Edgar Filing: BLACKROCK INCOME TRUST INC

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:	811-05542

BlackRock Income Trust, Inc.

(Exact name of Registrant as specified in charter)


100 Bellevue Parkway, Wilmington, DE	19809

(Address of principal executive offices)	(Zip code)

Robert S. Kapito, President
BlackRock Income Trust, Inc.
40 East 52nd Street, New York, NY 10022

(Name and address of agent for service)


Registrant's telephone number, including area code:	888-825-2257


Date of fiscal year end:	October 31, 2005


Date of reporting period:	October 31, 2005

Item 1. Reports to Shareholders.
The Registrant’s annual report to shareholders is as follows:


FIXED INCOME		LIQUIDITY		EQUITIES		ALTERNATIVES		BLACKROCK SOLUTIONS



	BlackRock
	Closed-End Funds
	Annual Report

	OCTOBER 31, 2005






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

	BlackRock Core Bond Trust (BHK)

	BlackRock High Yield Trust (BHY)

	BlackRock Income Opportunity Trust (BNA)

	BlackRock Income Trust Inc. (BKT)

	BlackRock Limited Duration Income Trust (BLW)

	BlackRock Strategic Bond Trust (BHD)



NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE

TABLE OF CONTENTS


Letter to Shareholders		1

Trusts’ Summaries		2

Portfolios of Investments		9

Financial Statements

Statements of Assets and Liabilities		60

Statements of Operations		62

Statements of Cash Flows		64

Statements of Changes in Net Assets		66

Financial Highlights		69

Notes to Financial Statements		76

Report of Independent Registered Public Accounting Firm		88

Directors/Trustees Information		89

Dividend Reinvestment Plans		92

Board Review of Investment Management Agreements		93

Additional Information		96

Tax Information		98


	Privacy Principles of the Trusts

	The Trusts are committed to maintaining the privacy of shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Trusts collect, how we protect that information and why, in certain cases, we may share information with select other parties.

	Generally, the Trusts do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of shareholders may become available to the Trusts. The Trusts do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third party administrator).

	The Trusts restrict access to non-public personal information about their shareholders to BlackRock employees with a legitimate business need for the information. The Trusts maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of their shareholders.

LETTER TO SHAREHOLDERS

October 31, 2005

Dear Shareholder:

We are pleased to report that during the annual period, the Trusts provided the opportunity to invest in various portfolios of fixed income securities. This report contains the Trusts’ audited financial statements and a listing of the portfolios’ holdings.

The portfolio management team continuously monitors the fixed income markets and adjusts the portfolios in order to gain exposure to various issuers and security types. This strategy enables the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions.

The following table shows the Trusts’ yields, closing market prices per share and net asset values (“NAV”) per share as of October 31, 2005.



Trust	Yield¹		Market Price	NAV

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)	5.67	%	$ 15.86	$ 14.63

BlackRock Core Bond Trust (BHK)	6.76		13.69	14.27

BlackRock High Yield Trust (BHY)	9.02		7.36	7.48

BlackRock Income Opportunity Trust (BNA)	6.81		10.90	11.56

BlackRock Income Trust Inc. (BKT)	7.48		5.90	6.54

BlackRock Limited Duration Income Trust (BLW)	8.36		17.48	19.17

BlackRock Strategic Bond Trust (BHD)	8.48		12.45	13.68


¹	Yield is based on market price. Past performance does not guarantee future results.

BlackRock, Inc. (“BlackRock”), a world leader in asset management, has a proven commitment to managing fixed income securities. As of September 30, 2005, BlackRock managed $287 billion in fixed income securities, including 20 open-end and 48 closed-end bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world’s largest institutional investors. BlackRock Advisors, Inc., and its affiliate, BlackRock Financial Management, Inc., which manage the Trusts, are wholly owned subsidiaries of BlackRock, Inc.

On behalf of BlackRock, we thank you for your continued confidence and assure you that we remain committed to excellence in managing your assets.

Sincerely,



Laurence D. Fink	Ralph L. Schlosstein
Chief Executive Officer	President
BlackRock Advisors, Inc.	BlackRock Advisors, Inc.


TRUST SUMMARIES OCTOBER 31, 2005

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

Trust Information



Symbol on American Stock Exchange:	BCT

Initial Offering Date:	June 17, 1993

Closing Market Price as of 10/31/05:	$15.86

Net Asset Value as of 10/31/05:	$14.63

Yield on Closing Market Price as of 10/31/05 ($15.86):¹	5.67	%

Current Monthly Distribution per Share:²	$0.075

Current Annualized Distribution per Share:²	$0.900


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 Trust’s market price and NAV:



	10/31/05	10/31/04	Change		High	Low

Market Price	$15.86	$15.80	0.38	%	$16.16	$15.25

NAV	$14.63	$15.98	(8.45	)%	$15.95	$14.63

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocations of the Trust’s corporate bond investments:

Portfolio Composition



Composition	October 31, 2005		October 31, 2004

U.S. Government and Agency Securities	46	%	63	%

Corporate Bonds	18		6

Agency Multiple Class Mortgage Pass-Throughs	16		13

Taxable Municipal Bonds	9		5

Interest Only Mortgage-Backed Securities	6		7

Inverse Floating Rate Mortgages	4		4

Mortgage Pass-Through Securities	1		1

Commercial Mortgage-Backed Securities	—		1

Corporate Credit Breakdown³



Credit Rating	October 31, 2005		October 31, 2004

AAA/Aaa	7	%	—	%

AA/Aa	54		42

A	23		43

BBB/Baa	15		13

CCC/Caa	1		2


³	Using the higher of Standard & Poor’s (“S&P”), Moody’s Investors Service (“Moody’s”) or Fitch Ratings (“Fitch”) rating. Corporate bonds represented approximately 15.5% and 8.7% of net assets on October 31, 2005 and October 31, 2004, respectively.

TRUST SUMMARIES
OCTOBER 31, 2005

BlackRock Core Bond Trust (BHK)

Trust Information



Symbol on New York Stock Exchange:	BHK

Initial Offering Date:	November 27, 2001

Closing Market Price as of 10/31/05:		$	13.69

Net Asset Value as of 10/31/05:		$	14.27

Yield on Closing Market Price as of 10/31/05 ($13.69):¹			6.76	%

Current Monthly Distribution per Share:²		$	0.0771

Current Annualized Distribution per Share:²		$	0.9252


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 Trust’s market price and NAV:



	10/31/05	10/31/04	Change		High	Low

Market Price	$13.69	$14.02	(2.35	)%	$14.69	$13.15

NAV	$14.27	$15.22	(6.24	)%	$15.36	$14.23

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocations of the Trust’s corporate bond investments:

Portfolio Composition



Composition	October 31, 2005		October 31, 2004

Corporate Bonds	42	%	45	%

U.S. Government and Agency Securities	31		27

Mortgage Pass-Through Securities	15		15

Commercial Mortgage-Backed Securities	6		2

Collateralized Mortgage Obligations	2		1

Foreign Government Bonds	2		7

Interest Only Mortgage-Backed Securities	1		2

Asset-Backed Securities	1		1

Corporate Credit Breakdown³



Credit Rating	October 31, 2005		October 31, 2004

AAA/Aaa	5	%	4	%

AA/Aa	25		21

A	13		26

BBB/Baa	13		19

BB/Ba	12		7

B	23		18

CCC/Caa	6		2

Not Rated	3		3



³	Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 53.3% and 61.6% of net assets on October 31, 2005 and October 31, 2004, respectively.

TRUST SUMMARIES
OCTOBER 31, 2005

BlackRock High Yield Trust (BHY)

Trust Information



Symbol on New York Stock Exchange:	BHY

Initial Offering Date:	December 23, 1998

Closing Market Price as of 10/31/05:		$	7.36

Net Asset Value as of 10/31/05:		$	7.48

Yield on Closing Market Price as of 10/31/05 ($7.36):¹			9.02	%

Current Monthly Distribution per Share:²		$	0.055333

Current Annualized Distribution per Share:²		$	0.663996


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 Trust’s market price and NAV:



	10/31/05	10/31/04	Change		High	Low

Market Price	$7.36	$9.30	(20.86	)%	$10.15	$7.11

NAV	$7.48	$7.95	(5.91	)%	$ 8.15	$7.33

The following charts show the porfolio composition and credit quality allocations of the Trust’s corporate bond investments:

Corporate Portfolio Composition



Composition	October 31, 2005		October 31, 2004

Energy	19	%	19	%

Financial Institutions	14		15

Basic Materials	12		14

Telecommunications	8		11

Media	7		9

Consumer Products	7		5

Industrials	6		4

Technology	5		2

Health Care	4		4

Transportation	3		4

Entertainment & Leisure	3		3

Building & Development	3		2

Aerospace & Defense	3		2

Containers & Packaging	2		2

Automotive	2		2

Ecological Services & Equipment	1		1

Real Estate	1		1

Corporate Credit Breakdown³



Credit Rating	October 31, 2005		October 31, 2004

BBB/Baa	3	%	2	%

BB/Ba	32		31

B	51		54

CCC/Caa	14		11

CC/Ca	—		1

Not Rated	—		1



³	Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 133.8% and 135.4% of net assets on October 31, 2005 and October 31, 2004, respectively.

TRUST SUMMARIES
OCTOBER 31, 2005

BlackRock Income Opportunity Trust (BNA)

Trust Information



Symbol on New York Stock Exchange:	BNA

Initial Offering Date:	December 20, 1991

Closing Market Price as of 10/31/05:		$	10.90

Net Asset Value as of 10/31/05:		$	11.56

Yield on Closing Market Price as of 10/31/05 ($10.90):¹			6.81	%

Current Monthly Distribution per Share:²		$	0.0619

Current Annualized Distribution per Share:²		$	0.7428


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 Trust’s market price and NAV:



	10/31/05	10/31/04	Change		High	Low

Market Price	$10.90	$11.38	(4.22	)%	$11.52	$10.49

NAV	$11.56	$12.38	(6.62	)%	$12.37	$11.52

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocations of the Trust’s corporate bond investments:

Portfolio Composition



Composition	October 31, 2005		October 31, 2004

U.S. Government and Agency Securities	37	%	33	%

Corporate Bonds	35		46

Mortgage Pass-Through Securities	13		14

Agency Multiple Class Mortgage Pass-Through Securities	5		1

Commercial Mortgaged-Backed Securities	4		—

Non-Agency Multiple Class Mortgage Pass-Through Securities	1		2

Interest Only Mortgage-Backed Securities	1		2

Interest Only Asset-Backed Securities	1		1

Federal Housing Administration	1		1

Collateralized Mortgage Obligations	1		—

Inverse Floating Rate Mortgage Securities	1		—

Corporate Credit Breakdown³



Credit Rating	October 31, 2005		October 31, 2004

AAA/Aaa	8	%	6	%

AA/Aa	17		18

A	9		21

BBB/Baa	19		27

BB/Ba	15		9

B	24		15

CCC/Caa	6		2

Not Rated	2		2



³	Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 46.6% and 71.2% of net assets on October 31, 2005 and October 31, 2004, respectively.

TRUST SUMMARIES
OCTOBER 31, 2005

BlackRock Income Trust Inc. (BKT)

Trust Information



Symbol on New York Stock Exchange:	BKT

Initial Offering Date:	July 22, 1988

Closing Market Price as of 10/31/05:		$	5.90

Net Asset Value as of 10/31/05:		$	6.54

Yield on Closing Market Price as of 10/31/05 ($5.90):¹			7.48	%

Current Monthly Distribution per Share:²		$	0.036787

Current Annualized Distribution per Share:²		$	0.44144


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 Trust’s market price and NAV:



	10/31/05	10/31/04	Change		High	Low

Market Price	$5.90	$7.50	(21.33	)%	$7.62	$5.84

NAV	$6.54	$6.95	(5.90	)%	$6.95	$6.53

The following chart shows the portfolio composition of the Trust’s long-term investments:

Portfolio Composition



Composition	October 31, 2005		October 31, 2004

U.S. Government and Agency Securities	30	%	32	%

Mortgage Pass-Through Securities	23		23

Agency Multiple Class Mortgage Pass-Through Securities	14		12

Collateralized Mortgage Obligations	13		10

Interest Only Mortgage-Backed Securities	7		10

Principal Only Mortgage-Backed Securities	5		6

Non Agency Multiple Class Mortgage Pass-Through Securities	2		—

Collateralized Mortgage Obligation Residuals	2		—

Federal Housing	2		2

Inverse Floating Rate Mortgage Securities	1		2

Interest Only Asset-Backed Securities	1		1

Commercial Mortgage-Backed Securities	—		2

TRUST SUMMARIES
OCTOBER 31, 2005

BlackRock Limited Duration Income Trust (BLW)

Trust Information



Symbol on New York Stock Exchange:	BLW

Initial Offering Date:	July 30, 2003

Closing Market Price as of 10/31/05:		$	17.48

Net Asset Value as of 10/31/05:		$	19.17

Yield on Closing Market Price as of 10/31/05 ($17.48):¹			8.36	%

Current Monthly Distribution per Share:²		$	0.1218

Current Annualized Distribution per Share:²		$	1.4616


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 Trust’s market price and NAV:



	10/31/05	10/31/04	Change		High	Low

Market Price	$17.48	$19.95	(12.38	)%	$20.33	$17.30

NAV	$19.17	$20.13	(4.77	)%	$20.20	$19.03

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocations of the Trust’s corporate bond investments:

Portfolio Composition



Composition	October 31, 2005		October 31, 2004

Corporate Bonds	43	%	43	%

Bank Loans	32		31

Mortgage Pass-Through Securities	15		16

U.S. Government and Agency Securities	4		4

Foreign Government Bonds	2		2

Asset-Backed Securities	2		1

Collateralized Mortgage Obligations	1		2

Interest Only Asset-Backed Securities	1		1

Corporate Credit Breakdown³



Credit Rating	October 31, 2005		October 31, 2004

A	3	%	5	%

BBB/Baa	9		12

BB/Ba	33		28

B	43		50

CCC/Caa	8		2

Not Rated	4		3



³	Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 59.8% and 58.2% of net assets on October 31, 2005 and October 31, 2004, respectively.

TRUST SUMMARIES
OCTOBER 31, 2005

BlackRock Strategic Bond Trust (BHD)

Trust Information



Symbol on New York Stock Exchange:	BHD

Initial Offering Date:	February 26, 2002

Closing Market Price as of 10/31/05:		$	12.45

Net Asset Value as of 10/31/05:		$	13.68

Yield on Closing Market Price as of 10/31/05 ($12.45):¹			8.48	%

Current Monthly Distribution per Share:²		$	0.088

Current Annualized Distribution per Share:²		$	1.056


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 Trust’s market price and NAV:



	10/31/05	10/31/04	Change		High	Low

Market Price	$12.45	$16.70	(25.45	)%	$17.63	$12.41

NAV	$13.68	$15.10	(9.40	)%	$15.14	$13.67

The following charts show the portfolio composition and credit quality allocations of the Trust’s corporate bond investments:

Corporate Portfolio Composition



Composition	October 31, 2005		October 31, 2004

Financial Institutions	21	%	17	%

Energy	12		13

Media	10		13

Consumer Products	9		5

Telecommunications	8		7

Health Care	7		7

Aerospace & Defense	5		4

Basic Materials	5		6

Industrials	4		—

Technology	3		3

Entertainment & Leisure	3		3

Automotive	3		10

Real Estate	2		2

Building & Development	2		3

Transportation	2		1

Ecological Services & Equipment	2		3

Conglomerates	1		2

Containers & Packaging	1		1

Corporate Credit Breakdown³



Credit Rating	October 31, 2005		October 31, 2004

AAA/Aaa	3	%	4	%

AA/Aa	8		10

A	11		10

BBB/Baa	19		17

BB/Ba	11		11

B	36		40

CCC/Caa	9		5

Not Rated	3		3



³	Using the higher of S&P’s, Moody’s or Fitch’s rating. Corporate bonds represented approximately 122.7% and 134.4% of net assets on October 31, 2005 and October 31, 2004, respectively.


CONSOLIDATED PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005

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


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					LONG-TERM INVESTMENTS—86.4%
					Mortgage Pass-Through Securities—1.1%
					Federal National Mortgage Assoc.,
		$	461		5.50%, 1/01/17 - 2/01/17	$	464,567
			16		6.50%, 7/01/29		16,293

					Total Mortgage Pass-Through Securities		480,860

					Agency Multiple Class Mortgage Pass-Through Securities—13.4%
					Federal Home Loan Mortgage Corp.,
			2,168		Ser. 1510, Class G, 7.05%, 5/15/13		2,223,631
			12		Ser. 1534, Class IG, 5.00%, 2/15/10		11,963
			2,000		Ser. 1598, Class J, 6.50%, 10/15/08		2,046,660
					Federal National Mortgage Assoc.,
			55	²	Ser. 13, Class SJ, 8.75%, 2/25/09		54,958
			41		Ser. 43, Class E, 7.50%, 4/25/22		41,920
			1,000		Ser. 49, Class H, 7.00%, 4/25/13		1,037,610
			217		Ser. 214, Class SK, 10.00%, 12/25/08		229,144
			160	²	Government National Mortgage Assoc., Remic Trust 2000, Ser. 16, Class FD, 4.771%, 12/16/27		159,956

					Total Agency Multiple Class Mortgage Pass-Through Securities		5,805,842

					Inverse Floating Rate Mortgage Securities—3.1%
AAA			228	²	Citicorp Mortgage Securities, Inc., 10.387%, 11/25/23		228,342
					Federal Home Loan Mortgage Corp.,
			242	²	Ser. 1425, Class SB, 12.103%, 12/15/07		252,299
			42	²	Ser. 1506, Class S, 13.658%, 5/15/08		44,446
			106	²	Ser. 1515, Class S, 13.472%, 5/15/08		111,037
			68	²	Ser. 1618, Class SA, 8.25%, 11/15/08		66,990
			44	²	Ser. 1661, Class SB, 13.416%, 1/15/09		47,519
			161	²	Ser. 1688, Class S, 9.754%, 12/15/13		163,693
					Federal National Mortgage Assoc.,
			146	²	Ser. 187, Class SB, 16.392%, 10/25/07		154,695
			116	²	Ser. 191, Class SD, 10.508%, 10/25/08		118,205
			156	²	Ser. 214, Class SH, 7.73%, 12/25/08		150,069

					Total Inverse Floating Rate Mortgage Securities		1,337,295

					Interest Only Mortgage-Backed Securities—6.0%
					Federal Home Loan Mortgage Corp.,
			1		Ser. 65, Class I, 918.03%, 8/15/20		1,580
			—		Ser. 141, Class H, 1,060.00%, 5/15/21		433
			—		Ser. 1114, Class J, 1,008.00%, 7/15/06		622
			—		Ser. 1285 Class M, 1,005.891%, 5/15/07		22
			387		Ser. 1645, Class IB, 5.00%, 9/15/08		15,746
			1,970		Ser. 2523, Class EH, 5.50%, 4/15/20		176,218
			1,046		Ser. 2543, Class IJ, 5.00%, 10/15/12		39,596
			702		Ser. 2543, Class IM, 5.00%, 9/15/12		12,667
			2,165		Ser. 2633, Class PI, 4.50%, 3/15/12		75,122
			2,166		Ser. 2672, Class TP, 5.00%, 9/15/16		42,546
			5,605		Ser. 2739, Class PI, 5.00%, 3/15/22		542,864
			2,550		Ser. 2775, Class UB, 5.00%, 12/15/17		115,133
			2,800		Ser. 2976, Class KI, 5.50%, 11/15/34		262,001
					Federal National Mortgage Assoc.,
			2		Ser. 8, Class HA, 1,199.999%, 1/25/08		20,024
			2,484		Ser. 13, Class IG, 5.00%, 10/25/22		167,034
			205	²	Ser. 20, Class SL, 14.853%, 9/25/08		28,714
			6		Ser. 49, Class L, 444.917%, 4/25/13		45,063
			4		Ser. 51, Class K, 1,006.50%, 4/25/07		22,593
			12,992		Ser. 70, Class ID, 5.00%, 4/25/22		933,475
			—		Ser. 72, Class H, 1,183.25%, 7/25/06		911
			661		Ser. 82, Class IR, 5.00%, 9/25/12		15,130
			4	²	Ser. 174, Class S, 124.032%, 9/25/22		13,296
			25		Ser. 194, Class PV, 6.50%, 6/25/08		152
			152	²	Ser. 208, Class S, 3.438%, 2/25/23		2,551
			114		Ser. 223, Class PT, 6.50%, 10/25/23		9,405
			—		Ser. G-21, Class L, 949.50%, 7/25/21		6,399
			18,214	²	Vendee Mortgage Trust, Ser. 1, Class IO, 0.04%, 10/15/31		36,975

					Total Interest Only Mortgage-Backed Securities		2,586,272

See Notes to Financial Statements.

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


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Principal Only Mortgage-Backed Security—0.1%
Aaa		$	30	³	Salomon Brothers Mortgage Securities, Inc. VI, Ser. 3, Class A, 12.50%, 10/23/17	$	26,758

					Asset-Backed Securities—0.0%
NR			235	^2,4,5,6	Global Rated Eligible Asset Trust, 7.33%, 3/15/06		23
					Structured Mortgage Asset Residential Trust,
NR			568	^2,5,6	Ser. 2, 8.24%, 3/15/06		57
NR			629	^2,5,6	Ser. 3, 8.724%, 4/15/06		63

					Total Asset-Backed Securities		143

					Corporate Bonds—15.5%
Caa2			100		American Airlines, Inc., 10.44%, 3/04/07		94,500
Aa2			500		Bank America Corp., 4.75%, 10/15/06		499,385
A1			500		Conoco Funding Co., 5.45%, 10/15/06 (Canada)		503,195
AAA			500		General Electric Capital Corp., 2.75%, 9/25/06		491,675
BB			500		General Motors Acceptance Corp., 6.125%, 9/15/06		494,495
AA-			500		Goldman Sachs Group, Inc., 2.85%, 10/27/06		490,305
BBB+			500	⁴	Israel Electric Corp., Ltd., 7.25%, 12/15/06 (Israel)		511,870
A+			500		Lehman Brothers Holdings, Inc., 7.50%, 9/01/06		510,530
Aa3			1,000	⁷	Morgan Stanley Group, Inc., 10.00%, 6/15/08		1,120,030
A+			500		SLM Corp., 3.50%, 9/30/06		495,635
Aa3			500		Suntrust Bank, 7.25%, 9/15/06		509,990
Aa1			500		U.S. Bank NA, 2.85%, 11/15/06		489,055
AA-			500		Wachovia Corp., 4.95%, 11/01/06		500,390

					Total Corporate Bonds		6,711,055

					U.S. Government and Agency Securities—39.9%
			192		Small Business Investment Cos., 6.12%, 2/01/08		196,712
					U.S. Treasury Notes,
			3,200		3.50%, 11/15/06		3,172,249
			1,700		5.75%, 11/15/05		1,701,129
			2,000		6.00%, 8/15/09		2,107,344
			385		6.625%, 5/15/07		398,024
			10,000		U.S. Treasury Strip, Zero Coupon, 8/15/06		9,690,600

					Total U.S. Government and Agency Securities		17,266,058

					Taxable Municipal Bonds—7.3%
AAA			500		Fresno California Pension Oblig., 7.80%, 6/01/14		569,020
AAA			500		Kern County California Pension Oblig., 6.98%, 8/15/09		536,180
					Los Angeles County California Pension Oblig.,
AAA			1,000		Ser. A, 8.62%, 6/30/06		1,025,800
AAA			500		Ser. D, 6.97%, 6/30/08		526,350
AAA			500		Orleans Parish Louisiana School Board, 6.60%, 2/01/08		517,491

					Total Taxable Municipal Bonds		3,174,841

					Total Long-Term Investments (cost $38,020,098)		37,389,124

					SHORT-TERM INVESTMENT—13.2%
					U.S. Government and Agency Zero Coupon Security—13.2%
			5,700		FNMA Discount Notes, 3.72%, 11/01/05⁸(cost $5,700,000)		5,700,000

					Total investments—99.6% (cost $43,720,035⁹)	$	43,089,124
					Other assets in excess of liabilities—0.4%		186,880

					Net Assets—100%	$	43,276,004



¹	Using the higher of S&P’s, Moody’s or Fitch’s rating.
²	Rate shown is interest rate as of October 31, 2005.
³	Rate shown is interest rate or effective yield as of October 31, 2005 of the underlying collateral.
⁴	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2005, the Trust held 1.2% of its net assets, with a current market value of $511,893, in securities restricted as to resale.
⁵	Security is fair valued.
⁶	Illiquid security. As of October 31, 2005, the Trust held less than 0.1% of its net assets, with a current market value of $143.
⁷	Entire or partial principal amount pledged as collateral.
⁸	Rate shown is the yield to maturity as of October 31, 2005.
⁹	Cost for Federal income tax purposes is $43,720,035. The net unrealized depreciation on a tax basis is $630,911, consisting of $580,134 gross unrealized appreciation and $1,211,045 gross unrealized depreciation.

See Notes to Financial Statements.


PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005

BlackRock Core Bond Trust (BHK)


Rating¹(unaudited)	Principal Amount (000)			Description	Value

				LONG-TERM INVESTMENTS—127.5%
				Mortgage Pass-Through Securities—12.0%
				Federal Home Loan Mortgage Corp.,
		$	1,875	3.01%, 4/19/07	$	1,830,731
			92	5.00%, 8/01/33		88,416
			3,215	5.50%, 11/01/18 - 6/01/35		3,224,845
			249	5.985%, 5/01/32		252,464
			3,678	6.00%, 2/01/13 - 12/01/18		3,759,822
			37	7.00%, 9/01/31		38,908
			5,200	TBA, 5.50%, 11/30/35		5,131,750
				Federal National Mortgage Assoc.,
			870	1.75%, 6/16/06		855,976
			6,805	2.35%, 4/29/06 - 4/05/07		6,655,161
			59	4.50%, 2/01/20		56,893
			1,280	4.75%, 2/21/13		1,251,814
			13,291	5.00%, 11/01/17		13,088,163
			3,920	5.50%, 1/01/18		3,881,268
			32	6.00%, 8/01/29 - 5/01/33		31,774
			470	7.00%, 1/01/31 - 7/01/32		490,524
			400	TBA, 5.00%, 11/30/20		394,500
			1,700	TBA, 5.50%, 11/30/35		1,676,625
			397	Government National Mortgage Assoc., 5.50%, 8/15/33		396,846
				Small Business Administration,
			964	Ser. P10B, Class 1, 4.754%, 8/01/14		946,772
			2,169	Ser. P10B, Class 1, 5.136%, 8/01/13		2,179,519

				Total Mortgage Pass-Through Securities		46,232,771

				Federal Housing Administration Security—0.3%
			1,072	FHA Hebre Home Hospital, 6.25%, 9/01/28		1,104,518

				Agency Multiple Class Mortgage Pass-Through Securities—6.8%
				Federal Home Loan Mortgage Corp.,
			2,664	Ser. 82, Class HJ, 5.50%, 9/25/32		2,669,709
			1,566	Ser. 2825, Class VP, 5.50%, 6/15/15		1,576,404
			1,300	Ser. 2883, Class DR, 5.00%, 11/15/19		1,248,208
			3,686	Ser. 2922, Class GA, 5.50%, 5/15/34		3,687,626
			1,948	Ser. 2927, Class BA, 5.50%, 10/15/33		1,952,321
			1,921	Ser. 2933, Class HD, 5.50%, 2/15/35		1,926,999
			1,600	Ser. 2968, Class EG, 6.00%, 10/15/34		1,646,032
				Federal National Mortgage Assoc.,
			1,670	Ser. 3, Class AP, 5.50%, 2/25/35		1,673,323
			3,668	Ser. 5, Class PK, 5.00%, 12/25/34		3,609,861
			2,211	Ser. 27, Class PC, 5.50%, 5/25/34		2,208,899
			2,228	Ser. 70, Class NA, 5.50%, 8/25/35		2,226,696
			1,923	Ser. 118, Class FD, 4.438%, 12/25/33		1,931,352

				Total Agency Multiple Class Mortgage Pass-Through Securities		26,357,430

				Interest Only Asset-Backed Securities—1.3%
				Sterling Coofs Trust,
			33,862	Ser. 1, 2.362%, 4/15/29		2,793,627
			30,350	Ser. 2, 1.00%, 3/30/30		2,314,188

				Total Interest Only Asset-Backed Securities		5,107,815

				Interest Only Mortgage-Backed Securities—1.0%
				Federal Home Loan Mortgage Corp.,
			3,232	Ser. 2579, Class HI, 5.00%, 8/15/17		411,038
			7,881	Ser. 2611, Class QI, 5.50%, 9/15/32		1,431,598
			34,378	Federal National Mortgage Assoc., 2.663%, 11/25/34		1,855,039

				Total Interest Only Mortgage-Backed Securities		3,697,675

				Commercial Mortgage-Backed Securities—8.0%
				Banc of America Commercial Mortgage, Inc.,
AAA			2,190	Ser. 1, Class A2, 6.503%, 4/15/36		2,302,829
AAA			2,180	Ser. 1, Class A4, 5.034%, 11/10/42		2,177,362
AAA			1,748	Ser. 11, Class 2CB1, 6.00%, 12/25/34		1,733,057
AAA			2,271	Commercial Mortgage Acceptance Corp., 6.03%, 9/15/30		2,304,811
AAA			2,720	CS First Boston Mortgage Securities Corp., 4.94%, 12/15/35		2,672,090
AAA			1,922	GMAC Commercial Mortgage Securities, Inc., 7.179%, 8/15/36		2,037,621
AAA			2,776	GS Mortgage Securities Corp. II, 6.135%, 10/18/30		2,831,937
AAA			1,677	Heller Financial Commercial Mortgage Asset Co., 6.847%, 5/15/31		1,746,897

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Commercial Mortgage-Backed Securities—(cont’d)
					JP Morgan Chase Commercial Mortgage Securities Corp.,
AAA		$	2,140		Ser. C1, Class A3, 5.857%, 10/12/35	$	2,220,828
AAA			2,180		Ser. CBX, Class A4, 4.529%, 1/12/37		2,115,886
AAA			1,790		JP Morgan Commercial Mortgage Finance Corp., 7.371%, 8/15/32		1,928,993
AAA			2,797		Morgan Stanley Cap. Trust I, 6.48%, 11/15/30		2,886,180
AAA			3,500		Salomon Brothers Mortgage Securities VII, 7.52%, 12/18/09		3,785,150

					Total Commercial Mortgage-Backed Securities		30,743,641

					Collateralized Mortgage Obligations—2.8%
					Federal Home Loan Mortgage Corp.,
			1,377		Ser. 2582, Class TB, 3.50%, 10/15/21		1,370,775
			3,271		Ser. 2806, Class VC, 6.00%, 12/15/19		3,324,874
AAA			3,150		First Union National Bank Commercial Mortgage, 6.423%, 8/15/33		3,323,124
AAA			2,928		Structured Asset Secs. Corp., 3.45%, 2/25/32		2,640,833

					Total Collateralized Mortgage Obligations		10,659,606

					Corporate Bonds—53.3%
					Aerospace & Defense—2.5%
NR			365		Aero Invest, 10.634%, 3/22/15 (Luxembourg) (EUR)		432,338
B+			30		Armor Holdings, Inc., 8.25%, 8/15/13		32,400
B-			2,220		BE Aerospace, Inc., 8.875%, 5/01/11		2,336,550
					Lockheed Martin Corp.,
BBB+			380		7.20%, 5/01/36		453,397
BBB+			1,175		8.50%, 12/01/29		1,592,055
					Northrop Grumman Corp.,
BBB+			615		4.079%, 11/16/06		610,591
BBB+			380		7.125%, 2/15/11		414,135
BBB+			960		7.875%, 3/01/26		1,198,143
NR			1,190		Raytheon Co., 7.00%, 5/15/06		1,242,324
BB			90		Sequa Corp., 8.875%, 4/01/08		92,925
A+			1,125		United Technologies Corp., 4.875%, 5/01/15		1,103,580

							9,508,438

					Automotive—0.8%
B-			240		Accuride Corp., 8.50%, 2/01/15		226,800
BB+			75		Arvinmeritor, Inc., 8.75%, 3/01/12		70,875
A3			660		DaimlerChrysler NA Holding Corp., 7.45%, 3/01/27		695,571
Caa1			1,500		Delco Remy Intl., Inc., 11.00%, 5/01/09		723,750
B-			100		Goodyear Tire & Rubber Co., 7.857%, 8/15/11		96,250
CCC+			300	²	Metaldyne Corp., 11.00%, 11/01/13		269,250
BB			170		Navistar Intl. Corp., 6.25%, 3/01/12		152,575
BB-			742		TRW Automotive, Inc., 9.375%, 2/15/13		797,650

							3,032,721

					Basic Materials—2.8%
BB-			220		Abitibi-Consolidated, Inc., 8.375%, 4/01/15 (Canada)		204,050
B-			80	²	BCI US Finance Corp/Borden 2 Nova Scotia Finance ULC, 9.65%, 7/15/10		80,800
B-			4,330		Caraustar Industries, Inc., 9.875%, 4/01/11		4,210,925
BB-			150		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		151,875
B			66		Huntsman LLC, 11.50%, 7/15/12		74,580
BB			70		IMC Global, Inc., 10.875%, 6/01/08		78,225
CCC+			1,045	²	Innophos, Inc., 9.125%, 8/15/14		1,058,062
BBB			130		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)		147,550
BB-			3,600		Lyondell Chemical Co., 9.50%, 12/15/08		3,771,000
CCC+			380		NewPage Corp., 10.00%, 5/01/12		347,700
B-			150	²	PQ Corp., 7.50%, 2/15/13		136,500
					Rhodia SA (France),
CCC+			260		8.875%, 6/01/11		245,050
B3			25		10.25%, 6/01/10		26,563
BBB-			150	²	Southern Peru Copper Corp., 7.50%, 7/27/35		145,875
BBB			275		Teck Cominco Ltd., 6.125%, 10/01/35 (Canada)		259,498

							10,938,253

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Building & Development—1.7%
B-		$	75	²	Ahern Rentals,Inc., 9.25%, 8/15/13	$	76,594
B2			200	²	Compression Polymers Corp., 10.50%, 7/01/13		182,000
B-			730	²	Goodman Global Holding Co., Inc., 7.875%, 12/15/12		689,850
BB+			3,000		Hovnanian Enterprises, Inc., 10.50%, 10/01/07		3,225,000
BB+			1,120		Hovnanian K Enterprises, Inc., 6.25%, 1/15/16		1,002,400
BB+			775		KB Home, 6.25%, 6/15/15		728,500
B			175		North American Energy Partners, Inc., 9.00%, 6/01/10 (Canada)		182,000
BBB+			455		Pulte Homes, Inc., 6.00%, 2/15/35		394,749

							6,481,093

					Conglomerates—0.0%
BB-			30		Stena AB, 7.00%, 12/01/16 (Sweden)		27,750

					Consumer Products—2.2%
B3			90		ALH Finance LLC, 8.50%, 1/15/13		81,450
					Cenveo Corp.,
B3			250		7.875%, 12/01/13		230,625
B1			175		9.625%, 3/15/12		184,625
BB+			440		Delhaize America, Inc., 9.00%, 4/15/31		494,459
BBB+			530		Federated Dept. Stores, Inc., 6.79%, 7/15/27		539,201
B2			480		Finlay Fine Jewelry Corp., 8.375%, 6/01/12		408,000
B2			80		Gold Kist, Inc., 10.25%, 3/15/14		90,400
					GSC Holdings Corp.,
Ba3			60	²	7.875%, 10/01/11		60,375
Ba3			120	²	8.00%, 10/01/12		117,000
B-			690	²	Knowledge Learning Corp., Inc., 7.75%, 2/01/15		641,700
B-			330		Lazydays RV Center, Inc., 11.75%, 5/15/12		343,200
B			385		Levi Strauss & Co., 8.804%, 4/01/12		382,594
					May Dept. Stores Co.,
BBB+			25		6.70%, 7/15/34		25,555
BBB+			230		7.875%, 3/01/30		267,833
B3			720		Movie Gallery, Inc., 11.00%, 5/01/12		576,000
B-			1,000		Pantry, Inc., The, 7.75%, 2/15/14		982,500
BB-			200	²	Quiksilver, Inc., 6.875%, 4/15/15		185,500
B-			865	²	Rite Aid Corp., 6.125%, 12/15/08		813,100
CCC+			235	²	Rural/Metro Corp., 9.875%, 3/15/15		245,575
B			2,100		Sonic Automotive, Inc., 8.625%, 8/15/13		1,989,750

