UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-21972

 

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

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

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

 

Date of fiscal year end: 10/31/2012

 

Date of reporting period: 01/31/2012

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments January 31, 2012 (Unaudited)

BlackRock Credit Allocation Income Trust IV (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Asset-Backed Securities

 

Par
(000)

 

Value

 

Atrium CDO Corp., Series 5A, Class
A4, 0.87%, 7/20/20 (a)(b)

 

$

4,400

 

$

3,575,000

 

SLM Student Loan Trust, Series
2004-B, Class A2, 0.75%,
6/15/21 (b)

 

 

3,809

 

 

3,647,056

 

Total Asset-Backed Securities – 1.0%

 

 

 

 

 

7,222,056

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

 

 

 

 

 

 

Aerospace & Defense — 1.1%

 

 

 

 

 

 

 

BE Aerospace, Inc., 8.50%,
7/01/18

 

 

3,575

 

 

3,941,437

 

Huntington Ingalls Industries, Inc. (a):

 

 

 

 

 

 

 

6.88%, 3/15/18

 

 

990

 

 

1,024,650

 

7.13%, 3/15/21

 

 

960

 

 

1,003,200

 

Kratos Defense & Security
Solutions, Inc., 10.00%,
6/01/17

 

 

1,662

 

 

1,757,565

 

 

 

 

 

 

 

7,726,852

 

Airlines — 1.0%

 

 

 

 

 

 

 

American Airlines Pass-Through Trust,
Class A:

 

 

 

 

 

 

 

Series 2011-1, 5.25%,
7/31/22

 

 

2,354

 

 

2,248,290

 

Series 2011-2, 8.63%,
4/15/23

 

 

940

 

 

1,001,100

 

Continental Airlines Pass-Through
Certificates, Series 2009-2,
Class B, 9.25%, 11/10/18

 

 

1,865

 

 

1,953,642

 

Delta Air Lines, Inc., Series 02G1,
6.72%, 7/02/24

 

 

1,949

 

 

2,007,922

 

 

 

 

 

 

 

7,210,954

 

Auto Components — 0.7%

 

 

 

 

 

 

 

Delphi Corp., 6.13%, 5/15/21 (a)

 

 

950

 

 

997,500

 

Icahn Enterprises LP:

 

 

 

 

 

 

 

7.75%, 1/15/16

 

 

1,180

 

 

1,227,200

 

8.00%, 1/15/18 (a)

 

 

520

 

 

539,500

 

8.00%, 1/15/18

 

 

2,500

 

 

2,593,750

 

 

 

 

 

 

 

5,357,950

 

Beverages — 0.5%

 

 

 

 

 

 

 

Constellation Brands, Inc., 7.25%,
5/15/17

 

 

3,230

 

 

3,617,600

 

Building Products — 0.4%

 

 

 

 

 

 

 

Building Materials Corp. of America (a):

 

 

 

 

 

 

 

7.00%, 2/15/20

 

 

790

 

 

853,200

 

6.75%, 5/01/21

 

 

1,930

 

 

2,074,750

 

 

 

 

 

 

 

2,927,950

 

Capital Markets — 5.0%

 

 

 

 

 

 

 

Ameriprise Financial, Inc., 5.30%,
3/15/20 (c)

 

 

4,500

 

 

4,966,137

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Capital Markets (concluded)

 

 

 

 

 

 

 

E*Trade Financial Corp., 12.50%,
11/30/17 (d)

 

$

2,565

 

$

2,968,988

 

The Goldman Sachs Group, Inc.:

 

 

 

 

 

 

 

7.50%, 2/15/19 (c)

 

 

6,850

 

 

7,774,914

 

5.75%, 1/24/22

 

 

3,800

 

 

3,938,848

 

6.25%, 2/01/41 (c)

 

 

7,350

 

 

7,509,150

 

Morgan Stanley, 5.50%, 7/28/21 (c)

 

 

5,630

 

 

5,566,955

 

UBS AG:

 

 

 

 

 

 

 

2.25%, 1/28/14 (c)

 

 

2,678

 

 

2,662,583

 

5.88%, 7/15/16

 

 

1,575

 

 

1,667,202

 

 

 

 

 

 

 

37,054,777

 

Chemicals — 1.2%

 

 

 

 

 

 

 

Ashland, Inc., 9.13%, 6/01/17

 

 

840

 

 

941,850

 

Celanese US Holdings LLC, 5.88%,
6/15/21

 

 

2,560

 

 

2,752,000

 

Lyondell Chemical Co., 11.00%,
5/01/18

 

 

2,688

 

 

2,943,498

 

LyondellBasell Industries NV,
6.00%, 11/15/21 (a)

 

 

480

 

 

522,000

 

Solutia, Inc., 7.88%, 3/15/20

 

 

1,425

 

 

1,674,375

 

 

 

 

 

 

 

8,833,723

 

Commercial Banks — 3.3%

 

 

 

 

 

 

 

Amsouth Bank, Series AI, 4.85%,
4/01/13

 

 

1,800

 

 

1,791,000

 

Asciano Finance Ltd., 5.00%,
4/07/18 (a)

 

 

1,475

 

 

1,522,247

 

Associated Banc-Corp, 5.13%,
3/28/16

 

 

3,645

 

 

3,880,445

 

Branch Banking & Trust Co. (b)(c):

 

 

 

 

 

 

 

0.86%, 9/13/16

 

 

1,850

 

 

1,714,697

 

0.80%, 5/23/17

 

 

1,100

 

 

1,004,783

 

CIT Group, Inc.:

 

 

 

 

 

 

 

7.00%, 5/02/16 (a)

 

 

2,590

 

 

2,599,712

 

7.00%, 5/01/17

 

 

1,688

 

 

1,690,110

 

7.00%, 5/02/17 (a)

 

 

860

 

 

862,150

 

Discover Bank, 8.70%, 11/18/19

 

 

1,950

 

 

2,306,384

 

Regions Financial Corp.:

 

 

 

 

 

 

 

4.88%, 4/26/13

 

 

4,150

 

 

4,160,375

 

5.75%, 6/15/15

 

 

3,000

 

 

3,061,200

 

 

 

 

 

 

 

24,593,103

 

Commercial Services & Supplies — 3.9%

 

 

 

 

 

 

 

Aviation Capital Group Corp. (a):

 

 

 

 

 

 

 

7.13%, 10/15/20 (c)

 

 

15,000

 

 

15,116,244

 

6.75%, 4/06/21

 

 

3,850

 

 

3,719,600

 

Casella Waste Systems, Inc.,
7.75%, 2/15/19

 

 

1,201

 

 

1,201,000

 

Clean Harbors, Inc., 7.63%,
8/15/16

 

 

2,250

 

 

2,385,000

 

Corrections Corp. of America,
7.75%, 6/01/17

 

 

4,835

 

 

5,248,997

 

Iron Mountain, Inc., 7.75%,
10/01/19

 

 

650

 

 

711,750

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

1


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Commercial Services & Supplies (concluded)

 

 

 

 

 

 

 

Mobile Mini, Inc., 7.88%,
12/01/20

 

$

455

 

$

469,219

 

 

 

 

 

 

 

28,851,810

 

Communications Equipment — 0.8%

 

 

 

 

 

 

 

Avaya, Inc., 9.75%, 11/01/15

 

 

1,400

 

 

1,340,500

 

Brocade Communications Systems,
Inc., 6.88%, 1/15/20 (c)

 

 

3,580

 

 

3,938,000

 

EH Holding Corp., 6.50%, 6/15/19 (a)

 

 

700

 

 

728,875

 

 

 

 

 

 

 

6,007,375

 

Consumer Finance — 5.2%

 

 

 

 

 

 

 

American Express Credit Corp.,
2.75%, 9/15/15 (c)

 

 

9,850

 

 

10,141,885

 

Capital One Bank USA NA, 8.80%,
7/15/19

 

 

3,950

 

 

4,777,059

 

Daimler Finance North America
LLC, 2.63%, 9/15/16 (a)(c)

 

 

5,675

 

 

5,702,949

 

Ford Motor Credit Co. LLC:

 

 

 

 

 

 

 

7.00%, 4/15/15

 

 

4,730

 

 

5,203,000

 

5.88%, 8/02/21

 

 

530

 

 

579,528

 

Inmarsat Finance Plc, 7.38%,
12/01/17 (a)

 

 

2,515

 

 

2,650,181

 

SLM Corp., 6.25%, 1/25/16

 

 

8,205

 

 

8,375,114

 

Toll Brothers Finance Corp.,
5.88%, 2/15/22

 

 

680

 

 

679,987

 

 

 

