments are swaps, futures and foreign currency exchange 
       contracts.         

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2008 37


Statements of Assets and Liabilities                 
                BlackRock 
    BlackRock    BlackRock    BlackRock    Preferred and 
    Broad    Enhanced    Global    Corporate 
    Investment    Capital and    Floating Rate    Income 
    Grade 2009    Income    Income    Strategies 
    Term Trust Inc.1    Fund, Inc.    Trust    Fund, Inc. 
October 31, 2008    (BCT)    (CII)    (BGT)    (PSW) 
     Assets                 
Investments at value — unaffiliated2    $ 36,109,451    $ 171,046,483    $ 411,327,642    $ 129,111,952 
Investments at value — affiliated3        2,450,990        15,938,424 
Unrealized appreciation on foreign currency exchange contracts            6,242,152    5,632 
Unrealized appreciation on swaps                170,562 
Cash    1,666,643        8,399,133     
Foreign currency at value4        8,355    7,149,912    27 
Investments sold receivable        751,220    17,875,230    104,799 
Interest receivable    81,257        5,609,828    3,854,072 
Principal paydown receivable            1,262,437     
Swaps receivable    1,601        26,134    333,141 
Margin variation receivable    210,500            228,375 
Dividends receivable        406,999        130,193 
Commitment fees receivable            2,301     
Other assets    3,226        87,036    52,606 
Prepaid expenses    4,313    4,203    52,858    11,531 
Total assets    38,076,991    174,668,250    458,034,663    149,941,314 
 
     Liabilities                 
Unrealized depreciation on swaps    2,949        820,541    282,882 
Loan payable            123,150,000     
Reverse repurchase agreements                4,024,000 
Options written at value5        6,391,350         
Unrealized depreciation on unfunded corporate loans            167,037     
Unrealized depreciation on foreign currency exchange contracts                1,345 
Swap premium received            62,145     
Bank overdraft                280,480 
Investments purchased payable        72,656    9,569,697     
Interest expense payable            127,594    23,498 
Income dividends payable — Common Shares            109,410    79,800 
Investment advisory fees payable        129,795    243,464    100,104 
Swaps payable    2,461        154,336    373,080 
Officer’s and Directors’/Trustees’ fees payable    3,394    200    48,603    265 
Other affiliates payable        1,331    3,108    1,532 
Other liabilities            7,500     
Other accrued expenses payable    204,964    77,060    160,415    59,839 
Total liabilities    213,768    6,672,392    134,623,850    5,226,825 
 
     Preferred Shares at Redemption Value                 
Preferred Shares, at $25,000 per share liquidation preference, plus unpaid dividends6,7            58,820,925    68,284,629 
Net Assets Applicable to Common Shareholders    $ 37,863,223    $ 167,995,858    $ 264,589,888    $ 76,429,860 
 
     Net Assets Applicable to Common Shareholders Consist of                 
Common Shares, par value8 per share    $ 29,571    $ 1,218,874    $ 23,545    $ 1,029,188 
Paid-in capital in excess of par    37,892,857    223,646,890    437,531,709    237,848,850 
Undistributed net investment income    4,548,368    205,627    8,661,698    1,283,192 
Accumulated net realized gain (loss)    (3,424,822)    2,228,810    (27,896,248)    (71,730,642) 
Net unrealized appreciation/depreciation    (1,182,751)    (59,304,343)    (153,730,816)    (92,000,728) 
Net Assets Applicable to Common Shareholders    $ 37,863,223    $ 167,995,858    $ 264,589,888    $ 76,429,860 
Net asset value per Common Share9    $ 12.80    $ 13.78    $ 11.24    $ 7.43 
     1 Consolidated Statement of Assets and Liabilities.                 
     2 Investments at cost — unaffiliated    $ 38,437,313    $ 227,407,947    $ 569,778,127    $ 220,515,468 
     3 Investments at cost — affiliated        $ 2,450,990        $ 15,938,424 
     4 Foreign currency at cost        $ 9,142    $ 7,344,789    28 
     5 Premiums received from options written        $ 3,449,258         
     6 Preferred Shares par value per share            $ 0.001    $ 0.10 
     7 Preferred Shares outstanding            2,352    2,730 
     8 Common Shares par value per share    $ 0.01    $ 0.10    $ 0.001    $ 0.100 
     9 Common Shares outstanding    2,957,093    12,188,736    23,545,239    10,291,881 
 
See Notes to Financial Statements.                 

38 ANNUAL REPORT

OCTOBER 31, 2008


Statements of Assets and Liabilities (concluded)             
    BlackRock    BlackRock     
    Preferred and    Preferred    BlackRock 
    Equity    Income    Preferred 
    Advantage    Strategies    Opportunity 
    Trust    Fund, Inc.    Trust 
October 31, 2008    (BTZ)    (PSY)    (BPP) 
     Assets             
Investments at value — unaffiliated1    $ 990,315,968    $ 604,974,747    $ 293,757,117 
Investments at value — affiliated2        28,803,004     
Unrealized appreciation on foreign currency exchange contracts    7,689    41,577    1,062 
Unrealized appreciation on swaps    3,085,884    2,763,696    1,193,969 
Cash    855,959    27,284    13,501,155 
Foreign currency at value3    221    52    458 
Investments sold receivable    1,473,971    1,129,195    548,667 
Interest receivable    16,703,444    16,230,901    7,625,983 
Swaps receivable    2,479,215    2,087,016    973,822 
Margin variation receivable    1,429,185    1,394,328    674,328 
Dividends receivable    424,994    155,303    59,016 
Commitment fees receivable             
Other assets    36,818    25,684    41,258 
Prepaid expenses    135,569    53,245    49,487 
Total assets    1,016,948,917    657,686,032    318,426,322 
 
     Liabilities             
Unrealized depreciation on swaps    1,458,674    1,176,507    552,554 
Reverse repurchase agreements    223,512,072    54,368,678    44,280,549 
Options written at value4    6,124,700         
Unrealized depreciation on foreign currency exchange contracts        8,613     
Interest expense payable    1,263,758    312,034    150,279 
Income dividends payable — Common Shares    894,403    380,266    110,908 
Investment advisory fees payable    605,937    389,770    217,566 
Commissions for Preferred Shares payable    8,082         
Swaps payable    3,042,262    2,369,503    1,146,050 
Officer’s and Directors’/Trustees’ fees payable    38,383    27,196    42,734 
Other affiliates payable    7,872    6,132    26,668 
Other accrued expenses payable    282,646    161,397    138,154 
Total liabilities    237,238,789    59,200,096    46,665,462 
 
     Preferred Shares at Redemption Value             
Preferred Shares, at $25,000 per share liquidation preference, plus unpaid dividends5,6    231,098,081    275,353,694    110,450,025 
Net Assets Applicable to Common Shareholders    $ 548,612,047    $ 323,132,242    $ 161,310,835 
 
     Net Assets Applicable to Common Shareholders Consist of             
Common Shares, par value7 per share    $ 51,828    $ 4,060,654    $ 18,392 
Paid-in capital in excess of par    1,162,638,230    937,567,983    427,294,105 
Undistributed net investment income    3,486,479    7,207,075    2,846,583 
Accumulated net realized gain (loss)    (157,389,982)    (255,756,830)    (75,139,264) 
Net unrealized appreciation/depreciation    (460,174,508)    (369,946,640)    (193,708,981) 
Net Assets Applicable to Common Shareholders    $ 548,612,047    $ 323,132,242    $ 161,310,835 
Net asset value per Common Share8    $ 10.59    $ 7.96    $ 8.77 
     1 Investments at cost — unaffiliated    $1,444,599,082    $ 973,003,951    $ 486,411,191 
     2 Investments at cost — affiliated        $ 28,803,004     
     3 Foreign currency at cost    $ 223    $ 58    $ 463 
     4 Premiums received from options written    $ 4,556,037         
     5 Preferred Shares par value per share    $ 0.001    $ 0.10    $ 0.001 
     6 Preferred Shares outstanding    9,240    11,000    4,416 
     7 Common Shares par value per share    $ 0.001    $ 0.10    $ 0.001 
     8 Common Shares outstanding    51,828,157    40,606,540    18,391,631 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

39


Statements of Operations                                 
 
                                BlackRock 
    BlackRockBroad                            Preferred and 
    Investment              BlackRock    BlackRock Global    Corporate Income 
    Grade 2009             Enhanced Capital and    Floating Rate    Strategies 
    Term Trust Inc.1                 Income Fund, Inc.    Income Trust    Fund, Inc. 
    (BCT)                                 (CII)                               (BGT)        (PSW) 
    Year             Period        Year           Period               Year    Year 
    Ended    January 1, 2008        Ended    January 1, 2008             Ended     Ended 
    October 31,    to        December 31,               to        December 31,    October 31, 
    2008    October 31, 2008             2007    October 31, 2008             2007    2008 
 
     Investment Income                                 
Interest    $ 1,605,116    $ 3,774    $ 5,333,166    $ 38,924,449    $ 53,782,920    $ 15,474,775 
Dividends2        4,771,140        2,860,565    3,574        1,657    4,259,551 
Income — affiliated    299    206,280        1,159,893            2,771    1,040,956 
Facility and other fees                    411,675             
Total income    1,605,415    4,981,194        9,353,624    39,339,698        53,787,348    20,775,282 
 
     Expenses3                                 
Investment advisory    218,080    1,647,979        2,724,358    3,803,290        5,251,233    1,785,692 
Reorganization costs        191,150                         
Administration    59,476                             
Commissions for Preferred Shares                    325,019        634,659    279,743 
Accounting services    10,053    49,293        126,088    71,384            62,884 
Professional    56,655    53,123        82,616    269,550        121,285    128,887 
Transfer agent    571    8,535        30,009    25,053        13,163    25,978 
Registration    634    11,311        9,436    27,030        9,455    8,855 
Printing    12,801    40,978        43,711    61,749        86,329    17,134 
Officer and Directors/Trustees    2,260    21,278        25,099    14,579        51,480    17,912 
Custodian    3,130    58,869        124,477    60,734        366,457    21,625 
Borrowing        47,543        142,957    187,250             
Miscellaneous    20,261    16,191        41,629    9,178        85,352    57,837 
Total expenses excluding interest expense and excise tax    383,921    2,146,250        3,350,380    4,854,816        6,619,413    2,406,547 
Interest expense                2,174,821    2,149,318        751,568    842,034 
Excise tax    271,190                             
Total expenses    655,111    2,146,250        5,525,201    7,004,134        7,370,981    3,248,581 
Less fees waived by advisor    (277,556)                (1,014,299)        (1,400,329)     
Less fees paid indirectly                    (20,987)        (87,076)    (4,991) 
Total expenses after waiver and fees paid indirectly    377,555    2,146,250        5,525,201    5,968,848        5,883,576    3,243,590 
Net investment income    1,227,860    2,834,944        3,828,423    33,370,850        47,903,772    17,531,692 
 
     Realized and Unrealized Gain (Loss)                                 
Net realized gain (loss) from:                                 
   Investments    (178,417)    (12,495,258)        20,031,026    (22,712,053)        (3,143,302)    (26,947,127) 
   Futures and swaps    (99,739)    (803,545)        (437,906)    42,673        170,043    (13,243,680) 
   Foreign currency                4,975    3,240,921        (7,353,263)    (9,100) 
   Options written        19,241,305        4,844,512                 
   Borrowed bonds                                (204,561) 
    (278,156)    5,942,502        24,442,607    (19,428,459)        (10,326,522)    (40,404,468) 
Net change in unrealized appreciation/depreciation on:                                 
   Investments    (2,061,800)    (79,390,907)        (18,352,155)    (144,995,449)        (21,995,085)    (83,920,829) 
   Futures and swaps    1,145,111    94,114        (108,866)    (741,300)        (181,909)    36,748 
   Foreign currency        (627)        (160)    9,141,359        (168,662)    4,285 
   Options written        (4,134,997)        1,050,785                 
   Unfunded corporate loans                    (167,037)             
   Borrowed bonds                                16,010 
    (916,689)    (83,432,417)        (17,410,396)    (136,762,427)        (22,345,656)    (83,863,786) 
Total realized and unrealized gain (loss)    (1,194,845)    (77,489,915)        7,032,211    (156,190,886)        (32,672,178)    (124,268,254) 
 
     Dividends to Preferred Shareholders From                                 
Net investment income                    (5,542,312)        (12,723,631)    (4,921,335) 
Net Increase (Decrease) in Net Assets Applicable to Common                                 
Shareholders Resulting from Operations    $ 33,015    $ (74,654,971)    $ 10,860,634    $ (128,362,348)    $ 2,507,963    $ (111,657,897) 
1 Consolidated Statement of Operations.                                 
2 Foreign withholding tax        $ 21,943                         

3 Prior year presentation has been changed to match current year groupings for certain line items.

See Notes to Financial Statements.

40 ANNUAL REPORT

OCTOBER 31, 2008


Statements of Operations (concluded)                 
 
    BlackRock    BlackRock         
    Preferred and    Preferred         
    Equity    Income         
    Advantage    Strategies     BlackRock Preferred 
    Trust    Fund, Inc.        Opportunity Trust 
    (BTZ)    (PSY)    (BPP) 
    Year    Year    Period    Year 
    Ended    Ended    January 1, 2008    Ended 
    October 31,    October 31,    to      December 31, 
    2008    2008    October 31, 2008    2007 
 
     Investment Income                 
Interest    $ 58,053,566    $ 64,467,091    $ 25,099,636     $ 32,038,522 
Dividends    25,738,839    15,696,042    7,206,454    11,823,544 
Income — affiliated    1,546    2,450,384    3,839    3,663 
Total income    83,793,951    82,613,517    32,309,929    43,865,729 
 
     Expenses1                 
Investment advisory    9,022,659    7,144,643    2,880,820    4,197,634 
Commissions for Preferred Shares    876,464    1,104,935    360,369    576,730 
Accounting services    163,631    238,251    73,923     
Professional    289,257    301,397    124,054    117,147 
Transfer agent    33,908    64,004    15,344    14,742 
Registration    35,627    13,310    8,919    9,551 
Printing    227,570    62,891    70,196    111,996 
Officer and Directors/Trustees    108,000    63,879    8,656    51,778 
Custodian    78,161    52,872    38,733    154,734 
Miscellaneous    147,214    124,780    26,369    84,180 
Total expenses excluding interest expense    10,982,491    9,170,962    3,607,383    5,318,492 
Interest expense    3,926,183    3,299,544    1,471,695    858,588 
Total expenses    14,908,674    12,470,506    5,079,078    6,177,080 
Less fees paid indirectly    (23,149)    (17,272)    (3,010)    (40,628) 
Total expenses after fees paid indirectly    14,885,525    12,453,234    5,076,068    6,136,452 
Net investment income    68,908,426    70,160,283    27,233,861    37,729,277 
 
     Realized and Unrealized Gain (Loss)                 
Net realized gain (loss) from:                 
   Investments    (91,992,361)    (92,155,011)    (30,394,723)    (357,711) 
   Futures and swaps    (62,607,820)    (53,959,727)    (17,582,062)    (26,951,570) 
   Foreign currency    (22,920)    (36,798)    (9,147)     
   Options written    41,779,259             
   Short sales    2,023            2,619,060 
   Borrowed bonds    (291,613)    (891,125)         
    (113,133,432)    (147,042,661)    (47,985,932)    (24,690,221) 
Net change in unrealized appreciation/depreciation on:                 
   Investments    (406,761,273)    (334,842,809)    (148,531,491)    (58,862,909) 
   Futures and swaps    1,331,355    681,019    (1,185,158)    (3,549,673) 
   Foreign currency    158,263    32,957    1,057     
   Options written    (2,864,690)             
   Short sales    (1,401)            523,568 
   Borrowed bonds    (83,807)    503,414         
    (408,221,553)    (333,625,419)    (149,715,592)    (61,889,014) 
Total realized and unrealized loss    (521,354,985)    (480,668,080)    (197,701,524)    (86,579,235) 
 
     Dividends and Distributions to Preferred Shareholders From                 
   Net investment income    (17,100,517)    (19,937,495)    (5,653,232)    (11,458,715) 
   Net realized gain                (87,490) 
Total dividends and distributions from Preferred Shareholders    (17,100,517)    (19,937,495)    (5,653,232)    (11,546,205) 
Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations    $ (469,547,076)    $ (430,445,292)    $ (176,120,895) $    (60,396,163) 
     1 Prior year presentation has been changed to match current year groupings for certain line items.                 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

41


Statements of Changes in Net Assets    BlackRock Broad Investment Grade 2009 Term Trust Inc.1 (BCT) 
 
        Year Ended October 31, 
Increase (Decrease) in Net Assets:        2008    2007 
     Operations             
Net investment income        $ 1,227,860    $ 1,408,548 
Net realized gain (loss)        (278,156)    16,829 
Net change in unrealized appreciation/depreciation        (916,689)    23,668 
Net increase in net assets resulting from operations        33,015    1,449,045 
 
     Dividends to Shareholders From             
Net investment income        (1,738,771)    (2,661,384) 
 
     Net Assets             
Total decrease in net assets        (1,705,756)    (1,212,339) 
Beginning of year        39,568,979    40,781,318 
End of year        $ 37,863,223    $ 39,568,979 
End of year undistributed net investment income        $ 4,548,368    $ 4,863,653 
   1 Consolidated Statements of Changes in Net Assets.             
 
 
 
    BlackRock Enhanced Capital and Income Fund (CII) 
    Period         
    January 1, 2008 to    Year Ended December 31, 
Increase (Decrease) in Net Assets:    October 31, 2008           2007    2006 
     Operations             
Net investment income    $ 2,834,944    $ 3,828,423    $ 4,707,078 
Net realized gain    5,942,502    24,442,607    16,379,925 
Net change in unrealized appreciation/depreciation    (83,432,417)    (17,410,396)    27,847,886 
Net increase (decrease) in net assets resulting from operations    (74,654,971)    10,860,634    48,934,889 
 
     Dividends and Distributions to Shareholders From             
Net investment income    (2,820,467)    (4,178,081)    (4,463,881) 
Net realized gain    (7,621,956)    (25,569,419)    (13,797,677) 
Tax return of capital    (7,292,188)         
Decrease in net assets resulting from dividends and distributions to shareholders    (17,734,611)    (29,747,500)    (18,261,558) 
 
     Capital Share Transactions             
Value of shares redeemed in repurchase offer            (12,039,454) 
Net decrease in net assets derived from share transactions            (12,039,454) 
 
     Net Assets             
Total increase (decrease) in net assets    (92,389,582)    (18,886,866)    18,633,877 
Beginning of period    260,385,440    279,272,306    260,638,429 
End of period    $ 167,995,858    $ 260,385,440    $ 279,272,306 
End of period undistributed net investment income    $ 205,627        $ 200,725 

See Notes to Financial Statements.

42 ANNUAL REPORT

OCTOBER 31, 2008


Statements of Changes in Net Assets    BlackRock Global Floating Rate Income Trust (BGT) 
    Period         
    January 1, 2008 to    Year Ended December 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:    October 31, 2008    2007             2006 
 
     Operations             
Net investment income    $ 33,370,850    $ 47,903,772    $ 46,780,264 
Net realized loss    (19,428,459)    (10,326,522)    (1,913,866) 
Net change in unrealized appreciation/depreciation    (136,762,427)    (22,345,656)    338,090 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income    (5,542,312)    (12,723,631)    (11,316,620) 
    Net realized gain            (160,710) 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations    (128,362,348)    2,507,963    33,727,158 
 
     Dividends and Distributions to Common Shareholders From             
Net investment income    (24,133,870)    (26,833,571)    (33,813,977) 
Net realized gain            (480,136) 
Tax return of capital        (8,473,282)     
Decrease in net assets resulting from dividends and distributions to Common Shareholders    (24,133,870)    (35,306,853)    (34,294,113) 
 
     Capital Share Transactions             
Reinvestment of common dividends        820,433    412,654 
 
     Net Assets Applicable to Common Shareholders             
Total decrease in net assets applicable to Common Shareholders    (152,496,218)    (31,978,457)    (154,301) 
Beginning of period    417,086,106    449,064,563    449,218,864 
End of period    $ 264,589,888    $ 417,086,106    $ 449,064,563 
End of period undistributed (distributions in excess of) net investment income    $ 8,661,698    $ 219,332    $ (855,008) 
 
    BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW) 
                   Year Ended October 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:                 2008    2007 
     Operations             
Net investment income        $ 17,531,692    $ 20,683,793 
Net realized loss        (40,404,468)    (6,921,885) 
Net change in unrealized appreciation/depreciation        (83,863,786)    (17,907,405) 
Dividends to Preferred Shareholders from net investment income        (4,921,335)    (7,254,700) 
Net decrease in net assets applicable to Common Shareholders resulting from operations        (111,657,897)    (11,400,197) 
 
     Dividends and Distributions to Common Shareholders From             
Net investment income        (12,521,666)    (12,124,207) 
Tax return of capital        (545,246)    (4,335,991) 
Decrease in net assets resulting from dividends and distributions to Common Shareholders        (13,066,912)    (16,460,198) 
 
     Capital Share Transactions             
Reinvestment of common dividends            281,127 
 
     Net Assets Applicable to Common Shareholders             
Total decrease in net assets applicable to Common Shareholders        (124,724,809)    (27,579,268) 
Beginning of year        201,154,669    228,733,937 
End of year        $ 76,429,860    $ 201,154,669 
End of period undistributed net investment income        $ 1,283,192    $ 1,621,310 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

43


Statements of Changes in Net Assets    BlackRock Preferred and Equity Advantage Trust (BTZ) 
    Year Ended         Period 
    October 31,    December 27, 20061 to 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:    2008    October 31, 2007 
     Operations             
Net investment income    $ 68,908,426        $ 64,774,125 
Net realized loss    (113,133,432)        (45,522,505) 
Net change in unrealized appreciation/depreciation    (408,221,553)        (51,952,955) 
Dividends to Preferred Shareholders from net investment income    (17,100,517)        (16,313,570) 
Net decrease in net assets applicable to Common Shareholders resulting from operations    (469,547,076)        (49,014,905) 
 
     Dividends and Distributions to Common Shareholders From             
Net investment income    (46,857,132)        (48,688,436) 
Tax return of capital    (43,518,226)        (24,171,991) 
Decrease in net assets resulting from dividends and distributions to Common Shareholders    (90,375,358)        (72,860,427) 
 
     Capital Share Transactions             
Net proceeds from the issuance of Common Shares            1,115,290,352 
Net proceeds from the underwriters’ over-allotment option exercised            113,370,625 
Reinvestment of common dividends            1,748,836 
Net increase in net assets derived from share transactions            1,230,409,813 
 
     Net Assets Applicable to Common Shareholders             
Total increase (decrease) in net assets applicable to Common Shareholders    (559,922,434)        1,108,534,481 
Beginning of period    1,108,534,481         
End of period    $ 548,612,047        $1,108,534,481 
End of period undistributed (distributions in excess of) net investment income    $ 3,486,479        $ (276,473) 
   1 Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.             
 