							8,659,442

					Containers & Packaging—0.8%
					Crown European Holdings SA,
B+			200		9.50%, 3/01/11 (France)		220,000
B			800		10.875%, 3/01/13 (France)		944,000
CCC+			60		Graham Packaging Co., Inc., 9.875%, 10/15/14		56,850
B			1,500		Owens Brockway, 8.25%, 5/15/13		1,526,250
CCC+			170	²	Pregis Corp., 12.375%, 10/15/13		166,600

							2,913,700

					Ecological Services & Equipment—0.1%
BB-			230		Allied Waste NA, Inc., 5.75%, 2/15/11		213,900

					Energy—6.0%
BBB+			565		Anadarko Finance Co. Ser. B, 7.50%, 5/01/31 (Canada)		678,599
					ANR Pipeline Co.,
B1			260		7.375%, 2/15/24		270,725
B1			810		9.625%, 11/01/21		980,100
B2			1,365		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)		1,392,300
					Calpine Corp.,
B-			80	²	8.50%, 7/15/10		56,200
B			150	²	9.625%, 9/30/14		152,250
CCC			30		Calpine Energy Finance ULC (Canada), 8.50%, 5/01/08 (Canada)		16,275
CCC+			260		Calpine Generating Co. LLC, 11.50%, 4/01/11		237,575
B-			250	²	Clayton Williams Energy, Inc., 7.75%, 8/01/13		241,250

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Energy—(cont’d)
					CMS Energy Corp.,
BB-		$	30		7.50%, 1/15/09	$	31,050
BB-			100		9.875%, 10/15/07		107,500
Ba3			160	²	Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)		166,400
BBB			1,980		Devon Financing Corp. LLC, 7.875%, 9/30/31		2,429,500
BBB+			400		Dominion Resources, Inc./VA, 5.95%, 6/15/35		381,972
B2			690		Dresser, Inc., 9.375%, 4/15/11		719,325
					Dynegy Holdings, Inc.,
B+			70	²	9.875%, 7/15/10		75,250
B+			1,125	²	10.125%, 7/15/13		1,237,500
					El Paso CGP Co.,
B-			250		7.42%, 2/15/37		226,250
B-			65		9.625%, 5/15/12		71,256
B-			150		10.75%, 10/01/10		163,688
B-			100		El Paso Corp., 7.80%, 8/01/31		99,125
					El Paso Natural Gas Co.,
B1			850		7.625%, 8/01/10		888,250
B1			225		8.375%, 6/15/32		248,062
B1			265		8.625%, 1/15/22		296,800
Ba2			130		Elwood Energy LLC, 8.159%, 7/05/26		144,035
A-			350		EnCana Corp., 6.50%, 8/15/34 (Canada)		383,701
BBB-			925		Enterprise Products Operating LP, 5.75%, 3/01/35		825,698
B			70		Exco Resources, Inc., 7.25%, 1/15/11		71,400
BBB-			665		FirstEnergy Corp., 7.375%, 11/15/31		757,277
					Florida Power & Light Co.,
AA-			525		4.95%, 6/01/35		468,541
AA-			100		5.40%, 9/01/35		95,626
BBB			175		Halliburton Co., 7.60%, 8/15/96		201,212
					Hilcorp Energy I LP/Hilcorp Finance Corp.,
B			90	²	7.75%, 11/01/15		90,000
B			49	²	10.50%, 9/01/10		54,880
					KCS Energy, Inc.,
B-			60		7.125%, 4/01/12		61,050
B-			110	²	7.125%, 4/01/12		112,200
A-			700		Midamerican Energy Co., 5.75%, 11/01/35		687,725
B+			99		Midwest Generation LLC, 8.56%, 1/02/16		108,287
B2			590		Mission Energy Holdings Co., 13.50%, 7/15/08		685,875
A-			360		Occidental Petroleum Corp., 7.20%, 4/01/28		431,438
B2			130		Orion Power Holdings, Inc., 12.00%, 5/01/10		154,050
BBB+			790		Peco Energy Cap. Trust IV, 5.75%, 6/15/33		728,092
Baa1			1,650	²	Pemex Project Funding Master Trust, 9.625%, 12/02/08		1,866,562
BBB			720		Petro Canada, 5.95%, 5/15/35 (Canada)		704,628
B			25		Range Resources Corp., 6.375%, 3/15/15		25,063
BB-			40		Reliant Energy, Inc., 6.75%, 12/15/14		37,100
Aa1			290	²	SP PowerAssets Ltd., 5.00%, 10/22/13		287,912
A-			295		Suncor Energy, Inc., 5.95%, 12/01/34 (Canada)		305,612
B2			320	²	Targa Resources, Inc., 8.50%, 11/01/13		324,800
AA			1,050		Texaco Cap. Inc., 8.875%, 9/01/21		1,431,171
BB+			20		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26		21,625
A3			725		Virginia Electric & Power Co., 5.75%, 3/31/06		728,349
B2			45	²	Whiting Petroleum Corp., 7.00%, 2/01/14		45,113

							23,006,224

					Entertainment & Leisure—0.7%
B1			1,000		Circus & Eldorado Joint Venture, 10.125%, 3/01/12		1,045,000
B-			150		Gaylord Entertainment Co., 6.75%, 11/15/14		144,000
B			110		Poster Financial Group, Inc., 8.75%, 12/01/11		112,200
B			1,000		Resorts Intl. Hotel & Casino, Inc., 11.50%, 3/15/09		1,112,500
B+			100	²	San Pasqual Casino, 8.00%, 9/15/13		100,000
BB-			260	²	Seneca Gaming Corp., 7.25%, 5/01/12		266,500
B+			115		Wynn Las Vegas LLC/Wynn Las Vegas Cap. Corp., 6.625%, 12/01/14		109,537

							2,889,737

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Financial Institutions—19.6%
AA		$	550	^2,3	Allstate Financial Global Funding II, 2.625%, 10/22/06	$	536,833
BB			320	²	American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		310,400
					Bank of America Corp.,
Aa2			765		3.25%, 8/15/08		733,222
Aa2			1,640		3.375%, 2/17/09		1,566,315
Aa2			1,645		4.50%, 8/01/10		1,607,905
Aa2			325		Bank One Corp., 3.70%, 1/15/08		317,194
Aa2			1,400		BankBoston NA, 6.375%, 3/25/08-4/15/08		1,445,869
					Barclays Bank PLC,
NR			240		6.278%, 12/15/49		227,475
AA			170	²	6.86%, 9/29/49 (United Kingdom)		181,050
B-			60		BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)		66,000
AA			350	²	Belvoir Land LLC, 5.27%, 12/15/47		329,088
					Berkshire Hathaway Finance Corp.,
AAA			1,200		3.40%, 7/02/07		1,172,080
AAA			1,440		4.125%, 1/15/10		1,397,563
AAA			1,175		4.75%, 5/15/12		1,155,671
B-			75	²	Borden US Finance Corp./Nova Scotia Finance ULC, 9.00%, 7/15/14		73,875
AA+			600		CitiFinancial, 6.25%, 1/01/08		616,842
					Citigroup, Inc.,
AA+			3,010		3.625%, 2/09/09		2,894,536
AA+			5,470		4.125%, 2/22/10		5,290,857
AA+			1,960		4.25%, 7/29/09		1,913,666
AA+			325		5.85%, 12/11/34		329,696
AA			185		6.00%, 10/31/33		187,856
AA+			525		6.875%, 2/15/98		586,903
BB			1,080		Crum & Forster Hldgs. Corp., 10.375%, 6/15/13		1,155,600
AAA			2,150	²	Depfa ACS Bank, 4.25%, 8/16/10 (Ireland)		2,093,567
AA-			900		Deutsche Bank AG Ny, 3.843%, 3/15/07		893,430
B+			120	²	E*Trade Financial Corp., 7.375%, 9/15/13		118,200
BB			200		Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)		182,000
AAA			3,625	³	General Electric Capital Corp., 3.45%, 1/15/08		3,591,142
					HBOS Treasury Services PLC,
AA+			855	²	3.60%, 8/15/07 (United Kingdom)		838,165
AA+			825	²	3.75%, 9/30/08		800,159
AA-			1,820		Household Fin. Corp., 4.75%, 5/15/09		1,799,707
AA-			635		Household Finance Corp., 6.375%, 8/01/10		667,379
					HSBC Bank USA, Inc.,
AA			430		3.875%, 9/15/09		413,871
AA-			775		5.875%, 11/01/34		778,038
AA			1,500	²	Irwin Land LLC, 5.40%, 12/15/47		1,413,975
					JP Morgan Chase & Co.,
Aa3			965		5.25%, 5/30/07		971,726
Aa3			600		5.35%, 3/01/07		604,284
B-			255		K&F Acquisition, Inc., 7.75%, 11/15/14		255,000
BBB			825	²	Liberty Mutual Group, 6.50%, 3/15/35		766,084
AA			1,150	²	Metropolitan Global Funding I, 4.25%, 7/30/09		1,117,834
A			1,505		Metlife, Inc., 5.70%, 6/15/35		1,449,420
AA-			2,125	²	Nationwide Building Society, 3.50%, 7/31/07 (United Kingdom)		2,078,569
B-			410	²	Nell AF, 8.375%, 8/15/15 (Luxembourg)		393,600
AAA			850	²	New York Life Global Funding, 3.875%, 1/15/09		823,659
					Prudential Funding LLC,
A			500		5.40%, 6/13/35		461,455
AA-			1,000	²	6.60%, 5/15/08		1,039,490
					Rainbow National Services LLC,
B+			200	²	8.75%, 9/01/12		210,000
B+			1,230	²	10.375%, 9/01/14		1,356,075
AA			650		Royal Bank of Scotland Group PLC, 7.648%, 8/31/49 (United Kingdom)		768,645
A+			4,220		SLM Corp., 3.625%, 3/17/08		4,101,587
B-			450		Standard Aero Holdings, Inc., 8.25%, 9/01/14		428,625
NR			3,511		Structured Asset Receivable Trust, 1.649%, 1/21/10		3,516,526

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Financial Institutions—(cont’d)
A2		$	800	²	Sumitomo Mitsui Banking Corp., 5.625%, 12/31/49 (Japan)	$	782,478
Aa2			1,265		SunTrust Bank, Inc., 4.415%, 6/15/09		1,241,092
					SunTrust Banks, Inc.,
Aa3			1,635		3.625%, 10/15/07		1,597,738
Aa3			995		4.00%, 10/15/08		970,344
AAA			235	²	TIAA Global Markets, Inc., 3.875%, 1/22/08		230,067
Aa2			375		U.S. Bancorp, 3.95%, 8/23/07		369,383
B-			50		Universal City Florida Hldg. Co. I/II, 9.00%, 5/01/10		51,000
					US Bank National Assoc.,
Aa1			1,380		2.87%, 2/01/07		1,347,598
Aa2			2,790		6.50%, 2/01/08		2,884,609
AAA			495	²	USAA Capital Corp., 4.00%, 12/10/07		487,040
AA-			4,200		Wachovia Corp., 3.50%, 8/15/08		4,056,780
					Wells Fargo & Co.,
Aa1			1,031		3.12%, 8/15/08		983,955
Aa1			680		4.00%, 8/15/08		665,570
Aa1			355		4.20%, 1/15/10		344,361
Aa1			1,665		4.625%, 8/09/10		1,636,728
BB-			50		Western Financial Bank, 9.625%, 5/15/12		56,625

							75,734,076

					Health Care—1.0%
CCC			20		Curative Health Services, Inc., 10.75%, 5/01/11		13,500
B			340	²	Elan Finance Corp., 7.75%, 11/15/11 (Ireland)		299,200
B			420	²	Insight Health Services Corp., 9.174%, 11/01/11		397,950
					Tenet Healthcare Corp.,
B			70		6.375%, 12/01/11		61,075
B			475		9.875%, 7/01/14		463,125
B3			2,000		United Surgical Partners Intl., Inc., 10.00%, 12/15/11		2,165,000
B-			410		Universal Hospital Services, Inc., 10.125%, 11/01/11		414,100
BBB+			85		WellPoint, Inc., 5.95%, 12/15/34		86,334

							3,900,284

					Industrials—1.7%
B-			70	²	Chart Industries, Inc., 9.125%, 10/15/15		69,125
Caa1			1,340	²	DI Finance/DynCorp. Intl., 9.50%, 2/15/13		1,386,900
B-			635		ERICO Intl. Corp., 8.875%, 3/01/12		654,050
Caa1			360	²	Hydrochem Industrial Services, 9.25%, 2/15/13		328,500
B-			390		NationsRent Cos., Inc., 9.50%, 5/01/15		404,625
CCC+			420		Park-Ohio Inds., Inc., 8.375%, 11/15/14		366,450
B3			480	²	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		484,800
B			2,000		Terex Corp., 9.25%, 7/15/11		2,130,000
CCC+			375		Trimas Corp., 9.875%, 6/15/12		305,625
Caa1			305		United Rentals NA, Inc., 7.00%, 2/15/14		277,550

							6,407,625

					Media—4.4%
B-			430		Allbritton Communications Co., 7.75%, 12/15/12		427,850
CCC+			340		American Media Operations, Inc., 10.25%, 5/01/09		323,000
					AOL Time Warner, Inc.,
BBB+			90		6.625%, 5/15/29		90,837
BBB+			3,040		7.57%, 2/01/24		3,388,810
BBB+			205		7.625%, 4/15/31		232,478
BBB+			85		7.70%, 5/01/32		97,256
BBB			725	²	BSKYB Finance UK PLC, 6.50%, 10/15/35 (United Kingdom)		710,319
NR			510		Cablecom SCA, 4.935%, 4/30/12 (Luxembourg) (EUR)		617,064
CCC+			2,799	²	CCH I LLC, 11.00%, 10/01/15		2,522,599
CCC+			810		Charter Communications Holdings II, LLC/Charter Communications Holdings II Cap. Corp., 10.25%, 9/15/10		812,025
BBB+			1,535		Comcast Corp., 7.05%, 3/15/33		1,642,834
BB-			125		Echostar DBS Corp., 7.304%, 10/01/08		127,187
B			250		General Cable Corp., 9.50%, 11/15/10		263,125
CCC+			100	²	iesy Repository GmbH, 10.375%, 2/15/15 (Germany)		107,250

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Media—(cont’d)
					News America Holdings, Inc.,
BBB		$	985		7.625%, 11/30/28	$	1,095,330
BBB			825		7.70%, 10/30/25		921,335
BBB			735		News America, Inc., 6.20%, 12/15/34		713,119
B3			160		Nexstar Finance, Inc., 7.00%, 1/15/14		141,600
B2			440		Primedia, Inc., 9.715%, 5/15/10		448,800
B			200		Sinclair Broadcast Group, Inc., 8.75%, 12/15/11		211,000
					TCI Communications, Inc.,
BBB+			200		7.125%, 2/15/28		213,190
BBB+			620		7.875%, 8/01/13 - 2/15/26		710,705
					Vertis, Inc.,
Caa1			655		10.875%, 6/15/09		609,150
Caa2			90	²	13.50%, 12/07/09		69,300
Caa1			670		Young Broadcasting, Inc., 10.00%, 3/01/11		629,800

							17,125,963

					Real Estate—1.8%
BB			3,165		American Real Estate Partners, 8.125%, 6/01/11		3,252,037
					AvalonBay Communities, Inc.,
BBB+			350		6.625%, 9/15/11		370,955
BBB+			775		8.25%, 7/15/08		834,512
					Rouse Co.,
BB+			895		3.625%, 3/15/09		832,780
BB+			1,650		5.375%, 11/26/13		1,554,498

							6,844,782

					Technology—0.8%
B			250		Celestica, Inc. (Canada), 7.625%, 7/01/13 (Canada)		241,875
BB-			805		Lucent Technologies, Inc., 6.50%, 1/15/28		684,250
Ba3			100		MagnaChip Semiconductor SA/Magna Semiconductor Finance Co., 7.12%, 12/15/11 (Luxembourg)		97,500
B+			100		Sanmina-SCI Corp., 6.75%, 3/01/13		94,250
BB			40		Stats Chippac Ltd., 7.50%, 7/19/10 (Singapore)		40,200
					Sungard Data Systems, Inc.,
B-			110	²	8.525%, 8/15/13		113,300
B-			350	²	9.125%, 8/15/13		357,875
B-			425	²	10.25%, 8/15/15		420,750
B			835		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		826,650
B-			310		UGS Corp., 10.00%, 6/01/12		339,450

							3,216,100

					Telecommunications—4.9%
A			2,000	²	Bellsouth Corp., 4.258%, 4/26/21		1,994,620
A			1,700		Bellsouth Telecommunications, 4.258%, 4/26/06		843,914
BB-			210		Cincinnati Bell, Inc., 7.25%, 7/15/13		218,925
A-			25		Deutsche Telekom Intl. Finance BV, 8.75%, 6/15/30		31,526
B-			190	²	Hawaiian Telcom Communications, Inc., 9.948%, 5/01/13		187,625
					Intelsat Ltd.,
Caa1			175		5.25%, 11/01/08		159,250
B2			65	²	8.25%, 1/15/13		65,163
B2			405	²	8.625%, 1/15/15		411,075
B2			325	²	8.695%, 1/15/12		329,875
BB-			180		Lucent Technologies, Inc., 6.45%, 3/15/29		153,900
B-			70		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)		63,700
					Qwest Corp.,
BB+			470	²	7.12%, 6/15/13		492,325
BB+			200		7.875%, 9/01/11		210,000
BB			375		Qwest Services Corp., 13.50%, 12/15/10		427,969
BB+			155		Rogers Wireless, Inc., 7.25%, 12/15/12		163,138
Caa1			730		Rural Cellular Corp., 9.875%, 2/01/10		759,200
A			780		SBC Communications, Inc., 6.45%, 6/15/34		786,380

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Telecommunications—(cont’d)
					Sprint Capital Corp.,
A-		$	1,715		6.875%, 11/15/28	$	1,832,495
A-			675		8.75%, 3/15/32		872,890
A-			1,875		Telecom Italia Capital SA, 6.00%, 9/30/34 (Luxembourg)		1,793,662
A-			725		Telefonica Europe BV, 7.75%, 9/15/10		803,583
A+			70		Verizon Global Funding Corp., 7.75%, 12/01/30		80,877
A+			125		Verizon Maryland Incorporated, 5.125%, 6/15/33		104,366
					Verizon New Jersey, Inc.,
A+			230		7.85%, 11/15/29		264,196
A+			335		Ser. A, 5.875%, 1/17/12		337,807
A+			3,150		Verizon Virginia Inc., 4.625%, 3/15/13		2,937,469
A+			2,504		Vodafone Group PLC, 7.75%, 2/15/10 (United Kingdom)		2,756,328

							19,082,258

					Transportation—1.5%
A-			350		Canadian National Railway Co., 6.25%, 8/01/34 (Canada)		381,927
BBB			1,450		Canadian Pacific Railway Ltd., 6.25%, 10/15/11 (Canada)		1,535,521
B			355	²	CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		356,775
B			50		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		50,437
B3			47		Horizon Lines LLC, 9.00%, 11/01/12		49,879
BBB+			1,300		Norfolk Southern Corp., 7.05%, 5/01/37		1,528,202
B+			90		OMI Corp., 7.625%, 12/01/13		92,475
B			1,635		Sea Containers Ltd., 10.50%, 5/15/12		1,635,000

							5,630,216

					Total Corporate Bonds		205,612,562

					U.S. Government and Agency Securities—39.7%
AAA			1,670		Aid to Israel, 5.50%, 4/26/24-9/18/33		1,677,055
AAA			1,050		Resolution Funding Corp., Zero Coupon, 7/15/18-10/15/18		557,109
					Tennessee Valley Authority,
AAA			1,655		Ser. C, 5.88%, 4/01/36		1,827,683
AAA			2,650		Ser. D, 4.875%, 12/15/16		2,680,449
					U.S. Treasury Bonds,
AAA			49,140	⁴	6.125%, 11/15/27		57,716,404
AAA			8,540		6.50%, 11/15/26		10,401,464
AAA			21,680	⁴	7.125%, 2/15/23		27,455,769
AAA			10,855	⁴	8.50%, 2/15/20		14,983,265
					U.S. Treasury Notes,
AAA			830		3.625%, 6/30/07		819,625
AAA			20,025		4.00%, 8/31/07-9/30/07		19,881,023
AAA			9,475	⁴	4.125%, 8/15/08		9,403,937
AAA			6,005		4.25%, 8/15/15		5,858,658

					Total U.S. Government and Agency Securities		153,262,441

					Taxable Municipal Bond—0.1%
AA			350		Ohana Military Communities LLC, 6.193%, 4/01/49		377,758

					Foreign Government Bonds—2.2%
					Germany Federal Republic,
AAA			2,325		4.00%, 1/04/37 (EUR)		2,895,224
AAA			525		4.75%, 7/04/34 (EUR)		735,694
Aaa			1,700		Japan Finance Corp. for Municipal Enterprises, 4.625%, 4/21/15		1,647,283
					United Mexican States,
Baa1			400		6.75%, 9/27/34		415,000
Baa1			2,255		8.00%, 9/24/22		2,680,066

					Total Foreign Government Bonds		8,373,267

					Total investments before outstanding options written—127.5% (cost $502,449,899⁵)		491,529,484

See Notes to Financial Statements.


BlackRock Core Bond Trust (BHK) (continued)


Contracts/ Notional Amount (000)	Description	Value

	OUTSTANDING OPTIONS WRITTEN—(0.7)%
	Interest Rate Swaps,
(5,300)	Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/18	$	(191,463	)
(5,300)	Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/18		(237,705	)
(11,500)	Trust pays 3-month LIBOR, Trust Receives 5.67%, expires 1/04/10		(422,018	)
(11,500)	Trust pays 5.67%, Trust Receives 3-month LIBOR, expires 1/04/10		(671,009	)
(13,300)	Trust pays 3-month LIBOR, Trust Receives 4.725%, expires 6/13/07		(707,959	)
(13,300)	Trust pays 4.725%, Trust Receives 3-month LIBOR, expires 6/13/07		(273,182	)
(70)	U.S. Treasury Notes Future, expiring 2/24/06		(37,734	)

	Total Outstanding Options Written (premium received $2,716,753)		(2,541,070	)

	Total investments net of outstanding options written—126.8%	$	488,988,414
	Liabilities in excess of other assets—(26.8)%		(103,474,625	)

	Net Assets—100%	$	385,513,789



¹	Using the higher of S&P’s, Moody’s or Fitch’s rating.
²	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2005, the Trust held 9.6% of its net assets, with a current market value of $37,031,132, in securities restricted as to resale.
³	Security, or a portion thereof, pledged as collateral with a value of $1,504,194 on 57 long U.S. Treasury Note futures contracts expiring December 2005, 568 long U.S. Treasury Bond futures contracts expiring December 2005, 1,176 short U.S. Treasury Note futures contracts expiring December 2005, 208 short Eurodollar futures contracts expiring March 2006 to September 2007 and 101 short Germany Federal Republic Bonds futures contracts expiring December 2005. The notional value of such contracts on October 31, 2005 was ($117,883,226), with an unrealized gain of $49,189.
⁴	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
⁵	Cost for Federal income tax purposes is $503,678,690. The net unrealized depreciation on a tax basis is $12,149,206, consisting of $2,454,277 gross unrealized appreciation and $14,603,483 gross unrealized depreciation.

A category in the Coporate Bonds section may contain multiple industries as defined by the SEC’s Standard Industry Codes.

KEY TO ABBREVIATIONS

EUR – European Monetary Unit

TBA – To Be Announced

See Notes to Financial Statements.


PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005
BlackRock High Yield Trust (BHY)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					LONG-TERM INVESTMENTS—136.2%
					Corporate Bonds—133.8%
					Aerospace & Defense—4.5%
					AAR Corp.,
BB-		$	435		6.875%, 12/15/07	$	442,612
NR			350		Ser. A2, 8.39%, 5/15/11		357,000
B			275		Argo-Tech Corp., 9.25%, 6/01/11		284,625
B+			125		Armor Holdings, Inc., 8.25%, 8/15/13		135,000
					BE Aerospace, Inc.,
B+			520		8.50%, 10/01/10		557,700
B-			320		8.875%, 5/01/11		336,800
NR			1,500	²	Condor Systems, Inc., 11.875%, 5/01/09		—
					Sequa Corp.,
BB			40		9.00%, 8/01/09		41,650
BB			19		Ser. B, 8.875%, 4/01/08		19,618

							2,175,005

					Automotive—2.7%
B-			200		Accuride Corp., 8.50%, 2/01/15		189,000
BB+			65		Arvinmeritor, Inc., 8.75%, 3/01/12		61,425
B2			150		Delco Remy Intl., Inc., 8.15%, 4/15/09		142,500
B-			60		Goodyear Tire & Rubber Co., 7.857%, 8/15/11		57,750
CCC+			315	³	Metaldyne Corp., 11.00%, 11/01/13		282,713
BB			310		Navistar Intl. Corp., 6.25%, 3/01/12		278,225
B-			300		Stanadyne Corp., 10.00%, 8/15/14		292,500

							1,304,113

					Basic Materials—15.6%
BB-			150		Abitibi-Consolidated, Inc., 8.375%, 4/01/15 (Canada)		139,125
B-			205		Alpha Natural Resources LLC/Alpha Natural Resources Capital Corp., 10.00%, 6/01/12		227,294
BB-			150		Arch Western Finance LLC, 6.75%, 7/01/13		150,750
B-			70	³	BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 9.65%, 7/15/10		70,700
BB-			315		Bowater Canada Finance Corp., 7.95%, 11/15/11 (Canada)		302,400
B-			600		Caraustar Industries, Inc., 9.875%, 4/01/11		583,500
BB+			325		Cascades, Inc., 7.25%, 2/15/13 (Canada)		290,875
BB-			170		Catalyst Paper Corp., 7.375%, 3/01/14 (Canada)		151,300
BB-			305		Century Alum Co., 7.50%, 8/15/14		298,900
BB-			90		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		91,125
					Equistar Chemicals LP/Equistar Funding Corp.,
BB-			50		8.75%, 2/15/09		52,625
BB-			115		10.125%, 9/01/08		124,200
BB-			100		10.625%, 5/01/11		109,500
BB+			265		Georgia-Pacific Corp., 8.00%, 1/15/24		287,525
					Huntsman LLC,
B			95		11.50%, 7/15/12		107,350
BB-			365		11.625%, 10/15/10		415,187
BB			80		IMC Global, Inc., Ser. B, 10.875%, 6/01/08-8/01/13		91,313
CCC+			645	³	Innophos, Inc., 9.125%, 8/15/14		653,062
BB+			325		Ipsco, Inc., 8.75%, 6/01/13 (Canada)		358,312
BBB			366		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)		415,410
					Lyondell Chemical Co.,
BB-			260		10.50%, 6/01/13		295,100
BB-			230		Ser. A, 9.625%, 5/01/07		240,925
					Nalco Co.,
B+			20		7.75%, 11/15/11		20,450
B-			590		8.875%, 11/15/13		603,275
CCC+			550		NewPage Corp., 10.00%, 5/01/12		503,250
B-			215	³	PQ Corp., 7.50%, 2/15/13		195,650
NR			2,000	^2,4	Republic Technologies Intl. LLC, 13.75%, 7/15/09		—

See Notes to Financial Statements.


BlackRock High Yield Trust (BHY) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Basic Materials—(cont’d)
					Rhodia SA,
CCC+		$	215		8.875%, 6/01/11 (France)	$	202,638
B3			235		10.25%, 6/01/10 (France)		249,688
B-			50	³	Rockwood Specialties Grp., 7.50%, 11/15/14		48,500
BB-			125		Russel Metals, Inc., 6.375%, 3/01/14 (Canada)		120,625
BBB-			100	³	Southern Peru Copper Corp., 7.50%, 7/27/35		97,250

							7,497,804

					Building & Development—3.5%
B-			250	³	Ahern Rentals, Inc., 9.25%, 8/15/13		255,313
B+			40		Ainsworth Lumber Co. Ltd., 7.77%, 10/01/10 (Canada)		40,000
B2			150	³	Compression Polymers Corp., 10.50%, 7/01/13,		136,500
					Goodman Global Holding Co., Inc.,
B-			45	³	6.41%, 6/15/12		44,325
B-			480	³	7.875%, 12/15/12		453,600
BB+			250		Hovnanian K Enterprises, Inc., 6.375%, 12/15/14		228,750
B			375		North American Energy Partners, Inc., 9.00%, 6/01/10 (Canada)		390,000
Ba3			125		WCI Communities, Inc., 7.875%, 10/01/13		118,750

							1,667,238

					Business Equipment & Services—0.4%
					Xerox Corp.,
BB+			60		6.875%, 8/15/11		62,100
BB+			100		7.20%, 4/01/16		105,750

							167,850

					Consumer Products—9.3%
B3			50		ALH Finance LLC, 8.50%, 1/15/13		45,250
B			175		B&G Foods, Inc., 8.00%, 10/01/11		176,750
					Cenveo Corp.,
B3			150		7.875%, 12/01/13		138,375
B1			150		9.625%, 3/15/12		158,250
B2			540		Finlay Fine Jewelry Corp., 8.375%, 6/01/12		459,000
B2			294		Gold Kist, Inc., 10.25%, 3/15/14		332,220
					GSC Holdings Corp.,
Ba3			30	³	7.875%, 10/01/11		30,188
Ba3			70	³	8.00%, 10/01/12		68,250
B-			370	³	Knowledge Learning Corp., Inc., 7.75%, 2/01/15		344,100
B-			500		Lazydays RV Center, Inc., 11.75%, 5/15/12		520,000
B			240		Levi Strauss & Co., 8.804%, 4/01/12		238,500
Caa2			255		Merisant Co., 9.50%, 7/15/13		175,950
B3			655		Movie Gallery, Inc., 11.00%, 5/01/12		524,000
NR			1,200	^2,4	Nebco Evans Holding Co., 12.375%, 7/15/07		—
B2			95	³	Neiman-Marcus Group Inc., 9.00%, 10/15/15		93,338
B-			265		Pantry, Inc., The, 7.75%, 2/15/14		260,362
BB-			100	³	Quiksilver, Inc., 6.875%, 4/15/15		92,750
B-			405	³	Rite Aid Corp., 6.125%, 12/15/08		380,700
CCC+			115	³	Rural/Metro Corp., 9.875%, 3/15/15		120,175
BB			280		Smithfield Foods, Inc., 7.00%, 8/01/11		285,600

							4,443,758

					Containers & Packaging—2.3%
BB			55		Ball Corp., 6.875%, 12/15/12		55,894
B			540		Crown Cork & Seal, Inc., 8.00%, 4/15/23		515,700
					Crown European Holdings SA,
B			115		7.375%, 12/15/26		109,250
B+			10		9.50%, 3/01/11 (France)		11,000
B			30		10.875%, 3/01/13 (France)		35,400
					Graham Packaging Co., Inc.,
CCC+			180		8.50%, 10/15/12		173,700
CCC+			110		9.875%, 10/15/14		104,225
CCC+			85	³	Pregis Corp., 12.375%, 10/15/13		83,300

							1,088,469

See Notes to Financial Statements.