 

 

 

 

38,109,703

 

Containers & Packaging — 1.3%

 

 

 

 

 

 

 

Ball Corp.:

 

 

 

 

 

 

 

7.13%, 9/01/16

 

 

2,000

 

 

2,180,000

 

6.75%, 9/15/20

 

 

3,575

 

 

3,950,375

 

Crown Americas LLC, 6.25%,
2/01/21

 

 

1,350

 

 

1,468,125

 

Graphic Packaging International,
Inc., 9.50%, 6/15/17

 

 

1,105

 

 

1,218,262

 

Rock-Tenn Co., 9.25%, 3/15/16

 

 

800

 

 

839,000

 

Sealed Air Corp., 8.38%, 9/15/21 (a)

 

 

220

 

 

247,500

 

 

 

 

 

 

 

9,903,262

 

Diversified Financial Services — 9.0%

 

 

 

 

 

 

 

Ally Financial, Inc.:

 

 

 

 

 

 

 

4.50%, 2/11/14

 

 

1,500

 

 

1,499,820

 

8.30%, 2/12/15

 

 

2,890

 

 

3,188,017

 

8.00%, 11/01/31

 

 

1,680

 

 

1,782,900

 

Bank of America Corp. (c):

 

 

 

 

 

 

 

5.30%, 3/15/17

 

 

6,505

 

 

6,472,690

 

5.00%, 5/13/21

 

 

12,100

 

 

11,840,878

 

Citigroup, Inc. (c):

 

 

 

 

 

 

 

6.38%, 8/12/14

 

 

2,150

 

 

2,327,403

 

4.59%, 12/15/15

 

 

1,575

 

 

1,653,922

 

4.45%, 1/10/17

 

 

4,375

 

 

4,561,624

 

Countrywide Financial Corp.,
6.25%, 5/15/16 (c)

 

 

6,500

 

 

6,540,137

 

DPL, Inc., 7.25%, 10/15/21 (a)

 

 

1,475

 

 

1,640,937

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Diversified Financial Services (concluded)

 

 

 

 

 

 

 

General Motors Financial Co., Inc.,
6.75%, 6/01/18 (a)

 

$

830

 

$

863,200

 

ING Bank NV, 5.00%, 6/09/21 (a)(c)

 

 

3,950

 

 

4,037,390

 

Intesa Sanpaolo SpA (c):

 

 

 

 

 

 

 

2.38%, 12/21/12 (e)

 

 

5,800

 

 

5,628,564

 

6.50%, 2/24/21 (a)

 

 

922

 

 

850,910

 

Moody’s Corp., 6.06%, 9/07/17

 

 

10,000

 

 

10,455,930

 

Reynolds Group Issuer, Inc. (a):

 

 

 

 

 

 

 

7.13%, 4/15/19

 

 

420

 

 

441,000

 

7.88%, 8/15/19

 

 

1,470

 

 

1,583,925

 

6.88%, 2/15/21

 

 

360

 

 

375,300

 

WMG Acquisition Corp., 9.50%,
6/15/16 (a)

 

 

340

 

 

369,750

 

 

 

 

 

 

 

66,114,297

 

Diversified Telecommunication Services — 5.1%

 

 

 

 

 

 

 

AT&T, Inc. (c):

 

 

 

 

 

 

 

2.40%, 8/15/16 (b)

 

 

1,525

 

 

1,582,142

 

6.30%, 1/15/38

 

 

5,000

 

 

6,097,515

 

France Telecom SA, 4.13%,
9/14/21 (c)

 

 

1,125

 

 

1,168,521

 

Level 3 Financing, Inc. (a):

 

 

 

 

 

 

 

8.13%, 7/01/19

 

 

4,807

 

 

4,843,052

 

8.63%, 7/15/20 (c)

 

 

1,220

 

 

1,250,500

 

Qwest Corp., 8.38%, 5/01/16

 

 

3,285

 

 

3,825,133

 

Telecom Italia Capital SA, 6.18%,
6/18/14

 

 

1,650

 

 

1,658,250

 

Telefonica Emisiones SAU, 5.46%,
2/16/21

 

 

2,250

 

 

2,235,391

 

Verizon Communications, Inc. (c):

 

 

 

 

 

 

 

1.95%, 3/28/14

 

 

8,525

 

 

8,739,515

 

7.35%, 4/01/39

 

 

3,640

 

 

5,103,760

 

Windstream Corp., 7.88%,
11/01/17

 

 

990

 

 

1,093,950

 

 

 

 

 

 

 

37,597,729

 

Electric Utilities — 3.0%

 

 

 

 

 

 

 

Dominion Resources, Inc., 8.88%,
1/15/19 (c)

 

 

8,000

 

 

10,747,176

 

Duke Energy Corp., 3.55%,
9/15/21 (c)

 

 

2,825

 

 

2,940,916

 

Progress Energy, Inc., 7.00%,
10/30/31 (c)

 

 

5,000

 

 

6,694,840

 

Southern Co., 1.95%, 9/01/16

 

 

1,625

 

 

1,656,429

 

 

 

 

 

 

 

22,039,361

 

Electronic Equipment, Instruments & Components — 0.3%

 

 

 

 

 

 

 

Jabil Circuit, Inc., 8.25%, 3/15/18

 

 

1,200

 

 

1,398,000

 

NXP BV, 3.32%, 10/15/13 (b)

 

 

664

 

 

662,340

 

 

 

 

 

 

 

2,060,340

 

Energy Equipment & Services — 3.2%

 

 

 

 

 

 

 

Atwood Oceanics, Inc., 6.50%,
2/01/20

 

 

185

 

 

191,475

 

Energy Transfer Partners LP,
5.20%, 2/01/22

 

 

5,000

 

 

5,280,130

 

Ensco Plc, 4.70%, 3/15/21

 

 

3,255

 

 

3,488,152

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

2


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Energy Equipment & Services (concluded)

 

 

 

 

 

 

 

Frac Tech Services LLC, 7.63%,
11/15/18 (a)

 

$

1,795

 

$

1,911,675

 

Key Energy Services, Inc., 6.75%,
3/01/21

 

 

1,240

 

 

1,271,000

 

MEG Energy Corp., 6.50%,
3/15/21 (a)

 

 

1,580

 

 

1,651,100

 

Oil States International, Inc.,
6.50%, 6/01/19

 

 

835

 

 

887,188

 

Peabody Energy Corp., 6.25%,
11/15/21 (a)

 

 

3,805

 

 

3,919,150

 

Transocean, Inc.:

 

 

 

 

 

 

 

6.50%, 11/15/20

 

 

1,860

 

 

2,059,822

 

6.38%, 12/15/21

 

 

2,300

 

 

2,608,149

 

 

 

 

 

 

 

23,267,841

 

Food & Staples Retailing — 1.4%

 

 

 

 

 

 

 

Wal-Mart Stores, Inc. (c):

 

 

 

 

 

 

 

5.25%, 9/01/35

 

 

2,650

 

 

3,125,540

 

6.20%, 4/15/38

 

 

5,225

 

 

6,915,632

 

 

 

 

 

 

 

10,041,172

 

Food Products — 0.8%

 

 

 

 

 

 

 

Kraft Foods, Inc.:

 

 

 

 

 

 

 

6.50%, 8/11/17

 

 

1,985

 

 

2,394,319

 

6.13%, 8/23/18

 

 

1,990

 

 

2,399,476

 

Smithfield Foods, Inc., 10.00%,
7/15/14

 

 

668

 

 

784,900

 

 

 

 

 

 

 

5,578,695

 

Gas Utilities — 0.3%

 

 

 

 

 

 

 

El Paso Natural Gas Co., 8.63%,
1/15/22

 

 

1,150

 

 

1,457,639

 

Targa Resources Partners LP,
6.88%, 2/01/21 (a)

 

 

820

 

 

854,850

 

 

 

 

 

 

 

2,312,489

 

Health Care Equipment & Supplies — 0.8%

 

 

 

 

 

 

 

Fresenius US Finance II, Inc.,
9.00%, 7/15/15 (a)

 

 

4,250

 

 

4,791,875

 

Teleflex, Inc., 6.88%, 6/01/19

 

 

815

 

 

872,050

 

 

 

 

 

 

 

5,663,925

 

Health Care Providers & Services — 3.4%

 

 

 

 

 

 

 

Aetna, Inc., 6.75%, 12/15/37 (c)

 

 

2,025

 

 

2,595,582

 

Aviv Healthcare Properties LP,
7.75%, 2/15/19

 

 

765

 

 

766,913

 

HCA, Inc.:

 

 

 

 

 

 

 

8.50%, 4/15/19

 