 
 
    BlackRock Preferred Income Strategies Fund, Inc. (PSY) 
                                                        Year Ended October 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:    2008        2007 
     Operations             
Net investment income    $ 70,160,283    $ 81,859,216 
Net realized loss    (147,042,661)    (16,858,784) 
Net change in unrealized appreciation/depreciation    (333,625,419)    (78,182,156) 
Dividends to Preferred Shareholders from net investment income    (19,937,495)    (29,469,686) 
Net decrease in net assets applicable to Common Shareholders resulting from operations    (430,445,292)    (42,651,410) 
 
     Dividends and Distributions to Common Shareholders From             
Net investment income    (46,831,403)    (47,141,781) 
Tax return of capital    (9,002,427)    (8,692,071) 
Decrease in net assets resulting from dividends and distributions to Common Shareholders    (55,833,830)    (55,833,852) 
 
     Net Assets Applicable to Common Shareholders             
Total decrease in net assets applicable to Common Shareholders    (486,279,122)    (98,485,262) 
Beginning of year    809,411,364    907,896,626 
End of year    $ 323,132,242    $ 809,411,364 
End of year undistributed net investment income    $ 7,207,075    $ 6,030,241 

See Notes to Financial Statements.

44 ANNUAL REPORT

OCTOBER 31, 2008


Statements of Changes in Net Assets    BlackRock Preferred Opportunity Trust (BPP) 
    Period         
    January 1, 2008 to     Year Ended December 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:    October 31, 2008           2007         2006 
     Operations             
Net investment income    $ 27,233,861    $ 37,729,277    $ 37,628,296 
Net realized gain (loss)    (47,985,932)    (24,690,221)    5,460,212 
Net change in unrealized appreciation/depreciation    (149,715,592)    (61,889,014)    5,741,786 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income    (5,653,232)    (11,458,715)    (8,388,298) 
    Net realized gain        (87,490)    (2,162,948) 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations    (176,120,895)    (60,396,163)    38,279,048 
 
     Dividends and Distributions to Common Shareholders From             
Net investment income    (15,206,928)    (29,219,599)    (28,950,629) 
Net realized gain        (312,510)    (7,716,405) 
Tax return of capital    (5,480,035)    (2,820,986)     
Decrease in net assets resulting from dividends and distributions to Common Shareholders    (20,686,963)    (32,353,095)    (36,667,034) 
 
     Capital Share Transactions             
Reinvestment of common dividends    101,702    770,755    1,193,538 
 
     Net Assets Applicable to Common Shareholders             
Total increase (decrease) in net assets applicable to Common Shareholders    (196,706,156)    (91,978,503)    2,805,552 
Beginning of period    358,016,991    449,995,494    447,189,942 
End of period    $ 161,310,835    $ 358,016,991    $ 449,995,494 
End of period undistributed (distributions in excess of) net investment income    $ 2,846,583    $ (2,571,328)    $ 372,887 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

45


Statements of Cash Flows                 
                BlackRock 
                Global 
    BlackRock    Floating Rate 
    Enhanced Capital and    Income 
    Income Fund, Inc.    Trust, Inc. 
                                     (CII)        (BGT) 
    Period        Year    Period 
    January 1, 2008         Ended    January 1, 2008 
    to    December 31,    to 
    October 31, 2008        2007    October 31, 2008 
 
     Cash Provided by Operating Activities                 
Net increase (decrease) in net assets resulting from operations    $ (74,654,971)    $ 10,860,634    $ (128,362,348) 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided                 
   by operating activities:                 
     Increase (decrease) in receivables    (113,466)        1,889,199    2,463,810 
     Increase in prepaid expenses and other assets    (3,682)            (40,539) 
     Decrease in other liabilities    (179,439)        (134,190)    (6,693,687) 
     Swap premium received                62,145 
     Net realized and unrealized loss from investments    76,780,749        (7,531,321)    160,440,077 
     Amortization of premium and discount on investments            445,574    (1,251,789) 
     Paid-in-kind income                (1,001,772) 
Proceeds from sales of long-term investments    106,265,023        309,159,110    187,312,133 
Purchases of long-term investments    (118,127,212)        (194,658,567)    (142,309,174) 
Net proceeds of short-term investments    11,221,905        (1,662,451)    7,156,339 
Premiums received from options written    42,979,065        31,909,279     
Premiums paid on closing options written    (24,312,112)        (23,023,950)     
Net cash provided by operating activities    19,855,860        127,253,317    77,775,195 
 
     Cash Used for Financing Activities                 
Payments on redemption of Preferred Shares                (184,650,000) 
Cash receipts from loans            42,000,000    242,650,000 
Cash payments from loans            (142,000,000)    (119,500,000) 
Cash receipts from reverse repurchase agreements                14,217,024 
Cash payments from reverse repurchase agreements                (14,217,024) 
Cash dividends paid to shareholders    (19,856,616)        (29,069,772)    (32,509,947) 
Net cash used for financing activities    (19,856,616)        (129,069,772)    (94,009,947) 
 
     Cash Impact from Foreign Currency Fluctuations                 
Cash impact from foreign currency fluctuations    (627)        (160)    (270,522) 
 
     Cash                 
Net decrease in cash    (1,383)        (1,816,615)    (16,505,274) 
Cash at beginning of period    9,738        1,826,353    32,054,319 
Cash at end of period    $ 8,355    $ 9,738    $ 15,549,045 
 
     Cash Flow Information                 
Cash paid for interest        $ 2,297,965    $ 2,021,724 

See Notes to Financial Statements.

46 ANNUAL REPORT

OCTOBER 31, 2008


Financial Highlights    BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT) 
 
        Year Ended October 31,     
    2008    2007    2006    2005    2004 
     Per Share Operating Performance                     
 
Net asset value, beginning of year    $ 13.38    $ 13.79    $ 14.63    $ 15.98    $ 16.02 
Net investment income    0.421    0.48    0.65    0.80    0.61 
Net realized and unrealized gain (loss)    (0.41)    0.01    (0.05)    (0.87)    0.25 
Net increase (decrease) from investment operations    0.01    0.49    0.60    (0.07)    0.86 
Dividends and distributions from:                     
    Net investment income    (0.59)    (0.90)    (1.42)    (1.03)    (0.90) 
    Net realized gain            (0.02)    (0.25)     
Total dividends and distributions    (0.59)    (0.90)    (1.44)    (1.28)    (0.90) 
Net asset value, end of year    $ 12.80    $ 13.38    $ 13.79    $ 14.63    $ 15.98 
Market price, end of year    $ 12.50    $ 15.15    $ 15.08    $ 15.86    $ 15.80 
 
     Total Investment Return2                     
Based on net asset value    (0.07)%    2.95%    3.53%    (0.82)%    5.52% 
Based on market price    (13.82)%    6.60%    4.44%    8.74%    5.45% 
 
     Ratios to Average Net Assets                     
Total expenses after waiver and excluding interest expense and excise tax    0.27%    1.16%    1.14%    1.19%    1.11% 
Total expenses after waiver    0.95%    1.86%    1.14%    2.37%    2.48% 
Total expenses    1.65%    1.86%    1.14%    2.37%    2.48% 
Net investment income    3.09%    3.50%    4.50%    5.23%    3.83% 
 
     Supplemental Data                     
Net assets, end of year (000)    $ 37,863    $ 39,569    $ 40,781    $ 43,276    $ 47,255 
Reverse repurchase agreements outstanding, end of year (000)                    $ 19,263 
Reverse repurchase agreements average daily balance (000)                $ 7,865    $ 22,055 
Portfolio turnover    114%    10%    8%    116%    20% 
Asset coverage, end of year per $1,000                    $ 3,453 

1 Based on average shares outstanding.
2 Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Total investment returns exclude the effects of sales charges.

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

47


Financial Highlights    BlackRock Enhanced Capital and Income Fund, Inc. (CII) 
    Period                 
    January 1,                Period 
    2008 to                April 30, 20041 
        Year Ended December 31,     
    October 31,                to December 31, 
    2008    2007             2006    2005    2004 
     Per Share Operating Performance                     
Net asset value, beginning of period    $ 21.36    $ 22.91    $ 20.31    $ 20.76    $ 19.102 
Net investment income    0.233    0.313    0.373    0.463    0.46 
Net realized and unrealized gain (loss)    (6.36)    0.58    3.69    0.29    1.84 
Net increase (decrease) from investment operations    (6.13)    0.89    4.06    0.75    2.30 
Dividends and distributions from:                     
     Net investment income    (0.23)    (0.34)    (0.33)    (0.47)    (0.48) 
     Net realized gain    (0.62)    (2.10)    (1.13)    (0.73)    (0.11) 
     Tax return of capital    (0.60)                (0.01) 
Total dividends and distributions    (1.45)    (2.44)    (1.46)    (1.20)    (0.60) 
Capital charges with respect to the issuance of shares                    (0.04) 
Net asset value, end of period    $ 13.78    $ 21.36    $ 22.91    $ 20.31    $ 20.76 
Market price, end of period    $ 12.37    $ 20.06    $ 20.41    $ 17.21    $ 18.32 
 
     Total Investment Return4                     
Based on net asset value    (29.46)%5    4.79%    21.70%    4.69%    12.30%5 
Based on market price    (32.58)%5    10.47%    27.95%    0.52%    (5.36)%5 
 
     Ratios to Average Net Assets                     
Total expenses after waiver and excluding interest expense and reorganization expense    1.01%6    1.19%    1.42%    1.47%    1.20%6 
Total expenses after waiver    1.10%6    1.96%    3.54%    2.96%    1.96%6 
Total expenses    1.10%6    1.96%    3.54%    2.96%    2.19%6 
Net investment income    1.46%6    1.36%    1.75%    2.28%    3.52%6 
 
     Supplemental Data                     
Net assets, end of period (000)    $ 167,996    $ 260,385    $ 279,272    $ 260,638    $ 266,345 
Loan outstanding, end of period (000)            $ 100,000    $ 109,000    $ 109,000 
Average loan outstanding during the period (000)        $ 38,788    $ 107,504    $ 109,000    $ 98,750 
Portfolio turnover    45%    63%    38%    61%    20% 
Asset coverage, end of period per $1,000            $ 3,793    $ 3,391    $ 3,444 

1 Commencement of operations.
2 Net asset value, beginning of period, reflects a deduction of $0.90 per share sales charge from initial offering price of $20.00 per share.
3 Based on average shares outstanding.
4 Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in
substantially different returns. Total investment returns exclude the effects of sales charges.
5 Aggregate total investment return.
6 Annualized.

See Notes to Financial Statements.

48 ANNUAL REPORT

OCTOBER 31, 2008


Financial Highlights             BlackRock Global Floating Rate Income Trust (BGT) 
    Period                Period 
    January 1,                August 30, 
    2008 to                20041 to 
        Year Ended December 31,     
    October 31,                December 31, 
    2008    2007             2006    2005    2004 
     Per Share Operating Performance                     
Net asset value, beginning of period    $ 17.71    $ 19.11    $ 19.13    $ 19.21    $ 19.102 
Net investment income    1.423    2.03    1.99    1.64    0.33 
Net realized and unrealized gain (loss)    (6.62)    (1.39)    (0.06)    (0.17)    0.35 
Dividends and distributions to Preferred Shareholders from:                     
   Net investment income    (0.24)    (0.54)    (0.48)    (0.33)    (0.04) 
   Net realized gain            (0.01)               (0.00)4     
Net increase (decrease) from investment operations    (5.44)    0.10    1.44    1.14    0.64 
Dividends and distributions to Common Shareholders from:                     
   Net investment income    (1.03)    (1.14)    (1.44)    (1.22)    (0.37) 
   Net realized gain            (0.02)               (0.00)4     
   Tax return of capital        (0.36)             
Total dividends and distributions    (1.03)    (1.50)    (1.46)    (1.22)    (0.37) 
Capital charges with respect to issuance of:                     
   Common Shares                    (0.04) 
   Preferred Shares                    (0.12) 
Total capital charges                    (0.16) 
Net asset value, end of period    $ 11.24    $ 17.71    $ 19.11    $ 19.13    $ 19.21 
Market price, end of period    $ 9.63    $ 15.78    $ 19.27    $ 17.16    $ 18.63 
 
     Total Investment Return5                     
Based on net asset value    (31.62)%6    0.98%    7.93%    6.63%    2.57%6 
Based on market price    (34.24)%6    (10.92)%    21.31%    (1.34)%    (5.00)%6 
 
     Ratios to Average Net Assets Applicable to Common Shareholders                     
Total expenses after waiver and fees paid indirectly and excluding interest expense8    1.21%7    1.16%    1.19%    1.15%    0.97%7 
Total expenses after waiver and fees paid indirectly8    1.89%7    1.33%    1.43%    1.23%    0.97%7 
Total expenses after waiver and before fees paid indirectly8    1.89%7    1.33%    1.43%    1.23%    0.97%7 
Total expenses8    2.22%7    1.67%    1.75%    1.56%    1.26%7 
Net investment income8    10.56%7    10.83%    10.38%    8.52%    5.04%7 
Dividends to Preferred Shareholders    1.75%7    2.88%    2.51%    1.71%    0.62%7 
Net investment income to Common Shareholders    8.81%7    7.95%    7.87%    6.81%    4.42%7 
 
     Supplemental Data                     
Net assets applicable to Common Shareholders, end of period (000)    $ 264,590    $ 417,086    $ 449,065    $ 449,219    $ 451,126 
Preferred Shares outstanding at liquidation preference, end of period (000)    $ 58,800    $ 243,450    $ 243,450    $ 243,450    $ 243,450 
Loan outstanding, end of period (000)    $ 123,150                 
Average loan outstanding during the period (000)    $ 71,542                 
Reverse repurchase agreements outstanding, end of period (000)            $ 26,108         
Reverse repurchase agreements average daily balance (000)    $ 238    $ 10,524    $ 19,562    $ 10,722    $ 114 
Portfolio turnover    25%    41%    50%    46%    11% 
Asset coverage per Preferred Share, end of period    $ 137,505    $ 67,849    $ 73,810    $ 71,139    $ 71,330 

1 Commencement of operations.
2 Net asset value, beginning of period, reflects a deduction of $0.90 per share sales charge from initial offering price of $20.00 per share.
3 Based on average shares outstanding.
4 Amount is less than $(0.01) per share.
5 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.
Total investment returns exclude the effects of sales charges.
6 Aggregate total investment return.
7 Annualized.
8 Do not reflect the effect of dividends to Preferred Shareholders.

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

49


Financial Highlights    BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW) 
 
        Year Ended October 31,     
    2008           2007             2006    2005    2004 
     Per Share Operating Performance                     
Net asset value, beginning of year    $ 19.54    $ 22.25    $ 22.36    $ 23.69    $ 24.38 
Net investment income    1.701    2.011    2.141    2.16    2.19 
Net realized and unrealized gain (loss)    (12.06)    (2.41)    0.07    (1.09)    (0.70) 
Dividends to Preferred Shareholders from net investment income    (0.48)    (0.71)    (0.63)    (0.40)    (0.18) 
Net increase (decrease) from investment operations    (10.84)    (1.11)    1.58    0.67    1.31 
Dividends and distributions to Common Shareholders from:                     
    Net investment income    (1.22)    (1.18)    (1.69)    (2.00)    (2.00) 
    Tax return of capital    (0.05)    (0.42)             
Total dividends and distributions    (1.27)    (1.60)    (1.69)    (2.00)    (2.00) 
Net asset value, end of year    $ 7.43    $ 19.54    $ 22.25    $ 22.36    $ 23.69 
Market price, end of year    $ 7.00    $ 17.29    $ 21.26    $ 21.03    $ 22.84 
 
     Total Investment Return2                     
Based on net asset value    (58.09)%    (5.03)%    7.97%    3.25%    5.86% 
Based on market price    (55.38)%    (12.05)%    9.69%    0.73%    5.44% 
 
     Ratios to Average Net Assets Applicable to Common Shareholders                     
Total expenses after waiver and fees paid indirectly and excluding interest expense3    1.48%    1.29%    1.29%    1.26%    1.26% 
Total expenses after waiver and fees paid indirectly3    2.00%    1.32%    1.29%    1.26%    1.26% 
Total expenses after waiver and before fees paid indirectly3    2.00%    1.32%    1.29%    1.26%    1.26% 
Total expenses3    2.00%    1.32%    1.29%    1.26%    1.27% 
Net investment income3    10.79%    9.38%    9.70%    9.23%    9.04% 
Dividends to Preferred Shareholders    3.03%    3.29%    2.84%    1.71%    0.76% 
Net investment income to Common Shareholders    7.76%    6.09%    6.86%    7.52%    8.28% 
 
     Supplemental Data                     
Net assets applicable to Common Shareholders, end of year (000)    $ 76,430    $ 201,155    $ 228,734    $ 229,850    $ 243,492 
Preferred Shares outstanding at liquidation preference, end of year (000)    $ 68,250    $ 136,500    $ 136,500    $ 136,500    $ 136,500 
Reverse repurchase agreements outstanding, end of period (000)    $ 4,024    $ 590             
Reverse repurchase agreements average daily balance (000)    $ 25,692    $ 2,690             
Portfolio turnover    119%    88%    19%    25%    27% 
Asset coverage per Preferred Share, end of year4    $ 53,009    $ 61,846    $ 66,907    $ 67,115    $ 69,600 

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.
Total investment returns exclude the effects of sales charges.
3 Do not reflect the effect of dividends to Preferred Shareholders.
4 Prior year amounts have been recalculated to conform with current year presentation.

See Notes to Financial Statements.

50 ANNUAL REPORT

OCTOBER 31, 2008


Financial Highlights    BlackRock Preferred and Equity Advantage Trust (BTZ) 
        Period 
    Year    December 27, 
    Ended    20061 to 
    October 31,    October 31, 
    2008    2007 
     Per Share Operating Performance         
Net asset value, beginning of period    $ 21.39    $ 23.882 
Net investment income    1.333    1.25 
Net realized and unrealized loss    (10.06)    (1.86) 
Dividends to Preferred Shareholders from net investment income    (0.33)    (0.31) 
Net decrease from investment operations    (9.06)    (0.92) 
Dividends and distributions to Common Shareholders from:         
   Net investment income    (0.90)    (0.93) 
   Tax return of capital    (0.84)    (0.47) 
Total dividends and distributions    (1.74)    (1.40) 
Capital charges with respect to issuance of:         
   Common Shares        (0.04) 
   Preferred Shares        (0.13) 
Total capital charges        (0.17) 
Net asset value, end of period    $ 10.59    $ 21.39 
Market price, end of period    $ 9.36    $ 18.65 
 
     Total Investment Return4         
Based on net asset value    (44.27)%    (4.42)%5 
Based on market price    (43.51)%    (20.34)%5 
 
     Ratios to Average Net Assets Applicable to Common Shareholders         
 
Total expenses after waiver and fees paid indirectly and excluding interest expense6    1.21%    1.04%7 
Total expenses after waiver and fees paid indirectly6    1.65%    1.88%7 
Total expenses after waiver and before fees paid indirectly6    1.65%    1.88%7 
Total expenses6    1.65%    1.90%7 
Net investment income6    7.63%    6.50%7 
Dividends to Preferred Shareholders    1.89%    1.64%7 
Net investment income to Common Shareholders    5.74%    4.86%7 
 
     Supplemental Data         
 
Net assets applicable to Common Shareholders, end of period (000)    $ 548,612    $ 1,108,534 
Preferred Shares outstanding at liquidation preference, end of period (000)    $ 231,000    $ 462,000 
Reverse repurchase agreements outstanding, end of period (000)    $ 223,512    $ 88,291 
Reverse repurchase agreements average daily balance (000)    $ 107,377    $ 96,468 
Portfolio turnover    126%    35% 
Asset coverage per Preferred Share, end of period    $ 84,384    $ 89,737 

1 Commencement of operations.
2 Net asset value, beginning of period, reflects a deduction of $1.12 per share sales charge from initial offering price of $25.00 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.
Total investment returns exclude the effects of sales charges.
5 Aggregate total investment return.
6 Do not reflect the effect of dividends to Preferred Shareholders.
7 Annualized.