BlackRock High Yield Trust (BHY) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Ecological Services & Equipment—0.6%
					Allied Waste NA, Inc.,
BB-		$	80		8.50%, 12/01/08	$	83,200
BB-			110		8.875%, 4/01/08		114,400
BB-			115		Ser. B, 5.75%, 2/15/11		106,950

							304,550

					Energy—25.8%
B+			139		AES Red Oak LLC, 8.54%, 11/30/19		153,678
B1			195		ANR Pipeline Co., 9.625%, 11/01/21		235,950
B2			565		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)		576,300
					Calpine Corp.,
B-			55	³	8.50%, 7/15/10		38,638
B			95	³	9.625%, 9/30/14		96,425
CCC			25		Calpine Energy Finance ULC, 8.50%, 5/01/08 (Canada)		13,563
CCC+			160		Calpine Generating Co. LLC, 11.50%, 4/01/11		146,200
Ba1			233		CE Generation LLC, 7.416%, 12/15/18		246,179
					Chesapeake Energy Corp.,
BB			60		6.875%, 1/15/16		60,600
BB			250		7.00%, 8/15/14		258,750
BB			115		Chesapeake Energy Finance, 6.25%, 1/15/18		111,550
B-			200	³	Clayton Williams Energy, Inc., 7.75%, 8/01/13		193,000
					CMS Energy Corp.,
BB-			10		7.50%, 1/15/09		10,350
BB-			40		9.875%, 10/15/07		43,000
B1			40	³	Colorado Inst. Gas Co., 6.80%, 11/15/15		39,975
Ba3			90	³	Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)		93,600
B			300		Compton Petroleum Corp., 9.90%, 5/15/09 (Canada)		319,125
B2			60		Dresser, Inc., 9.375%, 4/15/11		62,550
					Dynegy Holdings, Inc.,
B+			40	³	9.875%, 7/15/10		43,000
B+			365	³	10.125%, 7/15/13		401,500
					El Paso CGP Co.,
B-			100		7.42%, 2/15/37		90,500
B-			60		7.75%, 6/15/10		60,600
B-			250		9.625%, 5/15/12		274,062
B-			215		10.75%, 10/01/10		234,619
B-			120		El Paso Corp., 7.625%, 8/16/07		121,800
					El Paso Natural Gas Co.,
B1			65		7.625%, 8/01/10		67,925
B1			55		8.375%, 6/15/32		60,638
Ba2			776		Elwood Energy LLC, 8.159%, 7/05/26		859,411
B			260		Exco Resources, Inc., 7.25%, 1/15/11		265,200
B1			200		Foundation Pennsylvania Coal Co., 7.25%, 8/01/14		205,000
BB-			260		Frontier Oil Corp., 6.625%, 10/01/11		265,200
B			195		Hanover Compressor Co., 8.625%, 12/15/10		208,650
					Hilcorp Energy I LP/Hilcorp Finance Corp.,
B			50	³	7.75%, 11/01/15		50,000
B			170	³	10.50%, 9/01/10		190,400
BBB-			99		Homer City Funding LLC, 8.734%, 10/01/26		115,501
BB-			5		Hornbeck Offshore Services, Inc., 6.125%, 12/01/14		4,950
					KCS Energy, Inc.,
B-			385		7.125%, 4/01/12		391,737
B-			85	³	7.125%, 4/01/12		86,700
					Midwest Generation LLC,
B+			241		8.56%, 1/02/16		262,982
B+			95		8.75%, 5/01/34		104,738
B2			685		Mission Energy Holdings Co., 13.50%, 7/15/08		796,312
					Newfield Exploration Co.,
BB-			30		6.625%, 9/01/14		30,750
BB-			20		8.375%, 8/15/12		21,400
CCC+			400		North America Energy Partners, Inc., 8.75%, 12/01/11 (Canada)		376,000

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Energy—(cont’d)
B-		$	50	³	Ocean Rig Norway AS, 8.375%, 7/01/13	$	53,875
B2			500		Orion Power Holdings, Inc., 12.00%, 5/01/10		592,500
Ba2			70		Plains Exploration & Production Co., 7.125%, 6/15/14		72,975
Ba3			100	³	Pogo Producing Co., 6.875%, 10/01/17		99,000
BBB-			325		Premcor Refining Group, Inc., 6.75%, 5/01/14		342,875
Ba2			210		Pride International, Inc., 7.375%, 7/15/14		225,225
					Range Resources Corp.,
B			25		6.375%, 3/15/15		25,063
B			185		7.375%, 7/15/13		195,175
					Reliant Energy, Inc.,
BB-			155		6.75%, 12/15/14		143,762
BB-			150		9.25%, 7/15/10		157,500
B			300		Roseton/Danskammer, 7.27%, 11/08/10		297,750
Ba2			40		Sithe Independence Funding, 9.00%, 12/30/13		44,324
B2			200	³	Targa Resources, Inc., 8.50%, 11/01/13		203,000
B1			160		Tennessee Gas Pipeline Co., 8.375%, 6/15/32		178,000
					Transcontinental Gas Pipe Line Corp.,
BB+			65		7.25%, 12/01/26		70,281
BB+			400		Ser. B, 8.875%, 7/15/12		466,500
BBB-			130		TXU Corp., 6.55%, 11/15/34		116,215
					Whiting Petroleum Corp.,
B2			140	³	7.00%, 2/01/14		140,350
B2			250		7.25%, 5/01/12 - 5/01/13		253,125
BB			355		Williams Cos., Inc., 7.625%, 7/15/19		377,187

							12,343,690

					Entertainment & Leisure—4.4%
B-			280		Gaylord Entertainment Co., 6.75%, 11/15/14		268,800
BB			225		K2, Inc., 7.375%, 7/01/14		216,000
					MGM Mirage,
BB			270		6.00%, 10/01/09		264,600
BB			60		6.75%, 9/01/12		59,700
B			240		Poster Financial Group, Inc., 8.75%, 12/01/11		244,800
B-			185		Riddell Bell Holdings, Inc., 8.375%, 10/01/12		176,675
B+			60	³	San Pasqual Casino, 8.00%, 9/15/13		60,000
BB-			140	³	Seneca Gaming Corp., 7.25%, 5/01/12		143,500
B			385	³	Virgin River Casino Corp., 9.00%, 1/15/12		402,325
B+			295		Wynn Las Vegas LLC/Wynn Las Vegas Cap. Corp., 6.625%, 12/01/14		280,987

							2,117,387

					Financial Institutions—18.7%
B+			188		AES Ironwood LLC, 8.857%, 11/30/25		212,551
BB			185	³	American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		179,450
NR			500	³	Ameriserve Finance Capital Corp., 12.00%, 9/15/06		25,000
B-			428		BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)		470,800
B-			140	³	Borden US Finance Corp./Nova Scotia Finance ULC, 9.00%, 7/15/14		137,900
Ba2			1,000	³	Capital Guardian High Yield CBO Ltd., 11.45%, 5/24/13		1,020,100
BB			340		Crum & Forster Hldgs. Corp., 10.375%, 6/15/13		363,800
B+			100	³	E*Trade Financial Corp., 7.375%, 9/15/13		98,500
BB			433		Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)		394,030
					Fairfax Financial Holdings, Ltd.,
BB			50		6.875%, 4/15/08 (Canada)		48,250
BB			50		8.30%, 4/15/26 (Canada)		41,500
Ba3			2,500	³	First Dominion Funding II, 11.614%, 4/25/14		2,418,500
					Ford Motor Credit Co.,
BBB-			560		5.70%, 1/15/10		504,062
BBB-			175		7.25%, 10/25/11		162,757
Ba3			50		Huntsman Advanced Materials LLC, 11.00%, 7/15/10		55,813
B-			450		K&F Acquisition, Inc., 7.75%, 11/15/14		450,000
B-			360	³	Nell AF, 8.375%, 8/15/15 (Luxembourg)		345,600

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Financial Institutions—(cont’d)
					Rainbow National Services LLC,
B+		$	310	³	8.75%, 9/01/12	$	325,500
B+			490	³	10.375%, 9/01/14		540,225
B-			455		Standard Aero Holdings, Inc., 8.25%, 9/01/14		433,387
B-			30		Universal City Florida Hldg. Co. I/II, 9.00%, 5/01/10		30,600
CCC+			335		Vanguard Health Holding Co. II LLC, 9.00%, 10/01/14		348,400
BB-			70		Western Financial Bank, 9.625%, 5/15/12		79,275
C			2,550	³	Zais Investment Grade Ltd., 9.95%, 9/23/14		254,953

							8,940,953

					Health Care—5.8%
					Coventry Hlth. Care, Inc.,
BBB-			80		5.875%, 1/15/12		79,600
BBB-			80		6.125%, 1/15/15		80,600
CCC			50		Curative Health Services, Inc., 10.75%, 5/01/11		33,750
B			500	³	Elan Finance Corp., 7.75%, 11/15/11 (Ireland)		440,000
BB+			300		HCA, Inc., 5.50%, 12/01/09		292,234
B-			225		IASIS Healthcare LLC/IASIS Cap. Corp., 8.75%, 6/15/14		230,625
B			230	³	Insight Health Services Corp., 9.174%, 11/01/11		217,925
CCC+			90		Medquest, Inc., 11.875%, 8/15/12		89,100
B-			135		Norcross Safety Products LLC/Norcross Capital Corp., 9.875%, 8/15/11		143,775
B-			210	³	Select Medical Corp., 9.933%, 9/15/15		205,800
					Tenet Healthcare Corp.,
B			40		6.375%, 12/01/11		34,900
B			95		9.875%, 7/01/14		92,625
B-			505		Universal Hospital Services, Inc., 10.125%, 11/01/11		510,050
B2			215		US Oncology, Inc., 9.00%, 8/15/12		227,900
CCC+			90	³	Warner Chilcott Corp., 8.75%, 2/01/15		82,800

							2,761,684

					Industrials—7.8%
B			165		Blount, Inc., 8.875%, 8/01/12		173,662
B-			60	³	Chart Inds, Inc., 9.125%, 10/15/15		59,250
B-			195		Concentra Operating Corp., 9.125%, 6/01/12		200,850
Caa1			685	³	DI Finance/DynCorp. Intl., 9.50%, 2/15/13		708,975
B-			575		ERICO Intl. Corp., 8.875%, 3/01/12		592,250
Caa1			175	³	Hydrochem Industrial Services, 9.25%, 2/15/13		159,688
B+			163		JLG Industries, Inc., 8.375%, 6/15/12		172,372
B-			320		NationsRent Cos., Inc., 9.50%, 5/01/15		332,000
CCC+			210		Park-Ohio Inds., Inc., 8.375%, 11/15/14		183,225
B3			450	³	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		454,500
B			55		Terex Corp., 7.375%, 1/15/14		54,450
CCC+			375		Trimas Corp., 9.875%, 6/15/12		305,625
					United Rentals NA, Inc.,
Caa1			265		7.00%, 2/15/14		241,150
Caa1			130		7.75%, 11/15/13		123,500

							3,761,497

					Media—9.2%
B-			265		Allbritton Communications Co., 7.75%, 12/15/12		263,675
CCC+			205		American Media Operations, Inc., 10.25%, 5/01/09		194,750
CCC+			200	³	CCH I Holdings LLC / Cap. Corp., 11.125%, 1/15/14		136,000
CCC+			344	³	CCH I LLC, 11.00%, 10/01/15		310,030
CCC+			680		Charter Communications Holdings II, LLC/Charter Communications Holdings II Cap. Corp., 10.25%, 9/15/10		681,700
					CSC Holdings, Inc.,
BB-			525	³	7.00%, 4/15/12		506,625
BB-			45		Ser. B, 7.625%, 4/01/11		45,000
BB			55	³	DirecTV Holdings LLC, 6.375%, 6/15/15		53,625
					Echostar DBS Corp.,
BB-			85		6.375%, 10/01/11		83,087
BB-			60		7.304%, 10/01/08		61,050
B2			90		Fisher Communications, Inc., 8.625%, 9/15/14		95,850

See Notes to Financial Statements.


BlackRock High Yield Trust (BHY) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description	Value

					Media—(cont’d)
B		$	325		General Cable Corp., 9.50%, 11/15/10	$	342,062
CCC+			75	³	iesy Repository GmbH, 10.375%, 2/15/15 (Germany)		80,438
B3			110		Nexstar Finance, Inc., 7.00%, 1/15/14		97,350
					Primedia, Inc.,
B2			75		8.875%, 5/15/11		73,125
B2			275		9.715%, 5/15/10		280,500
B			200		Sinclair Broadcast Group, Inc., 8.75%, 12/15/11		211,000
					Vertis, Inc.,
Caa1			435		10.875%, 6/15/09		404,550
Caa2			120	³	13.50%, 12/07/09		92,400
Caa1			415		Young Broadcasting, Inc., 10.00%, 3/01/11		390,100

							4,402,917

					Real Estate—0.6%
BB			300		American Real Estate Partners, 8.125%, 6/01/11		308,250

					Technology—7.5%
B+			40	³	Activant Solutions, Inc., 10.054%, 4/01/10		40,900
B-			60		Amkor Technology, Inc., 9.25%, 2/15/08		57,450
B			285		Celestica, Inc., 7.625%, 7/01/13 (Canada)		275,737
BB+			80		Flextronics Intl. Ltd., 6.50%, 5/15/13 (Singapore)		80,200
					Freescale Semiconductor, Inc.,
BB+			50		6.875%, 7/15/11		51,750
BB+			100		6.90%, 7/15/09		102,500
B+			60	³	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (Korea)		66,825
BB-			522		Lucent Technologies, Inc., 6.50%, 1/15/28		443,700
					MagnaChip Semiconductor SA/Magna Semiconductor Finance Co.,
Ba3			100		6.875%, 12/15/11		93,500
Ba3			310		7.12%, 12/15/11 (Luxembourg)		302,250
B2			185		8.00%, 12/15/14 (Luxembourg)		167,888
CCC+			140		NDCHealth Corp., 10.50%, 12/01/12		159,600
B+			70		Sanmina-SCI Corp., 6.75%, 3/01/13		65,975
					Stats Chippac Ltd.,
BB			215		6.75%, 11/15/11 (Singapore)		207,744
BB			220		7.50%, 7/19/10 (Singapore)		221,100
					Sungard Data Systems, Inc.,
B-			60	³	8.525%, 8/15/13		61,800
B-			265	³	9.125%, 8/15/13		270,962
B-			340	³	10.25%, 8/15/15		336,600
B			365		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		361,350
B-			225		UGS Corp., 10.00%, 6/01/12		246,375

							3,614,206

					Telecommunications—11.3%
NR			2,000	²	Asia Global Crossing Ltd., 13.375%, 10/15/10		65,000
A			182		AT&T Corp., 9.05%, 11/15/11		200,937
B3			320		Centennial Communications Corp., 8.125%, 2/01/14		331,200
BB-			205		Cincinnati Bell, Inc., 7.25%, 7/15/13		213,712
B1			260		Dobson Cellular Systems, Inc., 8.375%, 11/01/11		271,050
B-			100	³	Hawaiian Telcom Communications, Inc., 9.948%, 5/01/13		98,750
					Intelsat Ltd.,
B2			55	³	8.25%, 1/15/13		55,138
B2			350	³	8.625%, 1/15/15		355,250
B2			345	³	8.695%, 1/15/12		350,175
BB-			80		Lucent Technologies, Inc., 6.45%, 3/15/29		68,400
B+			119		MCI, Inc., 6.908%, 5/01/07		120,190
B-			385		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)		350,350
CCC+			100	³	Ntelos Holdings Corp., 12.90%, 10/15/13		99,750
					PanAmSat Corp.,
Ba3			210		6.875%, 1/15/28		182,175
B1			140		9.00%, 8/15/14		147,350
NA			600	²	PF Net Communications, Inc., 13.75%, 5/15/10		60

See Notes to Financial Statements.


BlackRock High Yield Trust (BHY) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description	Value

					Telecommunications—(cont’d)
					Qwest Corp.,
BB+		$	230	³	7.12%, 6/15/13	$	240,925
BB+			600		7.875%, 9/01/11		630,000
BB+			445		8.875%, 3/15/12		490,612
BB-			395		Rogers Wireless Communications, Inc., 8.00%, 12/15/12 (Canada)		416,725
BB+			35		Rogers Wireless, Inc., 7.25%, 12/15/12		36,838
Caa1			555		Rural Cellular Corp., 9.875%, 2/01/10		577,200
CCC-			125		Suncom Wireless, Inc., 9.375%, 2/01/11		95,938

							5,397,725

					Transportation—3.8%
B			240	³	CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		241,200
B			30		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		30,263
B3			430		Horizon Lines LLC, 9.00%, 11/01/12		456,337
B+			265		OMI Corp., 7.625%, 12/01/13		272,287
BB+			350		Overseas Shipholding Group, Inc., 7.50%, 2/15/24		343,875
B3			500		Sea Containers Ltd., 10.75%, 10/15/06		493,750

							1,837,712

					Total Corporate Bonds		64,134,808

					Bank Loan—2.1%
					Health Care—2.1%
			1,000		HealthSouth Corp.,Term Loan, LIBOR + 5.00%, 6/15/10		1,001,667


		Shares

					Preferred Stock—0.0%
					Media—0.0%
			1	²	Adelphia Business Solutions, Ser. B, 12.875%		—

					Common Stocks—0.3%
					Consumer Products—0.0%
			15	⁴	Mattress Discounters Corp.		—

					Technology—0.3%
			68		Globix Corp.		133,298

					Total Common Stocks		133,298


		Units

					Warrants—0.0%
			1	^3,4,5,7	Mattress Discounters Corp., expires 7/15/07, strike price $0.01, 4.85 shares for 1 warrant		—
			54	^5,7	Neon Communications, Inc., expires 12/02/12		1
			1	^3,5,7	PF. Net Communications, Inc., expires 5/15/10, strike price $0.01, 36.87243 shares for 1 warrant		—

					Total Warrants		1

					Total Long-Term Investments (cost $75,697,551)		65,269,774


	Principal Amount (000)

					SHORT-TERM INVESTMENT—3.5%
					U.S. Government and Agency Zero Coupon Security—3.5%
		$	1,700		FNMA Discount Notes, 3.72%, 11/01/05⁶(cost $1,700,000)		1,700,000

					Total investments—139.7% (cost $77,397,551⁸)	$	66,969,774
					Liabilities in excess of other assets—(39.7)%		(19,045,941	)

					Net Assets—100%	$	47,923,833



¹	Using the higher of S&P’s, Moody’s or Fitch’s rating.
²	Issuer is in default and/or bankruptcy.
³	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2005, the Trust held 35.2% of its net assets, with a current market value of $16,857,761, in securities restricted as to resale.
⁴	Security is fair valued.
⁵	Illiquid security. As of October 31, 2005, the Trust held less than 0.1% of its net assets, with a current market value of $1.
⁶	Rate shown is the yield to maturity as of October 31, 2005.
⁷	Non-income producing security.
⁸	Cost for Federal income tax purposes is $77,419,838. The net unrealized depreciation on a tax basis is $10,450,064 consisting of $912,633 gross unrealized appreciation and $11,362,697 gross unrealized depreciation.

A category in the Corporate Bonds section may contain multiple industries as defined by the SEC’s Standard Industry Codes.

See Notes to Financial Statements.


PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005
BlackRock Income Opportunity Trust (BNA)


	Principal Amount (000)
Rating¹
(unaudited)					Description		Value

					LONG-TERM INVESTMENTS—152.3%
					Mortgage Pass-Through Securities—36.7%
					Federal Home Loan Mortgage Corp.,
		$	1,312		4.395%, 1/01/35	$	1,321,983
			2,040		5.152%, 1/01/35		2,024,436
					Federal National Mortgage Assoc.,
			675		2.35%, 4/29/06		668,048
			35,105		5.50%, 12/01/13 - 5/18/35		34,960,155
			467	²	5.50%, 12/01/32		461,440
			9,221	³	5.50%, 1/01/33		9,103,665
			17,537		6.00%, 3/01/16 - 7/01/35		17,710,950
			237		7.00%, 2/01/24 - 10/01/28		248,001
			3,400		TBA, 5.50%, 11/30/20		3,422,311
			57,700		TBA, 5.50%, 11/30/35		56,906,625
			18,800		TBA, 6.00%, 11/30/35		18,958,634
					Government National Mortgage Assoc.,
			121		8.00%, 4/15/24-11/15/25		129,610

					Total Mortgage Pass-Through Securities		145,915,858

					Federal Housing Administration Securities—1.2%
					General Motors Acceptance Corp. Projects,
			352		Ser. 37, 7.43%, 5/01/22		356,966
			200		Ser. 44, 7.43%, 8/01/22		203,204
					Merrill Projects,
			158		Ser. 29, 7.43%, 10/01/20		159,963
			230		Ser. 42, 7.43%, 9/01/22		233,837
			1,856		Reilly Project, 7.40%, 4/01/21		1,880,750
			1,875		Westmore Project, 7.25%, 4/01/21		1,890,732

					Total Federal Housing Administration Securities		4,725,452

					Agency Multiple Class Mortgage Pass-Through Securities—6.3%
					Federal Home Loan Mortgage Corp.,
			3,728		Ser. 82, Class HJ, 5.50%, 9/25/32		3,735,601
			1,390		Ser. 2883, Class DR, 5.00%, 11/15/19		1,334,623
			3,880		Ser. 2922, Class GA, 5.50%, 5/15/34		3,881,712
			2,098		Ser. 2927, Class BA, 5.50%, 10/15/33		2,102,500
			2,098		Ser. 2933, Class HD, 5.50%, 2/15/35		2,104,875
			1,725		Ser. 2968, Class EG, 6.00%, 10/15/34		1,774,628
					Federal National Mortgage Assoc.,
			3,895		Ser. 5, Class PK, 5.00%, 12/25/34		3,833,151
			2,357		Ser. 27, Class PC, 5.50%, 5/25/34		2,354,862
			2,055		Ser. 118, Class FD, 4.438%, 12/25/33		2,063,895
			2		Ser. 256, Class F, 5.563%, 11/25/23		1,807
			1,822		Government National Mortgage Assoc., 6.00%, 6/20/15		1,856,506


					Total Agency Multiple Class Mortgage Pass-Through Securities		25,044,160

					Non-Agency Multiple Class Mortgage Pass-Through Securities—1.9%
AAA			7,273		Residential Funding Securities Corp., 8.50%, 5/25/33		7,547,908
AAA			12	⁴	Summit Mortgage Trust, 6.292%, 12/28/12		11,935

					Total Non-Agency Multiple Class Mortgage Pass-Through Securities		7,559,843

					Inverse Floating Rate Mortgage Securities—0.7%
					Federal Home Loan Mortgage Corp.,
			11		Ser. 1043, Class H, 26.438%, 2/15/21		13,169
			925		Ser. 1611, Class JC, 10.00%, 8/15/23		957,888
					Federal National Mortgage Assoc.,
			1,808		Ser. 23, Class PS, 9.771%, 4/25/23		1,867,153
			—		Ser. 46, Class S, 1,588.688%, 5/25/21		4,297
			—		Ser. 49, Class S, 612.30%, 12/25/21		1,797
			82		Ser. 87, Class S, 15.917%, 8/25/21		111,722
			1		Ser. 145, Class S, 21.831%, 10/25/06		1,401

					Total Inverse Floating Rate Mortgage Securities		2,957,427

See Notes to Financial Statements.


BlackRock Income Opportunity Trust (BNA) (continued)


	Principal Amount (000)
Rating¹
(unaudited)					Description		Value

					Interest Only Asset-Backed Securities—1.3%
AAA		$	1,738	⁴	Morgan Stanley Cap. Trust I, 1.686%, 6/15/17	$	26,752
					Sterling Coofs Trust,
NR			33,862		Ser. 1, 2.362%, 4/15/29		2,793,627
NR			32,945		Ser. 2, 1.00%, 3/30/30		2,512,057

					Total Interest Only Asset-Backed Securities		5,332,436

					Interest Only Mortgage-Backed Securities—0.9%
					Federal Home Loan Mortgage Corp.,
			—		Ser. 176, Class M, 1,010.00%, 7/15/21		47
			—		Ser. 192, Class U, 1,009.033%, 2/15/22		60
			—		Ser. 200, Class R, 118,500.264%, 12/15/22		400
			—		Ser. 1054, Class I, 522.36%, 3/15/21		265
			—		Ser. 1056, Class KD, 1,084.50%, 3/15/21		1,320
			—		Ser. 1057, Class J, 1,008.001%, 3/15/21		2,584
			—		Ser. 1148, Class E, 710.464%, 10/15/21		823
			—		Ser. 1179, Class O, 1,009.389%, 11/15/21		172
			—		Ser. 1221 Class H, 1,006.50%, 3/15/07		89
			256		Ser. 1254, Class Z, 8.50%, 4/15/22		1,666
			518		Ser. 1831, Class PG, 6.50%, 3/15/11		49,357
			7,881		Ser. 2611, Class QI, 5.50%, 9/15/32		1,431,598
					Federal National Mortgage Assoc.,
			128		Ser. 5, Class H, 9.00%, 1/25/22		17,635
			8		Ser. 7, Class 2, 8.50%, 4/01/17		1,711
			—		Ser. 7, Class S, 686.349%, 3/25/21		4,780
			1		Ser. 10, Class S, 664.091%, 5/25/21		9,188
			1		Ser. 12, Class S, 702.701%, 5/25/21		13,832
			—		Ser. 17, Class S, 663.569%, 6/25/21		6,232
			1		Ser. 33, Class PV, 1,078.42%, 10/25/21		14,742
			—		Ser. 38, Class N, 1,008.50%, 4/25/21		430
			6		Ser. 46, Class H, 1,042.50%, 12/25/09		85,583
			542		Ser. 50, Class SI, 1.20%, 4/25/23		14,677
			—		Ser. 84, Class H, 1,100.633%, 8/25/06		22
			15		Ser. 89, Class 2, 8.00%, 6/01/18		2,967
			34,378		Ser. 90, Class JH, 2.663%, 11/25/34		1,855,039
			5		Ser. 94, Class 2, 9.50%, 8/01/21		1,072
			—		Ser. 99, Class L, 930.00%, 8/25/21		2,623
			—		Ser. 123, Class M, 1,009.50%, 10/25/20		442
			22		Ser. 136, Class S, 16.024%, 11/25/20		27,448
			—		Ser. 139, Class PT, 648.35%, 10/25/21		3,186
			9		Ser. 141, Class SA, 18.75%, 8/25/07		1,822
AAA			6,455	⁴	Goldman Sachs Mortgage Securities Corp., 0.997%, 2/19/25		139,100
AAA			3,824		Salomon Brothers Mortgage Securities VII, 0.401%, 3/25/22		1,202

					Total Interest Only Mortgage-Backed Securities		3,692,114

					Principal Only Mortgage-Backed Securities—0.1%
			141	^2,5	Federal Home Loan Mortgage Corp., Ser. 1739, Class B, 7.50%, 2/15/24		123,783
					Federal National Mortgage Assoc.,
			72	⁵	Ser. 51, Class E, 8.00%, 2/25/23		56,590
			17	⁵	Ser. 70, Class A, 7.00%, 5/25/23		15,485
			32	⁵	Ser. 167, Class D, 8.50%, 10/25/17		30,778
			31	⁵	Ser. 203, Class 1, 8.00%, 2/01/23		26,754
			20	⁵	Ser. 228, Class 1, 7.00%, 5/01/23		16,391

					Total Principal Only Mortgage-Backed Securities		269,781

					Commercial Mortgage-Backed Securities—5.3%
AAA			1,883		Banc of America Commercial Mortgage, Inc., 6.00%, 12/25/34		1,866,369
					Bear Stearns Commercial Mortgage Services,
AAA			2,320		Ser. 7, Class A2, 4.945%, 2/11/41		2,287,520
AAA			2,400		Ser. 9, Class A4A, 4.871%, 9/15/42		2,334,840
AAA			2,970		CS First Boston Mortgage Securities Corp., 4.94%, 12/15/35		2,917,687
AAA			2,090		First Union National Bank Commercial Mortgage Trust, 7.202%, 10/15/32		2,265,602
AAA			2,475		General Motors Acceptance Corp. Commercial Mortgage Securities, Inc., 4.547%, 12/10/41		2,399,884
					JP Morgan Chase Commercial Mortgage Securities Corp.,
AAA			1,990		Ser. C1, Class A3, 5.857%, 10/12/35		2,065,162
AAA			2,380		Ser. CBX, Class A4, 4.529%, 1/12/37		2,310,004
AAA			2,530		LB-UBS Commercial Mortgage Trust, 4.985%, 6/15/29		2,533,238

					Total Commercial Mortgage-Backed Securities		20,980,306

See Notes to Financial Statements.


BlackRock Income Opportunity Trust (BNA) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Collateralized Mortgage Obligation Residuals—0.0%
					Collateralized Mortgage Obligation Trust,
AAA		$	—		Ser. 40, Class R, 580.50%, 4/01/18	$	334
AAA			—		Ser. 42, Class R, 6,000.00%, 10/01/14		5,481
					Federal Home Loan Mortgage Corp.,
			—		Ser. 173, Class R, 9.00%, 11/15/21		17
			—		Ser. 173, Class RS, 9.072%, 11/15/21		18
			—		Ser. 19, Class R, 11,078.201%, 3/15/20		2,119
			—		Ser. 75, Class R, 9.50%, 1/15/21		3
			—		Ser. 75, Class RS, 15.485%, 1/15/21		3
NR			6	⁶	PaineWebber CMO Trust, 13.80%, 9/01/18		—

					Total Collateralized Mortgage Obligation Residuals		7,975

					Collateralized Mortgage Obligations—1.9%
					Federal Home Loan Mortgage Corp.,
			1,472		Ser. 2582, Class TB, 3.50%, 10/15/21		1,465,040
			3,489		Ser. 2806, Class VC, 6.00%, 12/15/19		3,545,892
AAA			2,310		GE Capital Commercial Mortgage Corp., 6.269%, 12/10/35		2,437,396

					Total Collateralized Mortgage Obligations		7,448,328

					Corporate Bonds—46.6%
					Aerospace & Defense—2.2%
B+			100		Armor Holdings, Inc., 8.25%, 8/15/13		108,000
B-			670		BE Aerospace, Inc., 8.875%, 5/01/11		705,175
BBB+			1,620		Lockheed Martin Corp., 8.50%, 12/01/29		2,195,003
BBB+			1,000		Northrop Grumman Corp., 7.125%, 2/15/11		1,089,830
					Raytheon Co.,
BBB			712		6.15%, 11/01/08		734,677
NR			2,500		7.00%, 5/15/06		2,609,925
BB			100		Sequa Corp., 8.875%, 4/01/08		103,250
A+			1,250		United Technologies Corp., 4.875%, 5/01/15		1,226,200

							8,772,060

					Automotive—0.2%
B-			270		Accuride Corp., 8.50%, 2/01/15		255,150
BB+			90		Arvinmeritor, Inc., 8.75%, 3/01/12		85,050
B-			110		Goodyear Tire & Rubber Co., 7.857%, 8/15/11		105,875
CCC+			350	⁴	Metaldyne Corp., 11.00%, 11/01/13		314,125
BB			185		Navistar Intl. Corp., 6.25%, 3/01/12		166,038

							926,238

					Basic Materials—2.8%
BB-			50		Abitibi-Consolidated, Inc., 8.375%, 4/01/15 (Canada)		46,375
B-			80	⁴	BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 9.65%, 7/15/10		80,800
B-			3,185		Caraustar Industries, Inc., 9.875%, 4/01/11		3,097,412
BB-			170		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		172,125
BB-			300		Equistar Chemicals LP/Equistar Funding Corp., 10.625%, 5/01/11		328,500
					Huntsman LLC,
B			72		11.50%, 7/15/12		81,360
BB-			230		11.625%, 10/15/10		261,625
BB			70		IMC Global, Inc., 10.875%, 6/01/08		78,225
CCC+			1,150	⁴	Innophos, Inc., 9.125%, 8/15/14		1,164,375
BBB			135		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)		153,225
					Lyondell Chemical Co.,
BB-			130		10.50%, 6/01/13		147,550
BB-			2,700		11.125%, 7/15/12		3,010,500
B-			95		Nalco Co., 8.875%, 11/15/13		97,138
CCC+			445		NewPage Corp., 10.00%, 5/01/12		407,175
Ba3			1,000		Oregon Steel Mills, Inc., 10.00%, 7/15/09		1,071,250
B-			140	⁴	PQ Corp., 7.50%, 2/15/13		127,400
					Rhodia SA,
CCC+			260		8.875%, 6/01/11 (France)		245,050
B3			40		10.25%, 6/01/10 (France)		42,500

See Notes to Financial Statements.


BlackRock Income Opportunity Trust (BNA) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description	Value

					Basic Materials—(cont’d)
BBB-		$	170	⁴	Southern Peru Copper Corp., 7.50%, 7/27/35	$	165,325
BBB			300		Teck Cominco Ltd., 6.125%, 10/01/35 (Canada)		283,089

							11,060,999

					Building & Development—0.6%
B-			80	⁴	Ahern Rentals, Inc., 9.25%, 8/15/13		81,700
B2			230	⁴	Compression Polymers Corp., 10.50%, 7/01/13		209,300
B-			835	⁴	Goodman Global Holding Co., Inc., 7.875%, 12/15/12		789,075
BB+			455		Hovnanian K Enterprises, Inc., 6.25%, 1/15/16		407,225
BB+			560		KB Home, 6.25%, 6/15/15		526,400
B			300		North American Energy Partners, Inc., 9.00%, 6/01/10 (Canada)		312,000
BBB+			60		Pulte Homes, Inc., 5.20%, 2/15/15		55,484

							2,381,184

					Conglomerates—0.0%
BB-			30		Stena AB, 7.00%, 12/01/16 (Sweden)		27,750

					Consumer Products—3.2%
B3			95		ALH Finance LLC, 8.50%, 1/15/13		85,975
BBB-			1,500		Autonation, Inc., 9.00%, 8/01/08		1,623,750
B3			2,000		Buffets, Inc., 11.25%, 7/15/10		2,000,000
					Cenveo Corp.,
B3			275		7.875%, 12/01/13		253,687
B1			375		9.625%, 3/15/12		395,625
BB+			470		Delhaize America, Inc., 9.00%, 4/15/31		528,172
BBB+			560		Federated Dept. Stores, Inc., 6.79%, 7/15/27		569,722
B2			535		Finlay Fine Jewelry Corp., 8.375%, 6/01/12		454,750
B2			90		Gold Kist, Inc., 10.25%, 3/15/14		101,700
					GSC Holdings Corp.,
Ba3			70	⁴	7.875%, 10/01/11		70,438
Ba3			120	⁴	8.00%, 10/01/12		117,000
B-			735	⁴	Knowledge Learning Corp., Inc., 7.75%, 2/01/15		683,550
B-			380		Lazydays RV Center, Inc., 11.75%, 5/15/12		395,200
B			470		Levi Strauss & Co., 8.804%, 4/01/12		467,062
B3			750		Movie Gallery, Inc., 11.00%, 5/01/12		600,000
AA-			3,000		Procter & Gamble Co., 6.875%, 9/15/09		3,217,260
BB-			300	⁴	Quiksilver, Inc., 6.875%, 4/15/15		278,250
B-			730	⁴	Rite Aid Corp., 6.125%, 12/15/08		686,200
CCC+			240	⁴	Rural/Metro Corp., 9.875%, 3/15/15		250,800

							12,779,141

					Containers & Packaging—1.3%
B+			1,500		Crown European Holdings SA, 9.50%, 3/01/11 (France)		1,650,000
CCC+			60		Graham Packaging Co., Inc., 9.875%, 10/15/14		56,850
BB-			1,850		Owens-Brockway Glass Container, Inc., 8.875%, 2/15/09		1,937,875
CCC+			170	⁴	Pregis Corp., 12.375%, 10/15/13		166,600
B+			1,240		Stone Container Corp., 9.25%, 2/01/08		1,258,600

							5,069,925

					Ecological Services & Equipment—0.7%
BB-			255		Allied Waste NA, Inc., 5.75%, 2/15/11		237,150
B			2,250		Casella Waste Systems, Inc., 9.75%, 2/01/13		2,413,125

							2,650,275

					Energy—4.1%
					ANR Pipeline Co.,
B1			145		7.375%, 2/15/24		150,981
B1			565		9.625%, 11/01/21		683,650
B2			1,200		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)		1,224,000
B-			30	⁴	Calpine Corp., 8.50%, 7/15/10		21,075
CCC			5		Calpine Energy Finance ULC, 8.50%, 5/01/08 (Canada)		2,713
CCC+			320		Calpine Generating Co. LLC, 11.50%, 4/01/11		292,400
B-			130	⁴	Clayton Williams Energy, Inc., 7.75%, 8/01/13		125,450

See Notes to Financial Statements.


BlackRock Income Opportunity Trust (BNA) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description	Value

					Energy—(cont’d)
					CMS Energy Corp.,
BB-		$	35		7.50%, 1/15/09	$	36,225
BB-			105		9.875%, 10/15/07		112,875
Ba3			180	⁴	Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)		187,200
B2			445		Dresser, Inc., 9.375%, 4/15/11		463,912
					Dynegy Holdings, Inc.,
B+			80	⁴	9.875%, 7/15/10		86,000
B+			995	⁴	10.125%, 7/15/13		1,094,500
					El Paso CGP Co.,
B-			175		7.42%, 2/15/37		158,375
B-			100		9.625%, 5/15/12		109,625
B-			125		10.75%, 10/01/10		136,406
B-			120		El Paso Corp., 7.80%, 8/01/31		118,950
					El Paso Natural Gas Co.,
B1			1,000		7.625%, 8/01/10		1,045,000
B1			150		8.375%, 6/15/32		165,375
Ba2			217		Elwood Energy LLC, 8.159%, 7/05/26		240,059
B			430		Exco Resources, Inc., 7.25%, 1/15/11		438,600
BBB-			480		FirstEnergy Corp., 6.45%, 11/15/11		505,378
AA-			575		Florida Power & Light Co., 4.95%, 6/01/35		513,164
BBB			190		Halliburton Co., 7.60%, 8/15/96		218,458
					Hilcorp Energy I LP/Hilcorp Finance Corp.,
B			100	⁴	7.75%, 11/01/15		100,000
B			136	⁴	10.50%, 9/01/10		152,320
					KCS Energy, Inc.,
B-			80		7.125%, 4/01/12		81,400
B-			135	⁴	7.125%, 4/01/12		137,700
BBB+			1,250		Kinder Morgan Energy Partners LP, 7.30%, 8/15/33		1,411,625
BBB			1,000		Kinder Morgan, Inc., 6.50%, 9/01/12		1,058,470
A-			765		Midamerican Energy Co., 5.75%, 11/01/35		751,586
B+			118		Midwest Generation LLC, 8.56%, 1/02/16		128,913
B2			1,020		Mission Energy Holdings Co., 13.50%, 7/15/08		1,185,750
B-			110	⁴	Ocean Rig Norway AS, 8.375%, 7/01/13		118,525
B2			140		Orion Power Holdings, Inc., 12.00%, 5/01/10		165,900
Baa2			1,800		Progress Energy, Inc., 6.75%, 3/01/06		1,812,330
B			25		Range Resources Corp., 6.375%, 3/15/15		25,063
BB-			105		Reliant Energy, Inc., 6.75%, 12/15/14		97,387
B2			360	⁴	Targa Resources, Inc., 8.50%, 11/01/13		365,400
AA			325		Texaco Cap. Inc., 8.875%, 9/01/21		442,981
BB+			30		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26		32,438
BBB-			135		Txu Corp., 6.50%, 11/15/24		122,353
B2			55	⁴	Whiting Petroleum Corp., 7.00%, 2/01/14		55,138

							16,375,650

					Entertainment & Leisure—2.1%
B+			2,000		Boyd Gaming Corp., 8.75%, 4/15/12		2,135,000
B-			250		Gaylord Entertainment Co., 6.75%, 11/15/14		240,000
Ba3			1,000		MGM Mirage, 9.75%, 6/01/07		1,050,000
BB+			2,000		Park Place Entertainment Corp., 8.875%, 9/15/08		2,150,000
B			205		Poster Financial Group, Inc., 8.75%, 12/01/11		209,100
B+			110	⁴	San Pasqual Casino, 8.00%, 9/15/13		110,000
BB-			290	⁴	Seneca Gaming Corp., 7.25%, 5/01/12		297,250
BB+			1,930		Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 5/01/12		2,079,575
B+			125		Wynn Las Vegas LLC/Wynn Las Vegas Cap. Corp., 6.625%, 12/01/14		119,062

							8,389,987

					Financial Institutions—12.8%
BB			350	⁴	American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		339,500
					Bank of America Corp.,
Aa2			2,000		4.50%, 8/01/10		1,954,900
Aa3			2,450		7.80%, 2/15/10		2,707,495

See Notes to Financial Statements.