 

265

 

 

294,150

 

6.50%, 2/15/20

 

 

3,780

 

 

4,006,800

 

7.25%, 9/15/20

 

 

4,590

 

 

4,939,987

 

Health Management Associates,
Inc., 7.38%, 1/15/20 (a)

 

 

790

 

 

813,700

 

INC Research LLC, 11.50%,
7/15/19 (a)

 

 

1,155

 

 

1,062,600

 

inVentiv Health, Inc., 10.00%,
8/15/18 (a)

 

 

360

 

 

325,800

 

Tenet Healthcare Corp.:
10.00%, 5/01/18

 

 

2,175

 

 

2,506,688

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Health Care Providers & Services (concluded)

 

 

 

 

 

 

 

Tenet Healthcare Corp. (concluded):
8.88%, 7/01/19

 

$

1,825

 

$

2,064,531

 

UnitedHealth Group, Inc., 6.88%,
2/15/38

 

 

4,075

 

 

5,573,769

 

 

 

 

 

 

 

24,950,520

 

Health Care Technology — 0.9%

 

 

 

 

 

 

 

Amgen, Inc.:

 

 

 

 

 

 

 

5.15%, 11/15/41 (c)

 

 

6,280

 

 

6,667,262

 

5.65%, 6/15/42

 

 

70

 

 

78,727

 

 

 

 

 

 

 

6,745,989

 

Independent Power Producers & Energy Traders — 1.1%

 

 

 

 

 

 

 

AES Corp.:

 

 

 

 

 

 

 

9.75%, 4/15/16

 

 

1,620

 

 

1,903,500

 

7.38%, 7/01/21 (a)

 

 

535

 

 

591,175

 

Calpine Construction Finance Co.
LP, 8.00%, 6/01/16 (a)

 

 

1,265

 

 

1,363,037

 

Calpine Corp., 7.25%, 10/15/17 (a)

 

 

730

 

 

762,850

 

Energy Future Intermediate
Holding Co. LLC, 10.00%,
12/01/20

 

 

2,910

 

 

3,135,525

 

Laredo Petroleum, Inc., 9.50%,
2/15/19

 

 

485

 

 

529,863

 

 

 

 

 

 

 

8,285,950

 

Insurance — 6.1%

 

 

 

 

 

 

 

The Allstate Corp., 6.50%,
5/15/57 (b)

 

 

4,000

 

 

3,780,000

 

American International Group, Inc.:

 

 

 

 

 

 

 

6.40%, 12/15/20 (c)

 

 

2,800

 

 

3,045,588

 

8.18%, 5/15/58 (b)

 

 

1,300

 

 

1,254,500

 

Fairfax Financial Holdings Ltd.,
5.80%, 5/15/21 (a)

 

 

4,975

 

 

4,766,577

 

Forethought Financial Group, Inc.,
8.63%, 4/15/21 (a)

 

 

1,625

 

 

1,650,179

 

Genworth Financial, Inc., 7.63%,
9/24/21

 

 

1,615

 

 

1,601,873

 

Manulife Financial Corp., 4.90%,
9/17/20

 

 

3,650

 

 

3,765,318

 

MetLife, Inc., 6.40%, 12/15/36

 

 

4,550

 

 

4,433,675

 

MPL 2 Acquisition Canco, Inc.,
9.88%, 8/15/18 (a)

 

 

715

 

 

629,200

 

Northwestern Mutual Life
Insurance, 6.06%, 3/30/40 (a)

 

 

5,500

 

 

6,752,741

 

Principal Financial Group, Inc.,
8.88%, 5/15/19

 

 

1,145

 

 

1,456,792

 

Prudential Financial, Inc., 6.63%,
12/01/37 (c)

 

 

4,075

 

 

4,759,237

 

Swiss Re Capital I LP, 6.85% (a)(b)(f)

 

 

3,000

 

 

2,698,401

 

XL Group Ltd., 5.75%, 10/01/21

 

 

4,105

 

 

4,508,575

 

 

 

 

 

 

 

45,102,656

 

IT Services — 0.7%

 

 

 

 

 

 

 

Eagle Parent Canada, Inc., 8.63%,
5/01/19 (a)

 

 

1,180

 

 

1,180,000

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

3


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

IT Services (concluded)

 

 

 

 

 

 

 

First Data Corp.:

 

 

 

 

 

 

 

7.38%, 6/15/19 (a)(c)

 

$

1,205

 

$

1,201,987

 

8.25%, 1/15/21 (a)

 

 

145

 

 

134,125

 

12.63%, 1/15/21

 

 

1,240

 

 

1,199,700

 

SunGard Data Systems, Inc.,
7.38%, 11/15/18

 

 

1,210

 

 

1,276,550

 

 

 

 

 

 

 

4,992,362

 

Life Sciences Tools & Services — 1.6%

 

 

 

 

 

 

 

Bio-Rad Laboratories, Inc., 8.00%,
9/15/16

 

 

5,480

 

 

6,069,100

 

Life Technologies Corp., 6.00%,
3/01/20

 

 

4,800

 

 

5,420,165

 

 

 

 

 

 

 

11,489,265

 

Machinery — 0.8%

 

 

 

 

 

 

 

Ingersoll-Rand Global Holding Co.
Ltd., 9.50%, 4/15/14

 

 

4,075

 

 

4,724,759

 

Navistar International Corp.,
8.25%, 11/01/21

 

 

1,363

 

 

1,472,040

 

 

 

 

 

 

 

6,196,799

 

Media — 7.2%

 

 

 

 

 

 

 

AMC Networks, Inc., 7.75%,
7/15/21 (a)

 

 

655

 

 

719,681

 

CCH II LLC, 13.50%, 11/30/16

 

 

3,851

 

 

4,438,278

 

Comcast Corp., 6.30%, 11/15/17 (c)

 

 

4,075

 

 

4,903,574

 

Cox Communications, Inc., 8.38%,
3/01/39 (a)

 

 

4,075

 

 

5,562,477

 

CSC Holdings LLC:

 

 

 

 

 

 

 

8.50%, 4/15/14

 

 

1,130

 

 

1,257,125

 

8.63%, 2/15/19

 

 

1,950

 

 

2,276,625

 

DIRECTV Holdings LLC, 5.00%,
3/01/21 (c)

 

 

4,150

 

 

4,564,672

 

DISH DBS Corp., 7.00%, 10/01/13

 

 

1,950

 

 

2,086,500

 

Intelsat Luxemburg SA (d):

 

 

 

 

 

 

 

11.50%, 2/04/17 (a)

 

 

180

 

 

180,900

 

11.50%, 2/04/17

 

 

630

 

 

633,150

 

The Interpublic Group of Cos., Inc.,
10.00%, 7/15/17

 

 

1,975

 

 

2,258,906

 

Kabel BW Erste Beteiligungs
GmbH, 7.50%, 3/15/19 (a)

 

 

1,760

 

 

1,878,800

 

News America, Inc., 6.15%,
3/01/37 (c)

 

 

4,850

 

 

5,520,930

 

Time Warner Cable, Inc., 6.75%,
6/15/39

 

 

4,675

 

 

5,617,185

 

Time Warner, Inc., 7.70%,
5/01/32 (c)

 

 

4,900

 

 

6,503,736

 

Unitymedia Hessen GmbH & Co.
KG, (FKA UPC Germany GmbH),
8.13%, 12/01/17 (a)

 

 

1,225

 

 

1,323,000

 

Virgin Media Secured Finance Plc,
6.50%, 1/15/18

 

 

3,175

 

 

3,413,125

 

 

 

 

 

 

 

53,138,664

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Metals & Mining — 1.9%

 

 

 

 

 

 

 

Alcoa, Inc., 5.40%, 4/15/21 (c)

 

$

940

 

$

986,901

 

Barrick Gold Corp., 2.90%,
5/30/16 (c)

 

 

1,925

 

 

2,000,385

 

Barrick North America Finance
LLC, 5.70%, 5/30/41 (c)

 

 

2,275

 

 

2,733,850

 

Freeport-McMoRan Corp., 7.13%,
11/01/27

 

 

3,500

 

 

4,195,128

 

Novelis, Inc., 8.75%, 12/15/20

 

 

1,610

 

 

1,799,175

 

Teck Resources Ltd., 10.75%,
5/15/19

 

 

2,000

 

 

2,444,902

 

 

 

 

 

 

 

14,160,341

 

Multi-Utilities — 1.2%

 

 

 

 

 

 

 

CenterPoint Energy, Inc.:

 

 

 

 

 

 

 

5.95%, 2/01/17

 

 

3,600

 

 

4,105,134

 