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

51


Financial Highlights        BlackRock Preferred Income Strategies Fund, Inc. (PSY) 
        Year Ended October 31,     
    2008    2007             2006    2005    2004 
     Per Share Operating Performance                     
 
Net asset value, beginning of year    $ 19.93    $ 22.36    $ 22.26    $ 23.48    $ 24.53 
Net investment income1    1.73    2.02    2.03    2.09    2.14 
Net realized and unrealized gain (loss)    (11.84)    (2.35)    0.32    (0.91)    (0.78) 
Dividends and distributions to Preferred Shareholders from:                     
   Net investment income    (0.49)    (0.73)    (0.65)    (0.40)    (0.18) 
   Net realized gain                    (0.01) 
Net increase (decrease) from investment operations    (10.60)    (1.06)    1.70    0.78    1.17 
Dividends and distributions to Common Shareholders from:                     
   Net investment income    (1.15)    (1.16)    (1.51)    (2.00)    (2.13) 
   Net realized gain                    (0.09) 
   Tax return of capital    (0.22)    (0.21)    (0.09)         
Total dividends and distributions    (1.37)    (1.37)    (1.60)    (2.00)    (2.22) 
Net asset value, end of year    $ 7.96    $ 19.93    $ 22.36    $ 22.26    $ 23.48 
Market price, end of year    $ 8.10    $ 16.94    $ 20.12    $ 21.20    $ 22.87 
 
     Total Investment Return2                     
Based on net asset value    (55.71)%    (4.35)%    8.77%    3.73%    5.22% 
Based on market price    (46.97)%    (9.65)%    2.77%    1.43%    6.12% 
 
     Ratios to Average Net Assets Applicable to Common Shareholders                     
Total expenses after waiver and fees paid indirectly and excluding interest expense3    1.40%    1.23%    1.23%    1.20%    1.19% 
Total expenses after waiver and fees paid indirectly3    1.90%    1.27%    1.23%    1.20%    1.19% 
Total expenses after waiver and before fees paid indirectly3    1.90%    1.27%    1.23%    1.20%    1.19% 
Total expenses3    1.90%    1.27%    1.23%    1.20%    1.19% 
Net investment income3    10.71%    9.29%    9.26%    8.96%    8.93% 
Dividends to Preferred Shareholders    3.04%    3.34%    2.96%    1.73%    0.74% 
Net investment income to Common Shareholders    7.67%    5.95%    6.30%    7.23%    8.19% 
 
     Supplemental Data                     
Net assets applicable to Common Shareholders, end of year (000)    $ 323,132    $ 809,411    $ 907,897    $ 903,601    $ 952,973 
Preferred Shares outstanding at liquidation preference, end of year (000)    $ 275,000    $ 550,000    $ 550,000    $ 550,000    $ 550,000 
Reverse repurchase agreements outstanding, end of period (000)    $ 54,369                 
Reverse repurchase agreements average daily balance (000)    $ 94,908    $ 14,375             
Portfolio turnover    120%    81%    18%    28%    23% 
Asset coverage per Preferred Share, end of year4    $ 54,408    $ 61,817    $ 66,294    $ 66,077    $ 68,319 

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.
Total investment returns exclude the effects of sales charges.
3 Do not reflect the effect of dividends to Preferred Shareholders.
4 Prior year amounts have been recalculated to conform with current year presentation.

See Notes to Financial Statements.

52 ANNUAL REPORT

OCTOBER 31, 2008


Financial Highlights            BlackRock Preferred Opportunity Trust (BPP) 
    Period                    Period 
    January 1,                    February 28, 
    2008 to                    20031 to 
            Year Ended December 31,         
    October 31,                    December 31, 
    2008    2007           2006    2005    2004    2003 
     Per Share Operating Performance                         
 
Net asset value, beginning of period    $ 19.47    $ 24.52    $ 24.43    $ 25.88    $ 25.58    $ 23.882 
Net investment income    1.483    2.05    2.05    2.11    2.22    1.72 
Net realized and unrealized gain (loss)    (10.74)    (4.72)    0.62    (0.82)    0.33    1.93 
Dividends and distributions to Preferred Shareholders from:                         
   Net investment income    (0.31)    (0.62)    (0.46)    (0.26)    (0.16)    (0.10) 
   Net realized gain            (0.12)    (0.13)    (0.02)     
Net increase (decrease) from investment operations    (9.57)    (3.29)    2.09    0.90    2.37    3.55 
Dividends and distributions to Common Shareholders from:                         
   Net investment income    (0.83)    (1.59)    (1.58)    (1.74)    (2.00)    (1.66) 
   Net realized gain        (0.02)    (0.42)    (0.61)    (0.07)     
   Tax return of capital    (0.30)    (0.15)                 
Total dividends and distributions    (1.13)    (1.76)    (2.00)    (2.35)    (2.07)    (1.66) 
Capital charges with respect to issuance of:                         
   Common shares                        (0.05) 
   Preferred Shares                        (0.14) 
Total capital charges                        (0.19) 
Net asset value, end of period    $ 8.77    $ 19.47    $ 24.52    $ 24.43    $ 25.88    $ 25.58 
Market price, end of period    $ 8.51    $ 17.31    $ 26.31    $ 24.20    $ 25.39    $ 24.83 
 
     Total Investment Return4                         
Based on net asset value    (51.22)%5    (13.86)%    8.89%    3.81%    10.15%    14.65%5 
Based on market price    (46.76)%5    (28.62)%    17.98%    4.83%    11.01%    6.28%5 
 
     Ratios to Average Net Assets Applicable to Common Shareholders                         
Total expenses after fees paid indirectly and excluding interest expense6    1.39%7    1.24%    1.25%    1.22%    1.19%    1.16%7 
Total expenses after fees paid indirectly6    1.96%7    1.45%    1.62%    1.51%    1.44%    1.52%7 
Total expenses6    1.96%7    1.46%    1.62%    1.51%    1.44%    1.52%7 
Net investment income6    10.53%7    8.90%    8.46%    8.37%    8.66%    8.35%7 
Dividends to Preferred Shareholders    2.19%7    2.70%    1.89%    1.27%    0.62%    0.48%7 
Net investment income to Common Shareholders    8.34%7    6.20%    6.58%    7.10%    8.04%    7.87%7 
 
     Supplemental Data                         
Net assets applicable to Common Shareholders, end of period (000)    $ 161,311    $ 358,017    $ 449,995    $ 447,190    $ 473,809    $ 468,243 
Preferred Shares outstanding at liquidation preference, end of period (000)    $ 110,400    $ 220,800    $ 220,800    $ 220,800    $ 220,800    $ 220,841 
Reverse repurchase agreements outstanding, end of period (000)    $ 44,281                    $ 3,486 
Reverse repurchase agreements average daily balance (000)    $ 51,995    $ 903    $ 1,303    $ 2,904    $ 782    $ 19,822 
Portfolio turnover    121%    97%    91%    77%    88%    98% 
Asset coverage per Preferred Share, end of period    $ 61,540    $ 65,554    $ 75,965    $ 75,642    $ 78,650    $ 78,021 

1 Commencement of operations.
2 Net asset value, beginning of period, reflects a deduction of $1.12 per share sales charge from initial offering price of $25.00 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.
Total investment returns exclude the effects of sales charges.
5 Aggregate total investment return.
6 Do not reflect the effect of dividends to Preferred Shareholders.
7 Annualized.

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2008

53


Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock Broad Investment Grade 2009 Term Trust Inc. (“Broad Investment
Grade”), BlackRock Enhanced Capital and Income Fund, Inc. (“Capital and
Income”), BlackRock Preferred and Corporate Income Strategies Fund, Inc.
(“Preferred and Corporate”) and BlackRock Preferred Income Strategies Fund,
Inc. (“Preferred Income”) are registered as diversified, closed-end manage-
ment investment companies under the Investment Company Act of 1940,
as amended (the “1940 Act”). BlackRock Global Floating Rate Income Trust
(“Global Floating Rate”), BlackRock Preferred and Equity Advantage Trust
(“Preferred and Equity”) and BlackRock Preferred Opportunity Trust (“Preferred
Opportunity”) are registered as non-diversified, closed-end management
investment companies under the 1940 Act. Broad Investment Grade, Capital
and Income, Preferred and Corporate and Preferred Income are organized
as Maryland corporations. Global Floating Rate, Preferred and Equity and
Preferred Opportunity are organized as Delaware statutory trusts. Broad
Investment Grade, Capital and Income, Global Floating Rate, Preferred and
Corporate, Preferred and Equity, Preferred Income and Preferred Opportunity
are individually referred to as a “Fund” and collectively as the “Funds”. The
Funds’ financial statements are prepared in conformity with accounting princi-
ples 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. Capital and Income, Global Floating Rate and Preferred
Opportunity recently changed their fiscal year end to October 31. The Funds
determine and make available for publication the net asset value of their
Common Shares on a daily basis.

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

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

On November 29, 2007, Broad Investment Grade’s Board of Directors
approved a Plan of Liquidation and Dissolution. Accordingly, Broad Investment
Grade will liquidate substantially all of its assets on or about the close of
business on December 31, 2009.

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

Valuation of Investments: 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 the Fund’s Board
of Directors/Trustees (the “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 relation-
ships observed in the market between investments, and calculated yield
measures based on valuation technology commonly employed in the market
for such investments. Financial futures contracts traded on exchanges are
valued at their last sale price. TBA commitments are valued at the current
market value of the underlying securities. Swap agreements are valued utiliz-
ing quotes received daily by the Funds’ pricing service or through brokers.
Short-term securities are valued at amortized cost. Investments in open-end
investment companies are valued at net asset value each business day. The
Funds value their investments in BlackRock Liquidity Series, LLC Cash Sweep
Series at fair value, which is ordinarily based upon their pro-rata ownership in
the net assets of the underlying fund.

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 invest-
ments 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 (long positions) or ask (short positions)
price. If no bid or ask 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 (long positions) or ask (short positions) price. If no bid or ask price
is available, the prior day’s price will be used unless it is determined that
the prior day’s price no longer reflects the fair value of the option. Over-the-
counter options are valued by an independent pricing service using a mathe-
matical model which incorporates a number of market data factors.

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, the investment will be valued by a method approved
by the Board as reflecting fair value (“Fair Value Assets”). When determining
the price for Fair Value Assets, the investment advisor and/or sub-advisor
seeks to determine the price 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 invest-
ment 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 securities is substantially completed each day at
various times prior to the close of business on the New York Stock Exchange
(“NYSE”). The values of such securities used in computing the net assets of
each Fund are determined as of such times. Foreign currency exchange rates
will be determined as of the close of business on the NYSE. Occasionally,
events affecting the values of such securities and such exchange rates may
occur between the times at which they are determined and the close of
business on the NYSE that may not be reflected in the computation of each
Fund’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 affect the value of such securities, those securities may be
valued at their fair value as determined in good faith by the Board or by

54 ANNUAL REPORT

OCTOBER 31, 2008


Notes to Financial Statements (continued)

the investment advisor using a pricing service and/or procedures approved
by the Board.

Derivative Financial Instruments: Each Fund may engage in various portfolio
investment strategies both to increase the returns of the Funds and to hedge,
or protect, their exposure to interest rate movements and movements in the
securities markets. Losses may arise if the value of the contract decreases
due to an unfavorable change in the price of the underlying security, or if the
counterparty does not perform under the contract.

Financial futures contracts — Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts. Futures
contracts are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Pursuant to the contract, the
Fund agrees 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 recorded by the Fund as unrealized
gains or losses. When the contract is closed, the Fund records 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 futures transactions involves the risk of an imperfect correlation in the
movements in the price of futures contracts, interest rates and the under-
lying assets, and the possible inability of counterparties to meet the terms
of their contracts.

Foreign currency contracts — A forward currency contract is an agreement
between two parties to buy and sell a currency at a set exchange rate
on a future date. Each Fund may enter into foreign currency exchange
contracts as a hedge against either specific transactions or portfolio posi-
tions. Foreign currency exchange contracts, when used by the Fund, help
to manage the overall exposure to the foreign currency backing some of
the investments held by the Fund. The contract is marked-to-market daily
and the change in market value is recorded by the Fund as an unrealized
gain or loss. When the contract is closed, the Fund record 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 forward foreign
currency contracts involves the risk that counterparties may not meet the
terms of the agreement and market risk of unanticipated movements in
the value of a foreign currency relative to the U.S. dollar.

Options — Each Fund may purchase and write call and put options. A call
option gives the purchaser of the option the right (but not the obligation)
to buy, and obligates the seller to sell (when the option is exercised), the
underlying position at the exercise price at any time or at a specified time
during the option period. A put option gives the holder the right to sell and
obligates the writer to buy the underlying position at the exercise price at
any time or at a specified time during the option period.

When a Fund purchases (writes) an option, an amount equal to the
premium paid (received) by the Fund is reflected as an asset and an
equivalent liability. The amount of the asset (liability) is subsequently
marked-to-market to reflect the current market value of the option written.
When a security 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 security acquired or deducted from (or added to) the
proceeds of the security sold. When an option expires (or the Funds enter
into a closing transaction), the Funds realize 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 the Fund writes a call option, such option is “covered,”
meaning that the Fund holds the underlying security subject to being
called by the option counterparty, or cash in an amount sufficient to cover
the obligation. When the Fund writes a put option, such option is covered
by cash in an amount sufficient to cover the obligation. Certain call
options are written as part of an arrangement where the counterparty to
the transaction borrows the underlying security from the Fund in a securi-
ties lending transaction.

In purchasing and writing options, the Funds bear the market risk of
an unfavorable change in the price of the underlying security or index.
Exercise of a written option could result in the Funds purchasing a security
at a price different from the current market value. The Funds may execute
transactions in both listed and over-the-counter options. Transactions in
certain over-the-counter options may expose the Funds to the risk of
default by the counterparty to the transaction.

Swaps — Each Fund may enter into swaps for investment purposes or
to manage its credit risk. Each Fund may enter into swap agreements,
in which the Fund and a counterparty agree to make periodic net pay-
ments on a specified notional amount. These periodic payments received
or made by the Funds are recorded in the accompanying Statements of
Operations as realized gains or losses, respectively. Gains or losses are
realized upon termination of the swap agreements. Swaps are marked-to-
market daily and changes in value are recorded as unrealized appreciation
(depreciation). When the swap is terminated, the Funds will record a real-
ized gain or loss equal to the difference between the proceeds from (or
cost of) the closing transaction and the Funds’ basis in the contract, if
any. Swap transactions involve, to varying degrees, elements of credit and
market risk in excess of the amounts recognized on the Statements 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 — Credit default swaps are agreements in which
one party pays fixed periodic payments to a counterparty in consideration
for a guarantee from the counterparty to make a specific payment should
a negative credit event take place.

Interest rate swaps — Interest rate swaps are agreements in which one
party pays a floating rate of interest on a notional principal amount and
receives a fixed rate of interest on the same notional principal amount for
a specified period of time. Alternatively, a party may pay a fixed rate and
receive a floating rate. In more complex swaps, the notional principal
amount may decline (or amortize) over time.

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

Foreign Currency Transactions: Foreign currency amounts are translated into
United States dollars on the following basis: (i) market value of investment

ANNUAL REPORT

OCTOBER 31, 2008

55


Notes to Financial Statements (continued)

securities, assets and liabilities at the current rate of exchange; and (ii) pur-
chases and sales of investment securities, income and expenses 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 Mortgage-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 securities 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 prepay-
ments 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 in the secondary market certain mortgage pass-
through securities. There are a number of important differences among the
agencies and instrumentalities of the U.S. Government that issue mortgage-
related securities 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 National Mortgage Association (“FNMA”) include 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 its 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.

Borrowed Bond Agreements: In a borrowed bond agreement, a Fund borrows
securities from a third party, with the commitment that they will be returned to
the lender on an agreed-upon date. Borrowed bond agreements are primarily
entered into to settle short positions. In a borrowed bond agreement, the
Fund’s prime broker or third party broker takes possession of the underlying
collateral securities or cash to settle such short positions. The value of the
underlying collateral securities or cash approximates the principal amount

of the borrowed bond transaction, including accrued interest. To the extent
that borrowed bond transactions exceed one business day, the value of the
collateral with any counterparty is marked-to-market on a daily basis to
ensure the adequacy of the collateral. If the lender defaults and the value
of the collateral declines or if bankruptcy proceedings are commenced with
respect to the lender of the security, realization of the collateral by the Fund
may be delayed or limited.

Capital Trusts: These securities are typically issued by corporations, generally
in the form of interest-bearing notes with preferred securities characteristics,
or by an affiliated business trust of a corporation, generally in the form of
beneficial interests in subordinated debentures or similarly structured securi-
ties. The securities can be structured as either fixed or adjustable coupon
securities that can have either a perpetual or stated maturity date. Dividends
can be deferred without creating an event of default or acceleration, although
maturity cannot take place unless all cumulative payment obligations have
been met. The deferral of payments does not affect the purchase or sale of
these securities in the open market. Payments on these securities are treated
as interest rather than dividends for Federal income tax purposes. These secu-
rities can have a rating that is slightly below that of the issuing company’s
senior debt securities. Certain Funds invest a significant portion of their assets
in securities in the financial services industry. Please see the Schedules of
Investments for these securities for each Fund. Changes in economic condi-
tions affecting the financial services industry would have a greater impact on
these Funds, and could affect the value, income and/or liquidity of positions
in such securities.

Dollar, Mortgage and Treasury Rolls: Certain Funds may sell mortgage-
backed securities for delivery in the current month and simultaneously con-
tract to repurchase substantially similar (same type, coupon and maturity)
securities on a specific future date at an agreed-upon price. Pools of mort-
gages collateralizing those securities may have different prepayment histories
than those sold. During the period between the sale and the repurchase,
the Fund will not be entitled to receive interest and principal payments on
the securities sold. Proceeds of the sale will be invested in additional instru-
ments for the Fund, and the income from these investments will generate
income for the Fund.

These techniques involve the risk that the market value of the securities
that each Fund is required to purchase may decline below the agreed upon
repurchase price of those securities. If investment performance of securities
purchased with proceeds from these transactions does not exceed the
income, capital appreciation and gain or loss that would have been realized
on the securities sold as part of the dollar roll, the use of this technique will
adversely impact the investment performance of each Fund.

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 generally
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
InterBank Offered Rate), (ii) the prime rate offered by one or more U.S. 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.

56 ANNUAL REPORT

OCTOBER 31, 2008


Notes to Financial Statements (continued)

A Fund earns and/or pays facility and other fees on floating rate loans. Other
fees earned/paid include commitment, amendment, consent, commissions
and prepayment penalty fees. Facility, amendment and consent fees are typi-
cally amortized as premium and/or accreted as discount over the term of the
loan. Commitment, commission and various other fees are recorded as
income. Prepayment penalty fees are recorded on the accrual basis. 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, a Fund 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, a Fund
may receive a prepayment penalty fee upon the prepayment of a floating rate
loan by a borrower. Other fees received by a Fund may include covenant waiver
fees and covenant modification fees.

A Fund 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 a Fund may not benefit directly from any collateral supporting the loan
in which it has purchased the Participation.

As a result, a Fund will assume the credit risk of both the borrower and the
lender that is selling the Participation. The Fund’s investments in loan partici-
pation 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 Fund may be treated as general creditors
of the lender and may not benefit from any offset between the lender and
the borrower.

Preferred Stock: Certain Funds may invest in preferred stocks. Preferred
stock has a preference over common stocks 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 convertible preferred
stock generally also reflects some element of conversion value. Because pre-
ferred stock is junior to debt securities and other obligations 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 payments on debt securities, pre-
ferred 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.

Reverse Repurchase Agreements: The Funds may enter into reverse repur-
chase agreements with qualified third party broker-dealers. In a reverse
repurchase agreement, each Fund sells securities to a bank or broker-dealer

and agrees to repurchase the securities at a mutually agreed upon date and
price. Interest on the value of the reverse repurchase agreements issued and
outstanding is based upon 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 each Fund is 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, each Fund’s use of the proceeds of the agreement may
be restricted pending determination by the other party, or its trustee or receiv-
er, whether to enforce each Fund’s obligation to repurchase the securities.