BlackRock Income Opportunity Trust (BNA) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description	Value

					Financial Institutions—(cont’d)
Aa3		$	1,400	²	Bank One Corp., 6.50%, 2/01/06	$	1,407,504
AA			2,000	⁴	Barclays Bank PLC, 6.86%, 9/29/49 (United Kingdom)		2,130,000
B-			315		BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)		346,500
A+			500		Bear Stearns Co., Inc., 6.50%, 5/01/06		504,755
AAA			2,525		Berkshire Hathaway Fin. Corp., 3.375%, 10/15/08		2,429,631
AAA			1,440		Berkshire Hathaway Finance Corp., 4.125%, 1/15/10		1,397,563
B-			90	⁴	Borden US Finance Corp./Nova Scotia Finance ULC, 9.00%, 7/15/14		88,650
					Citigroup, Inc.,
AA+			5,975		4.125%, 2/22/10		5,779,319
AA+			275		5.85%, 12/11/34		278,974
AA+			550		6.875%, 2/15/98		614,850
					Credit Suisse First Boston, Inc.,
AA-			700	²	6.125%, 11/15/11		733,859
AA-			1,000		7.125%, 7/15/32		1,153,600
BB			1,090		Crum & Forster Hldgs. Corp., 10.375%, 6/15/13		1,166,300
AA-			950		Deutsche Bank AG NY, 3.843%, 3/15/07		943,065
B+			130	⁴	E*Trade Financial Corp., 7.375%, 9/15/13		128,050
BB			200		Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)		182,000
AAA			3,000		General Electric Cap. Corp., 6.75%, 3/15/32		3,432,780
AAA			3,670		General Electric Capital Corp., 3.45%, 1/15/08		3,635,722
AA-			1,000		Goldman Sachs Group, Inc., 6.60%, 1/15/12		1,068,880
AA			2,525		HSBC Bank USA, Inc., 3.875%, 9/15/09		2,430,287
B-			360		K&F Acquisition, Inc., 7.75%, 11/15/14		360,000
AAA			3,000		KFW Intl. Finance, Inc., 5.25%, 6/28/06		3,017,190
A+			1,500		Lehman Brothers Holdings, Inc., 6.625%, 1/18/12		1,614,435
A			1,925		Metlife, Inc., 5.70%, 6/15/35		1,853,910
B-			460	⁴	Nell AF, 8.375%, 8/15/15 (Luxembourg)		441,600
A			700		Prudential Funding LLC, 5.40%, 6/13/35		646,037
					Rainbow National Services LLC,
B+			225	⁴	8.75%, 9/01/12		236,250
B+			1,445	⁴	10.375%, 9/01/14		1,593,112
AA-			395		RBS Capital Trust I, 4.709%, 12/29/49		371,434
B-			465		Standard Aero Holdings, Inc., 8.25%, 9/01/14		442,913
AA			2,000		UBS Preferred Funding Trust I, 8.622%, 10/29/49		2,288,762
B-			50		Universal City Florida Hldg. Co. I/II, 9.00%, 5/01/10		51,000
Aa1			1,000		Wells Fargo & Co., 4.625%, 8/09/10		983,020
Aa1			2,000		Wells Fargo Bank, 7.55%, 6/21/10		2,201,640
BB-			50		Western Financial Bank, 9.625%, 5/15/12		56,625

							51,012,112

					Health Care—1.3%
CCC			20		Curative Health Services, Inc., 10.75%, 5/01/11		13,500
B			200	⁴	Elan Finance Corp., 7.75%, 11/15/11 (Ireland)		176,000
NR			2,000		HealthSouth Corp., 7.00%, 6/15/08		1,960,000
B			460	⁴	Insight Health Services Corp., 9.174%, 11/01/11		435,850
BB+			1,500		Omnicare, Inc., 8.125%, 3/15/11		1,565,625
					Tenet Healthcare Corp.,
B			80		6.375%, 12/01/11		69,800
B			100		9.875%, 7/01/14		97,500
B-			450		Universal Hospital Services, Inc., 10.125%, 11/01/11		454,500
BBB+			350		WellPoint, Inc., 5.95%, 12/15/34		355,495

							5,128,270

					Industrials—2.2%
BBB-			2,000		Briggs & Stratton Corp., 8.875%, 3/15/11		2,260,000
B-			80	⁴	Chart Industries, Inc., 9.125%, 10/15/15		79,000
Caa1			1,520	⁴	DI Finance/DynCorp. Intl., 9.50%, 2/15/13		1,573,200
B-			780		ERICO Intl. Corp., 8.875%, 3/01/12		803,400
Caa1			375	⁴	Hydrochem Industrial Services, 9.25%, 2/15/13		342,188
B			1,306		Manitowoc, Inc., 10.50%, 8/01/12		1,452,925
B-			470		NationsRent Cos., Inc., 9.50%, 5/01/15		487,625
CCC+			465		Park-Ohio Inds., Inc., 8.375%, 11/15/14		405,712

See Notes to Financial Statements.


BlackRock Income Opportunity Trust (BNA) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description	Value

					Industrials—(cont’d)
B3		$	530	⁴	Sunstate Equipment Co. LLC, 10.50%, 4/01/13	$	535,300
CCC+			360		Trimas Corp., 9.875%, 6/15/12		293,400
Caa1			345		United Rentals NA, Inc., 7.00%, 2/15/14		313,950

							8,546,700

					Media—5.8%
B-			460		Allbritton Communications Co., 7.75%, 12/15/12		457,700
CCC+			390		American Media Operations, Inc., 10.25%, 5/01/09		370,500
					AOL Time Warner, Inc.,
BBB+			1,635		7.57%, 2/01/24		1,822,600
BBB+			3,000		9.125%, 1/15/13		3,599,310
BBB+			950		AT&T Broadband Corp., 8.375%, 3/15/13		1,094,200
BBB			700	⁴	BSKYB Finance UK PLC, 6.50%, 10/15/35 (United Kingdom)		685,825
CCC+			2,088	⁴	CCH I LLC, 11.00%, 10/01/15		1,881,810
CCC+			745		Charter Communications Holdings II, LLC/Charter Communications Holdings II Cap. Corp., 10.25%, 9/15/10		746,862
BBB+			1,000		Comcast Cable Communications, Inc., 6.75%, 1/30/11		1,056,690
					Comcast Corp.,
BBB+			250		5.65%, 6/15/35		223,553
BBB+			2,210		7.05%, 3/15/33		2,365,252
BB-			135		Echostar DBS Corp., 7.304%, 10/01/08		137,363
B			250		General Cable Corp., 9.50%, 11/15/10		263,125
CCC+			90		iesy Repository GmbH, 10.375%, 2/15/15 (Germany)		96,525
BBB			2,995		News America, Inc., 6.20%, 12/15/34		2,905,839
B3			180		Nexstar Finance, Inc., 7.00%, 1/15/14		159,300
B2			460		Primedia, Inc., 9.715%, 5/15/10		469,200
B			1,000		Quebecor Media, Inc., 11.125%, 7/15/11 (Canada)		1,087,500
B			400		Sinclair Broadcast Group, Inc., 8.75%, 12/15/11		422,000
BBB+			1,495		TCI Communications, Inc., 8.75%, 8/01/15		1,818,219
					Vertis, Inc.,
Caa1			825		10.875%, 6/15/09		767,250
Caa2			80	⁴	13.50%, 12/07/09		61,600
Caa1			715		Young Broadcasting, Inc., 10.00%, 3/01/11		672,100

							23,164,323

					Real Estate—1.5%
BBB+			1,000		AvalonBay Communities, Inc., 6.625%, 9/15/11		1,059,870
					EOP Operating LP,
BBB+			850		4.65%, 10/01/10		826,404
BBB+			1,070		7.25%, 6/15/28		1,179,621
A			585		ERP Operating LP, 5.25%, 9/15/14		576,787
					Rouse Co.,
BB+			725		3.625%, 3/15/09		674,598
BB+			1,715		5.375%, 11/26/13		1,615,736

							5,933,016

					Technology—1.6%
B			355		Celestica, Inc., 7.625%, 7/01/13 (Canada)		343,462
B+			100	⁴	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)		111,375
BB-			895		Lucent Technologies, Inc., 6.50%, 1/15/28		760,750
Ba3			220		MagnaChip Semiconductor SA/Magna Semiconductor Finance Co., 7.12%, 12/15/11 (Luxembourg)		214,500
B+			115		Sanmina-SCI Corp., 6.75%, 3/01/13		108,388
BB+			2,000		Seagate Technology Holdings, 8.00%, 5/15/09		2,095,000
					Stats Chippac Ltd.,
BB			350		6.75%, 11/15/11 (Singapore)		338,188
BB			50		7.50%, 7/19/10 (Singapore)		50,250
					Sungard Data Systems, Inc.,
B-			120	⁴	8.525%, 8/15/13		123,600
B-			300	⁴	9.125%, 8/15/13		306,750
B-			480	⁴	10.25%, 8/15/15		475,200
B			905		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		895,950
B-			370		UGS Corp., 10.00%, 6/01/12		405,150

							6,228,563

See Notes to Financial Statements.


BlackRock Income Opportunity Trust (BNA) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					Telecommunications—3.0%
A		$	1,700		Bellsouth Telecommunications, Zero Coupon, 12/15/95	$	843,914
BB-			270		Cincinnati Bell, Inc., 7.25%, 7/15/13		281,475
B-			170	⁴	Hawaiian Telcom Communications, Inc., 9.948%, 5/01/13		167,875
					Intelsat Ltd.,
Caa1			180		5.25%, 11/01/08		163,800
B2			70	⁴	8.25%, 1/15/13		70,175
B2			460	⁴	8.625%, 1/15/15		466,900
B2			315	⁴	8.695%, 1/15/12		319,725
BB-			200		Lucent Technologies, Inc., 6.45%, 3/15/29		171,000
B-			80		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)		72,800
					Qwest Corp.,
BB+			375	⁴	7.12%, 6/15/13		392,813
BB+			55		7.875%, 9/01/11		57,750
BB			400		Qwest Services Corp., 13.50%, 12/15/10		456,500
Caa1			790		Rural Cellular Corp., 9.875%, 2/01/10		821,600
A			435		SBC Communications, Inc., 6.45%, 6/15/34		438,558
					Sprint Capital Corp.,
A-			1,205		6.875%, 11/15/28		1,287,555
A-			1,250		8.75%, 3/15/32		1,616,462
A+			635		Verizon Global Funding Corp., 7.75%, 12/01/30 - 6/15/32		735,765
A+			540		Verizon Maryland Incorporated, 5.125%, 6/15/33		450,862
A+			1,410		Verizon Pennsylvania, Inc., 5.65%, 11/15/11		1,402,104
A+			750		Verizon Virginia Inc., 4.625%, 3/15/13		699,398
A+			1,000		Vodafone Group PLC, 7.75%, 2/15/10 (United Kingdom)		1,100,770

							12,017,801

					Transportation—1.2%
A-			1,000		Canadian National Railway Co., 6.375%, 10/15/11 (Canada)		1,064,430
BBB			1,475		Canadian Pacific Railway Ltd., 6.25%, 10/15/11 (Canada)		1,561,995
B			400	⁴	CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		402,000
B			50		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		50,438
B3			47		Horizon Lines LLC, 9.00%, 11/01/12		49,879
BBB+			1,400		Norfolk Southern Corp., 7.05%, 5/01/37		1,645,756
B+			115		OMI Corp., 7.625%, 12/01/13		118,162

							4,892,660

					Total Corporate Bonds		185,356,654

					U.S. Government and Agency Securities—48.9%
					Overseas Private Investment Corp.,
			329		4.09%, 5/29/12		300,317
			919		4.30%, 5/29/12		858,214
			686		4.64%, 5/29/12		650,716
			387		4.68%, 5/29/12		359,479
			2,925		4.87%, 5/29/12		2,806,453
			3,655		5.40%, 5/29/12		3,646,134
			419		5.46%, 2/15/06		430,081
			742		5.79%, 5/29/12		759,933
			510	⁶	5.88%, 2/15/06		512,946
			1,408		5.94%, 5/29/12		1,447,533
			401		5.95%, 5/29/12		409,546
			473		6.10%, 5/29/12		488,602
			572		6.81%, 5/29/12		599,331
			4,567		6.89%, 5/29/12		4,802,098
			1,535		6.91%, 5/29/12		1,600,529
			413		7.35%, 2/15/06		436,510
					Small Business Administration, 6.95%, 11/01/16		1,381,982
					Tennessee Valley Authority,
			1,800	³	Ser. C, 5.88%, 4/01/36		1,987,812
			2,900	³	Ser. D, 4.875%, 12/15/16		2,933,321
					U.S. Treasury Bonds,
			32,000	³	6.00%, 2/15/26		36,787,488
			6,160	³	6.125%, 11/15/27		7,235,105
			24,320	³	6.50%, 11/15/26		29,621,031
			9,795	³	7.125%, 2/15/23		12,404,486
			445		8.125%, 8/15/19		594,146
			17,370	³	8.50%, 2/15/20		23,975,985

See Notes to Financial Statements.


BlackRock Income Opportunity Trust (BNA) (continued)


Principal Amount (000)				Description	Value

				U.S. Government and Agency Securities—(cont’d)
	$	59,235		U.S. Treasury Notes, 4.00%, 8/31/07-2/15/15	$	57,805,729

				Total U.S. Government and Agency Securities		194,835,507

				U.S. Government and Agency Zero Coupon Bond—0.5%
		6,055	³	Resolution Funding Corp., 4/15/30		1,823,949

				Total Long-Term Investments (cost $611,353,630)		605,949,790

				SHORT-TERM INVESTMENTS—0.6%
				U.S. Government and Agency Zero Coupon Bonds—0.6%
		200		Federal Home Loan Bank, 3.65%, 11/01/05⁷		200,000
		900		FNMA Discount Notes, 3.72%, 11/01/05⁷		900,000
		1,400		U.S. Treasury Bills, 3.17%, 11/10/05⁷		1,398,895

				Total Short-Term Investments (cost $2,498,895)		2,498,895

				Total investments before TBA Commitments and outstanding options written—152.9%
				(cost $613,852,525⁸ )		608,448,685

				TBA SALE COMMITMENTS—(30.7)%
				Mortgage Pass-Through Securities—(30.7)%
				Federal National Mortgage Assoc. TBA,
		(300	)	5.50%, 11/30/20		(301,968	)
		(87,500	)	5.50%, 11/30/35		(86,296,875	)
		(35,200	)	6.00%, 11/30/35		(35,497,018	)

				Total TBA Sale Commitments (proceeds $122,969,414)		(122,095,861	)



Contracts/ Notional Amount (000)

			OUTSTANDING OPTIONS WRITTEN—(0.7)%
			Interest Rate Swaps,
	(5,700	)	Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/18		(205,912	)
	(5,700	)	Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/18		(255,645	)
	(12,400	)	Trust pays 3-month LIBOR, Trust Receives 5.67%, expires 1/04/10		(455,046	)
	(12,400	)	Trust pays 5.67%, Trust Receives 3-month LIBOR, expires 1/04/10		(723,523	)
	(14,200	)	Trust pays 3-month LIBOR, Trust Receives 4.725%, expires 6/13/07		(755,866	)
	(14,200	)	Trust pays 4.725%, Trust Receives 3-month LIBOR, expires 6/13/07		(291,668	)
	(76	)	U.S. Treasury Notes Futures, expires 2/24/06		(40,969	)

			Total Outstanding Options Written (premium received $2,917,398)		(2,728,629	)

			Total investments net of TBA sale commitments and outstanding options written—121.5%	$	483,624,195
			Liabilities in excess of other assets—(21.5)%		(85,546,142	)

			Net Assets—100%	$	398,078,053


¹	Using the higher of S&P’s, Moody’s or Fitch’s rating.
²	Security, or a portion thereof, pledged as collateral with a value of $2,448,265 on 234 long U.S. Treasury Note futures contracts expiring December 2005, 780 long U.S. Treasury Bond futures contracts expiring December 2005, 1,163 short U.S. Treasury Note futures contracts expiring December 2005 and 228 short Eurodollar futures contracts expiring March 2006 to September 2007. The notional value of such contracts on October 31, 2005 was ($64,718,528), with an unrealized loss of $1,194,797.
³	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
⁴	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2005, the Trust held 5.5% of its net assets, with a current market value of $21,777,631, in securities restricted as to resale.
⁵	Rate shown is interest rate or effective yield as of October 31, 2005 of the underlying collateral.
⁶	Security is fair valued.
⁷	Rate shown is yield to maturity as of October 31, 2005.
⁸	Cost for Federal income tax purposes is $614,171,549. The net unrealized depreciation on a tax basis is $5,722,864, consisting of $6,715,839 gross unrealized appreciation and $12,438,703 gross unrealized depreciation.

A category in the Corporate Bonds section may contain multiple industries as defined by the SEC’s Standard Industry Codes.

KEY TO ABBREVIATIONS

TBA – To Be Announced

See Notes to Financial Statements.


PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005

BlackRock Income Trust Inc. (BKT)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					LONG-TERM INVESTMENTS—140.7%
					Mortgage Pass-Through Securities—32.1%
					CWALT, Inc.,
AAA		$	3,870		Class 1 A1, 4.768%, 10/25/35	$	3,908,961
AAA			7,532		Class 1 A5, 5.50%, 8/25/35		7,539,458
					Federal Home Loan Mortgage Corp.,
			1,277	²	4.173%, 1/01/35		1,269,263
			43		4.655%, 2/01/25		43,338
			1,054	²	4.959%, 10/01/34		1,037,245
			11,855		5.50%, 10/01/16 - 5/01/17		11,936,866
			41		5.555%, 11/01/30		41,724
			32		5.885%, 11/01/17		32,246
			81		6.50%, 5/01/29 - 5/01/30		83,980
			15		7.50%, 2/01/23		15,543
			81		8.00%, 11/01/15		84,327
			30		8.50%, 10/01/06 - 3/01/08		30,966
			203		9.00%, 9/01/20		219,347
					Federal National Mortgage Assoc.,
			25,482	²	5.00%, 6/01/33 - 11/01/35		24,589,573
			59,531	^2,3	5.50%, 12/01/13 - 10/01/35		59,432,339
			7,154		6.00%, 11/01/31 - 8/01/34		7,221,184
			3,714	²	6.50%, 2/01/26 - 5/01/31		3,818,632
			6,127		7.00%, 6/01/26 - 01/01/32		6,404,273
			5,115		7.50%, 11/01/14 - 9/01/23		5,236,701
			305		8.00%, 5/01/08 - 5/01/22		313,238
			12		9.50%, 1/01/19 - 9/01/19		12,916
					Government National Mortgage Assoc.,
			115		7.00%, 10/15/17		120,892
			604		7.50%, 8/15/21 - 12/15/23		640,864
			395		8.00%, 10/15/22 - 2/15/29		424,833
			41		9.00%, 6/15/18 - 9/15/21		44,823

					Total Mortgage Pass-Through Securities		134,503,532

					Federal Housing Administration Securities—2.9%
			517		GMAC Colonial, 7.40%, 12/01/22		523,708
			4,058		GMAC Projects, Ser. 56, 7.43%, 11/01/22 - 2/01/23		4,116,906
			53		Merrill Projects, 7.43%, 5/15/23		53,630
			837		Reilly Project, 8.28%, 3/01/20		849,835
			6,440		USGI Projects, Ser. 99, 7.43%, 6/01/21 - 10/01/23		6,532,675

					Total Federal Housing Administration Securities		12,076,754

					Agency Multiple Class Mortgage Pass-Through Securities—19.9%
					Federal Home Loan Mortgage Corp.,
			5,654		Ser. 11, Class A9, 2.504%, 1/25/28		4,721,151
			4,000		Ser. 40, Class K, 6.50%, 10/15/08 - 8/17/24		4,104,330
			10,200		Ser. 2542, Class UC, 6.00%, 12/15/22		10,350,960
			12,344	²	Ser. 2758, Class KV, 5.50%, 5/15/23		12,367,429
			1,654		Ser. 2765, Class UA, 4.00%, 3/15/11		1,551,280
					Federal National Mortgage Assoc.,
			29,119		Ser. 28, Class PB, 6.00%, 9/25/15 - 1/25/34		29,611,606
			124		Ser. 38, Class F, 8.325%, 4/25/21		132,602
			5,157		Ser. 43, Class E, 7.50%, 4/25/22 - 5/25/34		5,479,783
			1,687		Ser. 60, Class PA, 5.50%, 3/01/34 - 4/25/34		1,648,685
			4		Ser. 256, Class F, 5.563%, 11/25/23		4,066
			3,052		Freddie Mac Structured Pass, 5.50%, 6/15/35		3,058,883

See Notes to Financial Statements.


BlackRock Income Trust Inc. (BKT) (continued)


Principal Amount (000)				Description		Value

				Agency Multiple Class Mortgage Pass-Through Securities—(cont’d)
				Government National Mortgage Assoc.,
	$	1,571		Ser. 5, Class Z, 7.00%, 5/16/26	$	1,621,683
		2,500		Ser. 33, Class PB, 6.50%, 7/20/31		2,572,709
		12,725		Ser. 75, Class IJ, 5.50%, 7/20/25		676,348
		5,267		Ser. 89, Class PE, 6.00%, 10/20/34		5,445,020

				Total Agency Multiple Class Mortgage Pass-Through Securities		83,346,535

				Non-Agency Multiple Class Mortgage Pass-Through Securities—2.7%
		10,909		Residential Funding Securities Corp., 8.50%, 5/25/33		11,321,861
		82	⁴	Summit Mortgage Trust, 6.292%, 12/28/12		82,114

				Total Non-Agency Multiple Class Mortgage Pass-Through Securities		11,403,975

				Inverse Floating Rate Mortgage Securities—1.6%
				Federal Home Loan Mortgage Corp.,
		24		Ser. 1043, Class H, 26.438%, 2/15/21		28,274
		47		Ser. 1160, Class F, 22.631%, 10/15/21		48,545
		455	³	Ser. 1616, Class SB, 8.50%, 11/15/08		454,922
		1,449		Ser. 1688, Class S, 9.754%, 12/15/13		1,473,235
				Federal National Mortgage Assoc.,
		126		Ser. 38, Class SA, 10.186%, 4/25/21		129,584
		—		Ser. 46, Class S, 1,588.688%, 5/25/21		9,219
		—		Ser. 49, Class S, 612.30%, 12/25/21		3,859
		661		Ser. 72, Class S, 8.75%, 5/25/08		663,430
		180		Ser. 87, Class S, 15.917%, 8/25/21		244,113
		283		Ser. 93, Class S, 8.50%, 5/25/08		282,767
		3		Ser. 145, Class S, 21.831%, 10/25/06		2,851
		130		Ser. 170, Class SC, 9.00%, 9/25/08		131,639
		1,253		Ser. 196, Class SC, 8.313%, 10/25/08		1,264,300
		469		Ser. 214, Class SH, 7.73%, 12/25/08		450,206
		1,392		Ser. 247, Class SN, 10.00%, 12/25/23		1,375,449
		242		Kidder Peabody Acceptance Corp., 9.123%, 8/25/23		241,266

				Total Inverse Floating Rate Mortgage Securities		6,803,659

				Interest Only Asset-Backed Securities—1.5%
		5,776	⁴	Morgan Stanley Cap. Trust I, 1.686%, 6/15/17		88,915
				Sterling Coofs Trust,
		42,140		Ser. 1, 2.362%, 4/15/29		3,476,514
		33,705		Ser. 2, 1.00%, 3/30/30		2,570,006

				Total Interest Only Asset-Backed Securities		6,135,435
				Interest Only Mortgage-Backed Securities—9.2%
		3,581		ABN Amro Mortgage Corp., 5.50%, 3/25/33		116,933
		245		American Housing Trust, Zero Coupon, 3/25/19		5,000
		82,632	⁵	Commercial Mortgage Acceptance Corp., 0.919% 11/15/17		1,544,981
		26,515	⁴	CS First Boston Mortgage Securities Corp., 1.721%, 6/20/29		858,570
				Federal Home Loan Mortgage Corp.,
		9,093		Ser. 60, Class HS, 1.938%, 4/25/24		113,393
		—		Ser. 176, Class M, 1,010.00%, 7/15/21		102
		—		Ser. 192, Class U, 1,009.033%, 2/15/22		129
		2,601		Ser. 204, 6.00%, 5/01/29		596,502
		—		Ser. 1054, Class I, 522.36%, 3/15/21		569
		—		Ser. 1056, Class KD, 1,084.50%, 3/15/21		2,834
		—		Ser. 1057, Class J, 1,008.001%, 3/15/21		5,546
		1		Ser. 1148, Class E, 710.464%, 10/15/21		1,768
		—		Ser. 1179, Class O, 1,009.389%, 11/15/21		369
		—		Ser. 1221 Class H, 1,006.50%, 3/15/07		191
		513		Ser. 1706, Class IA, 7.00%, 10/15/23		31,338
		160		Ser. 1720, Class PK, 7.50%, 1/15/24		11,444
		5,925		Ser. 1914, Class PC, 0.75%, 12/15/11		69,148

See Notes to Financial Statements.


BlackRock Income Trust Inc. (BKT) (continued)


	Principal Amount (000)		Description		Value

			Interest Only Mortgage-Backed Securities—(cont’d)
			Federal Home Loan Mortgage Corp., (cont’d)
$	3,842		Ser. 2002, Class HJ, 3.00%, 10/15/08	$	43,468
	1,432		Ser. 2296, Class SA, 3.635%, 3/15/16		76,799
	791		Ser. 2444, Class ST, 3.855%, 9/15/29		43,496
	48,068		Ser. 2687, Class IQ, 5.50%, 8/15/13-9/15/32		4,305,349
	29,415		Ser. 2773, Class OX, 5.00%, 9/15/12-4/15/26		3,173,347
	9,448		Ser. 2559, Class IO, 0.961%, 8/15/30		44,294
	50,585		Ser. 2786, Class PI, 4.50%, 10/15/10-7/15/19		2,522,471
	16,219		Ser. 2779, Class YS, 3.035%, 1/15/33		1,123,023
	22,027		Ser. 2780, Class SM, 1.885%, 4/15/34		564,110
	6,727		Ser. 2825, Class NI, 5.50%, 3/15/30		1,558,171
	43,942		Ser. 2990, Class WR, 2.431%, 6/15/35		2,842,531
			Federal National Mortgage Assoc.,
	328		Ser. 5, Class H, 9.00%, 1/25/22		45,348
	18		Ser. 7, Class 2, 8.50%, 4/01/17		3,674
	1		Ser. 7, Class S, 686.349%, 3/25/21		10,261
	2		Ser. 10, Class S, 664.091%, 5/25/21		19,726
	1		Ser. 12, Class C, 1,016.898%, 2/25/22		13,497
	1		Ser. 12, Class S, 702.701%, 5/25/21		29,697
	1		Ser. 17, Class S, 663.569%, 6/25/21		13,381
	—		Ser. 20, Class H, 856.27%, 3/25/06		1
	1		Ser. 33, Class PV, 1,078.42%, 10/25/21		31,648
	—		Ser. 38, Class N, 1,008.50%, 4/25/21		924
	1		Ser. 50, Class G, 1,158.628%, 12/25/21		10,809
	1,084		Ser. 50, Class SI, 1.20%, 4/25/23		29,353
	916		Ser. 60, Class SB, 1.60%, 10/25/22		20,260
	6,749		Ser. 68, Class SC, 4.038%, 3/25/09-1/25/24		436,493
	42,143		Ser. 82, Class IR, 5.00%, 9/25/12-7/25/33		3,844,264
	—		Ser. 84, Class H, 1,100.633%, 8/25/06		48
	18,202		Ser. 88, Class TI, 4.50%, 11/25/13		912,079
	32		Ser. 89, Class 2, 8.00%, 6/01/18		6,371
	10		Ser. 94, Class 2, 9.50%, 8/01/21		2,302
	—		Ser. 99, Class L, 930.00%, 8/25/21		5,631
	42,740		Ser. 90, Class JH, 2.663%, 11/25/34		2,306,265
	18,471		Ser. 90, Class M, 6.00%, 1/25/28		2,868,691
	3,507		Ser. 122, Class IA, 4.00%, 9/25/09		63,196
	—		Ser. 123, Class M, 1,009.50%, 10/25/20		947
	48		Ser. 136, Class S, 16.024%, 11/25/20		58,931
	1		Ser. 139, Class PT, 648.35%, 10/25/21		6,840
	20		Ser. 141, Class SA, 18.75%, 8/25/07		3,911
	3,217		Ser. 199, Class SB, 3.438%, 10/25/23		156,456
	20,382		Ser. 602, Class BI, 5.50%, 7/25/15-8/25/33		2,392,796
	904		Ser. W4, 6.50%, 12/25/28		137,859
	131		First Boston Mortgage Securities Corp., 10.965%, 4/25/17		21,891
	26,591		GMAC Commercial Mortgage Securities, Inc., 1.563%, 7/15/27		900,627
	12,832	⁴	Goldman Sachs Mortgage Securities Corp., 0.997%, 2/19/25		276,520
			Government National Mortgage Assoc.,
	2,601		Ser. 39, Class ID, 5.00%, 5/20/33		484,320
	3,361		Ser. 58, Class IT, 5.50%, 7/20/33		372,329
	26,626		Ser. 89, Class SA, 1.779%, 10/16/33		1,215,231
	108		Kidder Peabody Acceptance Corp., 9.50%, 4/22/18		23,048
	2,055		Merrill Lynch Mortgage Investors, Inc., 1.216%, 6/15/21		93,370
	83,062		MLCC Mortgage Investors Inc., 0.83%, 3/25/28		1,453,587
	2,439		Morgan Stanley Cap. Trust I, 5.00%, 5/25/19		290,774
	15,751		Small Business Administration, 1.38%, 4/01/15		59,066
	129,420		Vendee Mortgage Trust, 5.40%, 5/15/29		301,549

			Total Interest Only Mortgage-Backed Securities		38,579,847

See Notes to Financial Statements.


BlackRock Income Trust Inc. (BKT) (continued)


Principal Amount (000)				Description		Value

				Principal Only Mortgage-Backed Securities—7.2%
	$	100	⁶	Collateralized Mortgage Obligation Trust, Ser. 29, Class A, 11.50%, 5/23/17	$	98,961
		11,393	⁶	Countrywide Home Loans, Inc., Ser. J8, Class PO, 4.787%, 9/25/23		8,395,432
		516	⁶	Drexel Burnham Lambert, Inc., Ser. V, Class 1, 11.50%, 9/01/18		458,152
				Federal Home Loan Mortgage Corp.,
		359	⁶	Ser. 8, Class A10, 6.737%, 11/15/28		282,220
		234	⁶	Ser. 1418, Class M, 7.50%, 11/15/22		214,786
		580	⁶	Ser. 1571, Class G, 7.50%, 8/15/23		521,887
		3,333	⁶	Ser. 1739, Class B, 7.50%, 2/15/24		2,870,880
				Federal National Mortgage Assoc.,
		458	⁶	Ser. 2, Class KB, 8.00%, 1/25/23		366,747
		16,330	⁶	Ser. W4, Class PO, 5.985%, 2/25/29		12,839,758
		435	⁶	MASTR Asset Securitization Trust, Ser. 3, Class 4A15, 5.65%, 3/25/34		335,651
		13,000	⁶	Resolution Funding Corp., Zero Coupon, 4/15/30		3,915,990
		27	⁶	Structured Mortgage Asset Residential Trust, Ser. 3C, Class CX, 7.031%, 4/25/24		23,806

				Total Principal Only Mortgage-Backed Securities		30,324,270

				Collateralized Mortgage Obligation Residuals—0.0%
				Collateralized Mortgage Obligation Trust,
		1		Ser. 40, Class R, 580.50%, 4/01/18		718
		—		Ser. 42, Class R, 6,000.00%, 10/01/14		11,766
				Federal Home Loan Mortgage Corp.,
		—		Ser. 19, Class R, 11,078.201%, 3/15/20		4,550
		—		Ser. 75, Class R, 9.50%, 1/15/21		7
		—		Ser. 75, Class RS, 15.485%, 1/15/21		7
		—		Ser. 173, Class R, 9.00%, 11/15/21		38
		—		Ser. 173, Class RS, 9.072%, 11/15/21		38
		—		Ser. 200, Class R, 118,500.264%, 12/15/22		858
		13	⁵	PaineWebber CMO Trust, 13.80%, 9/01/18		—

				Total Collateralized Mortgage Obligation Residuals		17,982

				Collateralized Mortgage Obligations—20.1%
		—		FBC Mortgage Securities Trust 16, 4.804%, 7/01/17		283,265
				Federal Home Loan Mortgage Corp.,
		8,382		Ser. 2218 Class Z, 8.50%, 3/15/20 - 3/15/30		9,382,648
		15,695		Ser. 2461, Class Z, 6.50%, 5/15/12 - 6/15/32		16,134,998
		2,475		Ser. 2562 Class PG, 5.00%, 1/15/18		2,467,501
		1,492		Ser. 2582, Class TB, 3.50%, 10/15/21		1,484,678
		2,050		Ser. 2750, Class TC, 5.25%, 2/15/34		2,006,438
		3,551		Ser. 2806, Class VC, 6.00%, 12/15/19		3,609,314
		2,152		Ser. 2927, Class BZ, 5.50%, 2/15/35		2,021,196
				Federal National Mortgage Assoc.,
		7,380		Ser. 47, Class AK, 5.00%, 6/25/20		7,302,424
		5,996		Ser. 59, Class S, 6.328%, 10/25/22		876,345
		3,371		Ser. 68, Class PC, 5.50%, 7/25/35		3,361,443
		7,736		Ser. 73, Class DS, 7.053%, 8/25/35		6,859,413
				GSR Mortgage Loan Trust,
		5,435		Ser. 10, Class 2A1, 4.475%, 10/25/33		5,172,453
		5,145		Ser. 13, Class 1A1, 4.506%, 10/25/33		4,948,582
		6,725		Indymac MBS, Inc., 4.388%, 10/25/18		6,716,509
		2,129		MASTR Alternative Loan Trust, 6.00%, 1/25/19		306,065
		2,308		MASTR Alternative Loan Trust, 8.00%, 11/25/18		2,384,615
		9,183		MASTR Asset Securitization Trust, 5.25%, 10/25/14		8,912,313

				Total Collateralized Mortgage Obligations		84,230,200

				Corporate Bonds—1.0%
				Financial Institutions—1.0%
		3,961		Structured Asset Receivable Trust, 1.649%, 1/21/10		3,967,183

See Notes to Financial Statements.