6.50%, 5/01/18

 

 

3,950

 

 

4,632,505

 

 

 

 

 

 

 

8,737,639

 

Multiline Retail — 1.7%

 

 

 

 

 

 

 

JC Penney Co., Inc., 5.65%,
6/01/20

 

 

12,400

 

 

12,431,000

 

Oil, Gas & Consumable Fuels — 12.7%

 

 

 

 

 

 

 

Alpha Natural Resources, Inc.,
6.25%, 6/01/21

 

 

930

 

 

920,700

 

Anadarko Petroleum Corp.:

 

 

 

 

 

 

 

5.95%, 9/15/16

 

 

1,686

 

 

1,935,622

 

6.38%, 9/15/17

 

 

52

 

 

61,506

 

Arch Coal, Inc. (a):

 

 

 

 

 

 

 

7.00%, 6/15/19

 

 

370

 

 

370,925

 

7.25%, 6/15/21

 

 

985

 

 

989,925

 

BP Capital Markets Plc:

 

 

 

 

 

 

 

5.25%, 11/07/13

 

 

2,100

 

 

2,262,338

 

3.88%, 3/10/15 (c)

 

 

3,085

 

 

3,331,849

 

Buckeye Partners LP, 4.88%,
2/01/21 (c)

 

 

1,650

 

 

1,751,247

 

Chesapeake Energy Corp., 6.13%,
2/15/21 (c)

 

 

2,255

 

 

2,221,175

 

Chesapeake Midstream Partners LP (a):

 

 

 

 

 

 

 

5.88%, 4/15/21

 

 

980

 

 

987,350

 

6.13%, 7/15/22

 

 

785

 

 

798,738

 

Chesapeake Oilfield Operating LLC,
6.63%, 11/15/19 (a)

 

 

240

 

 

241,200

 

Consol Energy, Inc., 6.38%,
3/01/21 (a)

 

 

745

 

 

735,688

 

Copano Energy LLC, 7.13%,
4/01/21

 

 

930

 

 

957,900

 

DCP Midstream LLC, 4.75%,
9/30/21 (a)

 

 

2,100

 

 

2,215,725

 

Denbury Resources, Inc., 6.38%,
8/15/21

 

 

955

 

 

1,033,787

 

El Paso Corp., 7.00%, 6/15/17

 

 

2,390

 

 

2,646,583

 

El Paso Pipeline Partners Operating Co.
LLC:

 

 

 

 

 

 

 

6.50%, 4/01/20

 

 

2,525

 

 

2,820,140

 

5.00%, 10/01/21

 

 

900

 

 

941,776

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

4


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Oil, Gas & Consumable Fuels (continued)

 

 

 

 

 

 

 

Enbridge Energy Partners LP,
9.88%, 3/01/19

 

$

2,425

 

$

3,241,614

 

Energy XXI Gulf Coast, Inc., 7.75%,
6/15/19

 

 

1,700

 

 

1,755,250

 

Enterprise Products Operating LLC,
6.65%, 4/15/18

 

 

4,800

 

 

5,747,885

 

Forest Oil Corp., 8.50%, 2/15/14

 

 

2,055

 

 

2,239,950

 

Kinder Morgan Energy Partners LP,
6.85%, 2/15/20

 

 

4,800

 

 

5,694,187

 

Kinder Morgan Finance Co. LLC,
6.00%, 1/15/18 (a)

 

 

710

 

 

734,850

 

Kodiak Oil & Gas Corp., 8.13%,
12/01/19 (a)

 

 

380

 

 

402,800

 

Linn Energy LLC, 7.75%, 2/01/21

 

 

1,585

 

 

1,707,837

 

Marathon Petroleum Corp., 3.50%,
3/01/16 (c)

 

 

2,250

 

 

2,318,062

 

MarkWest Energy Partners LP,
6.25%, 6/15/22

 

 

880

 

 

935,000

 

Newfield Exploration Co., 6.88%,
2/01/20

 

 

950

 

 

1,016,500

 

Nexen, Inc., 6.40%, 5/15/37

 

 

2,550

 

 

2,876,285

 

Oasis Petroleum, Inc.:

 

 

 

 

 

 

 

7.25%, 2/01/19

 

 

560

 

 

588,000

 

6.50%, 11/01/21

 

 

505

 

 

510,050

 

OGX Petroleo e Gas Participacoes
SA, 8.50%, 6/01/18 (a)

 

 

1,950

 

 

2,014,350

 

ONEOK Partners LP, 8.63%,
3/01/19 (c)

 

 

4,075

 

 

5,239,941

 

Petrobras International Finance
Co., 3.88%, 1/27/16

 

 

6,150

 

 

6,296,893

 

Petrohawk Energy Corp.:

 

 

 

 

 

 

 

10.50%, 8/01/14

 

 

1,020

 

 

1,133,475

 

6.25%, 6/01/19

 

 

1,180

 

 

1,320,125

 

Petroleum Geo-Services ASA,
7.38%, 12/15/18 (a)

 

 

865

 

 

899,600

 

Pioneer Natural Resources Co.:

 

 

 

 

 

 

 

6.65%, 3/15/17

 

 

1,080

 

 

1,226,631

 

6.88%, 5/01/18

 

 

820

 

 

943,981

 

Plains Exploration & Production Co.:

 

 

 

 

 

 

 

10.00%, 3/01/16

 

 

700

 

 

787,500

 

8.63%, 10/15/19

 

 

940

 

 

1,057,500

 

6.75%, 2/01/22

 

 

1,090

 

 

1,185,375

 

Precision Drilling Corp., 6.50%,
12/15/21 (a)

 

 

700

 

 

719,250

 

Premier Oil Plc, 5.00%, 6/09/18

 

 

5,650

 

 

5,819,500

 

Range Resources Corp., 6.75%,
8/01/20

 

 

1,415

 

 

1,549,425

 

SandRidge Energy, Inc., 7.50%,
3/15/21

 

 

1,200

 

 

1,218,000

 

SM Energy Co. (a):

 

 

 

 

 

 

 

6.63%, 2/15/19

 

 

365

 

 

383,250

 

6.50%, 11/15/21

 

 

570

 

 

597,075

 

Western Gas Partners LP, 5.38%,
6/01/21

 

 

2,525

 

 

2,669,935

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Oil, Gas & Consumable Fuels (concluded)

 

 

 

 

 

 

 

The Williams Cos., Inc., 8.75%,
3/15/32

 

$

1,175

 

$

1,552,785

 

 

 

 

 

 

 

93,607,035

 

Paper & Forest Products — 2.9%

 

 

 

 

 

 

 

Boise Paper Holdings LLC:

 

 

 

 

 

 

 

9.00%, 11/01/17

 

 

480

 

 

523,200

 

8.00%, 4/01/20

 

 

1,070

 

 

1,144,900

 

Georgia-Pacific LLC, 8.25%,
5/01/16 (a)(c)

 

 

3,955

 

 

4,383,987

 

International Paper Co.:

 

 

 

 

 

 

 

7.50%, 8/15/21 (c)

 

 

3,950

 

 

5,024,562

 

8.70%, 6/15/38

 

 

3,100

 

 

4,327,892

 

7.30%, 11/15/39

 

 

4,075

 

 

5,105,926

 

Longview Fibre Paper & Packaging,
Inc., 8.00%, 6/01/16 (a)

 

 

545

 

 

570,206

 

Verso Paper Holdings LLC,
11.50%, 7/01/14

 

 

590

 

 

607,700

 

 

 

 

 

 

 

21,688,373

 

Pharmaceuticals — 3.6%

 

 

 

 

 

 

 

Merck & Co., Inc. (c):

 

 

 

 

 

 

 

6.50%, 12/01/33

 

 

2,885

 

 

4,049,435

 

6.55%, 9/15/37

 

 

2,020

 

 

2,828,481

 

Pfizer, Inc., 7.20%, 3/15/39 (c)

 

 

10,000

 

 

14,979,360

 

Valeant Pharmaceuticals
International, 6.50%, 7/15/16 (a)

 

 

450

 

 

456,750

 

Watson Pharmaceuticals, Inc.,
6.13%, 8/15/19

 

 

3,495

 

 

4,147,730

 

 

 

 

 

 

 

26,461,756

 

Real Estate Investment Trusts (REITs) — 2.5%

 

 

 

 

 

 

 

AvalonBay Communities, Inc.,
6.10%, 3/15/20 (c)

 

 

4,075

 

 

4,785,081

 

Developers Diversified Realty Corp.:

 

 

 

 

 

 

 

4.75%, 4/15/18

 

 

1,025

 

 

1,032,541

 