Short Sales: When a Fund engages in a short sale, an amount equal to
the proceeds received by the Fund is reflected as an asset and an equivalent
liability. The amount of the liability is subsequently marked-to-market to reflect
the market value of the short sale. When a Fund makes a short sale, it may
borrow the security sold short and deliver it to the broker-dealer through
which it made the short sale as collateral for its obligation to deliver the
security upon conclusion of the sale. The Fund maintains a segregated
account of securities as collateral for the short sales. The Fund is exposed to
market risk based on the amount, if any, that the market value of the security
exceeds the market value of the securities in the segregated account. The
Fund is required to repay the counterparty any dividends or interest received
on the security sold short. A gain, limited to the price at which the Fund sold
the security short, or a loss, unlimited as to the dollar amount will be recog-
nized upon the termination of the short sale if the market price is greater or
less than the proceeds originally received.

Stripped Mortgage-Backed Securities: The Funds may invest in stripped mort-
gage-backed securities issued by the U.S. government, its agencies and
instrumentalities. Stripped mortgage-backed securities are usually structured
with two classes that receive different proportions of the interest and principal
distributions on a pool of mortgage assets. In certain cases, one class will
receive all of the interest (the interest-only or “IO” class), while the other
class will receive all of the principal (the principal-only or “PO” class). The
yield to maturity on IO’s is sensitive to the rate of principal repayments
(including prepayments) on the related underlying mortgage assets, and
principal prepayments may have a material effect on yield to maturity. If the
underlying mortgage assets experience greater than anticipated prepayments
of principal, the Funds may not fully recoup its initial investment in IO’s.
The Funds also may invest in stripped mortgage-backed securities that are
privately issued.

TBA Commitments: Certain Funds may enter into to-be-announced (“TBA”)
commitments to purchase or sell securities for a fixed price at a future date.
TBA commitments are considered securities in themselves, and 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 Fund’s other assets.

Zero Coupon Bonds: The Funds may invest in zero-coupon bonds, which are
normally issued at a significant discount from face value and do not provide
for periodic interest payments. Zero-coupon bonds may experience greater
volatility in market value than similar maturity debt obligations which provide
for regular interest payments.

ANNUAL REPORT

OCTOBER 31, 2008

57


Notes to Financial Statements (continued)

Segregation and Collateralization: In cases in which the 1940 Act and the
interpretive positions of the Securities and Exchange Commission (“SEC”)
require that each Fund segregates assets in connection with certain invest-
ments (e.g., dollar rolls, TBA’s beyond normal settlement, options, reverse
repurchase agreements, swaps, written swaptions, written options, forward
foreign currency contracts, short sales or financial futures contracts) or
certain borrowings (e.g., reverse repurchase agreements), each Fund will,
consistent with certain interpretive letters issued by the SEC, 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, the Fund may also be required to
deliver or deposit securities as collateral for certain investments (e.g., financial
futures contracts, reverse repurchase agreements, swaps and written options).

Investment Transactions and Investment Income: Investment transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security 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 subsequently recorded when the Fund has 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
compensation for agreeing to changes in the terms of debt instruments and
are included in interest income on the Statements of Operations.

Dividends and Distributions: Dividends and distributions of capital gains
are recorded on the ex-dividend dates. A portion of the dividends paid by
Capital and Income for the period January 1, 2008 to October 31, 2008,
Preferred Opportunity for the period January 1, 2008 to October 31, 2008
and the year ended December 31, 2007, Preferred and Corporate for the
years ended October 31, 2008 and 2007, Preferred and Equity for the year
ended October 31, 2008 and the period December 27, 2006 to October 31,
2007 and Preferred Income for the years ended October 31, 2008 and 2007
are characterized as a 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. As part of a tax planning strategy, Broad
Investment Grade has retained a portion of its taxable income and will pay
excise tax on the undistributed amounts.

Effective April 30, 2008, Broad Investment Grade, Preferred and Corporate,
Preferred and Equity and Preferred Income implemented Financial Accounting
Standards Board (“FASB”) Interpretation No.48, “Accounting for Uncertainty in
Income Taxes — an interpretation of FASB Statement No. 109” (“FIN 48”).
Effective June 29, 2007, Capital and Income, Global Floating Rate and
Preferred Opportunity implemented FIN 48. FIN 48 prescribes the minimum
recognition threshold a tax position must meet in connection with accounting
for uncertainties in income tax positions taken or expected to be taken by an
entity, including investment companies, before being measured and recog-
nized in the financial statements. The investment advisor has evaluated the
application of FIN 48 to the Funds, and has determined that the adoption of
FIN 48 does not have a material impact on each Fund’s financial statements.

Each Fund files U.S. federal and various state and local tax returns. No income
tax returns are currently under examination. The statute of limitations on
Broad Investment Grade’s, Preferred and Corporate’s, Preferred and Equity’s
and Preferred Income’s U.S. federal tax returns remains open for the years
ended October 31, 2005 through October 31, 2007. The statute of limitations
on Capital and Income’s, Global Floating Rate’s and Preferred Opportunity’s
U.S. federal tax returns remains open for the years ended December 31,
2005 through December 31, 2007. The statute of limitations on each Fund’s
state and local tax returns may remain open for an additional year depending
upon the jurisdiction.

Recent Accounting Pronouncements: In September 2006, Statement
of Financial Accounting Standards No. 157, “Fair Value Measurements”
(“FAS 157”), was issued and is effective for fiscal years beginning after
November 15, 2007. Effective January 1, 2008, Capital and Income, Global
Floating Rate and Preferred Opportunity adopted FAS 157. FAS 157 defines
fair value, establishes a framework for measuring fair value and expands
disclosures about fair value measurements. The impact on the other Funds’
financial statement disclosures is currently being assessed.

In March 2008, Statement of Financial Accounting Standards No. 161,
“Disclosures about Derivative Instruments and Hedging Activities — an
amendment of FASB Statement No. 133” (“FAS 161”), was issued. FAS
161 is intended to improve financial reporting for derivative instruments by
requiring enhanced disclosure that enables investors to understand how and
why an entity uses derivatives, how derivatives are accounted for and how
derivative instruments affect an entity’s results of operations and financial
position. In September 2008, FASB Staff Position No. 133-1 and FASB Inter-
pretation No. 45-4 (the “FSP”), “Disclosures about Credit Derivatives and
Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB
Interpretation No. 45; and Clarification of the Effective Date of FASB
Statement No. 161” was issued and is effective for fiscal years and interim
periods ending after November 15, 2008. The FSP amends FASB Statement
No. 133, “Accounting for Derivative Instruments and Hedging Activities,” to
require disclosures by sellers of credit derivatives, including credit derivatives
embedded in hybrid instruments. The FSP also clarifies the effective date of
FAS 161, whereby disclosures required by FAS 161 are effective for financial
statements issued for fiscal years and interim periods beginning after
November 15, 2008. The impact on the Funds’ financial statement dis-
closures, if any, 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 or Trustees (“Independent Directors
or Trustees”) defer a portion of their annual complex-wide compensation.
Deferred amounts earn an approximate return as though equivalent dollar
amounts have been invested in common shares of other certain BlackRock
Closed-End Funds selected by the Independent Directors or Trustees. This has
approximately the same economic effect for the Independent Directors or
Trustees as if the Independent Directors or Trustees had invested the deferred
amounts directly in other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder
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 or
Trustees in order to match its deferred compensation obligations. Investments

58 ANNUAL REPORT

OCTOBER 31, 2008


Notes to Financial Statements (continued)

to cover each Fund’s deferred compensation liability are included in other
assets on the Statements of Assets and Liabilities. Dividends and distribu-
tions from the BlackRock Closed-End Fund investments under the plan are
included in income from affiliates on the Statements of Operations.

Bank overdraft: Preferred and Corporate recorded a bank overdraft, which
resulted from management estimates of available cash.

Other: Expenses directly related to each 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.

2. Investment Advisory Agreement and Other Transactions
with Affiliates:

Each Fund has entered into an Investment Advisory Agreement with
BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned subsi-
diary of BlackRock, Inc., to provide investment and administration services.
Merrill Lynch & Co., Inc. and The PNC Financial Services Group, Inc. are
principal owners of BlackRock, Inc.

The Advisor 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 the Funds. For such services, each
Fund pays the Advisor a monthly fee at the following annual rates: 0.55%
for Broad Investment Grade, 0.85% for Capital and Income, 0.75% Global
Floating Rate, 0.60% for Preferred and Corporate, 0.65% for Preferred and
Equity, 0.60% for Preferred Income and 0.65% of Preferred Opportunity,
of each Fund’s average daily (weekly for Broad Investment Grade, Global
Floating Rate, Preferred and Equity and Preferred Opportunity) net assets
(including any assets attributable to borrowings or the proceeds from the
issuance of Preferred Shares) minus the sum of accrued liabilities (other
than debt representing financial leverage). The Advisor has voluntarily agreed
to waive a portion of the investment advisory fees or other expenses on
Global Floating Rate as a percentage of its average weekly net assets as
follows: 0.20% for the first five years of the Fund’s operations (through
August 30, 2010), 0.10% in year seven (through August 30, 2011) and
0.05% in year eight (through August 30, 2012).

Broad Investment Grade has an Administration Agreement with the Advisor.
The administration fee paid to the Advisor is computed weekly and payable
monthly at an annual rate of 0.15% of the Fund’s average daily net assets.
The Advisor has voluntarily agreed to waive the investment advisory and
administration fees on Broad Investment Grade for the period November 1,
2007 to the Fund’s termination in 2009.

The Funds reimbursed the Advisor the following amounts for certain account-
ing services, which are included in accounting services in the Statements of
Operations. For the year ended October 31, 2008 (period January 1, 2008 to
October 31, 2008 for Capital and Income, Global Floating Rate and Preferred
Opportunity) and the year ended October 31, 2007 (December 31, 2007 for
Capital and Income, Global Floating Rate and Preferred Opportunity), the
amounts were as follows:

    Period    Year Ended 
    November 1, 2007    October 31, 2007 
    and January 1, 2008    and 
    to October 31, 2008    December 31, 2007 
Broad Investment Grade    $ 7,158    $ 2,929 
Capital and Income    $ 3,352    $ 5,258 
Global Floating Rate    $ 8,055    $23,362 
Preferred and Corporate    $ 4,961    $ 6,691 
Preferred and Equity    $24,350    $25,990 
Preferred Income    $19,892    $26,841 
Preferred Opportunity    $ 7,253    $21,589 

BlackRock Financial Management, Inc. (“BFM”), a wholly owned subsidiary
of BlackRock, Inc., serves as sub-advisor for Broad Investment Grade, Global
Floating Rate, Preferred and Equity and Preferred Opportunity. BFM and
BlackRock Investment Management, Inc. (“BIM”), both affiliates of the Advisor,
serve as sub-advisors for Capital and Income. BIM serves as subadvisor for
Preferred and Corporate and Preferred Income. The Advisor pays the sub-
advisors for services they provide, a monthly fee that is a percentage of
the investment advisory fees paid by each Fund to the Advisor.

During the year ended October 31, 2008 (period January 1, 2008 through
October 31, 2008 for Capital and Income and Preferred Opportunity) and the
year ended October 31, 2007 (December 31, 2007 for Capital and Income
and Preferred Opportunity), Merrill Lynch, Pierce, Fenner & Smith Incorporated
(“MLPF&S”), a wholly owned subsidiary of Merrill Lynch, earned commissions
on transactions of securities as follows:

    Period    Year Ended 
    November 1, 2007    October 31, 2007 
    and January 1, 2008    and 
    to October 31, 2008    December 31, 2007 
Capital and Income    $38,711    $ 43,108 
Preferred and Equity    $40,804    $757,239 
Preferred Opportunity        $ 41,662 

Pursuant to the terms of the custody agreement, custodian fees may be
reduced by amounts calculated on uninvested cash balances, which are
shown on the Statements of Operations as fees paid indirectly.

Certain officers and/or directors or trustees of the Funds are officers and/or
directors of BlackRock, Inc. or its affiliates. The Funds reimburse the Advisor
for compensation paid to the Funds’ Chief Compliance Officer.

3. Investments:

Purchases and sales (including paydowns) of investments, excluding short-term
securities and U.S. government securities, for the year ended October 31,
2008 (period January 1, 2008 to October 31, 2008 for Capital and Income,
Global Floating Rate and Preferred Opportunity) were as follows:

    Purchases    Sales 
Broad Investment Grade    $ 34,271,538    $ 10,213,120 
Capital and Income    $ 116,610,722    $ 103,820,374 
Global Floating Rate    $ 143,207,043    $ 202,892,322 
Preferred and Corporate    $ 223,579,152    $ 285,061,793 
Preferred and Equity    $1,210,307,146    $1,486,416,778 
Preferred Income    $ 951,293,472    $1,177,276,662 
Preferred Opportunity    $ 414,798,616    $ 500,172,252 

For the year ended October 31, 2008 (period January 1, 2008 to
October 31, 2008 for Capital and Income, Global Floating Rate and

ANNUAL REPORT

OCTOBER 31, 2008

59


Notes to Financial Statements (continued)

Preferred Opportunity), purchases and sales of U.S. government securities
were as follows:

    Purchases    Sales 
Broad Investment Grade    $ 34,468,359    $ 34,505,000 
Preferred and Corporate    $ 82,893,984    $ 91,399,823 
Preferred and Equity    $ 363,006,334    $ 390,393,139 
Preferred Income    $ 368,085,543    $ 384,438,829 
Preferred Opportunity    $ 162,033,732    $ 162,925,830 

Transactions in options written for the period January 1, 2008 to October 31,
2008 for Capital and Income and for the year ended October 31, 2008 for
Preferred and Equity were as follows:

Capital and Income         
        Premiums 
    Contracts    Received 
Outstanding call options written, beginning of period.    1,621    $ 4,023,610 
Options written    21,220    42,979,065 
Options expired    (3,481)    (7,904,097) 
Options closed    (18,135)    (35,649,320) 
Outstanding call options written, end of period    1,225    $ 3,449,258 
 
Preferred and Equity         
        Premiums 
    Contracts    Received 
Outstanding call options written, beginning of year    2,455    $ 5,426,127 
Options written    53,509    77,336,356 
Options expired    (8,205)    (21,387,762) 
Options closed    (45,629)    (56,591,588) 
Options exercised    (980)    (227,096) 
Outstanding call options written, end of year    1,150    $ 4,556,037 

4. Reverse Repurchase Agreements:

For the year ended October 31, 2008 (period January 1, 2008 to October 31,
2008 for Global Floating Rate and Preferred Opportunity) the daily weighted
average interest rate on the reverse repurchase agreements were as follows:

Global Floating Rate    2.75% 
Preferred and Corporate    3.28% 
Preferred and Equity    3.66% 
Preferred Income    3.45% 
Preferred Opportunity    2.83% 

5. Commitments:

Global Floating Rate may invest in floating rate loans. In connection with
these investments, the Fund may, with its Advisor, also enter into unfunded
corporate loans (“commitments”). Commitments may obligate the Fund to
furnish temporary financing to a borrower until permanent financing can
be arranged. In connection with these commitments, the Fund earns a com-
mitment 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 October
31, 2008, the Fund had the following unfunded loan commitments:

        Value of 
    Underlying    Underlying 
    Commitment    Loan 
Borrower    (000)    (000) 
Bausch & Lomb, Inc    $120    $ 98 
CHS/Community Health Systems, Inc    $234    $193 
Golden Nugget, Inc    $182    $ 78 

6. Capital Share Transactions:

Common Shares

There are 200 million of $.01 par value shares authorized for Broad Invest-
ment Grade. There are 200 million of $0.10 par value shares authorized for
Capital and Income, Preferred and Corporate and Preferred Income. There
are an unlimited number of $0.001 par value shares authorized for Global
Floating Rate, Preferred and Equity and Preferred Opportunity.

During the years ended October 31, 2008 and October 31, 2007, shares
issued and outstanding for Broad Investment Grade and Preferred Income
remained constant and the following Funds issued additional shares under
their respective dividend reinvestment plans:

    October 31,    October 31, 
    2008    2007 
Preferred and Corporate        12,692 
Preferred and Equity        73,340 

During the period January 1, 2008 to October 31, 2008 and the years ended
December 31, 2007 and December 31, 2006, the following Funds issued
additional shares under their respective dividend reinvestment plans:

    January 1, 2008 to         
    October 31,    October 31,    October 31, 
    2008    2007    2006 
Global Floating Rate        42,574    21,644 
Preferred Opportunity    5,794    30,981    49,079 

Shares issued and outstanding remained constant for Capital and Income
for the period January 1, 2008 to October 31, 2008 and the year ended
December 31, 2007. Shares issued and outstanding during the year ended
December 31, 2006 decreased by 641,500 as a result of a share repur-
chase program.

Preferred Shares

The Preferred Shares are redeemable at the option of each Fund, in whole
or in part, on any dividend payment date at $25,000 per share plus any
accumulated or unpaid dividends whether or not declared. The Preferred
Shares are also subject to mandatory redemption at their liquidation prefer-
ence plus any accumulated or unpaid dividends, whether or not declared, if
certain requirements relating to the composition of the assets and liabilities
of the Fund, as set forth in the Fund’s Statement of Preferences/Articles
Supplementary, are not satisfied.

The holders of Preferred Shares have voting rights equal to the holders of
Common Shares (one vote per share) and will vote together with holders
of Common Shares (one vote per share) as a single class. However, holders
of Preferred Shares, voting as a separate class, are also entitled to elect two
Directors/Trustees for each Fund. In addition, the 1940 Act requires that
along with approval by shareholders that might otherwise be required, the
approval of the holders of a majority of any outstanding Preferred Shares,
voting separately as a class would be required to (a) adopt any plan of re-
organization that would adversely affect the Preferred Shares, (b) change a
Fund’s subclassification as a closed-end investment company or change its
fundamental investment restrictions or (c) change its business so as to cease
to be an investment company.

60 ANNUAL REPORT

OCTOBER 31, 2008


Notes to Financial Statements (continued)

Global Floating Rate, Preferred and Corporate, Preferred and Equity, Preferred
Income and Preferred Opportunity had the following series of Preferred Shares
outstanding and effective yields as of October 31, 2008:

    Series    Shares    Yields 
Global Floating Rate    T7    784    3.341% 
    W7    784    3.266% 
    R7    784    2.888% 
Preferred and Corporate    M7    1,365    3.389% 
    T7    1,365    3.341% 
Preferred and Equity    T7    2,310    3.341% 
    W7    2,310    3.266% 
    R7    2,310    2.888% 
    F7    2,310    2.569% 
Preferred Income    M7    1,400    3.389% 
    T7    1,400    3.341% 
    W7    1,400    3.266% 
    TH7    1,400    2.888% 
    F7    1,400    2.569% 
    W28    2,000    4.525% 
    TH28    2,000    5.763% 
Preferred Opportunity    T7    1,472    4.210% 
    W7    1,472    4.074% 
    R7    1,472    4.089% 

Dividends on seven-day Preferred Shares are cumulative at a rate that is reset
every seven days based on the results of an auction. Dividends on 28-day
Preferred Shares are cumulative at a rate which is reset every 28 days based
on the results of an auction. If the Preferred Shares fail to clear the auction
on an auction date, the Funds are required to pay the maximum applicable
rate on the Preferred Shares to holders of such shares for successive dividend
periods until such time as the shares are successfully auctioned. The maxi-
mum applicable rate on Preferred Shares are as follows: for Global Floating
Rate, the higher of 125% of the 7-day Telerate/BBA LIBOR rate or 125%
over the 7-day Telerate/BBA LIBOR rate; for Preferred and Corporate and
Preferred Income, 125% times or 1.25% plus the Telerate/BBA LIBOR rate;
for Preferred Equity, 150% times or 1.25% plus the Telerate/BBA LIBOR rate;
and for Preferred Opportunity 150% of the interest equivalent of the 30-day
commercial paper rate. During the year ended October 31, 2008 (period
January 1, 2008 to October 31, 2008 for Global Floating Rate and Preferred
Opportunity), Preferred Shares of the Funds were successfully auctioned at
each auction date until February 13, 2008. The dividend ranges for the year
ended October 31, 2008 (period January 1, 2008 to October 31, 2008 for
Global Floating Rate and Preferred Opportunity), were as follows:

    Series    Low    High    Average 
Global Floating Rate    T7    3.341%    5.600%    4.122% 
    W7    3.266%    5.769%    4.122% 
    R7    2.888%    6.013%    4.089% 
Preferred and Corporate    M7    3.389%    5.938%    4.313% 
    T7    3.341%    5.750%    4.343% 
Preferred and Equity    T7    3.341%    6.375%    4.473% 
    W7    3.266%    6.778%    4.455% 
    R7    2.888%    7.144%    4.467% 
    F7    3.413%    7.031%    4.421% 
Preferred Income    M7    3.389%    5.938%    4.272% 
    T7    3.341%    5.750%    4.332% 
    W7    3.266%    5.850%    4.284% 
    TH7    2.888%    6.013%    4.203% 
    F7    3.413%    5.938%    4.256% 
    W28    3.700%    6.100%    4.416% 
    TH28    3.643%    5.763%    4.342% 
Preferred Opportunity    T7    3.321%    5.500%    3.920% 
    W7    3.216%    5.311%    3.391% 
    R7    3.231%    5.462%    3.938% 

Since February 13, 2008, the Preferred Shares of the Funds failed to clear
any of their auctions. As a result, the Preferred Shares dividend rates were
reset to the maximum applicable rate, which ranged from 2.888% to 7.144% .
A failed auction is not an event of default for the Funds but it has a negative
impact on the liquidity of Preferred Shares. A failed auction occurs when there
are more sellers of a Fund’s Preferred Shares than buyers. It is impossible to
predict how long this imbalance will last. A successful auction for the Fund’s
Preferred Shares may not occur for some time, if ever, and even if liquidity
does resume, holders of the Preferred Shares may not have the ability to
sell the Preferred Shares at its liquidation preference.