BlackRock Income Trust Inc. (BKT) (continued)


Principal Amount (000)				Description		Value

				U.S. Government and Agency Securities—42.5%
				Overseas Private Investment Corp.,
	$	299		4.09%, 5/29/12	$	273,015
		835		4.30%, 5/29/12		780,194
		623		4.64%, 5/29/12		591,559
		352		4.68%, 5/29/12		326,799
		2,659		4.87%, 5/29/12		2,551,321
		3,323		5.40%, 5/29/12		3,314,668
		381		5.46%, 2/15/06		390,982
		674		5.79%, 5/29/12		690,849
		464	⁵	5.88%, 2/15/06		466,314
		1,280		5.94%, 5/29/12		1,315,939
		364		5.95%, 5/29/12		372,315
		430		6.10%, 5/29/12		444,184
		520		6.81%, 12/16/06		544,846
		4,152		6.89%, 5/29/12		4,365,544
		1,396		6.91%, 5/29/12		1,455,026
		375		7.35%, 2/15/06		396,827
				Small Business Administration,
		969		Ser. 20C-1, 7.15%, 3/01/17		1,013,911
		1,214		Ser. 20E-1, 7.60%, 5/01/16		1,271,851
		1,643		Ser. 20F-1, 7.55%, 6/01/16		1,722,268
		1,107		Ser. 20G-1, 7.70%, 7/01/16		1,163,720
		1,428		Ser. 20H-1, 7.25%, 8/01/16		1,493,021
		2,517		Ser. 20K-1, 6.95%, 11/01/16		2,616,682
		1,689		Small Business Investment Cos., 6.12%, 2/01/08		1,727,920
		129,000	²	U.S. Treasury Bonds, Zero Coupon, 11/15/24		51,133,278
				U.S. Treasury Notes,
		40,000	²	1.50%, 3/31/06		39,568,800
		2,930	²	2.50%, 5/31/06		2,900,700
		915		3.625%, 1/15/10		885,546
		21,000	²	3.75%, 3/31/07		20,809,740
		19,400		4.00%, 8/31/07		19,263,618
		9,000	²	4.25%, 11/15/13		8,814,420
		5,145		4.25%, 11/15/13		5,019,615

				Total U.S. Government and Agency Securities		177,685,472

				Total Long-Term Investments (cost $610,664,067)		589,074,844

				SHORT-TERM INVESTMENT—0.2%
				U.S. Government and Agency Zero Coupon Security—0.2%
		640		U.S. Treasury Bills, 3.44%, 11/10/05⁹(cost $639,481)		639,481

				Total investments before investments sold short, borrowed bonds, TBA sale commitments and outstanding options written (cost $611,303,548⁷)		589,714,325

See Notes to Financial Statements.


BlackRock Income Trust Inc. (BKT) (continued)


Principal/ Amount (000)				Description		Value

				INVESTMENTS SOLD SHORT—(17.2)%
				U.S. Treasury Bonds,
	$	(12,930	)	5.375%, 2/15/31	$	(14,097,708	)
		(15,750	)	6.25%, 8/15/23		(18,373,320	)
				U.S. Treasury Notes,
		(14,900	)	4.00%, 2/15/15		(14,250,509	)
		(12,000	)	4.125%, 8/15/10		(11,820,000	)
		(13,900	)	4.25%, 11/15/14		(13,560,646	)

				Total Investments Sold Short (proceeds $73,151,527)		(72,102,183	)

				BORROWED BONDS—17.4%
				U.S. Treasury Bonds,
		14,288	⁸	5.375%, 11/02/05		14,287,650
		18,624	⁸	6.25%, 11/02/05		18,624,375
				U.S. Treasury Notes,
		14,397	⁸	4.00%, 11/02/05		14,397,125
		11,940	⁸	4.125%, 11/02/05		11,940,000
		13,848	⁸	4.25%, 11/02/05		13,847,875

				Total Borrowed Bonds (cost $73,097,025)		73,097,025

				TBA SALE COMMITMENTS—(5.1)%
				Federal National Mortgage Assoc. TBA,
		(8,000	)	5.00%, 11/30/35		(7,697,504	)
		(14,000	)	5.50%, 11/30/35		(13,807,500	)

				Total TBA Sale Commitments (proceeds $21,750,313)		(21,505,004	)


Notional Amount (000)

				OUTSTANDING OPTIONS WRITTEN—(0.6)%
				Interest Rate Swaps,
		(5,700	)	Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/18		(205,912	)
		(5,700	)	Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/18		(255,645	)
		(12,400	)	Trust pays 3-month LIBOR, Trust Receives 5.67%, expires 1/04/10		(455,046	)
		(12,400	)	Trust pays 5.67%, Trust Receives 3-month LIBOR, expires 1/04/10		(723,523	)
		(14,200	)	Trust pays 3-month LIBOR, Trust Receives 4.725%, expires 6/13/07		(750,543	)
		(14,200	)	Trust pays 4.725%, Trust Receives 3-month LIBOR, expires 6/13/07		(289,614	)

				Total Outstanding Options Written (premium received $2,868,468)		(2,680,283	)

				Total investments net of investments sold short, borrowed bonds, TBA sale commitments and outstanding options written—135.4%	$	566,523,880
				Liabilities in excess of other assets—(35.4)%		(148,133,756	)

				Net Assets—100%	$	418,390,124


¹	Using the higher of S&P’s, Moody’s or Fitch’s rating.
²	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
³	Security, or a portion thereof, pledged as collateral with a value of $2,646,906 on 362 short U.S. Treasury Note futures contracts expiring December 2005, 847 short U.S. Treasury Bond futures contracts expiring December 2005 and 296 short Eurodollar futures contracts expiring March 2006 to September 2007. The notional value of such contracts on October 31, 2005 was ($203,956,400), with an unrealized gain of $5,144,471.
⁴	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2005, the Trust held 0.3% of its net assets, with a current market value of $1,306,119, in securities restricted as to resale.
⁵	Security is fair valued.
⁶	Rate shown is interest rate or effective yield as of October 31, 2005 of the underlying collateral.
⁷	Cost for Federal income tax purposes is $615,022,603. The net unrealized depreciation on a tax basis is $25,308,278, consisting of $11,463,907 gross unrealized appreciation and $36,772,185 gross unrealized depreciation.
⁸	The interest rate and maturity date shown represent the terms of the bonds borrowed transaction, not the security borrowed (see Note 1).
⁹	Rate shown is yield to maturity as of October 31, 2005.

	KEY TO ABBREVIATIONS
	TBA – To Be Announced

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005


BlackRock Limited Duration Income Trust (BLW)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					LONG-TERM INVESTMENTS—138.7%
					Corporate Bonds—59.8%
					Aerospace & Defense—2.6%
NR		$	1,560		AAR Corp., 8.39%, 5/15/11	$	1,591,200
NR			2,134		Aero Invest, 10.634%, 3/22/15 (Luxembourg)		2,531,370
B-			1,020		BE Aerospace, Inc., 8.875%, 5/01/11		1,073,550
NR			4,750		Raytheon Co., 7.00%, 5/15/06		4,958,857
BB			5,350	²	Sequa Corp., 8.875%, 4/01/08		5,523,875
B-			2,755		Transdigm, Inc., 8.375%, 7/15/11		2,865,200

							18,544,052

					Automotive—2.1%
B-			1,140		Accuride Corp., 8.50%, 2/01/15		1,077,300
BB+			270		Arvinmeritor, Inc., 8.75%, 3/01/12		255,150
A3			7,500	²	DaimlerChrysler NA Holding Corp., 4.05%, 6/04/08		7,289,700
B-			470		Goodyear Tire & Rubber Co., 7.857%, 8/15/11		452,375
CCC+			1,105	³	Metaldyne Corp., 11.00%, 11/01/13		991,738
BB			530		Navistar Intl. Corp., 6.25%, 3/01/12		475,675
BB-			3,729		TRW Automotive, Inc., 9.375%, 2/15/13		4,008,675

							14,550,613

					Basic Materials—6.9%
BB-			420		Abitibi-Consolidated, Inc., 8.375%, 4/01/15 (Canada)		389,550
B-			3503		BCI US Finance Corp./Borden 2 Nova Scotia Finance ULC, 9.65%, 7/15/10		353,500
B-			4,250	²	Caraustar Industries, Inc., 9.875%, 4/01/11		4,133,125
BB-			740		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		749,250
BB+			5,685	²	Georgia Pacific Corp., 8.875%, 2/01/10		6,317,456
					Huntsman LLC,
B			310		11.50%, 7/15/12		350,300
BB-			1,950		11.625%, 10/15/10		2,218,125
BB			300		IMC Global, Inc., 10.875%, 6/01/08		335,250
CCC+			2,625	³	Innophos, Inc., 9.125%, 8/15/14		2,657,812
BB+			5,000		Ipsco, Inc., 8.75%, 6/01/13 (Canada)		5,512,500
					Lyondell Chemical Co.,
BB-			560		10.50%, 6/01/13		635,600
BB-			4,500		11.125%, 7/15/12		5,017,500
B-			340		Nalco Co., 8.875%, 11/15/13		347,650
					NewPage Corp.,
CCC+			500		10.00%, 5/01/12		457,500
B3			1,500		10.50%, 5/01/12		1,402,500
B-			370	³	PQ Corp., 7.50%, 2/15/13		336,700
					Rhodia SA,
CCC+			1,175		8.875%, 6/01/11 (France)		1,107,438
B3			125		10.25%, 6/01/10 (France)		132,813
B-			3,645		Rockwood Specialties Group, Inc., 10.625%, 5/15/11		3,900,150
B-			450	³	Rockwood Specialties Grp., 7.50%, 11/15/14		436,500
					Southern Peru Copper Corp.,
BBB-			210	³	6.375%, 7/27/15		205,724
BBB-			700	³	7.50%, 7/27/35		680,750
BB			3,250		US Steel LLC, 10.75%, 8/01/08		3,607,500
BBB			7,500	²	Weyerhaeuser Co., 5.25%, 12/15/09		7,479,345

							48,764,538

					Building & Development—1.1%
B-			350	³	Ahern Rentals, Inc., 9.25%, 8/15/13		357,438
B2			750	³	Compression Polymers Corp., 10.50%, 7/01/13		682,500
BBB-			3,000		DR Horton, Inc., 5.875%, 7/01/13		2,898,975
B-			375	³	Goodman Global Hldgs., Inc., 6.41%, 6/15/12		369,375
B-			3,170	³	Goodman Global Holding Co., Inc., 7.875%, 12/15/12		2,995,650
B			550		North American Energy Partners, Inc., 9.00%, 6/01/10 (Canada)		572,000

							7,875,938

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					Conglomerates—1.1%
BB-		$	75		Stena AB, 7.00%, 12/01/16 (Sweden)	$	69,375
BBB+			7,500	²	Tyco Intl. Group SA, 6.125%, 11/01/08 (Luxembourg)		7,721,775

							7,791,150


					Consumer Products—6.2%
B3			300		ALH Finance LLC, 8.50%, 1/15/13		271,500
B1			5,000		Cenveo Corp., 9.625%, 3/15/12		5,275,000
CCC+			1,610		Duane Reade, Inc., 8.37%, 12/15/10		1,543,587
B2			1,630		Finlay Fine Jewelry Corp., 8.375%, 6/01/12		1,385,500
B2			2,140		Gold Kist, Inc., 10.25%, 3/15/14		2,418,200
B+			5,000		Group 1 Automotive, Inc., 8.25%, 8/15/13		4,750,000
					GSC Holdings Corp.,
Ba3			300	³	7.875%, 10/01/11		301,875
Ba3			510	³	8.00%, 10/01/12		497,250
BBB-			4,400		JC Penney Co., Inc., 8.00%, 3/01/10		4,757,500
B-			2,835	³	Knowledge Learning Corp., Inc., 7.75%, 2/01/15		2,636,550
B-			1,550		Lazydays RV Center, Inc., 11.75%, 5/15/12		1,612,000
B			2,075		Levi Strauss & Co., 8.804%, 4/01/12		2,062,031
B3			4,605		Movie Gallery, Inc., 11.00%, 5/01/12		3,684,000
B2			223	³	Neiman-Marcus Group Inc., 9.00%, 10/15/15		219,098
BB-			600	³	Quiksilver, Inc., 6.875%, 4/15/15		556,500
					Rite Aid Corp.,
B-			375	³	6.125%, 12/15/08		352,500
BB-			5,000		8.125%, 5/01/10		5,062,500
CCC+			700	³	Rural/Metro Corp., 9.875%, 3/15/15		731,500
B1			2,500		Sheridan Group, Inc., 10.25%, 8/15/11		2,600,000
B			3,500		Sonic Automotive, Inc., 8.625%, 8/15/13		3,316,250

							44,033,341


					Containers & Packaging—0.6%
					Graham Packaging Co., Inc.,
CCC+			785		8.50%, 10/15/12		757,525
CCC+			935		9.875%, 10/15/14		885,913
B-			2,500		Graphic Packaging Intl., Inc., 9.50%, 8/15/13		2,250,000
CCC+			665	³	Pregis Corp., 12.375%, 10/15/13		651,700

							4,545,138


					Ecological Services & Equipment—0.3%
B			2,000		Casella Waste Systems, Inc., 9.75%, 2/01/13		2,145,000

					Energy —6.4%
BB+			5,500	³	AES Corp., 8.75%, 5/15/13		5,933,125
					ANR Pipeline Co.,
B1			460		7.375%, 2/15/24		478,975
B1			1,780		9.625%, 11/01/21		2,153,800
B2			3,440		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)		3,508,800
					Calpine Corp.,
B-			180	³	8.50%, 7/15/10		126,450
B			700	³	9.625%, 9/30/14		710,500
CCC			15		Calpine Energy Finance ULC, 8.50%, 5/01/08 (Canada)		8,138
BB			4,000		Chesapeake Energy Corp., 7.50%, 9/15/13		4,220,000
B-			1,095	³	Clayton Williams Energy, Inc., 7.75%, 8/01/13		1,056,675
					CMS Energy Corp.,
BB-			150		7.50%, 1/15/09		155,250
BB-			460		9.875%, 10/15/07		494,500
Ba3			750	³	Compagnie Generale de Geophysique SA, 7.50%, 5/15/15 (France)		780,000
B+			2,350	³	Dynegy Holdings, Inc., 10.125%, 7/15/13		2,585,000
					El Paso CGP Co.,
B-			400		7.42%, 2/15/37		362,000
B-			525		9.625%, 5/15/12		575,531
B-			225		10.75%, 10/01/10		245,531
B-			400		El Paso Corp., 7.80%, 8/01/31		396,500
B1			400		El Paso Natural Gas Co., 8.375%, 6/15/32		441,000

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					Energy—(cont’d.)
B		$	260		Exco Resources, Inc., 7.25%, 1/15/11	$	265,200
					Hilcorp Energy I LP/Hilcorp Finance Corp.,
B			430	³	7.75%, 11/01/15		430,000
B			2,434	³	10.50%, 9/01/10		2,726,080
					KCS Energy, Inc.,
B-			325		7.125%, 4/01/12		330,687
B-			400	³	7.125%, 4/01/12		408,000
					Midwest Generation LLC,
B+			4,778		8.56%, 1/02/16		5,208,061
B+			1,315		Ser. A, 8.30%, 7/02/09		1,367,600
B2			500		Mission Energy Holdings Co., 13.50%, 7/15/08		581,250
B-			450	³	Ocean Rig Norway AS, 8.375%, 7/01/13		484,875
B2			580		Orion Power Holdings, Inc., 12.00%, 5/01/10		687,300
B			110		Range Resources Corp., 6.375%, 3/15/15		110,275
BB-			215		Reliant Energy, Inc., 6.75%, 12/15/14		199,413
B			5,000		Swift Energy Co., 9.375%, 5/01/12		5,400,000
B2			1,475	³	Targa Resources, Inc., 8.50%, 11/01/13		1,497,125
BB+			100		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26		108,125
B2			190	³	Whiting Petroleum Corp., 7.00%, 2/01/14		190,475
BB			1,000		Williams Cos., Inc., 7.125%, 9/01/11		1,036,250

							45,262,491

					Entertainment & Leisure—1.0%
Ba3			5,425		MGM Mirage, 9.75%, 6/01/07		5,696,250
B			250		Poster Financial Group, Inc., 8.75%, 12/01/11		255,000
B+			460	³	San Pasqual Casino, 8.00%, 9/15/13		460,000
B+			400		Wynn Las Vegas LLC/Wynn Las Vegas Cap. Corp., 6.625%, 12/01/14		381,000

							6,792,250

					Financial Institutions—8.2%
BB			1,480	³	American Real Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		1,435,600
B-			2,333		BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)		2,566,300
BB			3,360		Crum & Forster Hldgs. Corp., 10.375%, 6/15/13		3,595,200
B+			550	³	E*Trade Financial Corp., 7.375%, 9/15/13		541,750
BB			1,000		Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)		910,000
					Ford Motor Credit Co.,
BBB-			500		7.25%, 10/25/11		465,020
BBB-			7,500	²	7.375%, 2/01/11		7,043,977
					General Motors Acceptance Corp.,
BB			3,000		5.05%, 1/16/07		2,941,560
BB			7,500	³	6.875%, 8/28/12		7,201,800
Ba3			2,500		Huntsman Advanced Materals, LLC, 11.00%, 7/15/10		2,790,625
B-			900		K&F Acquisition, Inc., 7.75%, 11/15/14		900,000
Baa2			5,000	³	Kazkommerts Intl. BV, 10.125%, 5/08/07		5,287,500
BBB			200		Marsh & McLennan Cos., Inc., 4.27%, 7/13/07		199,256
B-			1,800	³	Nell AF, 8.375%, 8/15/15 (Luxembourg)		1,728,000
					Rainbow National Services LLC,
B+			925	³	8.75%, 9/01/12		971,250
B+			4,985	³	10.375%, 9/01/14		5,495,962
B-			1,080		Standard Aero Holdings, Inc., 8.25%, 9/01/14		1,028,700
NR			7,135		Structured Asset Receivable Trust, 1.649%, 1/21/10		7,145,761
B-			220		Universal City Florida Hldg. Co. I/II, 9.00%, 5/01/10		224,400
BB-			4,425	²	Western Financial Bank, 9.625%, 5/15/12		5,011,313

							57,483,974

					Health Care—2.8%
B-			5,000		Concentra Operating Corp., 9.50%, 8/15/10		5,150,000
CCC			80		Curative Health Services, Inc., 10.75%, 5/01/11		54,000
B			1,345	³	Elan Finance Corp., 7.75%, 11/15/11 (Ireland)		1,183,600
B			1,750	³	Insight Health Services Corp., 9.174%, 11/01/11		1,658,125
B-			3,000		Norcross Safety Products LLC/Norcross Capital Corp., 9.875%, 8/15/11		3,195,000

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					Health Care—(cont’d.)
					Tenet Healthcare Corp.,
B		$	340		6.375%, 12/01/11	$	296,650
B			1,470		9.875%, 7/01/14		1,433,250
B3			4,500		United Surgical Partners Intl., Inc., 10.00%, 12/15/11		4,871,250
B-			1,880		Universal Hospital Services, Inc., 10.125%, 11/01/11		1,898,800

							19,740,675

					Industrials—3.2%
B-			300	³	Chart Industries, Inc., 9.125%, 10/15/15		296,250
Caa1			5,760	³	DI Finance/DynCorp. Intl., 9.50%, 2/15/13		5,961,600
B-			2,665		ERICO Intl. Corp., 8.875%, 3/01/12		2,744,950
B-			4,000		Fasten Tech, Inc., 11.50%, 5/01/11		4,140,000
Caa1			1,670	³	Hydrochem Industrial Services, 9.25%, 2/15/13		1,523,875
B-			1,880		NationsRent Cos., Inc., 9.50%, 5/01/15		1,950,500
CCC+			1,955		Park-Ohio Inds., Inc., 8.375%, 11/15/14		1,705,737
B3			2,240	³	Sunstate Equipment Co. LLC, 10.50%, 4/01/13		2,262,400
CCC+			2,395		Trimas Corp., 9.875%, 6/15/12		1,951,925

							22,537,237

					Media—7.3%
B-			740		Allbritton Communications Co., 7.75%, 12/15/12		736,300
CCC+			1,550		American Media Operations, Inc., 10.25%, 5/01/09		1,472,500
NR			2,360		Cablecom SCA, 4.935%, 4/30/12 (Luxembourg)		2,855,435
CCC+			3,500		CBD Media Inc., 8.625%, 6/01/11		3,548,125
CCC+			880		Charter Communications Holdings II, LLC/Charter Communications Holdings II Cap. Corp., 10.25%, 9/15/10		882,200
BBB+			6,685	²	Comcast Cable Communications, Inc., 6.875%, 6/15/09		7,034,291
BB-			6,000	²	CSC Holdings, Inc., 7.875%, 12/15/07		6,157,500
B1			1,300		Dex Media East LLC, 12.125%, 11/15/12		1,521,000
					Echostar DBS Corp.,
BB-			2,000		5.75%, 10/01/08		1,955,000
BB-			5,100		7.304%, 10/01/08		5,189,250
B-			5,000		Houghton Mifflin Co., 9.875%, 2/01/13		5,212,500
CCC+			300	³	iesy Repository GmbH, 10.375%, 2/15/15 (Germany)		321,750
B3			760		Nexstar Finance, Inc., 7.00%, 1/15/14		672,600
B3			2,750		Nextmedia Operating, Inc., 10.75%, 7/01/11		2,997,610
B1			2,500	³	Paxson Communications Corp., 6.90%, 1/15/10		2,493,750
B2			1,200		Primedia, Inc., 9.715%, 5/15/10		1,224,000
B2			2,000		Salem Communications Corp., 7.75%, 12/15/10		2,075,000
					Vertis, Inc.,
Caa1			2,540		10.875%, 6/15/09		2,362,200
Caa2			95	³	13.50%, 12/07/09		73,150
Caa1			2,875		Young Broadcasting, Inc., 10.00%, 3/01/11		2,702,500

							51,486,661

					Real Estate—1.1%
BB			5,860		American Real Estate Partners, 8.125%, 6/01/11		6,021,150
BB+			2,000		Rouse Co., 5.375%, 11/26/13		1,884,240

							7,905,390

					Technology—2.9%
B-			1,958		Amkor Tech. Inc., 7.75%, 5/15/13		1,664,300
B			1,145		Celestica, Inc., 7.625%, 7/01/13 (Canada)		1,107,787
BB+			3,232		Flextronics Intl. Ltd., 6.50%, 5/15/13 (Singapore)		3,240,080
B+			430	³	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)		478,913
BB-			3,830		Lucent Technologies, Inc., 6.50%, 1/15/28		3,255,500
Ba3			500		MagnaChip Semiconductor SA/Magna Semiconductor Finance Co., 7.12%, 12/15/11 (Luxembourg)		487,500
B+			485		Sanmina-SCI Corp., 6.75%, 3/01/13		457,113
BB			200		Stats Chippac Ltd., 7.50%, 7/19/10 (Singapore)		201,000
					Sungard Data Systems, Inc.,
B-			500	³	8.525%, 8/15/13		515,000
B-			1,900	³	9.125%, 8/15/13		1,942,750
B-			1,830	³	10.25%, 8/15/15		1,811,700

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					Technology—(cont’d.)
B		$	3,515		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12	$	3,479,850
B-			1,440		UGS Corp., 10.00%, 6/01/12		1,576,800

							20,218,293

					Telecommunications—5.0%
BB-			920		Cincinnati Bell, Inc., 7.25%, 7/15/13		959,100
A-			5,000	²	Deutsche Telekom Intl. Finance BV, 8.50%, 6/15/10		5,575,200
B-			860	³	Hawaiian Telcom Communications, Inc., 9.948%, 5/01/13		849,250
					Intelsat Ltd.,
Caa1			800		5.25%, 11/01/08		728,000
B2			460	³	8.25%, 1/15/13		461,150
B2			2,250	³	8.625%, 1/15/15		2,283,750
B2			2,360	³	8.695%, 1/15/12		2,395,400
BB-			120		Lucent Technologies, Inc., 6.45%, 3/15/29		102,600
B-			300		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)		273,000
B1			2,737		PanAmSat Corp., 9.00%, 8/15/14		2,880,692
BB			4,000		Qwest Communications Intl., Inc, 7.84%, 2/15/09		4,000,000
					Qwest Corp.,
BB+			2,500	³	7.12%, 6/15/13		2,618,750
BB+			1,000		7.875%, 9/01/11		1,050,000
BB+			6,000	²	8.875%, 3/15/12		6,615,000
BB			1,320		Qwest Services Corp., 13.50%, 12/15/10		1,506,450
BB+			460		Rogers Wireless, Inc., 7.25%, 12/15/12		484,150
Caa1			2,030		Rural Cellular Corp., 9.875%, 2/01/10		2,111,200

							34,893,692

					Transportation—1.0%
B			1,575	^³	CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		1,582,875
B			140		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		141,225
B3			111		Horizon Lines LLC, 9.00%, 11/01/12		117,799
B+			360		OMI Corp., 7.625%, 12/01/13		369,900
BB+			1,650		Overseas Shipholding Group, Inc., 8.75%, 12/01/13		1,856,250
B			3,015		Sea Containers Ltd., 10.50%, 5/15/12		3,015,000

							7,083,049

					Total Corporate Bonds		421,653,482

					Bank Loans—43.8%
					Aerospace & Defense—0.8%
			985		Arinc, Inc., Term Loan B, LIBOR + 2.00%, 3/10/11		992,388
			976		Camp Acquisition Co., Term Loan A, LIBOR + 3.25%, 8/30/11		978,246
			1,990		Dyncorp International LLC, Term Loan B, LIBOR + 2.75%, 2/11/11		1,990,000
			1,465		Transdigm, Inc., Term Loan, LIBOR + 2.25%, 7/22/10		1,484,113

							5,444,747

					Automotive—1.4%
			1,229		Dayco Products, LLC, Term Loan B, LIBOR + 3.00%, 6/23/11		1,239,487
					Goodyear Tire & Rubber Co. (The),
			500		Term Loan, LIBOR + 2.75%, 4/30/10		503,854
			2,000		Term Loan, LIBOR + 3.50%, 4/01/11		1,983,000
			995		Hilite International, Term Loan, LIBOR + 4.00%, 4/15/10		950,225
			999		Metaldyne Co. LLC, Term Loan D, LIBOR + 4.50%, 12/31/09		991,751
			1,000		Polar Corp., Term Loan, LIBOR, 6/15/10		1,015,000
			500		Precision Parts Intl., Term Loan B, LIBOR + 3.75%, 10/15/11		503,750
			517		Tenneco Automotive, Inc., Term Loan B-1, LIBOR + 2.25%, 12/12/10		523,448
			2,481		TRW Automotive Acquisitions Corp., Term Loan B, LIBOR + 1.50%, 6/30/12		2,501,926

							10,212,441

					Basic Materials—2.9%
					Basell Fin. Co.,
			83		Term Loan B4, LIBOR + 2.50%, 9/07/13		84,531
			83		Term Loan C4, LIBOR + 2.50%, 9/07/14		84,635
					Basell NV,
			417		Term Loan B2, LIBOR + 2.50%, 9/07/13		422,656
			417		Term Loan C2, LIBOR + 3.00%, 9/07/14		423,177

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Principal Amount (000)			Description		Value

			Basic Materials—(cont’d.)
	$	998	Berry Plastics Corp., Term Loan, LIBOR + 2.00%, 12/02/11	$	1,008,223
		956	Boise Cascade Corp., Term Loan D, LIBOR + 1.75%, 10/29/11		968,307
		2,201	Celanese, Ag, Term Loan B, LIBOR + 2.25%, 4/06/11		2,230,691
		3,000	Cognis Deutschland, Term Loan, LIBOR + 4.75%, 11/15/13		3,061,500
		1,946	Huntsman International, LLC, Term Loan B, LIBOR + 1.75%, 8/16/12		1,955,279
		920	Ineos Grp. Holdings, PLC, Term Loan C, LIBOR + 3.50%, 4/26/09		921,639
			Invista, B.V.,
		1,850	Term Loan B-1, LIBOR + 2.25%, 4/29/11		1,877,411
		803	Term Loan B-2, LIBOR + 2.25%, 4/29/11		814,546
		2,497	Nalco Co., Term Loan B, LIBOR + 2.00%, 11/04/10		2,532,793
		498	PQ Corp., Term Loan, LIBOR + 2.00%, 2/10/12		500,609
		995	Rockwood Specialties Group, Inc., Term Loan D, LIBOR + 2.50%, 12/10/12		1,010,132
			SP Newsprint,
		1,611	Term Loan B, Zero Coupon, 1/09/08		1,633,264
		656	Term Loan, LIBOR + 2.25%, 1/08/10		665,274

					20,194,667

			Building & Development—0.5%
		242	Atrium Companies, Inc., Term Loan, LIBOR + 3.75%, 12/28/11		242,108
		1,500	Custom Building Products, Inc., Term Loan, LIBOR + 5.00%, 4/29/12		1,490,625
		250	Euramax International, Inc., Term Loan, LIBOR + 7.00%, 6/29/13		245,000
		495	Nortek, Inc., Term Loan B, LIBOR + 2.25%, 8/27/11		499,702
		1,250	Professional Service, Inc., TBD		1,253,125

					3,730,560

			Conglomerates—4.0%
			Atlantis Plastics, Inc.,
		995	Term Loan, LIBOR + 2.75%, 9/30/11		990,025
		500	Term Loan, LIBOR + 7.25%, 3/11/05		501,875
		1,985	Colfax Corp., Term Loan B, LIBOR + 2.25%, 5/30/09		2,001,541
		3,125	Fidelity National Information Solutions, Inc., Term Loan B, LIBOR + 1.75%, 3/09/13		3,134,013
		494	Fisher Scientific International, Inc., Term Loan B, LIBOR + 1.50%, 8/02/11		496,219
		500	Gentek, Inc., Term Loan, LIBOR + 5.75%, 3/15/12		490,250
		1,481	Honeywell Security, Term Loan B, PRIME + 2.00%, 6/28/10		1,488,664
			IAP Acquisition Corp.,
		1,496	Term Loan, LIBOR + 2.75%, 3/01/11		1,516,824
		625	Term Loan, LIBOR + 5.75%, 3/01/12		636,979
			Invensys Intl Holdings, Ltd.,
		1,000	Term Loan, 0.50%, 3/05/09		970,000
		1,144	Term Loan B1, LIBOR + 3.50%, 9/05/09		1,152,513
		4,250	Term Loan, LIBOR + 4.75%, 11/30/09		4,345,625
			Jarden Corp.,
		998	Term Loan B2, LIBOR + 1.75%, 1/24/12		1,001,618
		1,109	Term Loan, LIBOR + 2.00%, 8/15/11		1,116,456
		1,000	Mueller Group, Inc., Term Loan B, LIBOR + 2.25%, 10/03/12		1,012,857
		466	Penn Engineering & Manufacturing, Term Loan, LIBOR + 2.25%, 5/25/11		471,157
		292	Precise Technology, Inc., Term Loan, LIBOR + 3.00%, 3/31/11		292,502
			Sensus Metering Systems, Inc.,
		1,220	Term Loan B1, LIBOR + 2.50%, 12/17/10		1,228,712
		190	Term Loan B2, LIBOR + 2.50%, 12/17/10		191,699
		876	St. John Knits International, Inc., Term Loan B, LIBOR + 2.50%, 3/18/12		886,902
		2,494	Sungard Data Systems, Inc., Term Loan B, LIBOR + 2.50%, 2/11/13		2,513,870
		1,425	Visant Holding Corp., Term Loan B, LIBOR + 2.50%, 10/04/11		1,445,930

					27,886,231

			Consumer Products—7.2%
		1,000	24 Hour Fitness Worldwide, Inc., Term Loan B, LIBOR + 3.00%, 6/08/12		1,014,375
		488	Adams Outdoor Advertising, L.P., Term Loan, LIBOR + 2.00%, 10/18/12		494,573
		1,053	Alimentation Couche-Tard, Inc., Term Loan, LIBOR + 1.75%, 12/17/10		1,063,863
		499	Arby’s Restaurant Group, Inc., Term Loan B, LIBOR + 2.25%, 7/25/12		501,244
			Berkline Bench Craft,
		963	Term Loan B, LIBOR + 3.00%, 11/03/11		943,250
		1,000	Term Loan, PRIME + 7.00%, 4/30/12		900,000

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Principal Amount (000)			Description		Value

			Consumer Products—(cont’d.)
	$	500	Buffets, Inc., LIBOR + 0.10%, 6/28/09	$	502,500
		499	Burger King Corp., Term Loan B, LIBOR + 1.75%, 6/30/12		503,381
		744	Central Garden & Pet Co., Term Loan B, LIBOR + 1.75%, 5/31/09		753,630
			Chiquita Brands International, Inc.,
		299	Term Loan B, LIBOR + 2.50%, 6/28/12		303,672
		499	Term Loan C, LIBOR + 2.50%, 6/28/12		504,984
		983	CKE Restaurants, Inc., Term Loan, LIBOR + 2.00%, 5/01/10		987,522
		1	Delaware Laboratories, Inc., TBD		639
		1,000	Denny’s Corp., Term Loan, LIBOR + 5.13%, 9/30/10		1,023,125
		549	Dole Food Co., Inc., Term Loan B, LIBOR + 1.50%, 4/18/12		553,059
		496	Douglas Dynamics, LLC, Term Loan, PRIME + 1.00%, 12/16/10		501,213
		2,901	Dr. Pepper Bottling Co. of Texas, Inc., Term Loan B, PRIME + 1.00%, 12/19/10		2,938,734
			Eastman Kodak Co.,
		368	Term Loan B-2, 1.50%, 10/18/12		363,971
		882	Term Loan B1, LIBOR + 2.25%, 10/18/12		877,721
		995	Eye Care Centers of America, Inc., Term Loan, LIBOR + 3.00%, 2/16/12		1,001,219
		792	Keystone Foods Holdings, LLC, Term Loan, LIBOR + 1.75%, 6/16/11		799,979
		500	Knoll, Inc., Term Loan, LIBOR + 2.00%, 10/03/12		506,250
		902	Language Line, Inc., Term Loan B, LIBOR + 4.25%, 6/10/11		906,960
		1,653	Le-Natures, Inc., Term Loan B, LIBOR + 3.00%, 5/30/10		1,657,526
		500	MD Beauty, Inc., Term Loan, PRIME + 6.00%, 2/18/13		498,750
		2,738	Michael Foods, Inc., Term Loan B, LIBOR + 2.25%, 11/21/10		2,777,617
		998	Movie Gallery, Inc., Term Loan B, LIBOR + 3.75%, 4/27/11		972,147
		1,750	Neiman-Marcus Group, Inc., Term Loan, LIBOR + 2.50%, 4/06/13		1,757,656
		1,995	NewPage, Term Loan B, LIBOR + 3.00%, 5/02/11		2,009,962
		950	Nice Pak Products, Term Loan, LIBOR + 3.50%, 6/15/10		953,563
			Olympus Cable Holdings, LLC,
		2,000	Term Loan A, PRIME + 1.25%, 6/30/10		1,965,358
		3,500	Term Loan B, PRIME + 2.00%, 9/30/10		3,463,750
		500	Oriental Trading Co., Inc., Term Loan, LIBOR + 4.75%, 1/08/11		501,563
		2,633	Oriental Trading Company, Inc., Term Loan B, LIBOR + 2.25%, 8/06/10		2,641,205
		2,970	OSI Group LLC, Term Loan B, LIBOR + 2.00%, 9/02/11		3,002,174
		1,745	Pantry, Inc. (The), Term Loan B, LIBOR + 2.25%, 3/12/11		1,768,920
		953	PBM Products, LLC, Term Loan B, LIBOR + 3.00%, 7/26/11		957,821
		844	Pierre Foods, Inc., Term Loan B, LIBOR + 2.75%, 6/30/10		853,312
		750	Pivotal Promontory, LLC, Term Loan, LIBOR + 6.50%, 8/31/11		753,750
		1,478	Prestige Brands Holdings, Inc., Term Loan B, LIBOR + 2.25%, 4/06/11		1,494,122
		3,470	R.H. Donnelley, Inc., Term Loan D, LIBOR + 1.75%, 6/30/11		3,487,072
		442	Sealy Mattress Co., Term Loan D, LIBOR + 1.75%, 4/06/12		445,658
		600	Synventive Acquisition, Inc., Term Loan, LIBOR + 14.0%, 7/29/14		600,000
		500	Travelcenters of America, Inc., Term Loan B, LIBOR + 1.75%, 12/01/11		505,000

					51,012,790

			Containers & Packaging—1.8%
		868	Bway Corp., Term Loan, LIBOR + 2.25%, 6/30/11		878,850
		353	Flexsol Packaging Corp., Term Loan, LIBOR + 3.25%, 11/30/11		352,440
			Graham Packaging Company, L.P.,
		1,985	Term Loan B, LIBOR + 2.50%, 10/07/11		2,007,953
		2,000	Term Loan C, LIBOR + 4.25%, 4/07/12		2,031,666
		1,383	Graphic Packaging International, Inc., Term Loan C, LIBOR + 2.50%, 6/30/10		1,393,710
			Owens-Illinois Group, Inc.,
		3,170	Term Loan A1, LIBOR + 2.75%, 4/01/07		3,188,516
		589	Term Loan C1, LIBOR + 1.75%, 4/01/08		592,796
		568	Smurfit-Stone Container Corp., Term Loan, LIBOR + 2.10%, 11/01/11		573,558
		1,970	Solo Cup, Inc., Term Loan, LIBOR + 2.50%, 2/27/11		1,974,432