7.88%, 9/01/20

 

 

1,325

 

 

1,567,288

 

ERP Operating LP, 5.75%,
6/15/17

 

 

4,080

 

 

4,643,003

 

HCP, Inc., 5.38%, 2/01/21

 

 

1,675

 

 

1,851,013

 

UDR, Inc., 4.25%, 6/01/18

 

 

2,675

 

 

2,795,458

 

Ventas Realty LP/Ventas Capital
Corp., 4.75%, 6/01/21

 

 

1,880

 

 

1,937,336

 

 

 

 

 

 

 

18,611,720

 

Real Estate Management & Development — 0.4%

 

 

 

 

 

 

 

Realogy Corp. (a):

 

 

 

 

 

 

 

7.88%, 2/15/19 (c)

 

 

940

 

 

869,500

 

7.63%, 1/15/20 (g)

 

 

1,025

 

 

1,025,000

 

Shea Homes LP, 8.63%, 5/15/19 (a)

 

 

805

 

 

805,000

 

 

 

 

 

 

 

2,699,500

 

Road & Rail — 1.7%

 

 

 

 

 

 

 

Avis Budget Car Rental LLC,
8.25%, 1/15/19

 

 

180

 

 

189,450

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

5


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Road & Rail (concluded)

 

 

 

 

 

 

 

Florida East Coast Railway Corp.,
8.13%, 2/01/17

 

$

320

 

$

320,000

 

The Hertz Corp., 6.75%, 4/15/19

 

 

1,554

 

 

1,604,505

 

Norfolk Southern Corp., 6.00%,
3/15/2105 (c)

 

 

8,500

 

 

10,162,319

 

 

 

 

 

 

 

12,276,274

 

Semiconductors & Semiconductor Equipment — 0.5%

 

 

 

 

 

 

 

Advanced Micro Devices, Inc.,
7.75%, 8/01/20

 

 

1,300

 

 

1,404,000

 

KLA-Tencor Corp., 6.90%, 5/01/18

 

 

2,208

 

 

2,610,585

 

 

 

 

 

 

 

4,014,585

 

Specialty Retail — 1.2%

 

 

 

 

 

 

 

AutoNation, Inc., 6.75%, 4/15/18

 

 

2,775

 

 

2,969,250

 

Limited Brands, Inc., 7.00%,
5/01/20

 

 

1,370

 

 

1,520,700

 

QVC, Inc., 7.38%, 10/15/20 (a)

 

 

175

 

 

191,188

 

Sally Holdings LLC, 6.88%,
11/15/19 (a)(c)

 

 

990

 

 

1,059,300

 

VF Corp., 5.95%, 11/01/17 (c)

 

 

2,450

 

 

2,905,195

 

 

 

 

 

 

 

8,645,633

 

Tobacco — 2.6%

 

 

 

 

 

 

 

Altria Group, Inc., 10.20%,
2/06/39

 

 

6,607

 

 

10,471,857

 

Lorillard Tobacco Co., 3.50%,
8/04/16

 

 

4,150

 

 

4,252,455

 

Philip Morris International, Inc.,
2.50%, 5/16/16 (c)

 

 

4,200

 

 

4,373,498

 

 

 

 

 

 

 

19,097,810

 

Wireless Telecommunication Services — 4.9%

 

 

 

 

 

 

 

America Movil SAB de CV, 2.38%,
9/08/16 (c)

 

 

7,455

 

 

7,550,543

 

American Tower Corp.:

 

 

 

 

 

 

 

4.50%, 1/15/18

 

 

3,200

 

 

3,268,438

 

5.90%, 11/01/21

 

 

2,180

 

 

2,346,314

 

Cricket Communications, Inc.,
7.75%, 5/15/16

 

 

780

 

 

826,800

 

Crown Castle International Corp.,
9.00%, 1/15/15

 

 

1,185

 

 

1,291,650

 

Crown Castle Towers LLC (a):

 

 

 

 

 

 

 

5.50%, 1/15/37

 

 

1,975

 

 

2,163,729

 

4.17%, 8/15/37

 

 

2,000

 

 

2,058,024

 

6.11%, 1/15/40

 

 

2,330

 

 

2,613,347

 

Intelsat Jackson Holdings SA,
7.25%, 4/01/19 (a)

 

 

320

 

 

334,400

 

Nextel Communications, Inc.,
Series E, 6.88%, 10/31/13

 

 

1,040

 

 

1,040,000

 

SBA Tower Trust, 5.10%, 4/15/42 (a)

 

 

6,250

 

 

6,698,750

 

Sprint Capital Corp., 6.88%,
11/15/28

 

 

730

 

 

541,113

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Wireless Telecommunication Services (concluded)

 

 

 

 

 

 

 

Sprint Nextel Corp., 9.00%,
11/15/18 (a)

 

$

4,690

 

$

5,053,475

 

 

 

 

 

 

 

35,786,583

 

Total Corporate Bonds – 107.9%

 

 

 

 

 

793,991,362

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Securities

 

 

 

 

 

 

 

Capital Trusts

 

 

 

 

 

 

 

Capital Markets — 3.0%

 

 

 

 

 

 

 

Credit Suisse Guernsey Ltd.,
5.86% (b)(f)

 

 

1,050

 

 

913,500

 

State Street Capital, Trust III, 5.54% (b)(f)

 

 

1,740

 

 

1,744,506

 

State Street Capital, Trust IV, 1.55%,
6/15/37 (b)

 

 

28,195

 

 

19,039,717

 

 

 

 

 

 

 

21,697,723

 

Commercial Banks — 5.8%

 

 

 

 

 

 

 

Barclays Bank Plc, 7.43% (a)(b)(c)(f)

 

 

1,100

 

 

1,078,000

 

BB&T Capital Trust IV, 6.82%,
6/12/77 (b)

 

 

15,300

 

 

15,453,000

 

BNP Paribas, 7.20% (a)(b)(c)(f)

 

 

2,500

 

 

1,975,000

 

Credit Agricole SA (a)(b)(c)(f):

 

 

 

 

 

 

 

6.64%

 

 

2,450

 

 

1,739,500

 

8.38%

 

 

2,450

 

 

2,009,000

 

Dresdner Funding Trust I, 8.15%,
6/30/31 (a)

 

 

3,715

 

 

2,767,675

 

HSBC Capital Funding LP/Jersey
Channel Islands, 10.18%(a)(b)(c)(f)

 

 

7,000

 

 

8,820,000

 

National City Preferred Capital
Trust I, 12.00%(b)(f)

 

 

3,713

 

 

3,959,877

 

Standard Chartered Plc, 7.01%(a)(f)

 

 

5,000

 

 

4,829,960

 

 

 

 

 

 

 

42,632,012

 

Consumer Finance — 0.2%

 

 

 

 

 

 

 

Capital One Financial Corp. Capital
V, 10.25%, 8/15/39

 

 

1,275

 

 

1,333,969

 

Diversified Financial Services — 3.2%

 

 

 

 

 

 

 

JPMorgan Chase Capital XXI,
Series U, 1.38%, 2/02/37 (b)

 

 

12,875

 

 

9,018,165

 

JPMorgan Chase Capital XXIII,
1.46%, 5/15/47 (b)

 

 

20,695

 

 

14,506,098

 

 

 

 

 

 

 

23,524,263

 

Electric Utilities — 0.5%

 

 

 

 

 

 

 

PPL Capital Funding, 6.70%,
3/30/67 (b)

 

 

3,900

 

 

3,851,250

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

6


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Capital Trusts

 

Par
(000)

 

Value

 

Insurance — 5.2%

 

 

 

 

 

 

 

Ace Capital Trust II, 9.70%,
4/01/30

 

$

4,000

 

$

5,305,528

 

American General Capital II,
8.50%, 7/01/30

 

 

300

 

 

294,233

 

Aon Corp., 8.21%, 1/01/27

 

 

4,000

 

 

4,714,916

 

AXA SA, 6.46% (a)(b)(f)

 

 

6,000

 

 

4,410,000

 

Chubb Corp., 6.38%, 3/29/67 (b)(c)

 

 

4,000

 

 

4,080,000

 

Liberty Mutual Group, Inc.,
10.75%, 6/15/88 (a)(b)

 

 

4,000

 

 

5,100,000

 

Lincoln National Corp., 7.00%,
5/17/66 (b)

 

 

4,255

 

 

4,020,975

 

Reinsurance Group of America,
6.75%, 12/15/65 (b)(c)

 

 

7,000

 

 

6,304,935

 

ZFS Finance (USA) (a)(b):

 

 

 

 

 

 

 

Trust II, 6.45%, 12/15/65

 