A Fund may not declare dividends or make other distributions on Common
Shares or purchase any such shares if, at the time of the declaration, distribu-
tion or purchase, asset coverage with respect to the outstanding Preferred
Shares is less than 200%.

Each Fund pays commissions to certain broker-dealers at the end of each
auction at an annual rate of 0.25% calculated on the aggregate principal
amount. For the year ended October 31, 2008 (period January 1, 2008 to
October 31, 2008 for Global Floating Rate and Preferred Opportunity),
MLPF&S earned commissions as follows:

    Commissions 
Global Floating Rate    $133,492 
Preferred and Corporate    $447,355 
Preferred and Equity    $422,864 
Preferred Income    $149,302 
Preferred Opportunity    $146,714 

On May 19, 2008, the Funds announced the following redemptions of
Preferred Shares at a price of $25,000 per share plus any accrued and
unpaid dividends through the redemption dates:

        Redemption    Shares    Aggregate 
    Series    Date    Redeemed    Principal 
Global Floating Rate    T7    6/11/2008    2,462    $61,550,000 
    W7    6/12/2008    2,462    $61,550,000 
    R7    6/13/2008    2,462    $61,550,000 
Preferred and Corporate    M7    6/10/2008    1,365    $34,125,000 
    T7    6/11/2008    1,365    $34,125,000 
Preferred and Equity    T7    6/11/2008    2,310    $57,750,000 
    W7    6/12/2008    2,310    $57,750,000 
    R7    6/13/2008    2,310    $57,750,000 
    F7    6/09/2008    2,310    $57,750,000 
Preferred Income    M7    6/10/2008    1,400    $35,000,000 
    T7    6/11/2008    1,400    $35,000,000 
    W7    6/05/2008    1,400    $35,000,000 
    TH7    6/06/2008    1,400    $35,000,000 
    F7    6/09/2008    1,400    $35,000,000 
    W28    6/05/2008    2,000    $50,000,000 
    TH28    6/20/2008    2,000    $50,000,000 
Preferred Opportunity    T7    6/11/2008    1,472    $36,800,000 
    W7    6/12/2008    1,472    $36,800,000 
    R7    6/13/2008    1,472    $36,800,000 

All of the Funds, except Global Floating Rate, financed the Preferred Share
redemptions with cash received from reverse repurchase agreements. Global
Floating Rate financed the Preferred Share redemptions with cash received
from a loan.

Shares issued and outstanding for the year ended October 31, 2007
(December 31, 2007 for Capital and Income, Global Floating Rate and
Preferred Opportunity) remained constant.

ANNUAL REPORT

OCTOBER 31, 2008

61


Notes to Financial Statements (continued)

7. Short Term Borrowings:

Global Floating Rate is a party to a revolving credit and security agreement
funded by a commercial paper asset securitization program with Citicorp
North America, Inc. (“Citicorp”), as Agent, certain secondary backstop lenders
and certain asset securitization conduits, as lenders (the “Lenders”). The agree-
ment expires May 14, 2009 and has a maximum limit of $190,000,000.
Under the Citicorp program, the conduits will fund advances to the Fund
through highly rated commercial paper. The Fund has granted a security
interest in substantially all of its assets to, and in favor of, the Lenders as
security for its obligations to the Lenders. The interest rate on the Fund’s

borrowings is based on the interest rate carried by the commercial paper plus
a program fee. In addition, the Fund pays a liquidity fee to the secondary
backstop lenders and the agent. These amounts are included in interest
expense on the Statements of Operations. For the period January 1, 2008
to October 31, 2008, the daily weighted average interest rate was 3.51% .

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

8. Important Tax Information:

Reclassifications: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to reflect
permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or on net asset values per share. The following
permanent differences as of October 31, 2008 attributable to paydowns, non-deductible excise tax paid, accounting for swap agreements, foreign currency
transactions, amortization methods on fixed income securities, expiration of capital loss carryforwards, the classification of investments and other differences
between financial reporting and tax accounting, were reclassified to the following accounts:

    Broad        Global                 
    Investment    Capital and    Floating    Preferred and    Preferred    Preferred    Preferred 
    Grade    Income    Rate    Corporate    and Equity    Income    Opportunity 
 
Increase (decrease) paid-in capital    $(271,190)    $(191,150)                     
Increase (decrease) undistributed net investment income    $ 195,626    $ 191,150    $ 4,747,698    $(426,809)    $(1,187,825)    $(2,214,551)    $(955,790) 
Increase (decrease) accumulated net realized gain (loss)    $ 75,564        $(4,747,698)    $ 426,809    $ 1,187,825    $ 2,214,551    $ 955,790 

The tax character of distributions paid during the years ended October 31, 2008 (period January 1, 2008 to October 31, 2008 for Capital and Income, Global
Floating Rate and Preferred Opportunity), October 31, 2007 (December 31, 2007 for Capital and Income, Global Floating Rate and Preferred Opportunity) and
October 31, 2006 (December 31, 2006 for Capital and Income, Global Floating Rate and Preferred Opportunity) was as follows:

    Broad        Global                 
    Investment    Capital and    Floating    Preferred and    Preferred    Preferred    Preferred 
    Grade    Income    Rate    Corporate    and Equity    Income    Opportunity 
Ordinary Income                             
     10/31/08    $ 3,347,828    $ 7,846,070    $ 29,676,182    $ 17,443,001    $ 63,957,649    $ 66,768,898    $ 20,860,160 
     10/31/07    $ 4,490,035            $ 19,378,907    $ 65,002,006    $ 76,611,467     
     12/31/07        $ 5,911,539    $ 39,557,202                $ 40,678,314 
     10/31/06    $ 4,241,016            $ 23,770,856        $ 87,672,454     
     12/31/06        $ 10,997,211    $ 45,130,597                $ 42,381,795 
Long-term capital gain                             
     10/31/08        $ 2,596,353                     
     12/31/07        $ 23,835,961                    $ 400,000 
     10/31/06    $ 20,078                         
     12/31/06        $ 7,264,347    $ 640,846                $ 4,836,485 
Tax return of capital                             
     10/31/08        $ 7,292,188        $ 545,246    $ 43,518,226    $ 9,002,427    $ 5,480,035 
     10/31/07                $ 4,335,991    $ 24,171,991    $ 8,692,071     
     12/31/07            $ 8,473,282                $ 2,820,986 
     10/31/06                        $ 3,547,483     
Total                             
     10/31/08    $ 3,347,828    $ 17,734,611    $ 29,676,182    $ 17,988,247    $107,475,875    $ 75,771,325    $ 26,340,195 
     10/31/07    $ 4,490,035            $ 23,714,898    $ 89,173,997    $ 85,303,538     
     12/31/07        $ 29,747,500    $ 48,030,484                $ 43,899,300 
     10/31/06    $ 4,261,094            $ 23,770,856        $ 91,219,937     
     12/31/06        $ 18,261,558    $ 45,771,443                $ 47,218,280 

62 ANNUAL REPORT OCTOBER 31, 2008


Notes to Financial Statements (continued)                     
 
As of October 31, 2008, the tax components of accumulated losses were as follows:                 
    Broad        Global                 
    Investment    Capital and    Floating    Preferred and    Preferred    Preferred    Preferred 
    Grade    Income    Rate    Corporate    and Equity    Income    Opportunity 
 
Undistributed ordinary income    $ 4,551,727        $ 15,105,467                 
Capital loss carryforwards    (3,214,651)        (27,885,335)    $ (72,017,214)    $(163,096,926)    $(252,786,317)    (76,382,822) 
Net unrealized losses*    (1,396,281)    $ (56,869,906)    (160,185,498)    $ (90,430,964)    $(450,981,085)    $(365,710,078)    $(189,618,840) 
Total accumulated net losses    $ (59,205)    $ (56,869,906)    $(172,965,366)    $(162,448,178)    $(614,078,011)    $(618,496,395)    $(266,001,662) 

* The difference between book-basis and tax-basis net unrealized gains (losses) is attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles,
the realization for tax purposes of unrealized gains on certain futures, options and foreign currency contracts, the deferral of post-October currency losses for tax purposes, the difference
between book and tax amortization methods for premiums and discounts on fixed income securities, the deferral of compensation to directors/trustees, accounting for swap agreements
book/tax differences in the accrual of income on securities in default, the timing of income recognition on partnership interests, the classification of investments and other book/tax
temporary differences.

As of October 31, 2008, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

    Broad    Global                 
Expires October 31, (November 30,    Investment    Floating    Preferred and    Preferred    Preferred    Preferred 
for Broad Investment Grade)    Grade    Rate    Corporate    and Equity    Income    Opportunity 
2011    $ 2,058,299        $ 1,276,621             
2012    684,360        10,243,141        $ 62,733,648     
2013            5,058,900        17,911,331     
2014    471,992        8,481,628        12,145,117     
2015        $ 3,268,804    6,724,694    $ 49,741,712    19,582,978    $ 18,184,893 
2016        24,616,531    40,232,230    113,355,214    140,413,243    58,197,929 
Total    $ 3,214,651    $ 27,885,335    $ 72,017,214    $ 163,096,926    $ 252,786,317    $ 76,382,822 

ANNUAL REPORT

OCTOBER 31, 2008

63


Notes to Financial Statements (concluded)

9. Subsequent Events:

The Funds paid net investment income dividends on November 28, 2008 to
shareholders of record on November 14, 2008 in the following amounts:

Global Floating Rate    $0.100000 
Preferred and Corporate    $0.103300 
Preferred and Equity    $0.130000 
Preferred Income    $0.114583 
Preferred Opportunity    $0.125000 

The dividends declared on Preferred Shares for the period November 1, 2008
through November 30, 2008 were as follows:

        Dividends 
    Series    Declared 
Global Floating Rate    T7    $ 34,948 
    W7    $ 35,175 
    R7    $ 34,784 
Preferred and Corporate    M7    $ 60,239 
    T7    $ 60,909 
Preferred and Equity    T7    $103,078 
    W7    $102,993 
    R7    $102,710 
    F7    $102,728 
Preferred Income    M7    $ 62,008 
    T7    $ 64,041 
    W7    $ 51,808 
    TH7    $ 61,929 
    F7    $ 61,310 
    W28    $153,918 
    TH28    $133,874 
Preferred Opportunity    T7    $ 58,552 
    W7    $ 59,429 
    R7    $ 65,575 

On November 25, 2008 certain Funds announced the following redemption of
Preferred Stock at a price of $25,000 per share plus any accrued and unpaid
dividends through the redemption date:

        Redemption    Shares    Aggregate 
    Series    Date    Redeemed    Principal 
Preferred and Corporate    M7    12/16/08    400    $10,000,000 
    T7    12/17/08    400    $10,000,000 
Preferred Income    M7    12/16/08    229    $ 5,725,000 
    T7    12/17/08    229    $ 5,725,000 
    W7    12/18/08    229    $ 5,725,000 
    TH7    12/12/08    229    $ 5,725,000 
    F7    12/15/08    229    $ 5,725,000 
    W28    12/18/08    327    $ 8,175,000 
    TH28    1/02/09    327    $ 8,175,000 
Preferred Opportunity    T7    12/17/08    266    $ 6,650,000 
    W7    12/18/08    266    $ 6,650,000 
    R7    12/19/08    266    $ 6,650,000 

The Funds will finance the Preferred Share redemptions with cash received
from reverse repurchase agreement transactions.

On September 15, 2008, Bank of America Corporation announced that it has
agreed to acquire Merrill Lynch, one of the principal owners of BlackRock, Inc.
The purchase has been approved by the shareholders and directors of both
companies and certain regulators. Subject to other regulatory approvals, the
transaction is expected to close on or about December 31, 2008.

On November 3, 2008 (the “Reorganization Date”), BlackRock Enhanced
Capital and Income Fund, Inc. (“Capital and Income”) acquired all of the
assets and certain stated liabilities of BlackRock Enhanced Equity Yield Fund,
Inc. (“Equity Yield”) and BlackRock Enhanced Equity Yield and Premium Fund,
Inc. (“Equity Yield and Premium”). The reorganization was pursuant to an
Agreement and Plan of Reorganization, which was approved by the sharehold-
ers of Equity Yield and Equity Yield and Premium on August 29, 2008. Under
the Agreement and Plan of Reorganization, 20,954,427 common shares of
Equity Yield and 16,812,195 common shares of Equity Yield and Premium
were exchanged for 16,900,491 and 13,642,213 common shares, respec-
tively, of Capital and Income. The conversion ratios were 0.80653563 and
0.81144752 for Equity Yield and Equity Yield and Premium, respectively. The
assets of Equity Yield and Equity Yield and Premium, each consisting of secu-
rities and related receivables less liabilities, were converted on a tax-free
basis. On the Reorganization Date, the net assets of Capital and Income
were valued at $591,399,963 (including net assets of $232,938,216 for
the Equity Yield which was comprised of $329,483,363 of paid-in capital,
$16,478,636 of accumulated losses and $80,066,511of unrealized depreci-
ation; and net assets of $188,029,937 for the Equity Yield and Premium
which was comprised of $270,207,354 of paid-in capital, $15,306,982 of
accumulated losses and $66,870,435 of unrealized depreciation).

In December 2008, commissions paid to broker-dealers on preferred shares
that experience a failed auction were reduced to 0.15% on the aggregate
principal amount. The Funds will continue to pay commissions of 0.25%
on the aggregate principal amount of all shares that successfully clear
their auctions.

64 ANNUAL REPORT

OCTOBER 31, 2008


Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors/Trustees of:
BlackRock Broad Investment Grade 2009 Term Trust Inc.,
BlackRock Enhanced Capital and Income Fund, Inc.,
BlackRock Global Floating Rate Income Trust, BlackRock
Preferred and Corporate Income Strategies Fund, Inc.,
BlackRock Preferred and Equity Advantage Trust, BlackRock
Preferred Income Strategies Fund, Inc., BlackRock Preferred
Opportunity Trust (Collectively the “Trusts”)

We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of BlackRock Enhanced Capital
and Income Fund, Inc., BlackRock Global Floating Rate Income Trust, and
BlackRock Preferred Opportunity Trust as of October 31, 2008, and the
related statements of operations for the period January 1, 2008 to October
31, 2008 and for the year ended December 31, 2007, the statements of
cash flows for the period January 1, 2008 to October 31, 2008 for BlackRock
Global Floating Rate Income Trust and BlackRock Enhanced Capital and
Income Fund, Inc., and for the year ended December 31, 2007 for BlackRock
Enhanced Capital and Income Fund, Inc., the statements of changes in net
assets for the period January 1, 2008 to October 31, 2008 and for each of
the two years in the period ended December 31, 2007, and the financial
highlights for the periods presented. We have also audited the accompanying
statements of assets and liabilities, including the schedules of investments,
of BlackRock Broad Investment Grade 2009 Term Trust Inc., BlackRock
Preferred and Corporate Income Strategies Fund, Inc., BlackRock Preferred
and Equity Advantage Trust, and BlackRock Preferred Income Strategies Fund,
Inc. as of October 31, 2008, and the related statements of operations for
the year then ended, the statements of changes in net assets for each of the
two years in the period then ended (the year ended October 31, 2008 and
the period December 27, 2006 (commencement of operations) through
October 31, 2007 for the BlackRock Preferred and Equity Advantage Trust),
and the financial highlights for each of the periods presented for BlackRock
Broad Investment Grade 2009 Term Trust Inc. and BlackRock Preferred and
Equity Advantage Trust and for each of the three years in the period ended
October 31, 2008 for BlackRock Preferred and Corporate Income Strategies
Fund, Inc. and BlackRock Preferred Income Strategies Fund, Inc. These finan-
cial statements and financial highlights are the responsibility of the Trusts’
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial high-
lights of BlackRock Preferred and Corporate Income Strategies Fund, Inc. and
of BlackRock Preferred Income Strategies Fund, Inc. for each of the two years
in the period ended October 31, 2005 were audited by other auditors whose
report, dated December 9, 2005, expressed an unqualified opinion on those
financial highlights.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial highlights are free of
material misstatement. The Trusts are not required to have, nor were we
engaged to perform, an audit of their internal control over financial reporting.

Our audits included consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in the circum-
stances, but not for the purpose of expressing an opinion on the effectiveness
of the Trusts’ internal control over financial reporting. Accordingly, we express
no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assess-
ing the accounting principles used and significant estimates made by man-
agement, as well as evaluating the overall financial statement presentation.
Our procedures include confirmation of the securities owned as of October
31, 2008, by correspondence with the custodian, brokers and financial inter-
mediaries; where replies were not received from brokers or financial interme-
diaries, we performed other auditing procedures. We believe that our audits
provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
BlackRock Enhanced Capital and Income Fund, Inc., BlackRock Global
Floating Rate Income Trust, and BlackRock Preferred Opportunity Trust as of
October 31, 2008, the results of their operations for the period January 1,
2008 to October 31, 2008 and for the year ended December 31, 2007, the
results of cash flows for the period January 1, 2008 to October 31, 2008
for BlackRock Global Floating Rate Income Trust and BlackRock Enhanced
Capital and Income Fund, Inc., and for the year ended December 31, 2007
for BlackRock Enhanced Capital and Income Fund, Inc., the changes in their
net assets for the period January 1, 2008 to October 31, 2008 and for each
of the two years in the period ended December 31, 2007, and the financial
highlights for each of the periods presented, in conformity with accounting
principles generally accepted in the United States of America. Additionally,
in our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
BlackRock Broad Investment Grade 2009 Term Trust, Inc., and BlackRock
Preferred and Equity Advantage Trust, Inc. as of October 31, 2008, the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended (the year ended
October 31, 2008 and the period December 27, 2006 (commencement of
operations) through October 31, 2007 for the BlackRock Preferred and Equity
Advantage Trust), and the financial highlights for the periods presented, in
conformity with accounting principles generally accepted in the United States
of America. Additionally, in our opinion, the financial statements and financial
highlights referred to above present fairly, in all material respects, the financial
position of BlackRock Preferred and Corporate Income Strategies Fund, Inc.,
and BlackRock Preferred Income Strategies Fund, Inc., the results of their
operations for the year then ended, the changes in their net assets for each
of the two years in the period then ended, and the financial highlights for
each of the three years in the period ended October 31, 2008, in conformity
with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
December 30, 2008

ANNUAL REPORT

OCTOBER 31, 2008

65


Important Tax Information

The following information is provided with respect to the ordinary income distributions paid monthly by the Funds for the taxable period ended
October 31, 2008:

            BlackRock             
    BlackRock    Blackrock    Preferred and    BlackRock    BlackRock     
    Broad    Global    Corporate    Preferred    Preferred    BlackRock 
    Investment    Floating    Income    and Equity    Income    Preferred 
    Grade 2009    Rate Income    Strategies    Advantage    Strategies    Opportunity 
    Term Trust Inc.    Trust    Fund, Inc.    Trust    Fund, Inc.    Trust 
Qualified Dividend Income for Individuals*                         
Months Paid:                         
November – December 2007†            30.55%    13.54%    39.14%     
January – October 2008            33.14%    91.05%    37.16%    47.19% 
Dividends Received Deductions for Corporations*                         
Months Paid:                         
November – December 2007†            12.17%    7.54%    18.37%     
January – October 2008            16.41%    45.37%    19.76%    22.58% 
Interest-Related Dividends for Non-U.S. Residents**                         
Months Paid:                         
November – December 2007†    91.15%        39.81%    20.28%    33.24%     
January – October 2008    90.62%    35.08%    55.76%    69.86%    64.29%    66.64% 
Federal Obligation Interest***    1.89%                    2.58% 
 
            Payable Date             
BlackRock Enhanced Capital and Income Fund, Inc.        3/31/08    6/30/08    9/30/08         
Long-term Capital Gains*        14.57%    18.18%    11.17%         
Non-Taxable Return of Capital*        41.12%    41.12%    41.12%         
Qualifying Dividend Income for Individuals*        27.71%    25.46%    47.71%         
Dividends Qualifying for the Dividends Received Deduction for Corporations*        24.10%    22.14%    47.71%         
Short-Term Capital Gain Dividends for Non-U.S. Residents**        44.31%    40.71%    0.00%         

* The Funds hereby designate the percentage indicated above or the maximum amount allowable by law.
** Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.
*** The law varies in each state as to whether and what percentage of dividend income attributable to federal obligations is exempt from state income tax. We
recommend that you consult your advisor to determine if any portion of the dividends you received is exempt from state income taxes.

† Includes dividend paid on January 9, 2008 to BlackRock Broad Investment Grade 2009 Term Trust, BlackRock Preferred and Corporate Income Strategies Fund, Inc.,
BlackRock Preferred and Equity Advantage Trust and BlackRock Preferred Income Strategies Fund, Inc. Common Shareholders.