					12,994,921

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Principal Amount (000)			Description		Value

			Ecological Services & Equipment—0.6%
			Allied Waste North America, Inc.,
	$	1,003	Term Loan A, LIBOR + 2.00%, 1/15/12	$	1,008,256
		2,655	Term Loan, LIBOR + 2.00%, 1/15/12		2,667,712
		500	Envirosolutions, Inc., Term Loan, LIBOR + 3.50%, 7/07/12		508,125

					4,184,093

			Energy—3.1%
		429	AES Corp., Term Loan, LIBOR + 1.75%, 4/30/08		433,607
		998	Cellnet Technology, Inc., Term Loan B, LIBOR + 3.00%, 4/26/12		1,002,487
			Coffeyville Resources, LLC,
		600	Term Loan, LIBOR + 2.50%, 6/24/12		609,250
		898	Term Loan B, LIBOR + 2.50%, 6/24/12		911,591
		777	Cogentrix Delaware Holdings, Inc., Term Loan, LIBOR + 1.75%, 4/14/12		785,129
		250	Complete Production Services, Inc., Term Loan B, LIBOR, 9/12/12		251,979
			El Paso Corp.,
		375	Term Loan, LIBOR + 2.85%, 11/30/07		377,448
		615	Term Loan B, LIBOR + 2.75%, 11/23/09		619,015
		998	Kerr-McGee Corp., Term Loan B, PRIME + 1.50%, 5/24/11		999,495
		1,500	Key Energy Services, Term Loan B, 1.00%, 6/30/12		1,520,625
		500	Magellan Midstream Holdings, L.P., Term Loan, LIBOR + 2.13%, 6/30/12		506,562
			MDCP Acquistions,
		2,429	Term Loan B3, LIBOR + 2.75%, 12/31/08		2,425,867
		2,429	Term Loan C3, LIBOR + 2.75%, 10/31/11		2,428,702
		250	Petrohawk, Term Loan, LIBOR + 4.50%, 7/31/10		250,938
		304	Pike Electric, Inc., Term Loan B, LIBOR + 2.25%, 7/01/12		306,849
			Reliant Energy Resources Corp.,
		1,500	Term Loan, LIBOR + 2.38%, 9/30/10		1,503,214
		2,729	Term Loan, LIBOR + 2.38%, 4/30/10		2,735,224
			Semcrude, L.P.,
		797	Term Loan, LIBOR + 2.50%, 3/16/11		804,467
		697	Term Loan, LIBOR + 2.50%, 3/16/11		703,465
		1,000	Targa Resources Asst. Sale, TBD		1,000,000
		500	Trout Coal Holdings, LLC, Term Loan, LIBOR + 6.50%, 3/15/12		503,750
		995	Universal Compression, Inc., Term Loan, 0.35%, 2/15/12		1,004,640

					21,684,304

			Entertainment & Leisure—2.6%
		988	Boyd Gaming Corp., Term Loan B, LIBOR + 1.50%, 6/30/11		997,992
			CCM Merger, Inc.,
		498	Term Loan, 0.50%, 7/25/12		502,484
		750	Term Loan B, LIBOR + 2.00%, 4/25/12		755,156
		2,790	Greektown Casino, LLC, Term Loan D, LIBOR + 3.50%, 12/31/05		2,800,245
		493	Green Valley Ranch Gaming, LLC, Term Loan B, LIBOR + 2.00%, 12/17/11		498,685
		1,241	Isle of Capri Casinos, Inc., Term Loan, LIBOR + 1.75%, 2/04/11		1,251,869
		985	Loews Cineplex Entertainment Corp., Term Loan B, LIBOR + 2.25%, 7/31/11		987,879
		5,000	Metro-Goldwyn-Mayer Studios, Inc., Term Loan B, LIBOR + 2.25%, 4/08/12		5,039,375
		2,000	Penn National Gaming, Term Loan B, PRIME + 1.00%, 10/03/12		2,023,126
		499	Volume Svcs. America, Inc., Term Loan, PRIME + 1.25%, 10/01/10		503,111
			Wyndham International, Inc.,
		651	TBD		650,650
		1,099	Term Loan E, LIBOR, 9/11/07		1,099,350
		1,000	Wynn Las Vegas, LLC, Term Loan, 1.00%, 12/14/11		1,009,000
		500	Yellowstone Mtn. Club, Term Loan, LIBOR + 2.38%, 9/30/10		505,000

					18,623,922

			Financial Institutions—1.2%
		1,500	Arias Acquisitions, Inc., Term Loan, LIBOR + 3.75%, 7/26/11		1,494,375
		956	CCC Information Services, Inc., Term Loan B, LIBOR + 2.75%, 8/20/10		955,563
		1,432	Global Cash Access, LLC, Term Loan, LIBOR + 2.25%, 3/10/10		1,450,932
			N.E.W. Holdings I, LLC,
		966	Term Loan, LIBOR + 3.25%, 7/08/11		977,776
		250	Term Loan, LIBOR + 7.00%, 6/30/12		253,438

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Principal Amount (000)			Description		Value

			Financial Institutions—(cont’d.)
	$	1,975	SBA Sen. Finance, Inc., Term Loan D, LIBOR + 2.25%, 10/31/08	$	1,979,114
		463	Universal American Financial Corp., Term Loan, LIBOR + 2.25%, 3/31/09		462,500
		981	USI Holdings Corp., Term Loan B, LIBOR + 2.50%, 8/11/08		981,838

					8,555,536

			Health Care—4.3%
		494	Accellent Corp., Term Loan B, LIBOR + 2.25%, 6/30/10		494,676
		181	Ameripath, Inc., Term Loan, LIBOR + 3.25%, 3/27/10		182,529
		1,500	CCS Medical, Term Loan B, TBD		1,497,499
		719	Colgate Medical, Ltd., Term Loan B, LIBOR + 2.00%, 12/30/08		724,713
		2,970	Community Health Systems, Inc., Term Loan, LIBOR + 1.75%, 8/19/11		3,005,269
		2,500	Concentra Operating Corp., Term Loan B, LIBOR + 2.00%, 9/30/11		2,526,562
		1,922	Davita, Inc., Term Loan B, LIBOR + 2.25%, 10/05/12		1,947,990
		1,000	Duloxetine Royalty Sub., Term Loan, LIBOR + 4.50%, 10/15/13		1,000,000
			HealthSouth Corp.,
		638	Term Loan B, 0.50%, 2/28/10		639,492
		2,357	Term Loan, LIBOR + 2.50%, 6/14/07		2,363,958
		2,000	Term Loan, LIBOR + 5.00%, 6/15/10		2,003,334
		988	IASIS Healthcare Corp., Term Loan B, LIBOR + 2.25%, 6/30/11		1,000,256
		2,970	Jean Coutu Group, Inc., Term Loan B, LIBOR + 2.25%, 7/30/11		3,001,093
		776	Kinetic Concepts, Inc., Term Loan B-2, LIBOR + 1.75%, 8/11/10		784,151
		827	NDC Hlth Corp., Term Loan, PRIME + 2.00%, 11/26/08		827,036
		993	Pacificare Health Systems, Inc., Term Loan B, LIBOR + 1.50%, 12/13/10		993,534
		995	Select Med. Corp., Term Loan B, LIBOR + 1.75%, 2/24/12		994,862
		500	Triumph Healthcare Second Holdings, Inc., Term Loan, PRIME + 7.50%, 8/31/12		499,062
		1,000	Vanguard Hlth. Holding Co. II, Term Loan, LIBOR + 2.25%, 9/23/11		1,012,500
			Warner Chilcott Corp.,
		530	Term Loan, 1.375%, 1/31/06 - 6/30/06		531,482
		2,173	Term Loan B, LIBOR + 2.75%, 1/18/12		2,178,931
		876	Term Loan C, LIBOR + 2.75%, 1/18/12		878,003
		404	Term Loan D, LIBOR + 2.75%, 1/18/12		405,613
		988	Wellcare Holdings, LLC, Term Loan, LIBOR + 2.50%, 5/13/09		993,672

					30,486,217

			Industrials—1.5%
		236	Alderwoods Group, Inc., Term Loan B2, LIBOR + 2.00%, 9/29/09		238,464
		3,198	Buhrmann U.S., Inc., Term Loan C1, LIBOR + 2.50%, 12/31/10		3,254,235
		780	Novelis, Inc., Term Loan, LIBOR + 1.75%, 1/06/12		788,455
		499	Roller Bearing Co. of America, Term Loan B, LIBOR + 3.75%, 12/29/10		506,231
		1,961	Trimas Corp., Term Loan B, LIBOR + 3.75%, 12/31/09		1,976,846
		1,806	United Rentals (North America), Inc., Term Loan B, LIBOR + 2.25%, 2/14/11		1,818,926
		1,698	Worldspan, L.P., Term Loan, LIBOR + 2.75%, 2/16/10		1,653,211

					10,236,368

			Media—5.8%
		1,741	American Lawyers Media, Inc., Term Loan, 0.75%, 3/05/10		1,739,800
		4,000	Century Cable Holdings, LLC, Term Loan, PRIME + 2.00%, 6/30/09		3,957,856
		3,452	Charter Communications Operating, LLC, Term Loan, LIBOR + 3.25%, 4/27/11		3,458,862
		3,684	Dex Media West, LLC, Term Loan B, LIBOR + 1.75%, 3/09/10		3,697,028
		2,333	DirecTV Holdings, LLC, Term Loan B, LIBOR + 1.50%, 4/13/13		2,351,806
		2,978	Emmis Communications Co., Term Loan B, LIBOR + 1.75%, 11/10/11		2,994,993
		2,581	Insight Midwest Holdings, LLC, Term Loan C, LIBOR + 2.00%, 12/31/09		2,614,884
		249	Masonite International Corp., Term Loan, LIBOR + 2.00%, 4/05/13		247,943
		1,990	Mediacom Communications Corp., Term Loan C, LIBOR + 2.00%, 2/01/14		2,017,363
		1,985	Mediacom Illinois, LLC, Term Loan B, LIBOR + 2.25%, 3/31/13		2,014,156
		1,946	Mission Broadcasting, Inc., Term Loan B, LIBOR + 1.75%, 8/14/12		1,955,645
		500	NEP Supershooters, L.P., Term Loan, LIBOR + 8.00%, 2/01/11		495,000
		1,981	Nexstar Broadcasting, Inc., Term Loan B, LIBOR + 1.75%, 8/14/12		1,990,749
		3,000	NTL Investment Holding Ltd., Term Loan B, LIBOR + 3.00%, 5/19/12		3,006,750
		750	Puerto Rico Cable Acquisition Co., Term Loan, PRIME + 5.25%, 2/28/12		760,313

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Principal Amount (000)			Description		Value

			Media—(cont’d.)
	$	2,500	Raycom Media, Inc., Term Loan B, LIBOR + 1.75%, 3/31/12	$	2,509,375
			Relizon Co. (The),
		122	Term Loan B-1, LIBOR + 3.00%, 2/20/11		122,336
		1,118	Term Loan, LIBOR + 3.00%, 2/20/11		1,120,697
		2,000	UPC Distribution Corp., Term Loan H, LIBOR + 2.50%, 9/30/12		2,015,416
		1,968	WMG Acquisition Corp., Term Loan, LIBOR + 2.00%, 2/28/11		1,986,422

					41,057,394

			Publishing—0.1%
		750	Endurance Business Media, Term Loan B, PRIME + 1.25%, 3/08/12		755,625

			Real Estate—1.7%
		627	Crescent Real Estate Equities, L.P., Term Loan, LIBOR + 2.25%, 1/12/06		628,893
			General Growth Properties, Inc.,
		1,766	Term Loan A, LIBOR + 1.75%, 11/12/07		1,772,128
		3,003	Term Loan B, LIBOR + 2.00%, 11/12/08		3,034,339
			Kyle Acquisition Group, LLC,
		731	Term Loan B, PRIME, 7/20/08		738,661
		300	Term Loan, PRIME, 7/20/10		303,000
		1,000	Landsource Communities Development, LLC, Term Loan B, LIBOR + 2.50%, 3/31/10		1,006,250
		476	Macerich Partnership, L.P., Term Loan, LIBOR + 1.60%, 4/25/06		476,154
		249	Masonite Intl. Corp., Term Loan, LIBOR + 2.00%, 4/05/13		247,521
			Ply Gem Industries, Inc.,
		61	Term Loan, LIBOR + 2.50%, 3/15/10		61,745
		1,916	Term Loan B, LIBOR + 2.50%, 2/12/11		1,925,819
		712	Stewart Enterprises, Inc., Term Loan B, LIBOR + 1.75%, 11/19/11		720,132
		1,000	Williams Scotsman, Inc., Term Loan B, LIBOR + 2.50%, 6/28/10		1,011,875

					11,926,517

			Technology—0.4%
		413	Coinstar, Inc., Term Loan, LIBOR + 2.25%, 7/07/11		419,792
		498	Federal IT Systems, Inc., Term Loan, LIBOR + 2.75%, 4/01/11		502,786
		1,441	Verifone, Inc., Term Loan B, LIBOR + 2.00%, 6/30/11		1,448,415
		241	Westcom Corp., Term Loan B, LIBOR + 2.75%, 12/16/10		242,312

					2,613,305

			Telecommunications—3.4%
		250	AAT Communications Corp., Term Loan, LIBOR + 1.75%, 7/27/12		253,125
		1,000	Alaska Communications Systems Holdings, Inc., Term Loan, LIBOR + 2.00%, 1/31/12		1,012,000
		1,000	Atlantic Broadband Finance, LLC, Term Loan B1, LIBOR + 2.75%, 8/04/12		1,015,000
			Centennial Cellular Operating Co.,
		489	Term Loan, LIBOR + 2.25%, 2/09/11		490,913
		991	Term Loan, LIBOR + 2.25%, 2/09/11		995,669
		1,481	Cons. Communications, Inc., Term Loan D, LIBOR + 2.25%, 10/14/11		1,496,062
		500	Country Road Communications, LLC, Term Loan, LIBOR, 7/15/13		506,250
		750	Fairpoint Communications, Inc., Term Loan, LIBOR + 1.75%, 2/15/12		756,750
		1,244	Freedom Communications, Inc., Term Loan B, LIBOR + 1.50%, 5/01/13		1,251,834
		993	Intelsat Zeus, Ltd., Term Loan, 0.75%, 7/28/11		1,000,358
		2,000	Iowa Telecommunications Services, Inc., Term Loan B, LIBOR + 1.75%, 11/23/11		2,017,500
			IPC Acquisition Corp.,
		1,000	Term Loan, LIBOR + 2.75%, 8/05/11		1,003,333
		500	Term Loan, LIBOR + 7.25%, 8/05/12		490,000
		1,000	Madison River Capital, LLC, Term Loan B, LIBOR + 2.50%, 7/29/12		1,013,333
		2,500	Nextel Partners Operating Corp., Term Loan D, LIBOR + 1.50%, 5/31/12		2,505,730
			Ntelos, Inc.,
		744	Term Loan, LIBOR + 2.50%, 8/25/11		749,027
		750	Term Loan, LIBOR + 5.00%, 2/25/12		754,688
		2,000	Qwest Corp., Term Loan A, LIBOR + 4.75%, 6/30/07		2,059,444
		2,000	Satbirds Finance, Term Loan, LIBOR + 4.25%, 10/15/13		2,414,536
		1,933	Valor Telecommunication Enterprises II, LLC, Term Loan B, LIBOR + 1.75%, 2/14/12		1,953,703

					23,739,255

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					Transportation—0.5%
		$	500		Delta Air Lines, Inc., Term Loan B, LIBOR + 6.50%, 3/16/08	$	516,750
			988		Kenan Advantage Group, Inc., Term Loan, LIBOR + 3.50%, 6/30/10		997,375
			1,000		Sirva Worldwide, Inc., Term Loan, LIBOR + 3.50%, 12/01/10		954,500
			750		Transport Industries, L.P., Term Loan B, LIBOR + 2.50%, 9/30/11		755,625

							3,224,250

					Total Bank Loans		308,562,143

					Mortgage Pass-Through Securities—21.2%
					Federal National Mortgage Assoc.,
			988	²	5.00%, 6/01/20 - 8/01/20		974,650
			3,519		5.50%, 12/01/28 - 11/01/33		3,476,430
			7,725	²	5.50%, 7/01/33 - 10/01/33		7,627,858
			170,002		7.25%, 1/15/10		18,582,020
			120,700		TBA, 5.00%, 11/30/20		119,040,375

					Total Mortgage Pass-Through Securities		149,701,333

					Interest Only Asset-Backed Securities—1.3%
					Sterling Coofs Trust,
NR			58,694		Ser. 1, 2.362%, 4/15/29		4,842,287
NR			54,298		Ser. 2, 1.00%, 3/30/30		4,140,202

					Total Interest Only Asset-Backed Securities		8,982,489

					Asset-Backed Securities—2.7%
AAA			2,080	²	Citibank Credit Card Issuance Trust, 2.50%, 4/07/08		2,063,651
AAA			4,031	²	DaimlerChrysler Auto Trust, 2.25%, 8/08/07		4,008,902
AAA			5,170	²	Honda Auto Receivables Class A3, 2.30%, 10/18/07		5,116,536
AAA			7,910	²	MBNA Credit Card Master Note Trust, 5.75%, 10/15/08		7,965,528

					Total Asset-Backed Securities		19,154,617

					Collateralized Mortgage Obligations—2.1%
					GSR Mortgage Loan Trust,
AAA			7,764		Ser. 10, Class 2A1, 4.475%, 10/25/33		7,389,218
AAA			7,510		Ser. 13, Class 1A1, 4.506%, 10/25/33		7,224,207

					Total Collateralized Mortgage Obligations		14,613,425

					U.S. Government and Agency Securities—5.3%
					U.S. Treasury Notes,
			20,425	²	3.375%, 12/15/08 - 9/15/09		19,773,303
			10,000	²	3.75%, 3/31/07		9,909,400
			6,000	²	3.875%, 5/15/09		5,889,360
			1,815	²	4.25%, 8/15/15		1,770,768

					Total U.S. Government and Agency Securities		37,342,831

					Foreign Government Bonds—2.5%
B+			1,190		Bolivarian Republic of Venezuela, 4.563%, 12/18/07		1,184,462
BB			5,000		Republic of Colombia, 9.75%, 4/23/09		5,597,500
BB			5,000		Republic of Peru, 9.125%, 2/21/12		5,780,000
BB-			5,000		Republic of Turkey, 11.375%, 11/27/06		5,350,000

					Total Foreign Government Bonds		17,911,962

					Warrants—0.0%
NR			10	⁷	Reliant Resources, Inc., expires 8/25/05, strike price $0.001, 1 share for 1 warrant		77,609

					Total Long-Term Investments (cost 978,248,319)		977,999,891

See Notes to Financial Statements.


BlackRock Limited Duration Income Trust (BLW) (continued)


Rating¹(unaudited)	Principal Amount (000)				Description	Value

					SHORT-TERM INVESTMENT—0.6%
					U.S. Government and Agency Zero Coupon Bond—0.6%
A-1+		$	4,000		FNMA Discount Notes, 3.72%, 11/01/05⁶(cost $4,000,000)	$	4,000,000

					Total investments before borrowed bond (cost $982,248,319⁴)		981,999,891

					BORROWED BOND—1.2%
			8,671	⁵	U.S. Treasury Note, 4.25%, 11/04/05 (cost $8,670,825)		8,670,825

					Total investments net of borrowed bonds—140.5%		990,670,716

					Liabilities in excess of other assets—(40.5)%		(285,709,299	)

					Net Assets—100%	$	704,961,417



¹	Using the higher of S&P’s, Moody’s or Fitch’s rating.
²	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
³	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2005, the Trust held 12.3% of its net assets, with a current market value of $86,425,365, in securities restricted as to resale.
⁴	Cost for Federal income tax purposes is $982,455,182. The net unrealized depreciation on a tax basis is $455,291, consisting of $12,636,533 gross unrealized appreciation and $13,091,824 gross unrealized depreciation.
⁵	The interest rate and maturity date shown represent the terms of the borrowed bond transaction, not the security borrowed (see Note 1).
⁶	Rate shown is yield to maturity as of October 31, 2005.
⁷	Non-income producing security.

A category in the Corporate Bonds and Bank Loans sections may contain multiple industries as defined by the SEC’s Standard Industry Codes.

KEY TO ABBREVIATIONS

TBA – To Be Announced

TBD – To Be Determined

See Notes to Financial Statements.


PORTFOLIO OF INVESTMENTS OCTOBER 31, 2005

BlackRock Strategic Bond Trust (BHD)



Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					LONG-TERM INVESTMENTS—130.0%
					Corporate Bonds—122.7%
					Aerospace & Defense—6.7%
NR		$	250		AAR Corp., 8.39%, 5/15/11	$	255,000
B-			320		BE Aerospace, Inc., 8.875%, 5/01/11		336,800
BBB+			2,000		Lockheed Martin Corp., 8.50%, 12/01/29		2,709,880
BBB+			1,000		Northrop Grumman Corp., 7.125%, 2/15/11		1,089,830
BBB			650		Raytheon Co., 4.85%, 1/15/11		640,913
BB			350		Sequa Corp., 8.875%, 4/01/08		361,375
A+			1,000	²	United Technologies Corp., 6.35%, 3/01/11		1,062,460

							6,456,258

					Automotive—3.4%
B-			180		Accuride Corp., 8.50%, 2/01/15		170,100
BB+			60		Arvinmeritor, Inc., 8.75%, 3/01/12		56,700
A3			1,000	²	DaimlerChrysler NA Holding Corp., 7.30%, 1/15/12		1,074,330
Caa1			1,000		Delco Remy Intl., Inc., 11.00%, 5/01/09		482,500
BB			300		General Motors Acceptance Corp., 8.00%, 11/01/31		309,129
B-			80		Goodyear Tire & Rubber Co., 7.857%, 8/15/11		77,000
CCC+			200	³	Metaldyne Corp., 11.00%, 11/01/13		179,500
BB			130		Navistar Intl. Corp., 6.25%, 3/01/12		116,675
BB-			717		TRW Automotive, Inc., 9.375%, 2/15/13		770,775

							3,236,709

					Basic Materials—6.2%
BB-			105		Abitibi-Consolidated, Inc., 8.375%, 4/01/15 (Canada)		97,388
B-			80	³	BCIUS Finance Corp./Borden 2 Nova Scotia Finance ULC, 9.65%, 7/15/10		80,800
BB-			415		Bowater Canada Finance Corp., 7.95%, 11/15/11 (Canada)		398,400
B-			2,175		Caraustar Industries, Inc., 9.875%, 4/01/11		2,115,187
BB-			120		Donohue Forest Products, 7.625%, 5/15/07 (Canada)		121,500
					Huntsman LLC,
B			99		11.50%, 7/15/12		111,870
BB-			50		11.625%, 10/15/10		56,875
BB			70		IMC Global, Inc., 10.875%, 6/01/08		78,225
CCC+			1,155	³	Innophos,Inc., 9.125%, 8/15/14		1,169,437
					Lyondell Chemical Co.,
BB-			300		9.50%, 12/15/08		314,250
BB-			130		10.50%, 6/01/13		147,550
B-			85		Nalco Co., 8.875%, 11/15/13		86,913
CCC+			310		NewPage Corp., 10.00%, 5/01/12		283,650
B-			80	³	PQCorp., 7.50%, 2/15/13		72,800
					Rhodia SA,
CCC+			300		8.875%, 6/01/11 (France)		282,750
B3			30		10.25%, 6/01/10 (France)		31,875
BBB-			110	³	SouthernPeru Copper Corp., 7.50%, 7/27/35		106,975
BBB			441		Weyerhaeuser Co., 6.125%, 3/15/07		448,069

							6,004,514

					Building & Development—2.2%
B-			75	³	AhernRentals, Inc., 9.25%, 8/15/13		76,594
BB+			1,000		Beazer Homes USA, Inc., 8.625%, 5/15/11		1,017,500
B2			150	³	CompressionPolymers Corp., 10.50%, 7/01/13		136,500
B-			775	³	GoodmanGlobal Holding Co., Inc., 7.875%, 12/15/12		732,375
B			200		North American Energy Partners, Inc., 9.00%, 6/01/10 (Canada)		208,000

							2,170,969

See Notes to Financial Statements.


BlackRock Strategic Bond Trust (BHD) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					Conglomerates—1.6%
A+		$	325		Honeywell Intl., Inc., 7.50%, 3/01/10	$	357,718
BB-			30		Stena AB, 7.00%, 12/01/16 (Sweden)		27,750
BBB+			1,132	²	TycoIntl. Group, 6.375%, 2/15/06		1,137,388

							1,522,856

					Consumer Products—10.6%
B3			90		ALH Finance LLC, 8.50%, 1/15/13		81,450
BBB-			2,000		Autonation, Inc., 9.00%, 8/01/08		2,165,000
B1			2,000		Cenveo Corp., 9.625%, 3/15/12		2,110,000
B2			465		Finlay Fine Jewelry Corp., 8.375%, 6/01/12		395,250
BBB+			1,000	²	GeneralMills, Inc., 5.125%, 2/15/07		1,003,020
B2			320		Gold Kist, Inc., 10.25%, 3/15/14		361,600
					GSC Holdings Corp.,
Ba3			70	³	7.875%,10/01/11		70,438
Ba3			125	³	8.00%,10/01/12		121,875
B-			460	³	KnowledgeLearning Corp., Inc., 7.75%, 2/01/15		427,800
B-			380		Lazydays RV Center, Inc., 11.75%, 5/15/12		395,200
B			270		Levi Strauss & Co., 8.804%, 4/01/12		268,312
B3			530		Movie Gallery, Inc., 11.00%, 5/01/12		424,000
B-			500		Pantry, Inc., The, 7.75%, 2/15/14		491,250
BB-			100	³	Quiksilver,Inc., 6.875%, 4/15/15		92,750
B-			500	³	RiteAid Corp., 6.125%, 12/15/08		470,000
CCC+			75	³	Rural/MetroCorp., 9.875%, 3/15/15		78,375
B			1,400		Sonic Automotive, Inc., 8.625%, 8/15/13		1,326,500

							10,282,820

					Containers & Packaging—1.5%
					Crown European Holdings SA,
B+			200		9.50%, 3/01/11 (France)		220,000
B			800		10.875%, 3/01/13 (France)		944,000
CCC+			95		Graham Packaging Co., Inc., 9.875%, 10/15/14		90,013
CCC+			230	³	PregisCorp., 12.375%, 10/15/13		225,400

							1,479,413

					Ecological Services & Equipment—1.9%
BB-			265		Allied Waste NA, Inc., 5.75%, 2/15/11		246,450
B			1,500		Casella Waste Systems, Inc., 9.75%, 2/01/13		1,608,750

							1,855,200

					Energy—15.1%
					ANR Pipeline Co.,
B1			185		7.375%, 2/15/24		192,631
B1			655		9.625%, 11/01/21		792,550
B2			1,010		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)		1,030,200
					Calpine Corp.,
B-			35	³	8.50%,7/15/10		24,588
B			225	³	9.625%,9/30/14		228,375
CCC			5		Calpine Energy Finance ULC, 8.50%, 5/01/08 (Canada)		2,713
CCC+			255		Calpine Generating Co. LLC, 11.50%, 4/01/11		233,006
B-			270	³	ClaytonWilliams Energy, Inc., 7.75%, 8/01/13		260,550
					CMS Energy Corp.,
BB-			95		7.50%, 1/15/09		98,325
BB-			295		9.875%, 10/15/07		317,125
Ba3			120	³	CompagnieGenerale de Geophysique SA, 7.50%, 5/15/15 (France)		124,800
A1			1,000		ConocoPhillips Holding Co., 6.95%, 4/15/29		1,190,220
BBB+			1,000	²	DominionResources, Inc., 5.70%, 9/17/12		1,016,340
B2			470		Dresser, Inc., 9.375%, 4/15/11		489,975
BBB			250		DTE Energy Co., 7.05%, 6/01/11		268,247
B+			610	³	DynegyHoldings, Inc., 10.125%, 7/15/13		671,000
					El Paso CGP Co.,
B-			200		7.42%, 2/15/37		181,000
B-			165		9.625%, 5/15/12		180,881
B-			100		10.75%, 10/01/10		109,125

See Notes to Financial Statements.


BlackRock Strategic Bond Trust (BHD) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					Energy—(cont’d)
					El Paso Corp.,
B-		$	165		7.75%, 1/15/32	$	164,588
B-			205		7.80%, 8/01/31		203,206
B1			175		El Paso Natural Gas Co., 8.375%, 6/15/32		192,938
B			250		Exco Resources, Inc., 7.25%, 1/15/11		255,000
BBB-			1,075		FirstEnergy Corp., 7.375%, 11/15/31		1,224,169
					Hilcorp Energy I LP/Hilcorp Finance Corp.,
B			100	³	7.75%,11/01/15		100,000
B			97	³	10.50%,9/01/10		108,640
					KCS Energy, Inc.,
B-			70		7.125%, 4/01/12		71,225
B-			125	³	7.125%,4/01/12		127,500
					Midwest Generation LLC,
B+			596		8.56%, 1/02/16		649,720
B+			370		8.75%, 5/01/34		407,925
B2			120		Mission Energy Holdings Co., 13.50%, 7/15/08		139,500
A-			250		Occidental Petroleum Corp., 6.75%, 1/15/12		274,997
B-			110	³	OceanRig Norway AS, 8.375%, 7/01/13		118,525
B2			140		Orion Power Holdings, Inc., 12.00%, 5/01/10		165,900
					Progress Energy, Inc.,
Baa2			1,000		6.75%, 3/01/06		1,006,850
Baa2			1,000		7.75%, 3/01/31		1,149,070
B			30		Range Resources Corp., 6.375%, 3/15/15		30,075
					Reliant Energy, Inc.,
BB-			70		6.75%, 12/15/14		64,925
BB-			75		9.25%, 7/15/10		78,750
B2			400	³	TargaResources, Inc., 8.50%, 11/01/13		406,000
BB+			30		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26		32,438
B2			60	³	WhitingPetroleum Corp., 7.00%, 2/01/14		60,150
BB			100		Williams Cos., Inc., 7.125%, 9/01/11		103,625

							14,547,367

					Entertainment & Leisure—4.0%
BB			195		MGM Mirage, 6.00%, 10/01/09		191,100
B			55		Poster Financial Group, Inc., 8.75%, 12/01/11		56,100
B			1,000		Resorts Intl. Hotel & Casino, Inc., 11.50%, 3/15/09		1,112,500
Ba1			1,500		Royal Caribbean Cruises Ltd., 8.75%, 2/02/11		1,679,100
B+			70	³	SanPasqual Casino, 8.00%, 9/15/13		70,000
BB-			190	³	SenecaGaming Corp., 7.25%, 5/01/12		194,750
B+			565		Wynn Las Vegas LLC / Wynn Las Vegas Cap. Corp., 6.625%, 12/01/14		538,162

							3,841,712

					Financial Institutions—25.6%
AA			185	³	AllstateFinancial Global Funding LLC, 5.25%, 2/01/07		186,062
BB			230	³	AmericanReal Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13		223,100
Aa3			1,000	²	BankOne Corp., 6.50%, 2/01/06		1,005,360
Aa3			650	³	BarclaysBank PLC, 8.55%, 9/29/49 (United Kingdom)		751,505
B-			250		BCP Crystal US Holdings Corp., 9.625%, 6/15/14 (Luxembourg)		275,000
A+			325		Bear Stearns Co., Inc., 6.50%, 5/01/06		328,091
B1			2,000		Bluewater Finance Ltd., 10.25%, 2/15/12		2,135,000
B-			500	³	BordenUS Finance Corp./Nova Scotia Finance ULC, 9.00%, 7/15/14		492,500
AA+			3,000	²	Citigroup,Inc., 5.75%, 5/10/06		3,020,250
BB			590		Crum & Forster Hldgs. Corp., 10.375%, 6/15/13		631,300
B+			130	³	E*TradeFinancial Corp., 7.375%, 9/15/13		128,050
BB			200		Fairfax Financial Holdings Ltd., 7.75%, 4/26/12 (Canada)		182,000
BB			300		Fairfax Financial Holdings, Ltd., 6.875%, 4/15/08 (Canada)		289,500
					Ford Motor Credit Co.,
BBB-			720		5.70%, 1/15/10		648,079
BBB-			1,600		5.72%, 1/15/10		1,461,728
BBB-			750		5.80%, 1/12/09		684,533
BBB-			75		7.25%, 10/25/11		69,753

See Notes to Financial Statements.


BlackRock Strategic Bond Trust (BHD) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					Financial Institutions—(cont’d)
AAA		$	2,000	²	GeneralElectric Cap. Corp., 3.45%, 7/16/07	$	1,957,440
BB			250		General Motors Acceptance Corp., 6.75%, 1/15/06		249,888
AA			1,500	²	HSBCBank USA, Inc., 3.875%, 9/15/09		1,443,735
B-			225		K&F Acquisition, Inc., 7.75%, 11/15/14		225,000
AAA			850		KFW Intl. Finance, Inc., 5.25%, 6/28/06		854,870
A			325		MetLife, Inc., 6.125%, 12/01/11		340,334
B-			415	³	NellAF, 8.375%, 8/15/15 (Luxembourg)		398,400
					Rainbow National Services LLC,
B+			210	³	8.75%,9/01/12		220,500
B+			2,045	³	10.375%,9/01/14		2,254,612
B-			340		Standard Aero Holdings, Inc., 8.25%, 9/01/14		323,850
NR			923		Structured Asset Receivable Trust, 1.649%, 1/21/10		924,215
AAA			1,000	^2,3	TIAAGlobal Markets, Inc., 3.875%, 1/22/08		979,010
B-			50		Universal City Florida Hldg. Co. I/II, 9.00%, 5/01/10		51,000
Aa1			2,000	²	WellsFargo & Co., 3.50%, 4/04/08		1,941,140
BB-			50		Western Financial Bank, 9.625%, 5/15/12		56,625

							24,732,430

					Health Care—8.1%
CCC			10		Curative Health Services, Inc., 10.75%, 5/01/11		6,750
B			170	³	ElanFinance Corp., 7.75%, 11/15/11 (Ireland)		149,600
NR			2,000		Healthsouth Corp., 7.375%, 10/01/06		1,980,000
B			300	³	InsightHealth Services Corp., 9.174%, 11/01/11		284,250
AA			1,000	²	Merck& Co., Inc., 4.375%, 2/15/13		939,410
					Tenet Healthcare Corp.,
B			50		6.375%, 12/01/11		43,625
B			380		9.875%, 7/01/14		370,500
B3			1,500		United Surgical Partners Intl., Inc., 10.00%, 12/15/11		1,623,750
B-			290		Universal Hospital Services, Inc., 10.125%, 11/01/11		292,900
BBB+			1,000	²	WellPoint,Inc., 5.95%, 12/15/34		1,015,700
A			1,000	²	Wyeth,6.50%, 2/01/34		1,097,050

							7,803,535

					Industrials—5.0%
B-			80	³	ChartIndustries, Inc., 9.125%, 10/15/15		79,000
Caa1			1,185	³	DIFinance/DynCorp. Intl., 9.50%, 2/15/13		1,226,475
B-			595		ERICO Intl. Corp., 8.875%, 3/01/12		612,850
Caa1			550	³	HydrochemIndustrial Services, 9.25%, 2/15/13		501,875
B-			300		NationsRent Cos., Inc., 9.50%, 5/01/15		311,250
CCC+			700		Park-Ohio Inds., Inc., 8.375%, 11/15/14		610,750
B3			350	³	SunstateEquipment Co. LLC, 10.50%, 4/01/13		353,500
CCC+			775		Trimas Corp., 9.875%, 6/15/12		631,625
Caa1			525		United Rentals NA, Inc., 7.00%, 2/15/14		477,750

							4,805,075

					Media—12.7%
NR			1,000	⁴	AdelphiaCommunications Corp., 10.50%, 7/15/04		645,000
B-			165		Allbritton Communications Co., 7.75%, 12/15/12		164,175
CCC+			400		American Media Operations, Inc., 10.25%, 5/01/09		380,000
BBB+			1,000		AOL Time Warner, Inc., 7.70%, 5/01/32		1,144,190
CCC+			1,675	³	CCHI Holdings LLC/Cap. Corp., 11.125%, 1/15/14		1,139,000
CCC+			365		Charter Communications Holdings II, LLC/Charter Communications Holdings II Cap. Corp., 10.25%, 9/15/10		365,912
BBB+			1,000	²	ComcastCable Communications, Inc., 6.875%, 6/15/09		1,052,250
BB-			200		Echostar DBS Corp., 7.304%, 10/01/08		203,500
CCC+			75	³	iesyRepository GmbH, 10.375%, 2/15/15 (Germany)		80,438
BBB			1,500	²	NewsAmerica, Inc., 6.20%, 12/15/34		1,455,345
B3			220		Nexstar Finance, Inc., 7.00%, 1/15/14		194,700
B3			1,765		Nextmedia Operating, Inc., 10.75%, 7/01/11		1,923,921
B2			270		Primedia, Inc., 9.715%, 5/15/10		275,400
BBB+			1,000		TCI Communications, Inc., 7.875%, 2/15/26		1,146,580

See Notes to Financial Statements.