 

3,850

 

 

3,619,000

 

Trust IV, 5.88%, 5/09/32

 

 

599

 

 

584,025

 

 

 

 

 

 

 

38,433,612

 

Oil, Gas & Consumable Fuels — 1.2%

 

 

 

 

 

 

 

Enterprise Products Operating LLC,
8.38%, 8/01/66 (b)

 

 

4,500

 

 

4,860,000

 

TransCanada PipeLines Ltd.,
6.35%, 5/15/67 (b)

 

 

4,000

 

 

4,043,572

 

 

 

 

 

 

 

8,903,572

 

Total Capital Trusts - 19.1%

 

 

 

 

 

140,376,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stocks

 

Shares

 

 

 

 

Auto Components — 0.1%

 

 

 

 

 

 

 

Dana Holding Corp., 4.00% (a)

 

 

7,000

 

 

889,875

 

Diversified Financial Services — 0.3%

 

 

 

 

 

 

 

Ally Financial, Inc., 7.00% (a)

 

 

3,130

 

 

2,520,335

 

Real Estate Investment Trusts (REITs) — 1.1%

 

 

 

 

 

 

 

Sovereign Real Estate Investment
Trust, 12.00% (a)

 

 

7,000

 

 

7,748,860

 

Thrifts & Mortgage Finance — 0.0%

 

 

 

 

 

 

 

Fannie Mae, Series S, 8.25% (b)(h)

 

 

23,000

 

 

33,350

 

Freddie Mac, Series Z, 8.38% (b)(h)

 

 

23,000

 

 

32,660

 

 

 

 

 

 

 

66,010

 

 

 

 

 

 

 

 

 

Preferred Stocks

 

Shares

 

Value

 

Wireless Telecommunication Services — 1.6%

 

 

 

 

 

 

 

Centaur Funding Corp., 9.08% (a)

 

 

10,000

 

$

11,421,875

 

Total Preferred Stocks - 3.1%

 

 

 

 

 

22,646,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust Preferreds

 

 

 

 

 

 

 

Diversified Financial Services — 0.2%

 

 

 

 

 

 

 

GMAC Capital Trust I, 8.13%,
2/15/40 (b)

 

 

64,530

 

 

1,431,921

 

Total Trust Preferreds - 0.2%

 

 

 

 

 

1,431,921

 

Total Preferred Securities – 22.4%

 

 

 

 

 

164,455,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Municipal Bonds

 

 

Par
(000)

 

 

 

 

City of Chicago Illinois, RB, Build
America Bonds, 6.85%, 1/01/38

 

$

5,000

 

 

5,610,650

 

Metropolitan Transportation Authority,
RB, Build America Bonds, 6.55%,
11/15/31

 

 

4,075

 

 

4,933,806

 

Total Taxable Municipal Bonds – 1.4%

 

 

 

 

 

10,544,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Government Sponsored Agency Securities

 

 

 

 

 

 

 

Agency Obligations — 0.3%

 

 

 

 

 

 

 

Fannie Mae, 4.27%, 10/09/19 (c)(i)

 

 

2,765

 

 

2,136,192

 

Total US Government Sponsored Agency
Securities – 0.3%

 

 

 

 

 

2,136,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Treasury Obligations

 

 

 

 

 

 

 

US Treasury Bonds, 3.75%,
8/15/41 (c)

 

 

945

 

 

1,101,663

 

US Treasury Notes:

 

 

 

 

 

 

 

0.88%, 12/31/16 (c)

 

 

6,377

 

 

6,433,296

 

0.88%, 1/31/17

 

 

6,000

 

 

6,048,282

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

7


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

US Treasury Obligations

 

Par
(000)

 

Value

 

US Treasury Notes (concluded):

 

 

 

 

 

 

 

2.00%, 11/15/21

 

$

11,865

 

$

12,072,638

 

Total US Treasury Obligations – 3.5%

 

 

 

 

 

25,655,879

 

Total Long-Term Investments
(Cost – $977,550,649) – 136.5%

 

 

 

 

 

1,004,005,222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

BlackRock Liquidity Funds,
TempFund, Institutional Class,
0.15% (j)(k)

 

 

8,939,434

 

 

8,939,434

 

Total Short-Term Securities
(Cost – $8,939,434) – 1.2%

 

 

 

 

 

8,939,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Purchased

 

Contracts

 

 

 

 

Exchange-Traded Put Options — 0.2%

 

 

 

 

 

 

 

S&P 500 Index, Strike Price USD
1,200, Expires 6/16/12

 

 

472

 

 

1,496,240

 

 

 

 

 

 

 

 

 

 

 

Notional
Amount
(000)

 

 

 

 

Over-the-Counter Call Swaptions — 0.0%

 

 

 

 

 

 

 

Receive a fixed rate of 1.90% and
pay a floating rate based on
3-month LIBOR, expires 2/08/12,
Broker Deutsche Bank AG

 

$

13,500

 

 

51,840

 

Receive a fixed rate of 2.40% and
pay a floating rate based on
3-month LIBOR, expires 5/11/12,
Broker Citibank NA

 

 

9,100

 

 

187,184

 

Receive a fixed rate of 2.61% and
pay a floating rate based on
3-month LIBOR, expires 1/13/14,
Broker Credit Suisse Securities
(USA) LLC

 

 

1,900

 

 

101,201

 

 

 

 

 

 

 

340,225

 

 

 

 

 

 

 

 

 

Options Purchased

 

Notional
Amount
(000)

 

Value

 

Over-the-Counter Put Swaptions — 0.0%

 

 

 

 

 

 

 

Pay a fixed rate of 2.50% and receive
a floating rate based on 3-month
LIBOR, Expires 2/08/12, Broker
Deutsche Bank AG

 

$

13,500

 

$

1

 

Pay a fixed rate of 2.70% and receive
a floating rate based on 3-month
LIBOR, Expires 2/28/12, Broker
Deutsche Bank AG

 

 

14,700

 

 

160

 

Pay a fixed rate of 2.70% and receive
a floating rate based on 3-month
LIBOR, Expires 2/28/12, Broker
Citigroup NA

 

 

14,900

 

 

163

 

Pay a fixed rate of 2.61% and receive
a floating rate based on 3-month
LIBOR, Expires 1/13/14, Broker
Credit Suisse Securities (USA) LLC

 

 

1,900

 

 

79,005

 

 

 

 

 

 

 

79,329

 

Total Options Purchased
(Cost – $2,216,417) – 0.2%

 

 

 

 

 

1,915,794

 

Total Investments Before Options Written
(Cost – $988,706,500*) – 137.9%

 

 

 

 

 

1,014,860,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Written

 

Contracts

 

 

 

 

Exchange-Traded Put Options — (0.1)%

 

 

 

 

 

 

 

S&P 500 Index, Strike Price USD
1,100, Expires 6/16/12

 

 

472

 

 

(776,440

)

 

 

 

 

 

 

 

 

 

 

Notional
Amount
(000)

 

 

 

 

Over-the-Counter Call Swaptions — (0.8)%

 

 

 

 

 

 

 

Pay a fixed rate of 4.06% and receive
a floating rate based on 3-month
LIBOR, Expires 4/16/12, Broker
Deutsche Bank AG

 

$

13,000

 

 

(2,519,451

)

Pay a fixed rate of 4.75% and receive
a floating rate based on 3-month
LIBOR, Expires 3/24/14, Broker
Citibank NA

 

 

17,000

 

 

(3,469,928

)

 

 

 

 

 

 

(5,989,379

)

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

8


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Options Written

 

Notional
Amount
(000)

 

Value

 

Over-the-Counter Put Swaptions — (0.0)%

 

 

 

 

 

 

 

Receive a fixed rate of 4.06% and
pay a floating rate based on the
3-month LIBOR, Expires 4/16/12,
Broker Deutsche Bank AG

 

$

13,000

 

$

(10

)

Receive a fixed rate of 2.00% and
pay a floating rate based on
3-month LIBOR, Expires
11/01/12, Broker Citibank NA

 

 

56,500

 

 

(146,437

)

Receive a fixed rate of 4.75% and
pay a floating rate based on
3-month LIBOR, Expires 3/24/14,
Broker Citibank NA

 

 

17,000

 

 

(131,177

)

 

 

 

 

 

 

(277,624

)

Total Options Written
(Premiums Received – $4,337,110) – (0.9)%

 

 

 

 

 

(7,043,443

)

Total Investments, Net of Options Written – 137.0%

 

 

 

 

 

1,007,817,007

 

Liabilities in Excess of Other Assets – (37.0)%

 

 

 

 

 

(272,090,135

)

Net Assets – 100.0%

 

 

 

 

$

735,726,872

 

 

 


*


As of January 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


 

 

 

 

 

Tax cost

 

$

988,096,552

 

Gross unrealized appreciation

 

$

55,338,650

 

Gross unrealized depreciation

 

 

(28,574,752

)

Net unrealized appreciation

 

$

26,763,898

 

 

 

(a)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(b)

Variable rate security. Rate shown is as of report date.