66 ANNUAL REPORT

OCTOBER 31, 2008


Disclosure of Investment Advisory Agreement and Subadvisory Agreement

The Board of Trustees or the Board of Directors, as the case may be (collec-
tively, the “Board,” the members of which are referred to as “Directors”),
of the BlackRock Broad Investment Grade 2009 Term Trust, Inc. (“BCT”),
BlackRock Global Floating Rate Income Trust (“BGT “) and BlackRock
Preferred Opportunity Trust (“BPP”), BlackRock Enhanced Capital and
Income Fund, Inc. (“CII”), Preferred and Corporate Income Strategies Fund,
Inc. (“PSW”), BlackRock Preferred Income Strategies Fund, Inc. (“PSY”) and
BlackRock Preferred and Equity Advantage Trust (“BTZ,” and together with
BCT, BGT, BPP, CII, PSW and PSY, the “Funds”) met in April and May 2008
to consider approving the continuation of each Fund’s investment advisory
agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC
(the “Advisor”), each Fund’s investment advisor. The Board also considered
the approval of each Fund’s subadvisory agreement, if applicable (each, a
“Subadvisory Agreement” and, together with the “Advisory Agreement,” the
“Agreements”), between the Advisor and BlackRock Financial Management,
Inc. (the “Subadvisor”). The Advisor and the Subadvisor are collectively
referred to herein as the “Advisors” and, together with BlackRock, Inc.,
“BlackRock.”

Disclosure regarding the Investment Advisory Agreement and Subadvisory
Agreement for each of BGT, BPP and CII can be found in each Fund’s most
recent semi-annual report dated June 30, 2008, each of which are incorpo-
rated herein by reference.

Activities and Composition of the Board

The Board of each Fund consists of thirteen individuals, eleven of whom are
not “interested persons” of the Funds as defined in the Investment Company
Act of 1940 (the “1940 Act”) (the “Independent Directors”). The Directors
are responsible for the oversight of the operations of the Funds and perform
the various duties imposed on the directors of investment companies by
the 1940 Act. The Independent Directors have retained independent legal
counsel to assist them in connection with their duties. The Chairman of the
Board is an Independent Director. The Board has established four standing
committees: an Audit Committee, a Governance and Nominating Committee,
a Compliance Committee and a Performance Oversight Committee.

Advisory Agreement and Subadvisory Agreement

Upon the consummation of the combination of BlackRock, Inc.’s investment
management business with Merrill Lynch & Co., Inc.’s investment management
business, including Merrill Lynch Investment Managers, L. ., and certain
affiliates, each Fund entered into an Advisory Agreement and a Subadvisory
Agreement, each with an initial two-year term. Consistent with the 1940 Act,
after the Advisory Agreement’s and Subadvisory Agreement’s respective initial
two-year term, the Board is required to consider the continuation of each
Fund’s Advisory Agreement and Subadvisory Agreement on an annual basis.
In connection with this process, the Board assessed, among other things, the
nature, scope and quality of the services provided to each Fund by the per-
sonnel of BlackRock and its affiliates, including investment advisory services,
administrative services, secondary market support services, oversight of fund
accounting and custody, and assistance in meeting legal and regulatory
requirements. The Board also received and assessed information regarding
the services provided to each Fund by certain unaffiliated service providers.

Throughout the year, the Board also considered a range of information in
connection with its oversight of the services provided by BlackRock and its
affiliates. Among the matters the Board considered were: (a) investment per-
formance for one-, three- and five-year periods, as applicable, against peer
funds, as well as senior management and portfolio managers’ analysis of
the reasons for underperformance, if applicable; (b) fees, including advisory,
administration and other fees paid to BlackRock and its affiliates by each
Fund, as applicable; (c) Fund operating expenses paid to third parties;
(d) the resources devoted to and compliance reports relating to each Fund’s
investment objective, policies and restrictions; (e) each Fund’s compliance
with its Code of Ethics and compliance policies and procedures; (f) the
nature, cost and character of non-investment management services provided
by BlackRock and its affiliates; (g) BlackRock’s and other service providers’
internal controls; (h) BlackRock’s implementation of the proxy voting guide-
lines approved by the Board; (i) execution quality; (j) valuation and liquidity
procedures; and (k) reviews of BlackRock’s business, including BlackRock’s
response to the increasing scale of its business.

Board Considerations in Approving the Advisory Agreement
and Subadvisory Agreement

To assist the Board in its evaluation of the Agreements, the Directors received
information from BlackRock in advance of the April 22, 2008 meeting which
detailed, among other things, the organization, business lines and capabilities
of the Advisors, including: (a) the responsibilities of various departments
and key personnel and biographical information relating to key personnel;
(b) financial statements for BlackRock; (c) the advisory and/or administrative
fees paid by each Fund to the Advisors, including comparisons, compiled by
Lipper Inc. (“Lipper”), an independent third party, with the management fees,
which include advisory and administration fees, of funds with similar invest-
ment objectives (“Peers”); (d) the profitability of BlackRock and certain indus-
try profitability analyses for advisors to registered investment companies;
(e) the expenses of BlackRock in providing various services; (f) non-invest-
ment advisory reimbursements, if applicable, and “fallout” benefits to
BlackRock; (g) economies of scale, if any, generated through the Advisors’
management of all of the BlackRock closed-end funds (the “Fund Complex”);
(h) the expenses of each Fund, including comparisons of each such Fund’s
expense ratios (both before and after any fee waivers) with the expense
ratios of its Peers; (i) an internal comparison of management fees classified
by Lipper, if applicable; and (j) each Fund’s performance for the past one-,
three- and five-year periods, as applicable, as well as each Fund’s perform-
ance compared to its Peers.

The Board also considered other matters it deemed important to the approval
process, where applicable, such as payments made to BlackRock or its affili-
ates relating to the distribution of Fund shares, services related to the valua-
tion and pricing of Fund portfolio holdings, and direct and indirect benefits to
BlackRock and its affiliates from their relationship with the Funds.

In addition to the foregoing materials, independent legal counsel to the
Independent Directors provided a legal memorandum outlining, among other
things, the duties of the Board under the 1940 Act, as well as the general
principles of relevant law in reviewing and approving advisory contracts, the
requirements of the 1940 Act in such matters, an advisor’s fiduciary duty with

ANNUAL REPORT

OCTOBER 31, 2008

67


Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued)

respect to advisory agreements and compensation, and the standards used
by courts in determining whether investment company boards of directors
have fulfilled their duties and the factors to be considered by boards in voting
on advisory agreements.

The Independent Directors reviewed this information and discussed it with
independent legal counsel prior to the meeting on April 22, 2008. At the
Board meeting on April 22, 2008, BlackRock made a presentation to and
responded to questions from the Board. Following the meeting on April 22,
2008, the Board presented BlackRock with questions and requests for
additional information. BlackRock responded to these requests with addi-
tional written materials provided to the Directors prior to the meetings on
May 29 and 30, 2008. At the Board meetings on May 29 and 30, 2008,
BlackRock responded to further questions from the Board. In connection
with BlackRock’s presentations, the Board considered each Agreement and,
in consultation with independent legal counsel, reviewed the factors set out
in judicial decisions and Securities and Exchange Commission (“SEC”) state-
ments relating to the renewal of the Agreements.

Matters Considered by the Board

In connection with its deliberations with respect to the Agreements, the Board
considered all factors it believed relevant with respect to each Fund, including
the following: the nature, extent and quality of the services provided by the
Advisors; the investment performance of each Fund; the costs of the services
to be provided and profits to be realized by the Advisors and their affiliates
from their relationship with the Funds; the extent to which economies of scale
would be realized as the Fund Complex grows; and whether BlackRock real-
izes other benefits from its relationship with the Funds.

A. Nature, Extent and Quality of the Services: In evaluating the nature,
extent and quality of the Advisors’ services, the Board reviewed information
concerning the types of services that the Advisors provide and are expected
to provide to each Fund, narrative and statistical information concerning
each Fund’s performance record and how such performance compares to
each Fund’s Peers, information describing BlackRock’s organization and its
various departments, the experience and responsibilities of key personnel
and available resources. The Board noted the willingness of the personnel of
BlackRock to engage in open, candid discussions with the Board. The Board
further considered the quality of the Advisors’ investment process in making
portfolio management decisions.

In addition to advisory services, the Directors considered the quality of the
administrative and non-investment advisory services provided to the Funds.
The Advisors and their affiliates provided each Fund with such administrative
and other services, as applicable (in addition to any such services provided
by others for the Funds), and officers and other personnel as are necessary
for the operations of the respective Fund. In addition to investment manage-
ment services, the Advisors and their affiliates provided each Fund with serv-
ices such as: preparing shareholder reports and communications, including
annual and semi-annual financial statements and the Funds’ websites; com-
munications with analysts to support secondary market trading; assisting
with daily accounting and pricing; preparing periodic filings with regulators
and stock exchanges; overseeing and coordinating the activities of other serv-
ice providers; administering and organizing Board meetings and preparing the

Board materials for such meetings; providing legal and compliance support
(such as helping to prepare proxy statements and responding to regulatory
inquiries); and performing other Fund administrative tasks necessary for the
operation of the respective Fund (such as tax reporting and fulfilling regula-
tory filing requirements). The Board considered the Advisors’ policies and
procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: As previously
noted, the Board received performance information regarding each Fund
and its Peers. Among other things, the Board received materials reflecting
each Fund’s historic performance and each Fund’s one-, three- and five-year
total returns (as applicable) relative to its Peers (including the Peers’ median
performance). The Board was provided with a description of the methodology
used by Lipper to select each Fund’s Peers. The Board noted that it regularly
reviews the performance of each Fund throughout the year. The Board review-
ed a narrative and statistical analysis of the Lipper data that was prepared by
BlackRock, which analyzed various factors that affect Lipper rankings.

The Board noted that in general BTZ performed better than its Peers in that
its performance was at or above the median of its Peers in the one-year and
since inception periods reported.

The Board noted that although BCT underperformed its Peers, the Fund has
a limited life and will seek to return to investors their initial investment on
a fixed termination date, whereas the Fund’s Peers are perpetual funds.
Since the Fund is approaching its termination date, it maintains a shorter
duration and, all other things being equal, generally will have a lower return
than its Peers.

The Board noted that PSW’s performance was at or above the median of its
Peers in at least one of the one-year, three-year and since inception periods
reported. The Board concluded that BlackRock was committed to providing
the resources necessary to assist the portfolio managers and to continue
improving PSW’s performance. Based on its review, the Board generally was
satisfied with BlackRock’s efforts to manage PSW.

The Board noted that PSY performed below the median of its Peers in each of
the one-year, three-year and since inception periods reported. The Board then
discussed with representatives of BlackRock the reasons for PSY’s underper-
formance during these periods compared with its Peers and noted that PSY’s
Lipper category is mostly composed of traditional income and preferred stock
funds while PSY has a heavy bias toward financial company preferred stocks.

For PSY, the Board concluded that BlackRock was committed to providing the
resources necessary to assist the portfolio managers and to continue improv-
ing the Fund’s performance. Based on its review, the Board generally was sat-
isfied with BlackRock’s efforts to manage the Fund.

C. Consideration of the Advisory Fees and the Cost of the Services and
Profits to be Realized by BlackRock and its Affiliates from their Relationship
with the Funds: In evaluating the management fees and expenses that each
Fund is expected to bear, the Board considered each Fund’s current manage-
ment fee structure and each Fund’s expense ratios in absolute terms as well
as relative to the fees and expense ratios of its applicable Peers. The Board,

68 ANNUAL REPORT

OCTOBER 31, 2008


Disclosure of Investment Advisory Agreement and Subadvisory Agreement (concluded)

among other things, reviewed comparisons of each Fund’s gross management
fees before and after any applicable reimbursements and fee waivers and
total expense ratios before and after any applicable waivers with those of
applicable Peers. The Board also reviewed a narrative analysis of the Peer
rankings prepared by Lipper and summarized by BlackRock at the request of
the Board. This summary placed the Peer rankings into context by analyzing
various factors that affect these comparisons.

The Board noted that each of BCT, BTZ, PSW and PSY paid contractual man-
agement fees lower than or equal to the median contractual fees paid by
each Fund’s respective Peers. This comparison was made without giving effect
to any expense reimbursements or fee waivers.

The Board also compared the management fees charged and services provid-
ed by the Advisors to closed-end funds in general versus other types of clients
(such as open-end investment companies and separately managed institu-
tional accounts) in similar investment categories. The Board noted certain dif-
ferences in services provided and costs incurred by the Advisor with respect
to closed-end funds compared to these other types of clients and the reasons
for such differences.

In connection with the Board’s consideration of the fees and expense infor-
mation, the Board reviewed the considerable investment management experi-
ence of the Advisors and considered the high level of investment manage-
ment, administrative and other services provided by the Advisors.

D. Profitability of BlackRock: The Board also considered BlackRock’s prof-
itability in conjunction with its review of fees. The Board reviewed BlackRock’s
profitability with respect to the Fund Complex and other fund complexes
managed by the Advisors. In reviewing profitability, the Board recognized that
one of the most difficult issues in determining profitability is establishing a
method of allocating expenses. The Board also reviewed BlackRock’s assump-
tions and methodology of allocating expenses, noting the inherent limitations
in allocating costs among various advisory products. The Board also recog-
nized that individual fund or product line profitability of other advisors is gen-
erally not publicly available.

The Board recognized that profitability may be affected by numerous factors
including, among other things, the types of funds managed, expense alloca-
tions and business mix, and therefore comparability of profitability is some-
what limited. Nevertheless, to the extent available, the Board considered
BlackRock’s operating margin compared to the operating margin estimated
by BlackRock for a leading investment management firm whose operations
consist primarily of advising closed-end funds. The comparison indicated that
BlackRock’s operating margin was approximately the same as the operating
margin of such firm.

In evaluating the reasonableness of the Advisors’ compensation, the Board
also considered any other revenues paid to the Advisors, including partial
reimbursements paid to the Advisors for certain non-investment advisory serv-
ices, if applicable. The Board noted that these payments were less than the
Advisors’ costs for providing these services. The Board also considered indi-
rect benefits (such as soft dollar arrangements) that the Advisors and their
affiliates are expected to receive, which are attributable to their management
of the Fund.

E. Economies of Scale: In reviewing each Fund’s fees and expenses, the
Board examined the potential benefits of economies of scale, and whether
any economies of scale should be reflected in the Fund’s fee structure, for
example through the use of breakpoints for the Fund or the Fund Complex.
In this regard, the Board reviewed information provided by BlackRock, noting
that most closed-end fund complexes do not have fund-level breakpoints
because closed-end funds generally do not experience substantial growth
after their initial public offering and each fund is managed independently
consistent with its own investment objectives. The Board noted that only three
closed-end funds in the Fund Complex have breakpoints in their fee struc-
tures. Information provided by Lipper also revealed that only one closed-end
fund complex used a complex-level breakpoint structure. The Board found,
based on its review of comparable funds, that each Fund’s management fee
is appropriate in light of the scale of the respective Fund.

F. Other Factors: In evaluating fees, the Board also considered indirect bene-
fits or profits the Advisors or their affiliates may receive as a result of their
relationships with the Funds (“fall-out benefits”). The Directors, including the
Independent Directors, considered the intangible benefits that accrue to
the Advisors and their affiliates by virtue of their relationships with the Funds,
including potential benefits accruing to the Advisors and their affiliates as a
result of participating in offerings of the Funds’ shares, potentially stronger
relationships with members of the broker-dealer community, increased name
recognition of the Advisors and their affiliates, enhanced sales of other invest-
ment funds and products sponsored by the Advisors and their affiliates and
increased assets under management which may increase the benefits realized
by the Advisors from soft dollar arrangements with broker-dealers. The Board
also considered the unquantifiable nature of these potential benefits.

Conclusion with Respect to the Agreements

In reviewing and approving the continuation of the Agreements, the Directors
did not identify any single factor discussed above as all-important or control-
ling, but considered all factors together, and different Directors may have
attributed different weights to the various factors considered. The Independent
Directors were also assisted by the advice of independent legal counsel in
making this determination. The Directors, including the Independent Directors,
unanimously determined that each of the factors described above, in light
of all the other factors and all of the facts and circumstances applicable
to each respective Fund, was acceptable for each Fund and supported the
Directors’ conclusion that the terms of each Agreement were fair and reason-
able, that each Fund’s fees are reasonable in light of the services provided to
the respective Fund and that each Agreement should be approved.

ANNUAL REPORT

OCTOBER 31, 2008

69


Automatic Dividend Reinvestment Plan

How the Plan Works — BlackRock Enhanced Capital and Income Fund,
Inc., BlackRock Preferred and Corporate Income Strategies Fund, Inc. and
BlackRock Preferred Income Strategies Fund, Inc. (the “Funds” or individually
as the “Fund”) offer a Dividend Reinvestment Plan (the “Plan”) under which
income and capital gains dividends paid by a Fund are automatically rein-
vested in additional Common Shares of the Fund. The Plan is administered on
behalf of the shareholders by BNY Mellon Shareowner Services for BlackRock
Enhanced Capital and Income Fund, Inc. and Computershare Trust Company,
N.A. for BlackRock Preferred and Corporate Income Strategies Fund, Inc. and
BlackRock Capital Income Strategies Fund, Inc. (individually, the “Plan Agent”
or together, the “Plan Agents”). Under the Plan, whenever a Fund declares a
dividend, participants in the Plan will receive the equivalent in Common
Shares of the Fund. The Plan Agents will acquire the shares for the
participant’s account either (i) through receipt of additional unissued but
authorized shares of the Funds (“newly issued shares”) or (ii) by purchase of outstanding
Common Shares on the open market on the New York Stock Exchange or
American Stock Exchange, as applicable or elsewhere. If, on the dividend pay-
ment date, the Fund’s net asset value per share is equal to or less than the
market price per share plus estimated brokerage commissions (a condition
often referred to as a “market premium”), the Plan Agents will invest the divi-
dend amount in newly issued shares. If the Fund’s net asset value per share
is greater than the market price per share (a condition often referred to as a
“market discount”), the Plan Agents will invest the dividend amount by pur-
chasing on the open market additional shares. If the Plan Agents are unable
to invest the full dividend amount in open market purchases, or if the market
discount shifts to a market premium during the purchase period, the Plan
Agents will invest any uninvested portion in newly issued shares. The shares
acquired are credited to each shareholder’s account. The amount credited is
determined by dividing the dollar amount of the dividend by either (i) when
the shares are newly issued, the net asset value per share on the date the
shares are issued or (ii) when shares are purchased in the open market, the
average purchase price per share.

Participation in the Plan — Participation in the Plan is automatic, that is, a
shareholder is automatically enrolled in the Plan when he or she purchases
shares of Common Shares of the Funds unless the shareholder specifically
elects not to participate in the Plan. Shareholders who elect not to participate
will receive all dividend distributions in cash. Shareholders who do not wish to
participate in the Plan must advise their Plan Agent in writing (at the address
set forth below) that they elect not to participate in the Plan. Participation in
the Plan is completely voluntary and may be terminated or resumed at any
time without penalty by writing to the Plan Agent.

Benefits of the Plan — The Plan provides an easy, convenient way for share-
holders to make additional, regular investments in the Funds. The Plan pro-
motes a long-term strategy of investing at a lower cost. All shares acquired
pursuant to the Plan receive voting rights. In addition, if the market price plus
commissions of a Fund’s shares is above the net asset value, participants in
the Plan will receive shares of the Funds for less than they could otherwise
purchase them and with a cash value greater than the value of any cash dis-
tribution they would have received. However, there may not be enough shares
available in the market to make distributions in shares at prices below the net
asset value. Also, since the Funds do not redeem shares, the price on resale
may be more or less than the net asset value.

Plan Fees — There are no enrollment fees or brokerage fees for participating
in the Plan. The Plan Agents’ service fees for handling the reinvestment of
distributions are paid for by the Funds. However, brokerage commissions may
be incurred when the Funds purchase shares on the open market and share-
holders will pay a pro rata share of any such commissions.

Tax Implications — The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income tax that
may be payable (or required to be withheld) on such dividends. Therefore,
income and capital gains may still be realized even though shareholders do
not receive cash. If, when the Funds’ shares are trading at a market premium,
the Funds issue shares pursuant to the Plan that have a greater fair market
value than the amount of cash reinvested, it is possible that all or a portion
of the discount from the market value (which may not exceed 5% of the fair
market value of the Funds’s shares) could be viewed as a taxable distribution.
If the discount is viewed as a taxable distribution, it is also possible that
the taxable character of this discount would be allocable to all the sharehold-
ers, including shareholders who do not participate in the Plan. Thus, share-
holders who do not participate in the Plan might be required to report as
ordinary income a portion of their distributions equal to their allocable share
of the discount.

Contact Information — All correspondence concerning the Plan, including any
questions about the Plan, should be directed to the Plan Agent at the following
addresses: Shareholders of BlackRock Capital and Income Fund, Inc. should
contact BNY Mellon Shareowner Services, .O. Box 385035, Pittsburgh, PA
15252-8055 Telephone: (866) 216-0242 and shareholders of BlackRock
Preferred and Corporate Income Strategies Fund, Inc. and BlackRock Income
Strategies Fund, Inc. should contact Computershare Trust Company, N.A., .O.
Box 43078, Providence, RI 02940-3078 Telephone: (800) 699-1BFM or
overnight correspondence should be directed to the Plan Agent at 250 Royall
Street, Canton, MA 02021.