BlackRock Strategic Bond Trust (BHD) (continued)


Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					Media—(cont’d)
					Vertis, Inc.,
Caa1		$	1,090		10.875%, 6/15/09	$	1,013,700
Caa2			90	³	13.50%,12/07/09		69,300
Baa3			85		Viacom, Inc., 6.625%, 5/15/11		88,773
Caa1			970		Young Broadcasting, Inc., 10.00%, 3/01/11		911,800

							12,253,984

					Real Estate—2.6%
BB			860		American Real Estate Partners, 8.125%, 6/01/11		883,650
A			500		ERP Operating LP, 6.95%, 3/02/11		537,870
B1			1,000		Felcore Lodging LP, 9.00%, 6/01/11		1,070,000

							2,491,520

					Technology—4.3%
B			315		Celestica, Inc., 7.625%, 7/01/13 (Canada)		304,762
B+			100	³	HynixSemiconductor, Inc., 9.875%, 7/01/12 (Korea)		111,375
BB-			905		Lucent Technologies, Inc., 6.50%, 1/15/28		769,250
					MagnaChip Semiconductor SA/Magna Semiconductor Finance Co.,
Ba3			250		6.875%, 12/15/11		233,750
Ba3			175		7.12%, 12/15/11 (Luxembourg)		170,625
B+			115		Sanmina-SCI Corp., 6.75%, 3/01/13		108,388
BB			50		Stats Chippac Ltd., 7.50%, 7/19/10 (Singapore)		50,250
					Sungard Data Systems, Inc.,
B-			120	³	8.525%,8/15/13		123,600
B-			450	³	9.125%,8/15/13		460,125
B-			480	³	10.25%,8/15/15		475,200
B			950		Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12		940,500
B-			360		UGS Corp., 10.00%, 6/01/12		394,200

							4,142,025

					Telecommunications—9.2%
BB-			190		Cincinnati Bell, Inc., 7.25%, 7/15/13		198,075
B-			130	³	HawaiianTelcom Communications, Inc., 9.948%, 5/01/13		128,375
					Intelsat Ltd.,
Caa1			550		5.25%, 11/01/08		500,500
B2			50	³	8.25%,1/15/13		50,125
B2			325	³	8.625%,1/15/15		329,875
B2			295	³	8.695%,1/15/12		299,425
BB-			30		Lucent Technologies, Inc., 6.45%, 3/15/29		25,650
B-			235		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)		213,850
					Qwest Corp.,
BB+			340	³	7.12%,6/15/13		356,150
BB+			200		7.875%, 9/01/11		210,000
BB			450		Qwest Services Corp., 13.50%, 12/15/10		513,562
BB+			85		Rogers Wireless, Inc., 7.25%, 12/15/12		89,463
Caa1			350		Rural Cellular Corp., 9.875%, 2/01/10		364,000
A			1,500	²	SBCCommunications, Inc., 6.45%, 6/15/34		1,512,270
A-			1,000	²	TelecomItalia Cap., 4.95%, 9/30/14 (Luxembourg)		956,420
A+			2,000	²	VerizonNew England, Inc., 6.50%, 9/15/11		2,067,520
A+			1,000	²	VodafoneGroup PLC, 7.75%, 2/15/10 (United Kingdom)		1,100,770

							8,916,030

					Transportation—2.0%
A-			500		Canadian National Railway Co., 6.90%, 7/15/28 (Canada)		582,405
B			445	²	CHCHelicopter Corp., 7.375%, 5/01/14 (Canada)		447,225
B			30		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)		30,262
B3			39		Horizon Lines LLC, 9.00%, 11/01/12		41,389
B+			90		OMI Corp., 7.625%, 12/01/13		92,475
BB+			300		Overseas Shipholding Group, Inc., 8.25%, 3/15/13		319,500
B			440		Sea Containers Ltd., 10.50%, 5/15/12		440,000

							1,953,256

					Total Corporate Bonds		118,495,673

See Notes to Financial Statements.


BlackRock Strategic Bond Trust (BHD) (continued)



Rating¹ (unaudited)	Principal Amount (000)				Description		Value

					U.S. Government and Agency Securities—5.1%
		$	410	²	U.S.Treasury Bonds, 5.375%, 2/15/31	$	447,027
					U.S. Treasury Notes,
			1,010	²	2.50%,5/31/06		999,900
			933	²	2.625%,11/15/06		916,523
			810	²	4.125%,8/15/10		797,850
			1,075	²	4.25%,8/15/13		1,053,952
			710	²	4.75%,5/15/14		718,989

					Total U.S. Government and Agency Securities		4,934,241

					Foreign Government Bond—1.3%
Baa1			1,000		United Mexican States, 8.125%, 12/30/19 (Mexico)		1,196,000

					Supranational—0.9%
AAA			850	²	EuropeanInvestment Bank, 4.875%, 9/06/06 (Luxembourg)		852,975

					Total Long-Term Investments (cost $126,865,439)		125,478,889

					SHORT-TERM INVESTMENT—0.7%
					U.S. Government and Agency Zero Coupon Bond—0.7%
			700		FNMA Discount Notes, 3.72%, 11/01/05⁵		700,000

					Total investments—130.7% (cost $127,565,439⁶ )	$	126,178,889
					Liabilities in excess of other assets—(30.7)%		(29,632,818)

					Net Assets—100%	$	96,546,071



¹	Using the higher of S&P’s, Moody’s or Fitch’s rating.
²	Entire or partial principal amount pledged as collateral for reverse repurchase agreements. See Note 4 in the Notes to Financial Statements for details of open reverse repurchase agreements.
³	Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2005, the Trust held 19.5% of its net assets, with a current market value of $18,835,149, in securities restricted as to resale.
⁴	Issuer is in default and/or bankruptcy.
⁵	Rate shown is yield to maturity as of October 31, 2005.
⁶	Cost for Federal income tax purposes is $127,571,106. The net unrealized depreciation on a tax basis is $1,392,217, consisting of $2,678,979 gross unrealized appreciation and $4,071,196 gross unrealized depreciation.

A category in the Corporate Bonds section may contain multiple industries as defined by the SEC’s Standard Industry Codes.

See Notes to Financial Statements.

STATEMENTS OF ASSETS AND LIABILITIES

October 31, 2005


	Broad Investment Grade 2009 Term Trust Inc.¹(BCT)			Core Bond Trust (BHK)

Assets
Investments at value²	$	43,089,124		$	491,529,484
Cash		81,748			223,772
Foreign currency at value³		—			3,767,682
Receivable from investments sold		—			31,756,967
Variation margin receivable		—			72,156
Borrowed bond		—			—
Unrealized gain on foreign currency exchange contracts		—			49,277
Interest receivable		509,610			8,022,338
Unrealized appreciation on interest rate swaps		—			1,845,618
Unrealized appreciation on credit default swaps		176			2,240
Investments in affiliates		18,841			60,284
Other assets		3,802			24,003

		43,703,301			537,353,821

Liabilities
Reverse repurchase agreement		—			86,876,056
Payable for investments purchased		—			53,549,428
Payable for dollar rolls		—			7,284,443
Variation margin payable		—			—
Loan payable		—			—
Investments sold short at value⁴		—			—
Outstanding options written at value⁵		—			2,541,070
TBA Sale Commitments⁶		—			—
Interest payable		4,386			1,146,351
Cash with brokers as collateral		—			727
Investment advisory fee payable		20,489			201,963
Administration fee payable		5,588			—
Deferred Trustees’ fees		18,841			60,284
Payable to affiliates		8,063			21,396
Other accrued expenses		369,930			158,314

		427,297			151,840,032

Net Assets	$	43,276,004		$	385,513,789

Composition of Net Assets:
Par value	$	29,571		$	27,019
Paid-in capital in excess of par		41,775,250			386,195,641
Cost of shares held in treasury⁷		—			—
Undistributed (distributions in excess of) net investment income		4,778,322			515,459
Accumulated net realized gain (loss)		(2,676,404	)		7,694,700
Net unrealized depreciation		(630,735	)		(8,919,030	)

Net assets, October 31, 2005	$	43,276,004		$	385,513,789


Net asset value⁸	$	14.63		$	14.27



¹	Consolidated Statement of Assets and Liabilities
²	Investments at cost	$	43,720,035	$	502,449,899
³	Foreign currency at cost		—		3,873,887
⁴	Proceeds received		—		—
⁵	Premium received		—		2,716,753
⁶	Proceeds for TBA Sale Commitments		—		—
⁷	Shares held in treasury		—		—
⁸	Shares outstanding		2,957,093		27,018,774

See Notes to Financial Statements.




High Yield Trust (BHY)			Income Opportunity Trust (BNA)			Income Trust Inc. (BKT)			Limited Duration Income Trust (BLW)			Strategic Bond Trust (BHD)


$	66,969,774		$	608,448,685		$	589,714,325		$	981,999,891		$	126,178,889
	97,957			78,105			88,034			1,391,333			67,525
	—			—			—			386,270			—
	378,168			195,253,202			46,264,151			1,849,075			64,735
	—			116,853			—			—			—
	—			—			73,097,025			8,670,825			—
	—			—			—			77,712			—
	1,696,403			8,104,198			5,396,082			14,564,359			2,567,437
	—			2,067,178			1,299,430			—			—
	—			2,357			—			4,008			—
	26,235			128,426			148,802			45,901			12,800
	6,741			25,304			24,443			47,747			9,701

	69,175,278			814,224,308			716,032,292			1,009,037,121			128,901,087


	—			120,179,200			149,558,250			176,010,262			31,882,548
	283,026			169,241,259			48,947,681			7,353,861			253,519
	—			—			—			119,709,882			—
	—			—			132,701			—			—
	20,750,000			—			—			—			—
	—			—			72,102,183			—			—
	—			2,728,629			2,680,283			—			—
	—			122,095,861			21,505,004			—			—
	77,175			1,290,089			2,016,551			350,282			45,465
	—			—			—			—			—
	43,780			205,013			231,479			470,577			60,553
	2,078			67,658			97,112			—			—
	26,235			128,426			148,802			45,901			12,800
	33			14,177			57,226			—			6,702
	69,118			195,943			164,896			134,939			93,429

	21,251,445			416,146,255			297,642,168			304,075,704			32,355,016

$	47,923,833		$	398,078,053		$	418,390,124		$	704,961,417		$	96,546,071


$	6,411		$	344,497		$	639,425		$	36,768		$	7,058
	92,938,867			406,532,068			525,523,492			700,832,170			98,695,235
	—			(17,377,850	)		—			—			—
	(26,235	)		2,180,817			(595,003	)		6,419,573			(12,800	)
	(34,567,433	)		9,852,458			(93,186,618	)		(2,214,977	)		(756,872	)
	(10,427,777	)		(3,453,937	)		(13,991,172	)		(112,117	)		(1,386,550	)

$	47,923,833		$	398,078,053		$	418,390,124		$	704,961,417		$	96,546,071


$	7.48		$	11.56		$	6.54		$	19.17		$	13.68


$	77,397,551		$	613,852,525		$	611,303,548		$	982,248,319		$	127,565,439
	—			—			—			386,386			—
	—			—			73,151,527			—			—
	—			2,917,398			2,868,468			—			—
	—			122,969,414			21,750,313			—			—
	—			1,757,400			—			—			—
	6,411,104			34,449,693			63,942,536			36,768,498			7,058,402

STATEMENTS OF OPERATIONS

For the year ended October 31, 2005


	Broad Investment Grade 2009 Term Trust Inc.¹(BCT)			Core Bond Trust (BHK)

Investment Income
Interest income	$	3,436,738		$	35,145,787
Other affiliated income		1,341			4,294

Total investment income		3,438,079			35,150,081

Expenses
Investment advisory		248,955			2,755,737
Administration		67,897			—
Transfer agent		10,851			14,965
Custodian		71,642			201,990
Reports to shareholders		31,345			116,400
Directors/Trustees		12,658			58,035
Registration		1,825			18,544
Independent accountants		47,361			63,913
Legal		27,377			105,453
Insurance		3,757			33,324
Deferred Trustees’ fee		1,341			4,294
Miscellaneous		13,253			72,249

Total expenses excluding interest expense and excise tax		538,262			3,444,904
Interest expense		182,554			10,768,498
Excise tax		352,123			—

Total expenses		1,072,939			14,213,402
Less fees waived by Advisor		—			—
Less fees paid indirectly		—			(9,682	)

Net expenses		1,072,939			14,203,720

Net investment income		2,365,140			20,946,361

Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		828,061			6,297,249
Foreign currency		—			2,713,506
Futures		(42,750	)		7,686,890
Interest rate swaps		172			(1,193,199	)
Options written		—			1,494,491
Short sales		—			27,694

		785,483			17,026,631

Net change in unrealized appreciation/depreciation on:
Investments		(3,199,814	)		(27,195,374	)
Foreign currency		—			180,169
Futures		(134,098	)		(632,282	)
Interest rate floors		—			—
Interest rate swaps		—			1,401,202
Credit default swaps		176			2,240
Options written		—			(681,787	)
Short sales		—			—

		(3,333,736	)		(26,925,832	)

Net loss		(2,548,253	)		(9,899,201	)


Net Increase (Decrease) in Net Assets Resulting from Operations	$	(183,113	)	$	11,047,160



¹	Consolidated Statement of Operations.

See Notes to Financial Statements.




High Yield Trust (BHY)			Income Opportunity Trust (BNA)			Income Trust Inc. (BKT)			Limited Duration Income Trust (BLW)			Strategic Bond Trust (BHD)


$	6,122,646		$	31,810,718		$	40,148,316		$	65,962,793		$	9,641,546
	1,665			10,399			9,829			3,308			797

	6,124,311			31,821,117			40,158,145			65,966,101			9,642,343


	739,567			2,474,512			2,795,230			5,675,801			991,562
	70,435			412,419			645,053			—			—
	16,060			29,200			85,400			17,885			14,965
	89,602			152,968			199,002			366,988			76,533
	40,806			127,671			154,855			175,664			32,040
	12,520			59,612			58,110			79,935			13,870
	17,410			24,351			44,530			27,615			18,775
	42,171			75,318			63,820			61,402			34,558
	6,118			85,060			57,369			93,833			1,989
	4,813			35,724			43,256			70,856			8,985
	1,665			10,399			9,829			3,308			797
	11,830			101,301			84,872			73,464			17,966

	1,052,997			3,588,535			4,241,326			6,646,751			1,212,040
	710,346			3,544,922			7,792,988			5,743,773			971,619
	—			—			—			—			—

	1,763,343			7,133,457			12,034,314			12,390,524			2,183,659
	—			—			—			—			(264,417	)
	(4,032	)		(7,810	)		(20,620	)		(62,718	)		(11,291	)

	1,759,311			7,125,647			12,013,694			12,327,806			1,907,951

	4,365,000			24,695,470			28,144,451			53,638,295			7,734,392


	863,475			4,116,519			(5,669,450	)		(2,461,619	)		(324,159	)
	—			—			—			11,452			—
	—			9,983,319			(6,286,755	)		—			—
	—			(2,214,104	)		(2,108,655	)		3,910			—
	—			2,090,580			(11,183	)		246,726			—
	—			339,049			(1,360,293	)		—			—

	863,475			14,315,363			(15,436,336	)		(2,199,531	)		(324,159	)


	(3,198,856	)		(26,513,426	)		(13,522,491	)		(32,088,372	)		(7,608,367	)
	—			—			—			76,984			—
	—			(4,455,818	)		6,979,802			—			—
	—			—			9,265			—			—
	—			1,465,515			3,187,784			—			—
	—			2,357			—			4,008			—
	—			(965,867	)		(1,185,793	)		(185	)		—
	—			327,492			1,474,383			—			—

	(3,198,856	)		(30,139,747	)		(3,057,050	)		(32,007,565	)		(7,608,367	)

	(2,335,381	)		(15,824,384	)		(18,493,386	)		(34,207,096	)		(7,932,526	)


$	2,029,619		$	8,871,086		$	9,651,065		$	19,431,199		$	(198,134	)

STATEMENTS OF CASH FLOWS
For the year ended October 31, 2005


	Broad Investment Grade 2009 Term Trust Inc (BCT)			Core Bond Trust (BHK)

Net Increase (Decrease) in net assets resulting from operations	$	(183,113	)	$	11,047,160

Purchases of long-term investments		(45,719,992	)		(6,335,366,352	)
Proceeds from sales of long-term investments		67,920,139			6,384,043,264
Net proceeds (purchases) of short-term investments		(2,761,930	)		18,241,178
Amortization of premium and discount on investments		1,272,212			2,118,306
Net realized loss (gain) on investments		(828,061	)		(9,034,013	)
Decrease in unrealized appreciation/depreciation on investments		3,199,814			27,015,205
Increase (Decrease) in investments sold short		—			—
Increase in outstanding options written		—			1,202,098
Increase (Decrease) in TBA Commitments		—			—
Increase in interest rate floor		—			—
Increase in interest rate swaps		—			(1,401,202	)
Increase in credit default swaps		(176	)		(2,240	)
Decrease (Increase) in receivable for investments sold		—			60,898,401
Decrease in variation margin receivable		23,313			170,032
Decrease (Increase) in unrealized gain on forgein currency exchange contracts		—			(340,719	)
Decrease (Increase) in interest receivable		180,851			(94,147	)
Decrease (Increase) in investments in affiliates		5,812			24,833
Decrease (Increase) in other assets		(11,551	)		(38,455	)
Increase (Decrease) in payable for investments purchased		—			(100,494,399	)
Increase (Decrease) in interest payable		(7,790	)		766,089
Increase (Decrease) in payable for dollar rolls		—			(2,561,368	)
Decrease in collateral due to broker		—			—
Increase (Decrease) in deposits with brokers		—			—
Increase (Decrease) in variation margin payable		—			—
Increase (Decrease) in investment advisory fee payable		(1,434	)		—
Increase (Decrease) in administration fee payable		(391	)		(32,840	)
Increase (Decrease) in deferred Directors/Trustees fees		4,966			14,055
Increase (Decrease) in payable to affiliates		44			(2,981	)
Increase (Decrease) in accrued expenses		1,912			65,356
Increase (Decrease) in due to parent		—			—

Total adjustments		23,277,738			45,190,101

Net cash provided by (used for) operating activities	$	23,094,625		$	56,237,261

Increase (Decrease) in Cash and Foreign Currency
Net cash provided by (used for) operating activities	$	23,094,625		$	56,237,261

Cash provided by (used for) financing activities:
Capital Contributions		—			—
Increase (Decrease) in reverse repurchase agreements		(19,262,500	)		(15,597,918	)
Increase in loan payable		—			—
Cash dividends paid		(3,796,316	)		(36,696,629	)
Cost of Trust shares reacquired		—			—

Net cash provided by (used for) financing activities		(23,058,816	)		(52,294,547	)

Net increase (decrease) in cash		35,809			3,942,714
Cash and foreign currency at beginning of year		45,939			48,740

Cash and foreign currency at end of year	$	81,748		$	3,991,454


¹	Consolidated Statement of Cash Flows.

See Notes to Financial Statements.



High Yield Trust (BHY)			Income Opportunity Trust (BNA)			Income Trust Inc. (BKT)			Limited Duration Income Trust (BLW)			Strategic Bond Trust (BHD)

$	2,029,619		$	8,871,086		$	9,651,065		$	19,431,199		$	(198,134	)

	(69,592,009	)		(7,857,225,052	)		(1,596,170,009	)		(2,057,187,494	)		(79,667,761	)
	70,383,838			7,874,145,476			1,630,929,666			2,051,064,147			65,492,193
	(1,657,102	)		926,098			6,574,961			(3,710,287	)		(681,768	)
	(24,984	)		2,663,759			14,262,687			2,289,553			277,146
	(863,475	)		(4,116,519	)		5,669,450			3,078,372			324,159
	3,198,814			26,513,426			13,522,491			32,011,388			7,608,367
	—			—			59,024,863			—			—
	—			1,325,645			1,139,095			—			—
	—			76,280,101			21,505,004			—			—
	—			—			(68,890	)		—			—
	—			(1,465,515	)		(856,894	)		—			—
	—			(2,357	)		—			(4,008	)		—
	1,473,625			(106,212,104	)		(27,924,676	)		8,774,091			626,735
	—			317,377			—			—			—
	—			—			—			77,100			—
	(116,122	)		(303,234	)		1,385,182			(335,382	)		11,416
	(5,290	)		(20,391	)		(20,312	)		(19,932	)		—
	(3,771	)		(944	)		41,291			65,652			(6,886	)
	(1,371,057	)		12,142,263			39,791,081			(3,225,459	)		(2,890,439	)
	—			488,993			610,080			225,369			7,009
	—			(17,775,500	)		—			(4,462,149	)		—
	—			(529,143	)		(646,730	)		(806,692	)		—
	—			—			(68,724,228	)		(8,670,825	)		—
	38,814			—			(309,835	)		—			39,310
	(35	)		(9,941	)		(11,907	)		(9,792	)		—
	(4	)		(1,656	)		(2,747	)		—			—
	5,290			20,391			(20,312	)		19,932			4,528
	(944	)		(6,145	)		(5,053	)		(3,381	)		(1,134	)
	(812	)		14,953			(20,591	)		(43,762	)		—
	—			—			—			—			(42,446	)

	1,464,776			7,169,981			99,673,667			19,126,441			(8,899,571	)

$	3,494,395		$	16,041,067		$	109,324,732		$	38,557,640		$	(9,097,705	)


$	3,494,395		$	16,041,067		$	109,324,732		$	38,557,640		$	(9,097,705	)


	67,537			—			—			822,572			145,218
	—			25,535,287			(74,177,339	)		16,594,531			18,694,694
	1,500,000			—			—			—			—
	(5,087,371	)		(37,436,482	)		(35,465,482	)		(54,517,748	)		(9,834,138	)
	—			—			—			—			—

	(3,519,834	)		(11,901,195	)		(109,642,821	)		(37,100,645	)		9,005,774

	(25,439	)		4,139,872			(318,089	)		1,456,995			(91,931	)
	123,396			(4,061,767	)		406,123			320,608			159,456

$	97,957		$	78,105		$	88,034		$	1,777,603		$	67,525

STATEMENTS OF CHANGES IN NET ASSETS
For the years ended October 31, 2005 and 2004


	Broad Investment Grade 2009 Term Trust Inc.¹ (BCT)						Core Bond Trust (BHK)

	2005			2004			2005			2004

Increase (Decrease) in Net Assets
Operations:
Net investment income	$	2,365,140		$	1,807,108		$	20,946,361		$	24,880,206
Net realized gain (loss)		785,483			(654,975	)		17,026,631			11,672,686
Net change in unrealized appreciation/depreciation		(3,333,736	)		1,383,412			(26,925,832	)		6,039,881

Net increase (decrease) in net assets resulting from operations		(183,113	)		2,535,545			11,047,160			42,592,773

Dividends and Distributions:
Net investment income		(3,053,790	)		(2,661,384	)		(27,245,732	)		(23,226,362	)
Net realized gain		(742,526	)		—			(9,450,897	)		(6,742,863	)
Tax return of capital		—			—			—			—

Total dividends and distributions		(3,796,316	)		(2,661,384	)		(36,696,629	)		(29,969,225	)

Capital Share Transactions:
Reinvestment of dividends		—			—			—			—

Total increase (decrease)		(3,979,429	)		(125,839	)		(25,649,469	)		12,623,548

Net Assets:
Beginning of year		47,255,433			47,381,272			411,163,258			398,539,710

End of year	$	43,276,004		$	47,255,433		$	385,513,789		$	411,163,258

End of year undistributed (distribution in excess of) net investment income	$	4,778,321		$	7,945,414		$	515,459		$	2,267,985



¹	Consolidated Statement of Changes in Net Assets.

See Notes to Financial Statements.


High Yield Trust (BHY)						Income Opportunity Trust (BNA)						Income Trust Inc. (BKT)

2005			2004			2005			2004			2005			2004

$	4,365,000		$	5,860,489		$	24,695,470		$	26,125,045		$	28,144,451		$	31,946,835
	863,475			(316,410	)		14,315,363			10,285,218			(15,436,336	)		(8,309,572	)
	(3,198,856	)		6,773,216			(30,139,747	)		8,190,164			(3,057,050	)		(1,727,131	)


	2,029,619			12,317,295			8,871,086			44,600,427			9,651,065			21,910,132


	(5,087,371	)		(5,864,606	)		(27,821,573	)		(28,937,742	)		(30,667,298	)		(38,921,208	)
	—			—			(9,614,909	)		—			—			—
	—			(187,188	)		—			—			(4,798,184	)		—

	(5,087,371	)		(6,051,794	)		(37,436,482	)		(28,937,742	)		(35,465,482	)		(38,921,208	)


	67,545			210,485			—			—			1,569,925			2,335,670

	(2,990,207	)		6,475,986			(28,565,396	)		15,662,685			(24,244,492	)		(14,675,406	)


	50,914,040			44,438,054			426,643,449			410,980,764			442,634,616			457,310,022

$	47,923,833		$	50,914,040		$	398,078,053		$	426,643,449		$	418,390,124		$	442,634,616

$	(26,235	)	$	(20,945	)	$	2,180,817		$	2,972,407		$	(595,003	)	$	3,499,237

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended October 31, 2005 and 2004


	Limited Duration Income Trust (BLW)						Strategic Bond Trust (BHD)

	2005			2004			2005			2004

Net Increase (Decrease) in Net Assets

Operations:
Net investment income	$	53,638,295		$	53,609,041		$	7,734,392		$	9,814,985
Net realized gain (loss)		(2,199,531	)		5,497,164			(324,159	)		1,061,047
Net change in unrealized appreciation/depreciation		(32,007,565	)		10,020,060			(7,608,367	)		648,992

Net increase (decrease) in net assets resulting from operations		19,431,199			69,126,265			(198,134	)		11,525,024

Dividends and Distributions
Net investment income		(49,020,501	)		(54,687,174	)		(7,935,935	)		(11,337,469	)
Net realized gain		(5,497,247	)		(390,466	)		—			—
Tax return of capital		—			—			(1,898,203	)		—

Total dividends and distributions		(54,517,748	)		(55,077,640	)		(9,834,138	)		(11,337,469	)

Capital Share Transactions:
Reinvestment of common dividends		822,572			429,365			145,218			200,599

Total increase (decrease)		(34,263,977	)		14,477,990			(9,887,054	)		388,154

Net Assets
Beginning of year		739,225,394			724,747,404			106,433,125			106,044,971

End of year	$	704,961,417		$	739,225,394		$	96,546,071		$	106,433,125

End of period undistributed (distributions in excess of) net investment income	$	6,419,573		$	1,786,417		$	(12,800	)	$	188,743

See Notes to Financial Statements.


CONSOLIDATED FINANCIAL HIGHLIGHTS

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


	Year Ended October 31,

	2005			2004			2003			2002			2001

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year	$	15.98		$	16.02		$	17.33		$	16.05		$	13.64

Investment operations:
Net investment income		0.80			0.61			1.28			2.01			1.17
Net realized and unrealized gain (loss)		(0.87	)		0.25			(1.40	)		0.04			2.01

Net increase (decrease) from investment operations		(0.07	)		0.86			(0.12	)		2.05			3.18

Dividends and distributions:
Net investment income		(1.03	)		(0.90	)		(1.19	)		(0.77	)		(0.77	)
Net realized gains		(0.25	)		—			—			—			—

Total dividends and distributions		(1.28	)		(0.90	)		(1.19	)		(0.77	)		(0.77	)

Net asset value, end of year	$	14.63		$	15.98		$	16.02		$	17.33		$	16.05

Market price, end of year	$	15.86		$	15.80		$	15.85		$	16.18		$	14.39

TOTAL INVESTMENT RETURN¹		8.74	%		5.45	%		5.32	%		18.34	%		27.66	%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		2.37	%		2.48	%		2.43	%		2.50	%		3.52	%
Net expenses		2.37	%		2.48	%		2.43	%		2.50	%		3.52	%
Net expenses excluding interest expense and excise tax		1.19	%		1.11	%		1.18	%		1.16	%		1.16	%
Net investment income		5.23	%		3.83	%		7.54	%		12.22	%		7.93	%
SUPPLEMENTAL DATA:
Average net assets	$	45,264		$	47,191		$	49,882		$	48,731		$	43,701
Portfolio turnover		116	%		20	%		39	%		35	%		19	%
Net assets, end of year (000)	$	43,276		$	47,255		$	47,381		$	51,244		$	47,466
Reverse repurchase agreements outstanding, end of year (000)	$	—		$	19,263		$	19,953		$	23,669		$	13,373
Asset coverage, end of year²	$	—		$	3,453		$	3,375		$	3,165		$	4,550
Reverse repurchase agreements average daily balance (000)	$	7,865		$	22,055		$	19,409		$	18,388		$	18,080
Reverse repurchase agreements weighted average interest rate		2.32	%		1.20	%		1.21	%		1.82	%		4.94	%



¹	Total investment return is calculated assuming a purchase of a share at the curent market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Past performance is not a guarantee of future results.
²	Per $1,000 of reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.


FINANCIAL HIGHLIGHTS

BlackRock Core Bond Trust (BHK)


										For the period November 30, 2001¹through October 31, 2002
	Year Ended October 31,

	2005			2004			2003

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	15.22		$	14.75		$	14.33		$	14.33²

Investment operations:
Net investment income		0.78			0.92			0.83			0.99
Net realized and unrealized gain (loss)		(0.37	)		0.66			0.77			0.04

Net increase from investment operations		0.41			1.58			1.60			1.03

Dividends and distributions from:
Net investment income		(1.01	)		(0.86	)		(1.00	)		(1.00	)
Net realized gains		(0.35	)		(0.25	)		(0.18	)		—

Total dividends and distributions		(1.36	)		(1.11	)		(1.18	)		(1.00	)

Capital charges with respect to issuance of shares		—			—			—			(0.03	)

Net asset value, end of period	$	14.27		$	15.22		$	14.75		$	14.33

Market price, end of period	$	13.69		$	14.02		$	13.57		$	13.82

TOTAL INVESTMENT RETURN³		7.46	%		11.93	%		6.62	%		(1.02	%)

RATIOS TO AVERAGE NET ASSETS:
Total expenses		3.53	%		1.32	%		1.05	%		1.04	%⁴
Net expenses		3.53	%		1.32	%		1.05	%		1.04	%⁴
Net expenses excluding interest expense		0.85	%		0.92	%		0.87	%		0.93	%⁴
Net investment income		5.20	%		6.20	%		5.58	%		7.67	%⁴
SUPPLEMENTAL DATA:
Average net assets	$	402,783		$	401,212		$	401,049		$	380,277
Portfolio turnover		220	%		398	%		161	%		73	%
Net assets, end of period (000)	$	385,514		$	411,163		$	398,540		$	387,238
Reverse repurchase agreements outstanding, end of period (000)	$	86,876		$	102,474		$	91,668		$	165,215
Asset coverage, end of period⁵	$	5,438		$	5,012		$	5,348		$	3,342
Reverse repurchase agreements average daily balance (000)	$	91,130		$	145,094		$	67,591		$	35,207
Reverse repurchase agreements weighted average interest rate		2.86	%		1.11	%		1.05	%		1.04	%



¹	Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
²	Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.
³	Total investment return is calculated assuming a purchase of a share at the curent market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
⁴	Annualized.
⁵	Per $1,000 of reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.


FINANCIAL HIGHLIGHTS

BlackRock High Yield Trust (BHY)


	Year Ended October 31,

	2005			2004			2003			2002			2001

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year	$	7.95		$	6.96		$	6.13		$	7.20		$	10.60

Investment operations:
Net investment income		0.68			0.92			1.06			1.20			1.32
Net realized and unrealized gain (loss)		(0.36	)		1.02			0.89			(0.98	)		(3.13	)

Net increase (decrease) from investment operations		0.32			1.94			1.95			0.22			(1.81	)

Dividends and Distributions:
Net investment income		(0.79	)		(0.92	)		(1.07	)		(1.20	)		(1.48	)
Tax return of capital		—			(0.03	)		(0.05	)		(0.09	)		(0.11	)

Total dividends and distributions		(0.79	)		(0.95	)		(1.12	)		(1.29	)		(1.59	)

Net asset value, end of year	$	7.48		$	7.95		$	6.96		$	6.13		$	7.20

Market price, end of year	$	7.36		$	9.30		$	10.25		$	8.68		$	9.18

TOTAL INVESTMENT RETURN¹		(13.49	%)		0.28	%		32.87	%		7.97	%		(11.31	%)

RATIOS TO AVERAGE NET ASSETS:
Total expenses		3.52	%		2.69	%		3.07	%		3.45	%		4.90	%
Net expenses		3.51	%		2.68	%		3.07	%		3.45	%		4.90	%
Net expenses excluding interest expense		2.10	%		1.96	%		2.22	%		2.20	%		2.03	%
Net investment income		8.71	%		12.16	%		16.37	%		16.29	%		14.23	%
SUPPLEMENTAL DATA:
Average net assets	$	50,104		$	48,186		$	41,326		$	46,751		$	58,553
Portfolio turnover		102	%		156	%		30	%		147	%		71	%
Net assets, end of year (000)	$	47,924		$	50,914		$	44,438		$	38,953		$	45,520
Loan outstanding, end of year (000)	$	20,750		$	19,250		$	19,250		$	19,250		$	23,000
Asset coverage, end of year²	$	3,310		$	3,645		$	3,308		$	3,024		$	2,893
Loan average daily balance (000)	$	20,425		$	19,250		$	19,250		$	22,664		$	28,449
Loan weighted average interest rate		2.87	%		1.80	%		1.96	%		2.65	%		5.90	%



¹	Total investment return is calculated assuming a purchase of a share at the curent market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Past performance is not a guarantee of future results.
²	Per $1,000 of loan outstanding.

See Notes to Financial Statements.