 

 

(c)

All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.

 

 

(d)

Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.

 

 

(e)

All or a portion of security has been pledged as collateral in connection with swaps.

 

 

(f)

Security is perpetual in nature and has no stated maturity date.

 

 

(g)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Depreciation

 

JPMorgan Chase Bank NA

 

$

855,000

 

$

(4,098

)

Pershing LLC

 

$

55,000

 

$

(264

)

Stern Agee & Leach

 

$

115,000

 

$

(551

)

 

 

(h)

Non-income producing security.

 

 

(i)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(j)

Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
October 31,
2011

 

Net
Activity

 

Shares
Held at
January 31,
2012

 

Income

 

 

BlackRock
Liquidity
Funds,
TempFund,
Institutional
Class

 

 

3,823,108

 

 

5,116,326

 

 

8,939,434

 

$

1,741

 

 

 

(k)

Represents the current yield as of report date.


 

Portfolio Abbreviations

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

 

 

FKA

Formerly Known As

LIBOR

London Interbank Offered Rate

RB

Revenue Bonds

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

9


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

 

 

•

Reverse repurchase agreements outstanding as of January 31, 2012 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparty

 

Interest
Rate

 

Trade
Date

 

Maturity
Date1

 

Net Closing
Amount

 

Face
Amount

 

UBS Securities LLC

 

 

0.35%

 

 

11/16/11

 

 

Open

 

$

13,922,915

 

$

13,912,500

 

UBS Securities LLC

 

 

0.37%

 

 

11/16/11

 

 

Open

 

 

13,760,256

 

 

13,749,375

 

UBS Securities LLC

 

 

0.38%

 

 

11/16/11

 

 

Open

 

 

33,529,205

 

 

33,501,975

 

Barclays Capital, Inc.

 

 

0.40%

 

 

11/22/11

 

 

Open

 

 

2,206,740

 

 

2,205,000

 

BNP Paribas Securities
Corp.

 

 

0.40%

 

 

11/30/11

 

 

Open

 

 

905,173

 

 

904,540

 

Credit Suisse Securities
(USA) LLC

 

 

0.40%

 

 

12/01/11

 

 

Open

 

 

19,539,981

 

 

19,526,313

 

Barclays Capital, Inc.

 

 

0.40%

 

 

12/01/11

 

 

Open

 

 

32,090,115

 

 

32,068,024

 

Credit Suisse Securities
(USA) LLC

 

 

0.35%

 

 

12/06/11

 

 

Open

 

 

3,496,912

 

 

3,494,975

 

Credit Suisse Securities
(USA) LLC

 

 

0.30%

 

 

12/07/11

 

 

Open

 

 

9,472,810

 

 

9,468,313

 

Deutsche Bank Securities,
Inc.

 

 

0.05%

 

 

12/07/11

 

 

Open

 

 

1,171,891

 

 

1,171,800

 

UBS Securities LLC

 

 

0.32%

 

 

12/07/11

 

 

Open

 

 

3,714,848

 

 

3,713,000

 

UBS Securities LLC

 

 

0.35%

 

 

12/07/11

 

 

Open

 

 

3,816,002

 

 

3,813,925

 

UBS Securities LLC

 

 

0.38%

 

 

12/07/11

 

 

Open

 

 

4,371,458

 

 

4,368,875

 

UBS Securities LLC

 

 

0.38%

 

 

12/08/11

 

 

Open

 

 

3,734,730

 

 

3,732,562

 

Deutsche Bank Securities,
Inc.

 

 

(1.00)%

 

 

1/10/12

 

 

Open

 

 

923,435

 

 

924,000

 

Deutsche Bank Securities,
Inc.

 

 

0.05%

 

 

1/10/12

 

 

Open

 

 

6,377,195

 

 

6,377,000

 

BNP Paribas Securities
Corp.

 

 

0.11%

 

 

1/11/12

 

 

Open

 

 

2,098,078

 

 

2,097,944

 

BNP Paribas Securities
Corp.

 

 

0.35%

 

 

1/11/12

 

 

Open

 

 

9,362,411

 

 

9,360,500

 

UBS Securities LLC

 

 

0.10%

 

 

1/11/12

 

 

Open

 

 

789,846

 

 

789,800

 

UBS Securities LLC

 

 

0.35%

 

 

1/11/12

 

 

Open

 

 

10,209,764

 

 

10,207,680

 

BNP Paribas Securities
Corp.

 

 

0.10%

 

 

1/12/12

 

 

Open

 

 

1,108,074

 

 

1,108,012

 

BNP Paribas Securities
Corp.

 

 

0.35%

 

 

1/12/12

 

 

Open

 

 

3,029,539

 

 

3,028,950

 

UBS Securities LLC

 

 

0.38%

 

 

1/12/12

 

 

Open

 

 

4,860,426

 

 

4,859,400

 

Credit Suisse Securities
(USA) LLC

 

 

0.35%

 

 

1/12/12

 

 

Open

 

 

5,721,300

 

 

5,720,188

 

Credit Suisse Securities
(USA) LLC

 

 

0.38%

 

 

1/12/12

 

 

Open

 

 

2,521,200

 

 

2,520,667

 

Deutsche Bank Securities,
Inc.

 

 

(0.50)%

 

 

1/17/12

 

 

Open

 

 

747,144

 

 

747,300

 

Barclays Capital, Inc.

 

 

0.35%

 

 

1/18/12

 

 

Open

 

 

20,808,050

 

 

20,805,218

 

BNP Paribas Securities
Corp.

 

 

0.37%

 

 

1/18/12

 

 

Open

 

 

5,189,762

 

 

5,189,015

 

UBS Securities LLC

 

 

0.35%

 

 

1/18/12

 

 

Open

 

 

8,723,187

 

 

8,722,000

 

UBS Securities LLC

 

 

0.38%

 

 

1/18/12

 

 

Open

 

 

9,448,521

 

 

9,447,125

 

Barclays Capital, Inc.

 

 

0.35%

 

 

1/19/12

 

 

Open

 

 

3,168,710

 

 

3,168,310

 

Barclays Capital, Inc.

 

 

0.40%

 

 

1/19/12

 

 

Open

 

 

5,033,357

 

 

5,032,630

 

BNP Paribas Securities
Corp.

 

 

0.39%

 

 

1/19/12

 

 

Open

 

 

4,947,986

 

 

4,947,289

 

Deutsche Bank Securities,
Inc.

 

 

0.05%

 

 

1/19/12

 

 

Open

 

 

2,841,126

 

 

2,841,075

 

UBS Securities LLC

 

 

0.10%

 

 

1/19/12

 

 

Open

 

 

4,975,180

 

 

4,975,000

 

UBS Securities LLC

 

 

0.35%

 

 

1/19/12

 

 

Open

 

 

2,590,202

 

 

2,589,875

 

BNP Paribas Securities
Corp.

 

 

0.35%

 

 

1/24/12

 

 

Open

 

 

5,354,546

 

 

5,354,130

 

UBS Securities LLC

 

 

0.25%

 

 

1/25/12

 

 

Open

 

 

2,778,073

 

 

2,777,937

 

UBS Securities LLC

 

 

0.38%

 

 

1/25/12

 

 

Open

 

 

28,718,534

 

 

28,716,413

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

10


 

 
 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

 

 

•

Reverse repurchase agreements outstanding as of January 31, 2012 (concluded):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparty

 

Interest
Rate

 

Trade
Date

 

Maturity
Date1

 

Net Closing
Amount

 

Face
Amount

 

Barclays Capital, Inc.

 

0.40%

 

1/31/12

 

Open

 

$

5,155,057

 

$

5,155,000

 

Total

 

 

 

 

 

 

 

$

303,213,739

 

$

303,093,635

 

 

 

 

1Certain agreements have no stated maturity and can be terminated by either party at any time.