70 ANNUAL REPORT

OCTOBER 31, 2008


Dividend Reinvestment Plan

Pursuant to the respective Dividend Reinvestment Plan (the “Plan”), of
BlackRock Broad Investment Grade 2009 Term Trust Inc., BlackRock Global
Floating Rate Income Trust, BlackRock Preferred and Equity Advantage Trust
and BlackRock Preferred Opportunity Trust (the “Trusts” or individually as the
“Trust”) common shareholders of BlackRock Broad Investment Grade 2009
Term Trust Inc. may elect, while shareholders of BlackRock Global Floating
Rate Income Trust, BlackRock Preferred and Equity Advantage Trust and
BlackRock Preferred Opportunity Trust are automatically enrolled, to have all
distributions of dividends and capital gains reinvested by Computershare Trust
Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to
the Plan. Shareholders who do not participate in the Plan will receive all dis-
tributions in cash paid by check and mailed directly to the shareholders of
record (or if the shares are held in street or other nominee name, then to the
nominee) by the Plan Agent, which serves as agent for the shareholders in
administering the Plan.

After BlackRock Broad Investment Grade 2009 Term Trust Inc. declares a
dividend or determines to make a capital gain distribution, the Plan Agent
will acquire shares for the participants’ account, by the purchase of out-
standing shares on the open market, on the Trust’s primary exchange or
elsewhere (“open market purchases”). The Trust will not issue any new
shares under the Plan.

After BlackRock Global Floating Rate Income Trust, BlackRock Preferred and
Equity Advantage Trust and BlackRock Preferred Opportunity Trust declare a
dividend or determine to make a capital gain distribution, the Plan Agent
will acquire shares for the participants’ account, depending upon the circum-
stances described below, either (i) through receipt of unissued but authorized
shares from the Trust (“newly issued shares”) or (ii) by open market purchas-
es. If, on the dividend payment date, the net asset value per share NAV is
equal to or less than the market price per share plus estimated brokerage

commissions (such condition being referred to herein as “market premium”),
the Plan Agent will invest the dividend amount in newly issued shares on
behalf of the participants. The number of newly issued shares to be credited
to each participant’s account will be determined by dividing the dollar
amount of the dividend by the NAV on the date the shares are issued.
However, if the NAV is less than 95% of the market price on the payment
date, the dollar amount of the dividend will be divided by 95% of the market
price on the payment date. If, on the dividend payment date, the NAV is
greater than the market value per share plus estimated brokerage commis-
sions (such condition being referred to herein as “market discount”), the Plan
Agent will invest the dividend amount in shares acquired on behalf of the par-
ticipants in open-market purchases.

The Plan Agent’s fees for the handling of the reinvestment of dividends and
distributions will be paid by each Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent’s open market purchases in connection with the reinvestment of divi-
dends and distributions. The automatic reinvestment of dividends and distri-
butions will not relieve participants of any Federal income tax that may be
payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no
direct service charge to participants in the Plan; however each Trust reserves
the right to amend the Plan to include a service charge payable by the partic-
ipants. Participants who request a sale of shares through the Plan Agent are
subject to a $2.50 sales fee and a $0.15 per share sold brokerage commis-
sion. All correspondence concerning the Plan should be directed to the Plan
Agent at .O. Box 43078, Providence, RI 02940-3078 or by calling (800)
699-1BFM. All overnight correspondence should be directed to the Plan Agent
at 250 Royall Street, Canton, MA 02021.

ANNUAL REPORT

OCTOBER 31, 2008

71


Officers and Directors/Trustees         
 
        Length of        Number of     
        Time        BlackRock-     
    Position(s)    Served as        Advised Funds     
Name, Address    Held with    a Director/        and Portfolios    Public 
and Year of Birth    Funds    Trustee2    Principal Occupation(s) During Past 5 Years    Overseen    Directorships 
 
     Non-Interested Directors/Trustees1                 
Richard E. Cavanagh    Chairman    Since    Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life Insurance    113 Funds    Arch Chemical 
40 East 52nd Street    of the Board    1994    Insurance Company of America since 1998; Trustee, Educational Testing Service    110 Portfolios    (chemical and allied 
New York, NY 10022    and Director/        since 1997; Director, The Fremont Group since 1996; Formerly President and        products) 
1946    Trustee        Chief Executive Officer of The Conference Board, Inc. (global business research         
            organization) from 1995 to 2007.         
 
Karen . Robards    Vice Chair of    Since    Partner of Robards & Company, LLC, (financial advisory firm) since 1987; Co-    113 Funds    AtriCure, Inc. 
40 East 52nd Street    the Board,    2003    founder and Director of the Cooke Center for Learning and Development, (a not-    110 Portfolios    (medical devices); 
New York, NY 10022    Chair of        for-profit organization) since 1987; Formerly Director of Enable Medical Corp.        Care Investment 
1950    the Audit        from 1996 to 2005; Formerly an investment banker at Morgan Stanley from        Trust, Inc. (health 
    Committee        1976 to 1987.        care REIT) 
    and Director/                 
    Trustee                 
 
G. Nicholas Beckwith, III    Director/    Since    Chairman and Chief Executive Officer, Arch Street Management, LLC (Beckwith    113 Funds    None 
40 East 52nd Street    Trustee    2007    Family Foundation) and various Beckwith property companies since 2005;    110 Portfolios     
New York, NY 10022            Chairman of the Board of Directors, University of Pittsburgh Medical Center         
1945            since 2002; Board of Directors, Shady Side Hospital Foundation since 1977;         
            Board of Directors, Beckwith Institute for Innovation In Patient Care since 1991;         
            Member, Advisory Council on Biology and Medicine, Brown University since         
            2002; Trustee, Claude Worthington Benedum Foundation (charitable foundation)         
            since 1989; Board of Trustees, Chatham University since 1981; Board of Trustees,         
            University of Pittsburgh since 2002; Emeritus Trustee, Shady Side Academy since         
            1977; Formerly Chairman and Manager, Penn West Industrial Trucks LLC (sales,         
            rental and servicing of material handling equipment) from 2005 to 2007;         
            Formerly Chairman, President and Chief Executive Officer, Beckwith Machinery         
            Company (sales, rental and servicing of construction and equipment) from 1985         
            to 2005; Formerly Board of Directors, National Retail Properties (REIT) from         
            2006 to 2007.         
 
Kent Dixon    Director/    Since    Consultant/Investor since 1988.    113 Funds    None 
40 East 52nd Street    Trustee and    1992        110 Portfolios     
New York, NY 10022    Member of                 
1937    the Audit                 
    Committee                 
 
Frank J. Fabozzi    Director/    Since    Consultant/Editor of The Journal of Portfolio Management since 2006; Professor in    113 Funds    None 
40 East 52nd Street    Trustee and    1992    the Practice of Finance and Becton Fellow, Yale University, School of Management,    110 Portfolios     
New York, NY 10022    Member of        since 2006; Formerly Adjunct Professor of Finance and Becton Fellow, Yale         
1948    the Audit        University from 1994 to 2006.         
    Committee                 
 
Kathleen F. Feldstein    Director/    Since    President of Economics Studies, Inc. (private economic consulting firm) since    113 Funds    The McClatchy 
40 East 52nd Street    Trustee    2005    1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee    110 Portfolios    Company 
New York, NY 10022            Emeritus thereof since 2008; Member of the Corporation of Partners Community        (newspaper 
1941            Healthcare, Inc. since 2005; Member of the Corporation of Partners HealthCare        publishing) 
            since 1995; Member of the Corporation of Sherrill House (healthcare) since 1990;         
            Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee         
            to the Harvard University Art Museum since 2003; Trustee, The Committee for         
            Economic Development (research organization) since 1990; Member of the Advisory         
            Board to the International School of Business, Brandeis University since 2002.         
 
James T. Flynn    Director/    Since    Formerly Chief Financial Officer of JP Morgan & Co., Inc. from 1990 to 1995.    113 Funds    None 
40 East 52nd Street    Trustee and    2003        110 Portfolios     
New York, NY 10022    Member of                 
1939    the Audit                 
    Committee                 

72 ANNUAL REPORT

OCTOBER 31, 2008


Officers and Directors/Trustees (continued)         
 
         Length of        Number of     
         Time        BlackRock-     
    Position(s)     Served as        Advised Funds     
Name, Address    Held with     a Director/        and Portfolios    Public 
and Year of Birth    Funds     Trustee2    Principal Occupation(s) During Past 5 Years    Overseen    Directorships 
 
     Non-Interested Directors/Trustees1 (concluded)             
Jerrold B. Harris    Director/     Since    Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment)    113 Funds    BlackRock Kelso 
40 East 52nd Street    Trustee     2007    since 2000.    110 Portfolios    Capital Corp. 
New York, NY 10022                     
1942                     

 
 
 
 
 
R. Glenn Hubbard    Director/     Since    Dean of Columbia Business School since 2004; Columbia faculty member since    113 Funds    ADP (data and 
40 East 52nd Street    Trustee     2004    1988; Formerly Co-Director of Columbia Business School’s Entrepreneurship    110 Portfolios    information services), 
New York, NY 10022            Program from 1997 to 2004; Visiting Professor at the John F. Kennedy School        KKR Financial 
1958            of Government at Harvard University and the Harvard Business School since        Corporation (finance), 
            1985 and at the University of Chicago since 1994; Formerly Chairman of the U.S.        Duke Realty (real 
            Council of Economic Advisers under the President of the United        estate), Metropolitan 
            States from 2001 to 2003.        Life Insurance Com- 
                    pany (insurance), 
                    Information Services 
                    Group (media/ 
                    technology) 
 
W. Carl Kester    Director/     Since    Mizuho Financial Group Professor of Finance, Harvard Business School. Deputy    113 Funds    None 
40 East 52nd Street    Trustee and     2004    Dean for Academic Affairs since 2006; Unit Head, Finance, Harvard Business    110 Portfolios     
New York, NY 10022    Member of        School, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA         
1951    the Audit        Program of Harvard Business School, from 1999 to 2005; Member of the faculty         
    Committee        of Harvard Business School since 1981; Independent Consultant since 1978.         
 
Robert S. Salomon, Jr.    Director/     Since    Formerly Principal of STI Management LLC (investment adviser) from 1994    113 Funds    None 
40 East 52nd Street    Trustee and     2007    to 2005.    110 Portfolios     
New York, NY 10022    Member of                 
1936    the Audit                 
    Committee                 
 
    1 Directors/Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.     
    2 Following the combination of Merrill Lynch Investment Managers, L (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy 
       MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows 
       certain directors/trustees as joining the Funds’/Trusts’ board in 2007, each director/trustee first became a member of the board of directors/trustees 
       of other legacy MLIM or legacy BlackRock Funds as follows: G. Nicholas Beckwith, III since 1999; Richard E. Cavanagh since 1994; Kent Dixon since 
       1988; Frank J. Fabozzi since 1988; Kathleen F. Feldstein since 2005; James T. Flynn since 1996; Jerrold B. Harris since 1999; R. Glenn Hubbard since 
       2004; W. Carl Kester since 1998; Karen . Robards since 1998 and Robert S. Salomon, Jr. since 1996.         

 
 
 
 
     Interested Directors/Trustees3                 
Richard S. Davis    Director/    Since    Managing Director, BlackRock, Inc. since 2005; Formerly Chief Executive Officer,    184 Funds    None 
40 East 52nd Street    Trustee    2007    State Street Research & Management Company from 2000 to 2005; Formerly    295 Portfolios     
New York, NY 10022            Chairman of the Board of Trustees, State Street Research Mutual Funds from         
1945            2000 to 2005; Formerly Chairman, SSR Realty from 2000 to 2004.         

 
 
 
 
 
Henry Gabbay    Director/    Since    Consultant, BlackRock, Inc. since 2007; Formerly Managing Director, BlackRock,    184 Funds    None 
40 East 52nd Street    Trustee    2007    Inc. from 1989 to 2007; Formerly Chief Administrative Officer, BlackRock Advisors,    295 Portfolios     
New York, NY 10022            LLC from 1998 to 2007; Formerly President of BlackRock Funds and BlackRock         
1947            Bond Allocation Target Shares from 2005 to 2007; Formerly Treasurer of certain         
            closed-end funds in the BlackRock fund complex from 1989 to 2006.         

3 Mr. Davis is an “interested person,” as defined in the Investment Company Act of 1940, of the Funds/Trusts based on his position with BlackRock, Inc.
and its affiliates. Mr. Gabbay is an “interested person” of Funds/Trusts due to his consulting arrangement with BlackRock, Inc. as well as his ownership
of BlackRock, Inc. and PNC Securities. Directors/Trustees serve until their resignation, removal or death, or until December 31 of the year in which they
turn 72.

ANNUAL REPORT

OCTOBER 31, 2008

73


Officers and Directors/Trustees (concluded)

    Position(s)         
Name, Address    Held with    Length of     
and Year of Birth    Funds    Time Served    Principal Occupation(s) During Past 5 Years 
 
     Fund Officers1             
Donald C. Burke    Fund    Since 2007    Managing Director of BlackRock, Inc. since 2006; Formerly Managing Director of Merrill Lynch Investment Managers, L.P. 
40 East 52nd Street    President        (“MLIM”) and Fund Asset Management, L (“FAM”) in 2006; First Vice President thereof from 1997 to 2005; Treasurer 
New York, NY 10022    and Chief        thereof from 1999 to 2006 and Vice President thereof from 1990 to 1997. 
1960    Executive         
    Officer         

 
 
 
Anne F. Ackerley    Vice    Since 2007    Managing Director of BlackRock, Inc. since 2000; Chief Operating Officer of BlackRock’s U.S. Retail Group since 2006; Head 
40 East 52nd Street    President        of BlackRock’s Mutual Fund Group from 2000 to 2006; Merrill Lynch & Co., Inc. from 1984 to 1986 and from 1988 to 2000, 
New York, NY 10022            most recently as First Vice President and Operating Officer of the Mergers and Acquisitions Group. 
1962             

 
 
 
Neal J. Andrews    Chief    Since 2007    Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice President and Line of Business Head of Fund 
40 East 52nd Street    Financial        Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. (formerly PFPC Inc.) from 1992 to 2006. 
New York, NY 10022    Officer         
1966             

 
 
 
Jay M. Fife    Treasurer    Since 2007    Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Formerly Assistant Treasurer of the MLIM/FAM advised 
40 East 52nd Street            funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006. 
New York, NY 10022             
1970             

 
 
 
Brian . Kindelan    Chief    Since 2007    Chief Compliance Officer of the BlackRock-advised Funds since 2007; Anti-Money Laundering Officer of the BlackRock-advised 
40 East 52nd Street    Compliance        Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005; Director and Senior Counsel of 
New York, NY 10022    Officer of        BlackRock Advisors, Inc. from 2001 to 2004 and Vice President and Senior Counsel thereof from 1998 to 2000; Formerly 
1959    the Funds        Senior Counsel of The PNC Bank Corp. from 1995 to 1998. 

 
 
 
Howard B. Surloff    Secretary    Since 2007    Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; Formerly General 
40 East 52nd Street            Counsel (U.S.) of Goldman Sachs Asset Management, L from 1993 to 2006. 
New York, NY 10022             
1965             
   
 
 
    1 Officers of the Funds serve at the pleasure of the Board of Directors/Trustees. 

74 ANNUAL REPORT

OCTOBER 31, 2008


BlackRock Closed-End Funds                 
 
Custodians    Transfer Agents    Accounting Agent    Independent Registered    Legal Counsel    Fund Address 
    Common Shares:    State Street Bank    Public Accounting Firm    Skadden, Arps, Slate    100 Bellevue Parkway 
        and Trust Company    Deloitte & Touche LLP    Meagher & Flom LLP    Wilmington, DE 19809 
For all Funds/Trusts except    For all Funds except    Princeton, NJ 08540    Princeton, NJ 08540    New York, NY 10036     
BlackRock Enhanced Capital    BlackRock Enhanced Capital                 
and Income Fund, Inc.:    and Income Fund, Inc.:                 
State Street Bank and    Computershare Trust                 
Trust Company    Companies, N.A.                 
Boston, MA 02101    Canton, MA 02021                 
For BlackRock Enhanced    For BlackRock Enhanced                 
Capital and Income Fund, Inc.:    Capital and Income Fund, Inc.:                 
Brown Brothers    BNY Mellon Shareowner Services             
Harriman & Co.    Jersey City, NJ 07310                 
Boston, MA 02109                     
    Preferred Shares:                 
    For all Funds except                 
    BlackRock Enhanced Capital                 
    & Income Fund, Inc. and                 
    BlackRock Broad Investment                 
    Grade 2009 Term Trust Inc.:                 
    BNY Mellon Shareowner Services             
    Jersey City, NJ 07310                 

ANNUAL REPORT

OCTOBER 31, 2008

75


Additional Information

Proxy Results

The Annual Meeting of Shareholders was held on September 12, 2008 for shareholders of record on July 14, 2008, to elect director or trustee nominees of
each Fund:

Approved the Class 1 Directors/Trustees as follows:                         
    G. Nicholas Beckwith, III    Kent Dixon    R. Glenn Hubbard 
         Votes         Votes        Votes 
    Votes For    Withheld    Votes For    Withheld    Votes For    Withheld 
BlackRock Broad Investment Grade 2009 Term Trust Inc.    2,595,438       89,943    2,594,238       91,143    2,592,438                 92,943 
BlackRock Global Floating Rate Income Trust    20,450,792     467,335    20,443,307     474,820    20,463,415               454,712 
BlackRock Preferred Opportunity Trust    16,859,704     284,739    16,853,381     291,062    16,860,729               283,714 
BlackRock Preferred and Equity Advantage Trust    46,196,896    1,300,843    46,186,208    1,311,531    46,173,908           1,323,831 
 
    W. Carl Kester    Robert S. Salomon, Jr.         
         Votes         Votes         
    Votes For    Withheld    Votes For    Withheld         
BlackRock Broad Investment Grade 2009 Term Trust Inc.    2,594,438       90,943    2,593,938       91,443         
BlackRock Global Floating Rate Income Trust    1,7531             1081    20,438,088     480,039         
BlackRock Preferred Opportunity Trust    3,5871             2111    16,851,479     292,964         
BlackRock Preferred and Equity Advantage Trust    7,0891           1,0981    46,182,464    1,315,275         
 
Approved the Directors/Trustees as follows:                         
    G. Nicholas Beckwith, III    Kent Dixon    R. Glenn Hubbard 
         Votes         Votes        Votes 
    Votes For    Withheld    Votes For    Withheld    Votes For    Withheld 
BlackRock Enhanced Capital and Income Fund, Inc.    10,247,557     265,582    10,243,213     269,926    10,245,215               267,924 
BlackRock Preferred and Corporate Income Strategies Fund, Inc.    8,931,355     153,635    8,924,453     160,537    8,930,270               154,720 
BlackRock Preferred Income Strategies Fund, Inc.    37,131,516     979,155    37,116,128     994,543    37,128,153               982,518 
 
    W. Carl Kester    Robert S. Salomon, Jr.    Richard S. Davis 
         Votes         Votes        Votes 
    Votes For    Withheld    Votes For    Withheld    Votes For    Withheld 
BlackRock Enhanced Capital and Income Fund, Inc.    10,246,646     266,493    10,242,865     270,274    10,248,691               264,448 
BlackRock Preferred and Corporate Income Strategies Fund, Inc.    2,3991               411    8,923,904     161,086    8,932,586               152,404 
BlackRock Preferred Income Strategies Fund, Inc.    8,5151             9251    37,112,736     997,935    37,135,697               974,974 
 
    Frank J. Fabozzi    James T. Flynn    Karen P. Robards 
         Votes         Votes         Votes 
    Votes For    Withheld    Votes For     Withheld    Votes For      Withheld 
BlackRock Enhanced Capital and Income Fund, Inc.    10,248,691     264,448    10,244,466     268,673    10,247,834               265,305 
BlackRock Preferred and Corporate Income Strategies Fund, Inc.    2,3991               411    8,931,781     153,209    8,932,696               152,294 
BlackRock Preferred Income Strategies Fund, Inc.    8,5151             9251    37,126,066     984,605    37,133,334               977,337 
 
    Richard E. Cavanagh    Kathleen F. Feldstein    Henry Gabbay 
         Votes         Votes        Votes 
    Votes For      Withheld    Votes For    Withheld    Votes For    Withheld 
BlackRock Enhanced Capital and Income Fund, Inc.    10,244,008     269,131    10,241,388     271,751    10,248,554               264,585 
BlackRock Preferred and Corporate Income Strategies Fund, Inc.    8,928,752     156,238    8,932,167     152,823    8,932,586               152,404 
BlackRock Preferred Income Strategies Fund, Inc.    37,132,184     978,487    37,123,239     987,432    37,135,172               975,499 
 
    Jerrold B. Harris                 
         Votes                 
    Votes For    Withheld                 
BlackRock Enhanced Capital and Income Fund, Inc.    10,248,921     264,218                 
BlackRock Preferred and Corporate Income Strategies Fund, Inc.    8,928,837     156,153                 
BlackRock Preferred Income Strategies Fund, Inc.    37,133,462     977,209                 
1 Voted on by holders of preferred shares only.                         