 

 

•

Financial futures contracts purchased as of January 31, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Appreciation

 

11

 

2-Year US Treasury Note

 

Chicago Board of Trade

 

March 2012

 

$

2,428,250

 

$

3,646

 

 

 

•

Financial futures contracts sold as of January 31, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

529

 

5-Year US Treasury Note

 

Chicago Board of Trade

 

March 2012

 

$

65,620,797

 

$

(576,388

)

271

 

10-Year US Treasury Note

 

Chicago Board of Trade

 

March 2012

 

$

35,839,750

 

 

(569,034

)

75

 

30-Year US Treasury Bond

 

Chicago Board of Trade

 

March 2012

 

$

10,907,812

 

 

(293,093

)

Total

 

 

 

 

 

 

 

 

 

 

$

(1,438,515

)

 

 

•

Credit default swaps on single-name issues - buy protection outstanding as of January 31, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuer

 

Pay
Fixed
Rate

 

Counterparty

 

Expiration
Date

 

Notional
Amount
(000)

 

Unrealized
Depreciation

 

Southwest Airlines Co.

 

1.00%

 

Goldman Sachs & Co.

 

12/20/16

 

$

1,965

 

$

(58,787

)

Southwest Airlines Co.

 

1.00%

 

Royal Bank of Scotland Plc

 

12/20/16

 

$

1,965

 

 

(66,833

)

Time Warner Inc.

 

1.00%

 

Credit Suisse Securities (USA) LLC

 

3/20/17

 

$

12,300

 

 

(21,484

)

Total

 

 

 

 

 

 

 

 

 

 

$

(147,104

)

 

 

•

Credit default swaps on single-name issues - sold protection outstanding as of January 31, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuer

 

Receive
Fixed
Rate

 

Counterparty

 

Expiration
Date

 

Issuer
Credit
Rating1

 

Notional
Amount
(000)2

 

Unrealized
Appreciation
(Depreciation)

 

Aviva USA Corp.

 

1.00%

 

Deutsche Bank AG

 

5/25/12

 

NR

 

$

4,525

 

$

(2,189

)

Assured Guaranty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corp.

 

5.00%

 

Citibank NA

 

12/20/14

 

A-

 

$

195

 

 

11,550

 

Assured Guaranty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corp.

 

5.00%

 

Citibank NA

 

3/20/15

 

A-

 

$

819

 

 

56,211

 

DIRECTV Holdings

 

 

 

Credit Suisse Securities (USA)

 

 

 

 

 

 

 

 

 

 

 

LLC

 

1.00%

 

LLC

 

3/20/17

 

BBB

 

$

12,300

 

 

68,132

 

MetLife, Inc.

 

1.00%

 

Deutsche Bank AG

 

3/20/18

 

A

 

$

1,500

 

 

(70,422

)

Total

 

 

 

 

 

 

 

 

 

 

 

 

$

63,282

 

 

 

 

1Using Standard &Poor’s ratings.

 

 

2The maximum potential amount the Trust may pay should a negative credit event take place as defined under terms of agreement.

 

 

•

Credit default swaps on traded indexes - buy protection outstanding as of January 31, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Index

 

Pay
Fixed
Rate

 

Counterparty

 

Expiration
Date

 

Notional
Amount
(000)

 

Unrealized
Appreciation

 

Dow Jones CDX North

 

 

 

 

 

 

 

 

 

 

 

 

 

America Investment

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade Index 17

 

1.00%

 

Credit Suisse Securities (USA) LLC

 

12/20/16

 

$

71,000

 

$

16,266

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

11


 

 
 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

 

 

•

Interest rate swaps outstanding as of January 31, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed
Rate

Floating
Rate

Counterparty

 

Expiration
Date

 

Notional
Amount
(000)

 

Unrealized
Appreciation
(Depreciation)

 

1.35%1

3-month LIBOR

JPMorgan Chase Bank & Co.

 

 

11/25/16

 

$

18,000

 

$

(338,771

)

2.72%2

3-month LIBOR

Deutsche Bank AG

 

 

8/08/21

 

$

14,400

 

 

1,110,462

 

2.03%2

3-month LIBOR

Deutsche Bank AG

 

 

12/21/21

 

$

600

 

 

7,389

 

4.35%1

3-month LIBOR

Deutsche Bank AG

 

 

4/15/41

 

$

5,000

 

 

(1,809,337

)

3.93%1

3-month LIBOR

Citibank NA

 

 

7/21/41

 

$

9,200

 

 

(2,532,211

)

3.00%1

3-month LIBOR

Credit Suisse Securities (USA) LLC

 

 

10/18/41

 

$

2,100

 

 

(164,786

)

Total

 

 

 

 

 

 

 

 

 

$

(3,727,254

)

 

 

 

 

1

Trust pays a floating interest rate and receives fixed rate.

 

 

2

Trust pays a fixed interest rate and receives floating rate.


 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

 

 

•

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

 

 

 

 

•

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

 

 

 

 

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

12


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

The following tables summarize the inputs used as of January 31, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Backed
Securities

 

 

—

 

$

3,647,056

 

$

3,575,000

 

$

7,222,056

 

Corporate Bonds

 

 

—

 

 

788,171,862

 

 

5,819,500

 

 

793,991,362

 

Preferred
Securities

 

$

1,497,931

 

 

162,957,346

 

 

—

 

 

164,455,277

 

Taxable
Municipal
Bonds

 

 

—

 

 

10,544,456

 

 

—

 

 

10,544,456

 

US Government
Sponsored
Agency
Securities

 

 

—

 

 

2,136,192

 

 

—

 

 

2,136,192

 

US Treasury
Obligations

 

 

—

 

 

25,655,879

 

 

—

 

 

25,655,879

 

Short-Term
Securities

 

 

8,939,434

 

 

—

 

 

—

 

 

8,939,434

 

Total

 

$

10,437,365

 

$

993,112,791

 

$

9,394,500

 

$

1,012,944,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation
Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments1

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

contracts

 

 

—

 

$

152,159

 

 

—

 

$

152,159

 

Equity
contracts

 

$

1,496,240

 

 

—

 

 

—

 

 

1,496,240

 

Interest rate
contracts

 

 

3,646

 

 

1,537,405

 

 

—

 

 

1,541,051

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

contracts

 

 

—

 

 

(217,526

)

$

(2,189

)

 

(219,715

)

Equity
contracts

 

 

(2,214,955

)

 

—

 

 

—

 

 

(2,214,955

)

Interest rate
contracts

 

 

—

 

 

(11,112,108

)

 

—

 

 

(11,112,108

)

Total

 

$

(715,069

)

$

(9,640,070

)

$

(2,189

)

$

(10,357,328

)

 

 

 

 

1

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


 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

13


 

 

 

 

Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust IV (BTZ)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-
Backed
Securities

 

Corporate
Bonds

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

Balance, as of October 31,
2011

 

$

3,410,000

 

$

5,876,000

 

$

9,286,000

 

Accrued

 

 

 

 

 

 

 

 

 

 

discounts/premiums

 

 

15,561

 

 

—

 

 

15,561

 

Net realized gain

 

 

 

 

 

 

 

 

 

 

Net change in unrealized
appreciation/depreciation2

 

 

149,439

 

 

(56,500

)

 

92,939

 

Purchases

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

 

Transfers in3

 

 

—

 

 

—

 

 

—

 

Transfers out3

 

 

—

 

 

—

 

 

—

 

Balance, as of January 31,
2012

 

$

3,575,000

 

$

5,819,500

 

$

9,394,500

 

 

 

2

The change in unrealized appreciation/depreciation on investments still held at January 31, 2012 was $92,939.

 

 

3

The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used to determine fair value:

 

 

 

 

 

 

 

Credit
Contracts

 

Assets:

 

 

 

 

Balance, as of October 31,
2011

 

$

8,182

 

Accrued

 

 

 

 

discounts/premiums

 

 

7,397

 

Net realized gain

 

 

—

 

Net change in unrealized

 

 

 

 

appreciation/depreciation4

 

 

(10,371

)

Purchases

 

 

—

 

Issuances5

 

 

—

 

Sales

 

 

—

 

Settlements6

 

 

(7,397

)

Transfers in7

 

 

—

 

Transfers out7

 

 

—

 

Balance, as of January 31,
2012

 

$

(2,189

)

 

 

4

The change in unrealized appreciation/depreciation on derivative financial instruments still held at January 31, 2012 was $(2,189).

 

 

5

Issuances represent upfront cash received on certain derivative financial instruments.

 

 

6

Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

 

 

7

The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Trust had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets.

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV

JANUARY 31, 2012

14

Item 2 –

Controls and Procedures

 

 

2(a) –

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

 

 

2(b) –

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

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

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

 

 

 

BlackRock Credit Allocation Income Trust IV
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Credit Allocation Income Trust IV
   
  Date: March 23, 2012
   
  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/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Credit Allocation Income Trust IV
   
  Date: March 23, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Credit Allocation Income Trust IV
     
  Date: March 23, 2012