76 ANNUAL REPORT

OCTOBER 31, 2008


Additional Information (continued)

Fund Certification

Blackrock Enhanced Capital and Income Fund, Inc., BlackRock Global
Floating Rate Income Trust, BlackRock Preferred and Corporate Income
Strategies Fund, Inc., BlackRock Preferred and Equity Advantage Trust,
BlackRock Preferred Income Strategies Fund, Inc. and BlackRock Preferred
Opportunity Trust are listed for trading on the New York Stock Exchange

(“NYSE”) and have filed with the NYSE their annual chief executive officer cer-
tification regarding compliance with the NYSE’s listing standards. Each Fund
filed with the Securities and Exchange Commission (“SEC”) the certification of
their chief executive officer and chief financial officer required by section 302
of the Sabanes-Oxley Act.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The Funds’ 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 (800) SEC-0330. The Funds’ Forms N-Q may also be obtained
upon request and without charge by calling (800) 441-7762.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’
websites or shareholders can sign up for e-mail notifications of quarterly
statements, 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.

General Information

The Funds do not make available copies of their Statements of Additional
Information because the Funds’ shares are not continuously offered, which
means that the Statements of Additional Information of the Funds have not
been updated after completion of the Funds’ offering and the information
contained in the Funds’ Statements of Additional Information may have
become outdated.

During the period, there were no material changes in the Funds’ investment
objectives or policies or to the Funds’ charters or by-laws that were not
approved by the shareholders or in the principal risk factors associated with
investment in the Funds. There have been no changes in the persons who are
primarily responsible for the day-to-day management of the Funds’ portfolios.

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 “household-
ing” and it is intended to reduce expenses and eliminate duplicate mailings
of shareholder documents. Mailings of your shareholder documents may be
householded indefinitely unless you instruct us otherwise. If you do not want
the mailing of these documents to be combined with those for other members
of your household, please contact the Funds at (800) 441-7762.

Quarterly performance, semi-annual and annual reports and other information
regarding the Funds may be found on BlackRock’s website, which can be
accessed at http://www.blackrock.com. This reference to BlackRock’s website
is intended to allow investors public access to information regarding the
Funds and does not, and is not intended to, incorporate BlackRock’s website
into this report.

ANNUAL REPORT

OCTOBER 31, 2008

77


Additional Information (concluded)                             
 
     Section 19 Notices                                 
These amounts are sources of distributions reported are only estimates and    erience during the year and may be subject to changes based on the tax regu- 
are not being provided for tax reporting purposes. The actual amounts and    lations. The Funds will send you a Form 1099-DIV each calendar year that will 
sources for tax reporting purposes will depend upon each Fund’s investment    tell you how to report these distributions for federal income tax purposes. 
 
        Total Fiscal Period to Date Cumulative        Percentage of Fiscal Period to Date     
                           Distributions by Character                                          Cumulative Distributions by Character     
         Net    Net        Total Per    Net    Net        Total Per 
    Investment    Realized    Return of    Common    Investment    Realized    Return of    Common 
    Income    Capital Gains    Capital     Share    Income    Capital Gains    Capital    Share 
Capital and Income    $0.739    $0.695    $0.020    $1.454    51%    48%    1%    100% 
Global Floating Rate    $1.025            $1.025    100%    0%    0%    100% 
Preferred and Corporate    $1.241        $0.028    $1.269    98%    0%    2%    100% 
Preferred and Equity    $0.990        $0.753    $1.743    57%    0%    43%    100% 
Preferred Income    $1.224        $0.150    $1.374    89%    0%    11%    100% 
Preferred Opportunity    $1.071        $0.054    $1.125    95%    0%    5%    100% 
 
BlackRock Privacy Principles                                 

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

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

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

78 ANNUAL REPORT

OCTOBER 31, 2008


This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation
of future performance. BlackRock Global Floating Rate Income Trust, BlackRock Preferred and Corporate Income Strategies Fund, Inc., BlackRock Preferred and
Equity Advantage Trust, BlackRock Preferred Income Strategies Fund, Inc. and BlackRock Preferred Opportunity Trust leverage their Common Shares, which cre-
ates risk for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of Common Shares, and the risk that fluctua-
tions in short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free (800) 441-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission’s website at
http://www.sec.gov. Information about how each Fund voted proxies relating to securities held in each Fund’s portfolio during the most recent 12-month period
ended June 30, 2008 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and
Exchange Commission’s website at http://www.sec.gov.



#CE-EQFI-7-10/08


Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end
of the period covered by this report, applicable to the registrant’s principal executive officer,
principal financial officer and principal accounting officer, or persons performing similar
functions. During the period covered by this report, there have been no amendments to or
waivers granted under the code of ethics. A copy of the code of ethics is available without
charge at www.blackrock.com.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors or trustees, as
applicable (the “board of directors”) has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent:
Kent Dixon
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
Robert S. Salomon, Jr.

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards
qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

Prof. Kester has a thorough understanding of generally accepted accounting principles,
financial statements and internal control over financial reporting as well as audit committee
functions. Prof. Kester has been involved in providing valuation and other financial
consulting services to corporate clients since 1978. Prof. Kester’s financial consulting
services present a breadth and level of complexity of accounting issues that are generally
comparable to the breadth and complexity of issues that can reasonably be expected to be
raised by the registrant’s financial statements.

Ms. Robards has a thorough understanding of generally accepted accounting principles,
financial statements and internal control over financial reporting as well as audit committee
functions. Ms. Robards has been President of Robards & Company, a financial advisory
firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years
where she was responsible for evaluating and assessing the performance of companies based
on their financial results. Ms. Robards has over 30 years of experience analyzing financial
statements. She also is a member of the audit committee of one publicly held company and
a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial
expert will not be deemed an “expert” for any purpose, including without limitation for the
purposes of Section 11 of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation or identification as an
audit committee financial expert does not impose on such person any duties, obligations, or
liabilities greater than the duties, obligations, and liabilities imposed on such person as a
member of the audit committee and board of directors in the absence of such designation or
identification.


Item 4 – Principal Accountant Fees and Services                     
 
             (a) Audit Fees     (b) Audit-Related Fees1               (c) Tax Fees2         (d) All Other Fees3 
    Current    Previous    Current    Previous    Current    Previous    Current    Previous 
    Fiscal Year    Fiscal Year    Fiscal Year    Fiscal Year    Fiscal Year    Fiscal Year    Fiscal Year    Fiscal Year 
     Entity Name    End    End    End    End    End    End    End    End 
BlackRock                                 
Enhanced Capital                                 
and Income Fund,    $37,200    $37,000    $0    $8,000    $6,100    $6,100    $1,049    $1,042 
Inc.                                 

 
 
 
 
 
 
 
 
1 The nature of the services include assurance and related services reasonably related to the performance of the audit of     
financial statements not included in Audit Fees.                         
2 The nature of the services include tax compliance, tax advice and tax planning.             
3 The nature of the services include a review of compliance procedures and attestation thereto.         

(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant’s audit committee (the “Committee”) has adopted policies and
procedures with regard to the pre-approval of services. Audit, audit-related and tax
compliance services provided to the registrant on an annual basis require specific pre-
approval by the Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to the registrant’s affiliated
service providers that relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee believes are a) consistent
with the SEC’s auditor independence rules and b) routine and recurring services that will
not impair the independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis (“general pre-approval”).
The term of any general pre-approval is 12 months from the date of the pre-approval, unless
the Committee provides for a different period. Tax or other non-audit services provided to
the registrant which have a direct impact on the operation or financial reporting of the
registrant will only be deemed pre-approved provided that any individual project does not
exceed $10,000 attributable to the registrant or $50,000 for all of the registrants the
Committee oversees. For this purpose, multiple projects will be aggregated to determine if
they exceed the previously mentioned cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific
pre-approval by the Committee, as will any other services not subject to general pre-
approval (e.g., unanticipated but permissible services). The Committee is informed of each
service approved subject to general pre-approval at the next regularly scheduled in-person
board meeting. At this meeting, an analysis of such services is presented to the Committee
for ratification. The Committee may delegate to one or more of its members the authority to
approve the provision of and fees for any specific engagement of permitted non-audit
services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by
the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) Affiliates’ Aggregate Non-Audit Fees:

    Current Fiscal Year    Previous Fiscal Year 
               Entity Name    End    End 
BlackRock Enhanced Capital    $294,649    $299,642 
and Income Fund, Inc.         


(h) The registrant’s audit committee has considered and determined that the provision of
non-audit services that were rendered to the registrant’s investment adviser (not including
any non-affiliated sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant’s investment adviser), and any entity
controlling, controlled by, or under common control with the investment adviser that
provides ongoing services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant’s independence.

Regulation S-X Rule 2-01(c)(7)(ii) – $287,500, 0%

Item 5 – Audit Committee of Listed Registrants – The following individuals are members of the
registrant’s separately-designated standing audit committee established in accordance with
Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

Kent Dixon
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
Robert S. Salomon, Jr.

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 – The board of directors has delegated the voting of proxies for the
Fund securities to the Fund’s investment advisor (“Investment Adviser”) pursuant to the
Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment
Adviser will vote proxies related to Fund securities in the best interests of the Fund and its
stockholders. From time to time, a vote may present a conflict between the interests of the
Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated
person of the Fund or the Investment Adviser, on the other. In such event, provided that the
Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee
thereof (the “Oversight Committee”) is aware of the real or potential conflict or material
non-routine matter and if the Oversight Committee does not reasonably believe it is able to
follow its general voting guidelines (or if the particular proxy matter is not addressed in the
guidelines) and vote impartially, the Oversight Committee may retain an independent
fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the
Investment Adviser’s clients. If the Investment Adviser determines not to retain an
independent fiduciary, or does not desire to follow the advice of such independent fiduciary,
the Oversight Committee shall determine how to vote the proxy after consulting with the
Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal
and Compliance Department and concluding that the vote cast is in its client’s best interest
notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are
attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is available


without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at
http://www.sec.gov.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – as of January 2,
2009:

(a)(1) BlackRock Enhanced Capital and Income Fund, Inc. is managed by Kevin Rendino,
Managing Director at BlackRock, Kurt Schansinger, Managing Director at BlackRock,
Carrie King, Director and associate portfolio manager and Jonathan A. Clark, Managing
Director at BlackRock. Mr. Rendino is head of BlackRock’s Basic Value Equity team. Mr.
Schansinger and Ms. King are members of BlackRock’s Basic Value Equity team. Mr.
Clark is a member of BlackRock’s Quantitative Investments team. Messrs. Rendino,
Schansinger and Clark are responsible for the day-to-day management of the Fund’s
portfolio and the selection of its investments. Messrs. Rendino, Schansinger and Clark and
Ms. King have been members of the Fund’s portfolio management team since 2004, 2008,
2007 and 2008, respectively.

Mr. Rendino joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing
Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2000 to 2006. Mr.
Rendino has been with BlackRock or MLIM since 1990.

Mr. Schansinger joined BlackRock in 2006. Prior to joining BlackRock, he was a
Managing Director of MLIM since 2000 and was Director (Equities) of MLIM from 1997 to
2000. Mr. Schansinger has been with BlackRock or MLIM since 1996.

Ms. King is a member of BlackRock's Basic Value Equity team. She is responsible for stock
selection in the media, defense, healthcare, materials, and telecommunications sectors. Prior
to joining BlackRock in 2006, Ms. King was a Director at MLIM, where she served several
roles including senior fund analyst, associate portfolio manager, and industry analyst, all
with an emphasis on a value-oriented investment style. Ms. King has been with BlackRock
or MLIM since 1993.

Mr. Clark joined BlackRock in 2006. Prior to joining BlackRock, he was a Vice President
of MLIM from 1999 to 2006. At MLIM, he was a member of the Quantitative Investments
team, responsible for managing arbitrage and derivative strategies for enhanced and
structured portfolios. He also managed a commodities futures portfolio, and was a member
of the Quantitative Investment Committee.

                             (a)(2) As of January 2, 2009:                     
 
    Number of Other Accounts Managed    Number of Other Accounts and 
    and Assets by Account Type        Assets for Which Advisory Fee is 
                    Performance-Based     
    Other    Other Pooled        Other    Other Pooled     
Name of    Registered    Investment    Other    Registered    Investment    Other 
Portfolio Manager    Investment    Vehicles    Accounts    Investment    Vehicles    Accounts 
    Companies            Companies         
Kevin Rendino    9    3    0    0    0    0 
    $7.42 Billion    $1.23 Billion    $0    $0    $0    $0 
Kurt Schansinger    9    3    0    0    0    0 
    $7.42 Billion    $1.23 Billion    $0    $0    $0    $0 
Carrie King    0    1    1    0    0    0 


        $0    $67.8 Million    $1.14 Million    $0    $0    $0 
Jonathan Clark        7    5    0    0    0    0 
        $1.31 Billion    $441.9 Million    $0    $0    $0    $0 
 
    (iv)    Potential Material Conflicts of Interest                 

BlackRock, Inc. and its affiliates (collectively, herein “BlackRock”) has built a professional
working environment, firm-wide compliance culture and compliance procedures and
systems designed to protect against potential incentives that may favor one account over
another. BlackRock has adopted policies and procedures that address the allocation of
investment opportunities, execution of portfolio transactions, personal trading by employees
and other potential conflicts of interest that are designed to ensure that all client accounts are
treated equitably over time. Nevertheless, BlackRock furnishes investment management and
advisory services to numerous clients in addition to the Fund, and BlackRock may,
consistent with applicable law, make investment recommendations to other clients or
accounts (including accounts which are hedge funds or have performance or higher fees
paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of
such fees), which may be the same as or different from those made for the Fund. In
addition, BlackRock, its affiliates and any officer, director, stockholder or employee may or
may not have an interest in the securities whose purchase and sale BlackRock recommends
to the Fund. BlackRock, or any of its affiliates, or any officer, director, stockholder,
employee or any member of their families may take different actions than those
recommended to the Fund by BlackRock with respect to the same securities. Moreover,
BlackRock may refrain from rendering any advice or services concerning securities of
companies of which any of BlackRock’s (or its affiliates’) officers, directors or employees
are directors or officers, or companies as to which BlackRock or any of its affiliates or the
officers, directors or employees of any of them has any substantial economic interest or
possesses material non-public information. Each portfolio manager also may manage
accounts whose investment strategies may at times be opposed to the strategy utilized for a
fund. In this regard, it should be noted that a portfolio manager may currently manage
certain accounts that are subject to performance fees. In addition, a portfolio manager may
assist in managing certain hedge funds and may be entitled to receive a portion of any
incentive fees earned on such funds and a portion of such incentive fees may be voluntarily
or involuntarily deferred. Additional portfolio managers may in the future manage other
such accounts or funds and may be entitled to receive incentive fees.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client
fairly. When BlackRock purchases or sells securities for more than one account, the trades
must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to
allocate investments in a fair and equitable manner among client accounts, with no account
receiving preferential treatment. To this end, BlackRock has adopted a policy that is
intended to ensure that investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve reasonable efficiency in client
transactions and provide BlackRock with sufficient flexibility to allocate investments in a
manner that is consistent with the particular investment discipline and client base.

(a)(3) As of January 2, 2009:

Portfolio Manager Compensation Overview


BlackRock’s financial arrangements with its portfolio managers, its competitive
compensation and its career path emphasis at all levels reflect the value senior management
places on key resources. Compensation may include a variety of components and may vary
from year to year based on a number of factors. The principal components of compensation
include a base salary, a performance-based discretionary bonus, participation in various
benefits programs and one or more of the incentive compensation programs established by
BlackRock such as its Long-Term Retention and Incentive Plan.

Base compensation. Generally, portfolio managers receive base compensation based on
their seniority and/or their position with the firm. Senior portfolio managers who perform
additional management functions within the portfolio management group or within
BlackRock may receive additional compensation for serving in these other capacities.

Discretionary Incentive Compensation for Messrs. Rendino and Schansinger and Ms.
King
Discretionary incentive compensation is based on a formulaic compensation program.
BlackRock’s formulaic portfolio manager compensation program includes: pre-tax
investment performance relative to appropriate competitors or benchmarks over 1-, 3- and
5-year performance periods and a measure of operational efficiency. If a portfolio
manager’s tenure is less than five years, performance periods will reflect time in position. In
most cases, including for the portfolio managers of the Fund, these benchmarks are the same
as the benchmark or benchmarks against which the performance of the Fund or other
accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment
Officers determine the benchmarks against which the performance of funds and other
accounts managed by each portfolio manager is compared and the period of time over which
performance is evaluated. With respect to the portfolio managers, such benchmarks for the
equity component of the Fund include the Lipper Large Cap Value Funds classification.

Portfolio managers who meet relative investment performance and financial management
objectives during a specified performance time period are eligible to receive an additional
bonus which may or may not be a large part of their overall compensation. A smaller
element of portfolio manager discretionary compensation may include consideration of:
financial results, expense control, profit margins, strategic planning and implementation,
quality of client service, market share, corporate reputation, capital allocation, compliance
and risk control, leadership, workforce diversity, supervision, technology and innovation.
All factors are considered collectively by BlackRock management.

Discretionary Incentive Compensation for Mr. Clark
Discretionary incentive compensation is a function of several components: the performance
of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock,
the investment performance, including risk-adjusted returns, of the firm’s assets under
management or supervision by that portfolio manager relative to predetermined
benchmarks, and the individual’s seniority, role within the portfolio management team,
teamwork and contribution to the overall performance of these portfolios and BlackRock.
In most cases, including for the portfolio managers of the Fund, these benchmarks are the
same as the benchmark or benchmarks against which the performance of the Fund or other
accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment
Officers determine the benchmarks against which the performance of funds and other
accounts managed by each portfolio manager is compared and the period of time over which
performance is evaluated. With respect to Mr. Clark, such benchmarks for the options
strategy for the Fund include a combination of market-based indices (e.g., The S&P 500


Index, MSCI World Index), certain customized indices and certain fund industry peer
groups.
BlackRock’s Chief Investment Officers make a subjective determination with respect to the
portfolio manager’s compensation based on the performance of the funds and other accounts
managed by each portfolio manager relative to the various benchmarks noted above.
Performance is measured on a pre-tax basis over various time periods including 1, 3 and 5-
year periods, as applicable.

Distribution of Discretionary Incentive Compensation
Discretionary incentive compensation is distributed to portfolio managers in a combination
of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of
years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in
BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base
salary, represents more than 60% of total compensation for the portfolio managers. Paying
a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a
given year “at risk” based on BlackRock’s ability to sustain and improve its performance
over future periods.

Long-Term Retention and Incentive Plan (“LTIP”) — The LTIP is a long-term
incentive plan that seeks to reward certain key employees. Beginning in 2006, awards are
granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly
vested and subject to the attainment of certain performance goals, will be settled in
BlackRock, Inc. common stock. Messrs. Rendino, Schansinger and Clark and Ms. King
have each received awards under the LTIP.

Deferred Compensation Program — A portion of the compensation paid to eligible
BlackRock employees may be voluntarily deferred into an account that tracks the
performance of certain of the firm’s investment products. Each participant in the deferred
compensation program is permitted to allocate his deferred amounts among the various
investment options. Messrs. Rendino, Schansinger and Clark and Ms. King have each
participated in the deferred compensation program.

Other compensation benefits. In addition to base compensation and discretionary
incentive compensation, portfolio managers may be eligible to receive or participate in one
or more of the following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive
savings plans in which BlackRock employees are eligible to participate, including a
401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee
Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a
company match equal to 50% of the first 6% of eligible pay contributed to the plan capped
at $4,000 per year, and a company retirement contribution equal to 3% of eligible
compensation, plus an additional contribution of 2% for any year in which BlackRock has
positive net operating income. The RSP offers a range of investment options, including
registered investment companies managed by the firm. BlackRock contributions follow the
investment direction set by participants for their own contributions or, absent employee
investment direction, are invested into a balanced portfolio. The ESPP allows for
investment in BlackRock common stock at a 5% discount on the fair market value of the
stock on the purchase date. Annual participation in the ESPP is limited to the purchase of
1,000 shares or a dollar value of $25,000. Each portfolio manager is eligible to participate
in these plans.


(a)(4) Beneficial Ownership of Securities. As of January 2, 2009, the dollar range of
securities beneficially owned by each portfolio manager in the Fund is shown below:

Portfolio Manager    Dollar Range of Equity 
    Securities Beneficially Owned 
Kevin Rendino    None 
Kurt Schansinger    None 
Carrie King    None 
Jonathan Clark    None 

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers – Not Applicable due to no such purchases during the period covered
by this report.

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 13a-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 – See Item 2

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 Enhanced Capital and Income Fund, Inc.

By: /s/ Donald C. Burke
Donald C. Burke
Chief Executive Officer of
BlackRock Enhanced Capital and Income Fund, Inc.

Date: December 19, 2008

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/ Donald C. Burke
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock Enhanced Capital and Income Fund, Inc.

Date: December 19, 2008

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Enhanced Capital and Income Fund, Inc.

Date: December 19, 2008