FINANCIAL HIGHLIGHTS

BlackRock Income Opportunity Trust (BNA)


	Year Ended October 31,

	2005			2004			2003			2002			2001

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year	$	12.38		$	11.93		$	11.83		$	11.47		$	11.03

Investment operations:
Net investment income		0.72			0.76			0.84			1.15			0.87
Net realized and unrealized gain (loss)		(0.45	)		0.53			0.31			(0.05	)		0.34

Net increase from investment operations		0.27			1.29			1.15			1.10			1.21

Dividends and distributions from:
Net investment income		(0.81	)		(0.84	)		(0.81	)		(0.75	)		(0.23	)
Net realized gains		(0.28	)		—			(0.24	)		—			—
Tax return of capital		—			—			—			—			(0.54	)

Total dividends and distributions		(1.09	)		(0.84	)		(1.05	)		(0.75	)		(0.77	)

Increase resulting from Trust shares repurchased		—			—			—			0.01			—

Net asset value, end of year	$	11.56		$	12.38		$	11.93		$	11.83		$	11.47

Market price, end of year	$	10.90		$	11.38		$	10.95		$	10.50		$	10.41

TOTAL INVESTMENT RETURN¹		5.53	%		12.04	%		14.71	%		8.44	%		15.09	%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		1.72	%		1.11	%		1.29	%		1.40	%		3.62	%
Net expenses		1.72	%		1.11	%		1.29	%		1.40	%		3.62	%
Net expenses excluding interest expense		0.87	%		0.84	%		0.89	%		0.93	%		1.01	%
Net investment income		5.97	%		6.29	%		6.99	%		10.04	%		7.76	%
SUPPLEMENTAL DATA:
Average net assets	$	413,777		$	415,131		$	413,543		$	394,495		$	388,478
Portfolio turnover		396	%		300	%		46	%		153	%		83	%
Net assets, end of year (000)	$	398,078		$	426,643		$	410,981		$	407,480		$	397,756
Reverse repurchase agreements outstanding, end of year (000)	$	120,179		$	94,644		$	103,378		$	85,704		$	136,385
Asset coverage, end of year²	$	4,312		$	5,508		$	4,976		$	5,755		$	3,916
Reverse repurchase agreements average daily balance (000)	$	122,457		$	97,264		$	136,172		$	36,153		$	151,804
Reverse repurchase agreements weighted average interest rate		2.87	%		1.14	%		1.22	%		1.93	%		4.92	%



¹	Total investment return is calculated assuming a purchase of a share at the curent market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Past performance is not a guarantee of future results.
²	Per $1,000 of reverse repurchase agreements outstanding.

See Notes to Financial Statements.


FINANCIAL HIGHLIGHTS

BlackRock Income Trust Inc. (BKT)


	Year Ended October 31,

	2005			2004			2003			2002			2001

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year	$	6.95		$	7.21		$	8.13		$	8.06		$	7.23

Investment operations:
Net investment income		0.44			0.51			0.61			0.99			0.56
Net realized and unrealized gain (loss)		(0.30	)		(0.16	)		(0.52	)		(0.35	)		0.83

Net increase from investment operations		0.14			0.35			0.09			0.64			1.39

Dividends and Distributions:
Net investment income		(0.48	)		(0.61	)		(1.01	)		(0.57	)		(0.56	)
Tax return of capital		(0.07	)		—			—			—			—

Total dividends and distributions		(0.55	)		(0.61	)		(1.01	)		(0.57	)		(0.56	)

Net asset value, end of year	$	6.54		$	6.95		$	7.21		$	8.13		$	8.06

Market price, end of year	$	5.90		$	7.50		$	7.71		$	8.07		$	7.26

TOTAL INVESTMENT RETURN¹		(14.63	)%		5.97	%		15.41	%		15.35	%		23.23	%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		2.80	%		1.37	%		1.36	%		2.05	%		2.54	%
Net expenses		2.79	%		1.37	%		1.36	%		2.05	%		2.54	%
Net expenses excluding interest expense		0.99	%		0.97	%		1.02	%		1.03	%		1.03	%
Net investment income		6.54	%		7.13	%		8.18	%		12.28	%		7.43	%
SUPPLEMENTAL DATA:
Average net assets	$	430,035		$	447,984		$	472,676		$	506,533		$	470,185
Portfolio turnover		60	%		120	%		64	%		125	%		32	%
Net assets, end of year (000)	$	418,390		$	442,635		$	457,301		$	511,385		$	506,764
Reverse repurchase agreements outstanding, end of year (000)	$	149,558		$	223,736		$	121,767		$	205,792		$	118,634
Asset coverage, end of year²	$	3,798		$	2,978		$	4,756		$	3,485		$	5,272
Reverse repurchase agreements average daily balance (000)	$	180,553		$	158,278		$	135,804		$	173,501		$	148,204
Reverse repurchase agreements weighted average interest rate		2.81	%		1.12	%		1.17	%		1.81	%		4.78	%



¹	Total investment return is calculated assuming a purchase of a share at the curent market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Past performance is not a guarantee of future results.
²	Per $1,000 of reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.


FINANCIAL HIGHLIGHTS

BlackRock Limited Duration Income Trust (BLW)


							For the Period July 30, 2003¹through October 31, 2003
	Year Ended October 31,

	2005			2004

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	20.13		$	19.74			$	19.10	²

Investment operations:
Net investment income		1.46			1.46				0.33
Net realized and unrealized gain (loss)		(0.94	)		0.43				0.60

Net increase from investment operations		0.52			1.89				0.93

Dividends and distributions from:
Net investment income		(1.33	)		(1.49	)			(0.25	)
Net realized gains		(0.15	)		(0.01	)			—

Total dividends and distributions		(1.48	)		(1.50	)			(0.25	)

Capital charges with respect to issuance of shares		—			—				(0.04	)

Net asset value, end of period	$	19.17		$	20.13			$	19.74

Market price, end of period	$	17.48		$	19.95			$	18.80

TOTAL INVESTMENT RETURN³		(5.30	)%		14.64	%			(4.77	)%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		1.71	%		1.26	%			0.82	%⁴
Net expenses		1.71	%		1.25	%			0.82	%⁴
Net expenses excluding interest expense		0.92	%		0.90	%			0.79	%⁴
Net investment income		7.42	%		7.34	%			6.87	%⁴
SUPPLEMENTAL DATA:
Average net assets (000)	$	722,668		$	730,369			$	686,655
Portfolio turnover		70	%		215	%			127	%
Net assets, end of period (000)	$	704,961		$	739,225			$	724,747
Reverse repurchase agreements outstanding, end of period (000)	$	176,010		$	159,416			$	118,993
Asset coverage, end of period⁵	$	5,005		$	5,637			$	7,091
Reverse repurchase agreements average daily balance (000)	$	186,660		$	195,845			$	26,591
Reverse repurchase agreements weighted average interest rate		3.08	%		1.32	%			0.76	%



¹	Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
²	Net asset value, beginning of period, reflects a deduction of $0.90 per share sales charge from the initial offering price of $20.00 per share.
³	Total investment return is calculated assuming a purchase of a share at the curent market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
⁴	Annualized.
⁵	Per $1,000 reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.


FINANCIAL HIGHLIGHTS

BlackRock Strategic Bond Trust (BHD)


										For the period February 28, 2002¹through October 31, 2002

	Year Ended October 31,

	2005			2004			2003

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	15.10		$	15.07		$	12.63			$	14.33	²

Investment operations:
Net investment income		1.10			1.39			1.59				0.98
Net realized and unrealized gain (loss)		(1.13	)		0.25			2.34				(1.77	)

Net increase (decrease) from investment operations		(0.03	)		1.64			3.93				(0.79	)

Dividends and Distributions:
Net investment income		(1.12	)		(1.61	)		(1.49	)			(0.84	)
Tax return of capital		(0.27	)		—			—				—

Total dividends and distributions		(1.39	)		(1.61	)		(1.49	)			(0.84	)

Capital charges with respect to issuance of shares		—			—			—				(0.07	)

Net asset value, end of period	$	13.68		$	15.10		$	15.07			$	12.63

Market price, end of period	$	12.45		$	16.70		$	15.27			$	12.35

TOTAL INVESTMENT RETURN³		(18.11	)%		21.54	%		37.36	%			(12.34	)%

RATIOS TO AVERAGE NET ASSETS:
Total expenses		2.14	%		1.49	%		2.01	%			2.57	%⁴
Net expenses		1.87	%		1.23	%		1.71	%			2.26	%
Net expenses excluding interest expense and excise tax		0.92	%		0.89	%		1.01	%			1.25	%⁴
Net investment income		7.58	%		9.23	%		11.32	%			10.68	%⁴
SUPPLEMENTAL DATA:
Average net assets	$	101,990		$	106,330		$	98,498			$	95,675
Portfolio turnover		51	%		31	%		32	%			22	%
Net assets, end of period (000)	$	96,546		$	106,433		$	106,045			$	88,594
Reverse repurchase agreements outstanding, end of period (000)	$	31,883		$	13,188		$	45,872			$	44,223
Asset coverage, end of period⁵	$	4,028		$	9,071		$	3,312			$	3,003
Reverse repurchase agreements average daily balance (000)	$	30,406		$	27,652		$	46,036			$	44,889
Reverse repurchase agreements weighted average interest rate		3.20	%		1.33	%		1.51	%			1.45	%



¹	Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.
²	Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.
³	Total investment return is calculated assuming a purchase of a share at the curent market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.
⁴	Annualized.
⁵	Per $1,000 of reverse repurchase agreements outstanding.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

NOTES TO FINANCIAL STATEMENTS (unaudited)

Note 1. Organization & Accounting Policies

BlackRock Broad Investment Grade 2009 Term Trust Inc. (“Broad Investment Grade”), BlackRock Core Bond Trust (“Core Bond”), BlackRock High Yield Trust (“High Yield”), BlackRock Income Opportunity Trust (“Income Opportunity”), BlackRock Income Trust Inc. (“Income Trust”), BlackRock Limited Duration Income Trust (“Limited Duration”) and BlackRock Strategic Bond Trust (“Strategic Bond”) (collectively, the “Trusts”) are registered as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended. Broad Investment Grade, Income Opportunity and Income Trust are organized as Maryland corporations. Core Bond, High Yield, Limited Duration and Strategic Bond are organized as Delaware statutory trusts.

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

The following is a summary of significant accounting policies followed by the Trusts.

Investment Valuation: The Trusts value most of their investments on the basis of current market quotations provided by dealers or pricing services selected under the supervision of each Trust’s Board (the “Board”) of Directors/Trustees (the “Trustees”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, market transactions in comparable investments, various relationships observed in the market between investments, and calculated yield measures based on valuation technology commonly employed in the market for such investments. Exchange-traded options are valued at their last sales price as of the close of options trading on applicable exchanges. In the absence of a last sale, options are valued at the average of the quoted bid and asked prices as of the close of business. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Swap quotations are provided by dealers selected under the supervision of the Board. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value. Investments or assets for which such current market quotations are not readily available are valued at fair value (“Fair Value Assets”) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust’s Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to the Board.

When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust 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 BlackRock Advisors deems relevant.

Investment Transactions and Investment Income: Investment transactions are recorded on trade date. The cost of investments sold and the related gain or loss is determined by use of the specific identification method, generally first-in, first out, for both financial reporting and federal income tax purposes. Each Trust records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.

Repurchase Agreements: In connection with transactions in repurchase agreements, a Trust’s custodian takes possession of the underlying collateral securities, the value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by a Trust may be delayed or limited.

Bank Loans: In the process of buying, selling and holding bank loans, a Trust may receive and/or pay certain fees. These fees are in addition to interest payments received and may include facility fees, commitment fees, amendment fees, commissions and prepayment penalty fees. When a Trust buys a bank loan it may receive a facility fee and when it sells a bank loan it may pay a facility fee. On an ongoing basis, a Trust may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a bank loan. In certain circumstances, a Trust may receive a prepayment penalty fee upon the prepayment of a bank loan by a borrower. Other fees received by a Trust may include covenant waiver fees and covenant modification fees.

Option Writing/Purchasing: When a Trust writes or purchases an option, an amount equal to the premium received or paid by the Trust is recorded as an asset or a liability and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Trust on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or a loss on investment transactions. A Trust, as writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option.

Options, when used by the Trusts, help in maintaining a targeted duration. Duration is a measure of the price sensitivity of a security or a portfolio to relative changes in interest rates. For instance, a duration of “one” means that a portfolio’s or a security’s price would be expected to change by approximately one percent with a one percent change in interest rates, while a duration of five would imply that the price would move approximately five percent in relation to a one percent change in interest rates.

Option writing and purchasing may be used by the Trusts as an attempt to manage the duration of positions, or collections of positions, so that changes in interest rates do not adversely affect the targeted duration of the portfolio unexpectedly. A call option gives the purchaser of the option the right (but not 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. Put or call options can be purchased or sold to help manage the targeted duration of the portfolio.

The main risk that is associated with purchasing options is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is considered the loss. The risk associated with writing call options is that a Trust may forgo the opportunity for a profit if the market value of the underlying position increases and the option is exercised. The risk in writing put options is that a Trust may incur a loss if the market value of the underlying position decreases and the option is exercised. In addition, the Trust risks not being able to enter into a closing transaction for the written option as the result of an illiquid market.

Stripped Mortgage-Backed Securities: 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 IOs is sensitive to the rate of principal repayments (including prepayments) on the related underlying mortgage assets, and principal payments may have a material effect on yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, a Trust may not fully recoup its initial investment in IOs. Such securities will be considered liquid only if so determined in accordance with guidelines established by the Trustees.

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. Risks arise from the possible inability of the counterparties to meet the terms of their contracts.

During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by “marking-to-market” to reflect the market value of the swap. When the swap is terminated, a Trust will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract, if any.

The Trusts are exposed to credit loss in the event of non-performance by the other party to the swap. However, the Trusts closely monitor swaps and do not anticipate non-performance by any counterparty.

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 Trust will receive a payment from or make a payment to the counterparty.

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. Interest rate swaps are efficient as asset/liability management tools. In more complex swaps, the notional principal amount may decline (or amortize) over time.

Swap Options: Swap options are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swap option is granting or buying the right to enter into a previously agreed upon interest rate swap agreement at any time before the expiration of the option. Premiums received or paid from writing or purchasing options are recorded as liabilities or assets and are subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by a Trust on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commission, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or loss on investment transactions.

The main risk that is associated with purchasing swap options is that the swap option expires without being exercised. In this case, the option expires worthless and the premium paid for the swap option is considered the loss. The main risk that is associated with the writing of a swap option is the market risk of an unfavorable change in the value of the interest rate swap underlying the written swap option.

Swap options may be used by the Trusts to manage the duration of the Trusts’ portfolios in a manner similar to more generic options described above.

Interest Rate Caps: Interest rate caps are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party pays the excess, if any, of a floating rate over a specified fixed or floating rate.

Interest rate caps are intended to both manage the duration of the Trusts’ portfolios and their exposure to changes in short-term interest rates. Owning interest rate caps reduces a portfolio’s duration, making it less sensitive to changes in interest rates from a market value perspective. The effect on income involves protection from rising short-term interest rates, which the Trusts experience primarily in the form of leverage.

The Trusts are exposed to credit loss in the event of non-performance by the other party to the interest rate cap. However, the Trusts do not anticipate non-performance by any counterparty.

Transaction fees paid or received by the Trusts are recognized as assets or liabilities and amortized or accreted into interest expense or income over the life of the interest rate cap. The asset or liability is subsequently adjusted to the current market value of the interest rate cap purchased or sold. Changes in the value of the interest rate cap are recognized as unrealized gains and losses.

Interest Rate Floors: Interest rate floors are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party pays the deficiency, if any, of a floating rate under a specified fixed or floating rate.

Interest rate floors are used by the Trusts to both manage the duration of the portfolios and their exposure to changes in short-term interest rates. Selling interest rate floors reduces a portfolio’s duration, making it less sensitive to changes in interest rates from a market value perspective. The Trusts’ leverage provides extra income in a period of falling rates. Selling floors reduces some of that extra income by partially monetizing it as an up-front payment which the Trusts receive.

The Trusts are exposed to credit loss in the event of non-performance by the other party to the interest rate floor. However, the Trusts do not anticipate non-performance by any counterparty.

Transaction fees paid or received by the Trusts are recognized as assets or liabilities and amortized or accreted into interest expense or income over the life of the interest rate floor. The asset or liability is subsequently adjusted to the current market value of the interest rate floor purchased or sold. Changes in the value of the interest rate floor are recognized as unrealized gains and losses.

Financial Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by marking-to-market on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, a Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract.

Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly.

Forward Currency Contracts: The Trusts enter into forward currency contracts primarily to facilitate settlement of purchases and sales of foreign securities and to help manage the overall exposure to foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date (usually the security transaction settlement date) at a negotiated forward rate. In the event that a security fails to settle within the normal settlement period, the forward currency contract is renegotiated at a new rate. The gain or loss arising from the difference between the settlement value of the original and renegotiated forward contracts is isolated and is included in net realized gains (losses) from foreign currency transactions. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contract.

Forward currency contracts, when used by the Trusts, help to manage the overall exposure to the foreign currency backing some of the investments held by the Trusts. Forward currency contracts are not meant to be used to eliminate all of the exposure to the foreign currency, rather they allow the Trusts to limit their exposure to foreign currency within a narrow band to the objectives of the Trusts.

Foreign Currency Translation: Foreign currency amounts are translated into United States dollars on the following basis:


(i)	market value of investment securities, other assets and liabilities—at the London 4:00 PM rates of exchange. Effective as of November 7, 2005, the 4:00 PM Eastern Standard Time rates of exchange will be used.

(ii)	purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.

The Trusts isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Trusts isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the period.

Net realized and unrealized foreign exchange gains and losses includes realized foreign exchange gains and losses from sales and maturities of foreign portfolio securities, maturities of foreign reverse repurchase agreements, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of interest and discount recorded on the Trusts’ books and the U.S. dollar equivalent amounts actually received or paid and changes in unrealized foreign exchange gains and losses in the value of portfolio securities and other assets and liabilities arising as a result of changes in the exchange rate.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

Short Sales: The Trusts may make short sales of securities as a method of managing potential price declines in similar securities owned. When a Trust 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 Trusts may have to pay a fee to borrow the particular securities and may be obligated to pay over any payments received on such borrowed securities. A gain, limited to the price at which a Trust sold the security short, or a loss, unlimited as to dollar amount, will be recognized upon the termination of a short sale if the market price is greater or less than the proceeds originally received.

Bonds Borrowed Agreements: In a bonds borrowed agreement, the Trust borrows securities from a third party, with the commitment that they will be returned to the lender on an agreed-upon date. Bonds borrowed agreements are primarily entered into to settle short positions. In a bonds borrowed agreement, the Trust’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 bonds borrowed transaction, including accrued interest. To the extent that bonds borrowed 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 Trust may be delayed or limited.

Segregation: In cases in which the Investment Company Act of 1940, as amended (the “1940 Act”), and the interpretive positions of the Securities and Exchange Commission (the “Commission”) require a Trust to segregate assets in connection with certain investments (e.g., when-issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the Commission, designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.

Federal Income Taxes: It is each Trust’s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient amounts of their taxable income to shareholders. Therefore, no Federal income tax provisions are required. 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.

Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss car-ryforwards may be distributed in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trust’s Board, non-interested Trustees are required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end funds selected by the Trustees. This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Trustees in order to match its deferred compensation obligations.

Reclassification of Capital Accounts: In order to present undistributed (distribution in excess of) net investment income (“UNII”), accumulated net realized gain (“Accumulated Gain”) and paid-in-capital (“PIC”) more closely to its tax character, the following accounts for each Trust were increased (decreased):


Trust	UNII			Accumulated Gain				PIC

Broad Investment Grade	$	(2,478,442	)		$	(509,131	)	$	2,987,573
Core Bond		4,546,845				(4,545,298	)		(1,547	)
High Yield		717,081				—			(717,081	)
Income Opportunity		2,334,513				(2,334,513	)		—
Income Trust		(1,571,393	)			1,571,393			—
Limited Duration		15,362				(15,362	)		—
Strategic Bond		1,898,203				—			(1,898,203	)

Note 2. Agreements

Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the “Advisor”), which is a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to Core Bond, Limited Duration and Strategic Bond. BlackRock, Inc. is an indirect, majority owned subsidiary of The PNC Financial Services Group, Inc.

Broad Investment Grade, High Yield, Income Opportunity and Income Trust each have an Administration Agreement with the Advisor. The Investment Management Agreement for Core Bond, Limited Duration and Strategic Bond covers both investment advisory and administration services.

Each Trust’s investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.55% for Broad Investment Grade, 0.60% for Income Opportunity and 0.65% for Income Trust, of each Trust’s average net assets and 0.55% for Core Bond and Limited Duration, 1.05% for High Yield and 0.75% for Strategic Bond, of each Trust’s average weekly managed assets. “Managed assets” means the total assets of a Trust (including any assets attributable to any borrowing that may be outstanding) 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 Strategic Bond as a percentage of its average weekly managed assets as follows: 0.20% for the first 5 years of the Trust’s operations, 0.15% in year 6, 0.10% in year 7 and 0.05% in year 8.

The administration fee paid to the Advisor by Broad Investment Grade, High Yield, Income Opportunity and Income Trust is computed weekly and payable monthly based on an annual rate of 0.15%, 0.05%, 0.10%, and 0.15%, respectively of the Trusts’ average weekly managed assets.

Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, as well as occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for cost of employees that provide pricing, secondary market support, and compliance services to each Trust. For the year ended October 31, 2005, the Trusts reimbursed the Advisor the following amounts:


Trust	Amount		Trust	Amount

Broad Investment Grade	$	3,650	Income Trust	$	31,087
Core Bond		24,820	Limited Duration		24,820
High Yield		2,500	Strategic Bond		6,198
Income Opportunity		25,652

Pursuant to the terms of their custody agreements, Core Bond, High Yield, Income Opportunity, Income Trust, Limited Duration and Strategic Bond received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees.

Note 3. Portfolio Investments

Purchases and sales of investment securities, other than short-term investments, dollar rolls and U.S. government securities, for the year ended October 31, 2005, aggregated as follows:


Trust	Purchases		Sales		Trust	Purchases		Sales

Broad Investment Grade	$	31,083,360	$	31,914,231	Income Trust	$	149,707,225	$	154,480,452
Core Bond		343,708,046		394,094,432	Limited Duration		719,043,234		716,261,831
High Yield		69,592,009		70,138,264	Strategic Bond		78,237,356		64,945,130
Income Opportunity		969,733,044		1,011,842,678

Purchases and sales of U.S. government securities for the year ended October 31, 2005 aggregated as follows:


Trust	Purchases		Sales		Trust	Purchases		Sales

Broad Investment Grade	$	14,636,632	$	36,005,908	Income Trust	$	224,933,848	$	254,777,853
Core Bond		1,070,707,534		1,068,262,108	Limited Duration		11,853,749		8,548,029
High Yield		—		245,574	Strategic Bond		1,430,405		547,063
Income Opportunity		1,333,797,883		1,388,765,858

Each Trust may from time to time purchase in the secondary market certain mortgage pass-through securities packaged or master serviced by affiliates or mortgage-related securities containing loans or mortgages originated by PNC Bank or its affiliates, including Midland Loan Services, Inc., each of which is an affiliate of BlackRock Advisors, Inc. It is possible under certain circumstances, that PNC Mortgage Securities Corp. or its affiliates, including Midland Loan Services, Inc., could have interests that are in conflict with the holders of these mortgage-backed securities, and such holders could have rights against PNC Mortgage Securities Corp. or its affiliates, including Midland Loan Services, Inc.

For Federal income tax purposes, the following Trusts had capital loss carryforwards as of their last respective tax year end. These amounts may be used to offset future realized capital gains, if any:


Trust	Capital Loss Carryforward Amount			Expires	Trust	Capital Loss Carryforward Amount			Expires

Broad Investment Grade		$	2,518,895	2011	Income Trust		$	33,107,952	2007
			684,360	2012				1,352,206	2008

			3,203,255					13,940,898	2009


High Yield		$	2,558,868	2007				21,960,613	2011
			3,270,311	2008				10,100,201	2012
			15,159,280	2009				3,861,222	2013

			8,468,860	2010			$	84,323,092


			4,771,417	2011	Limited Duration		$	2,008,113	2013


			316,410	2012	Strategic Bond		$	432,713	2011

		$	34,545,146					318,492	2013

							$	751,205

Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its carryforward amounts. As of October 31, 2005 High Yield used $884,735 in capital loss carryforwards to offset net taxable gains.

Details of open forward currency contracts at October 31, 2005 were as follows:

Trust

Foreign
Currency

Settlement
Date

Contract to
Purchase /
Receive

Value at
Settlement
Date

Value at
October 31,
2005

Unrealized
Appreciation

Core Bond

Sold:

Euro

01/20/06

4,106,777€

4,990,946

4,941,669

49,277

Limited Duration

Sold:

Euro

01/20/06

6,586,400€

8,003,102

7,925,390

77,712

Details of open interest rate swaps at October 31, 2005 were as follows:


Trust	Notional Amount (000)		Fixed Rate			Floating Rate		Termination Date		Unrealized Appreciation (Depreciation)

Core Bond		5,400		4.412	%^(b)		3-month LIBOR		02/17/14	$	218,586
		50,000		3.000	^(b)		3-month LIBOR		04/16/07		1,266,667
		19,435		3.215	^(a)		3-month LIBOR		06/14/06		(15,277	)
		14,300		3.210	^(a)		3-month LIBOR		06/17/06		(11,777	)
		950		5.365	^(b)		3-month LIBOR		07/29/19		(32,120	)
		1,300		5.155	^(a)		3-month LIBOR		08/13/19		2,717
		800		4.780	^(a)		3-month LIBOR		10/27/19		(30,560	)
		41,200		4.510	^(b)		3-month LIBOR		10/29/14		1,573,000
		20,000		4.458	^(a)		3-month LIBOR		04/18/10		(362,257	)
		5,600		4.415	^(a)		3-month LIBOR		09/27/08		(60,200	)
		2,800		4.500	^(b)		3-month LIBOR		05/26/15		81,760
		3,300		4.442	^(a)		3-month LIBOR		07/11/15		(118,626	)
		9,710		4.368	^(a)		3-month LIBOR		07/15/10		(113,122	)
		17,500		4.385	^(a)		3-month LIBOR		08/02/07		71,197
		9,400		4.510	^(a)		3-month LIBOR		09/27/10		(156,275	)
		14,100		4.305	^(a)		3-month LIBOR		06/17/10		(192,089	)
		24,400		4.444	^(a)		3-month LIBOR		08/17/07		(118,485	)
		10,525		4.501	^(b)		3-month LIBOR		08/31/10		177,873
		4,800		4.372	^(a)		3-month LIBOR		06/30/15		(188,160	)
		6,200		4.725	^(a)		3-month LIBOR		08/02/15		(147,234	)

											1,845,618

Income Opportunity Trust		3,000		5.230	%^(a)		3-month LIBOR		11/04/21		(59,367	)
		5,700		4.412	^(a)		3-month LIBOR		02/17/14		230,730
		50,000		3.000	^(a)		3-month LIBOR		04/16/07		1,266,667
		20,735		3.215	^(b)		3-month LIBOR		06/14/06		(16,299	)
		15,300		3.210	^(b)		3-month LIBOR		06/17/06		(12,600	)
		1,050		5.365	^(a)		3-month LIBOR		07/29/19		(35,501	)
		1,400		5.155	^(b)		3-month LIBOR		08/13/19		2,926
		27,500		4.399	^(a)		3-month LIBOR		10/25/14		1,268,860
		900		4.780	^(b)		3-month LIBOR		10/27/19		(34,380	)
		13,800		4.510	^(a)		3-month LIBOR		10/29/14		526,879
		10,000		4.458	^(b)		3-month LIBOR		04/18/10		(181,129	)
		7,800		4.415	^(b)		3-month LIBOR		09/27/08		(83,850	)
		3,000		4.500	^(a)		3-month LIBOR		05/26/15		87,600
		3,600		4.442	^(b)		3-month LIBOR		07/11/15		(129,410	)
		10,375		4.368	^(b)		3-month LIBOR		07/15/10		(120,869	)
		18,800		4.385	^(b)		3-month LIBOR		08/02/07		76,486
		4,300		4.510	^(b)		3-month LIBOR		09/27/10		(71,488	)
		13,300		4.305	^(b)		3-month LIBOR		06/17/10		(181,190	)
		22,200		4.444	^(b)		3-month LIBOR		08/17/07		(107,802	)
		4,825		4.501	^(a)		3-month LIBOR		08/31/10		81,544
		8,000		4.670	^(b)		3-month LIBOR		09/20/15		(236,789	)
		5,200		4.372	^(b)		3-month LIBOR		06/30/15		(203,840	)

											2,067,178


Trust	Notional Amount (000)		Fixed Rate			Floating Rate		Termination Date		Unrealized Appreciation (Depreciation)

Income Trust		24,000		3.550	%^(a)		3-month LIBOR		10/24/06	$	(264,595	)
		50,000		3.000	^(b)		3-month LIBOR		04/16/07		1,266,667
		19,000		4.889	^(b)		3-month LIBOR		04/22/14		179,376
		2,800		5.940	^(a)		3-month LIBOR		12/07/15		191,520
		22,295		3.215	^(a)		3-month LIBOR		06/14/06		(17,525	)
		16,400		3.210	^(a)		3-month LIBOR		06/17/06		(13,506	)
		1,075		5.365	^(b)		3-month LIBOR		07/29/19		(36,346	)
		1,450		5.155	^(a)		3-month LIBOR		08/13/19		3,030
		12,500		4.399	^(b)		3-month LIBOR		10/25/14		576,755
		900		4.780	^(a)		3-month LIBOR		10/27/19		(34,380	)
		9,400		4.902	^(b)		3-month LIBOR		03/17/15		87,702
		25,000		4.883	^(a)		3-month LIBOR		03/21/15		(242,000	)
		16,000		4.925	^(b)		3-month LIBOR		03/22/15		130,639
		11,000		4.415	^(a)		3-month LIBOR		09/27/08		(118,250	)
		3,000		4.500	^(b)		3-month LIBOR		05/26/15		87,600
		4,500		4.442	^(a)		3-month LIBOR		07/11/15		(161,763	)
		10,210		4.368	^(a)		3-month LIBOR		07/15/10		(118,947	)
		18,300		4.385	^(a)		3-month LIBOR		08/02/07		74,453
		12,000		4.320	^(a)		3-month LIBOR		09/08/10		(291,000	)

											1,299,430


^(a)	Trust pays floating interest rate and receives fixed rate.
^(b)	Trust pays fixed interest rate and receives floating rate.

The terms of the open credit default swap agreements at October 31, 2005 were to receive the quarterly notional amount multiplied by 0.23% and pay Goldman Sachs, upon default event of Consolidated Natural Gas Co., the par value of the notional amount of Consolidated Natural Gas Co. 5.375% 11/01/06. Details of open credit default swaps at October 31, 2005 were as follows:


Trust	Notional Amount (000)		Termination Date		Unrealized Appreciation

Broad Investment Grade		300		11/01/05	$	176

Core Bond		3,800		11/01/05	$	2,240

Income Opportunity Trust		4,000		11/01/05	$	2,357

Limited Duration		6,800		11/01/05	$	4,008

Transactions in options written during the year ended October 31, 2005 were as follows:


Trust		Contracts/ Notional Amount (000)			Premium Received

Core Bond	Options outstanding at October 31, 2004	$	151,700		$	2,196,443
	Options written		65,350			3,046,054
	Options expired		—			(136,980	)
	Options terminated in closing purchase transactions		(156,850	)		(2,388,764	)

	Options outstanding at October 31, 2005	$	60,200		$	2,716,753

Income Opportunity Trust
	Options outstanding at October 31, 2004	$	177,400		$	2,557,620
	Options written		70,200			3,272,591
	Options expired		—			(180,572	)
	Options terminated in closing purchase transactions		(183,000	)		(2,732,241	)

	Options outstanding at October 31, 2005	$	64,600		$	2,917,398

Income Trust
	Options outstanding at October 31, 2004	$	182,800		$	2,915,666
	Options written		69,900			2,967,460
	Options expired		(77,000	)		(1,699,981	)
	Options terminated in closing purchase transactions		(111,300	)		(1,314,677	)

	Options outstanding at October 31, 2005	$	64,400		$	2,868,468

Note 4. Borrowings

Reverse Repurchase Agreements: The Trusts may enter into reverse repurchase agreements with qualified third-party broker-dealers as determined by and under the direction of the Trusts’ Board. Interest on the value of reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance. At the time a Trust enters into a reverse repurchase agreement, it will establish and maintain a segregated account with the lender, containing liquid investment grade securities having a value not less than the repurchase price, including accrued interest of the reverse repurchase agreement. Details of open reverse repurchase agreements at October 31, 2005 were as follows (please see Corresponding Underlying Collateral Chart on pages 84-85):


Trust/Counter Party	Rate			Trade Date		Maturity Date		Net Closing Amount		Par

Core Bond
Lehman Brothers		3.850	%		10/24/05		11/02/05	$	80,713,691	$	80,636,894
		3.550			10/25/05		11/04/05		3,677,423		3,674,163
		4.000			10/31/05		11/01/05		2,565,285		2,565,000

											86,876,057

Income Opportunity
Credit Suisse First Boston LLC		3.800			10/24/05		11/02/05		67,781,919		67,717,588
		3.770			10/24/05		11/04/05		41,852,008		41,808,225

											109,525,813

Lehman Brothers		3.920			10/13/05		11/07/05		3,846,413		3,836,387
		3.920			10/18/05		11/08/05		4,378,990		4,369,000
		3.900			10/19/05		11/07/05		2,453,039		2,448,000

											10,653,387

Income Trust
Barclays Bank PLC		3.900			10/27/05		11/07/05		35,475,891		35,437,500

Credit Suisse First Boston LLC		3.850			10/27/05		11/07/05		69,558,059		69,483,750

Lehman Brothers		3.920			10/13/05		11/07/05		6,862,387		6,844,500
		3.950			10/21/05		11/07/05		2,528,708		2,524,000
		3.890			10/05/05		11/07/05		10,857,579		10,819,000
		3.930			10/13/05		11/07/05		2,266,924		2,261,000
		3.920			10/12/05		11/03/05		9,080,717		9,060,000
		3.890			10/05/05		11/03/05		9,534,761		9,506,000
		3.800			10/20/05		11/04/05		2,834,182		2,830,000
		4.050			10/31/05		11/01/05		792,589		792,500

											44,637,000

Limited Duration
Credit Suisse First Boston LLC		1.000			10/24/05		11/04/05		1,801,888		1,801,387
		3.720			10/24/05		11/04/05		19,307,180		19,287,250
		3.750			10/24/05		11/04/05		25,485,645		25,459,125
		4.070			10/20/05		11/21/05		27,366,577		27,271,000
		4.230			10/20/05		11/21/05		27,240,865		27,142,000
		3.800			09/02/05		11/07/05		14,445,926		14,352,000

											115,312,762

Lehman Brothers		3.900			09/26/05		11/04/05		18,484,784		18,409,000
		4.100			09/26/05		11/04/05		3,775,268		3,759,000
		3.980			10/06/05		11/07/05		8,683,659		8,654,000
		3.970			10/11/05		11/14/05		1,491,572		1,486,000
		3.900			10/13/05		11/07/05		19,046,894		18,997,500
		3.920			10/13/05		11/07/05		4,488,700		4,477,000
		3.850			10/17/05		11/07/05		265,595		265,000
		3.940			10/17/05		11/07/05		2,188,781		2,184,000
		2.250			10/19/05		11/07/05		2,468,774		2,466,000

											60,697,500

Strategic Bond
Credit Suisse First Boston LLC		4.070			10/20/05		11/22/05		16,393,093		16,334,000

Lehman Brothers		3.150			10/03/05		11/07/05		460,052		458,688
		3.625			10/03/05		11/07/05		1,002,169		998,750
		3.650			10/03/05		11/07/05		743,617		741,063
		3.700			10/03/05		11/07/05		1,012,262		1,008,737
		4.100			10/19/05		11/21/05		10,643,649		10,605,000
		3.750			10/19/05		11/21/05		810,668		807,975
		3.900			10/24/05		11/17/05		930,648		928,335

											15,548,548

Details of underlying collateral for open reverse repurchase agreements at October 31, 2005 were as follows:


Trust / Counter Party	Description		Rate			Maturity Date		Original Face		Current Face		Market Value

Core Bond
Lehman Brothers		U.S. Treasury Bond		6.125	%		11/15/27		48,600,000	$	48,600,000	$	57,082,158
		U.S. Treasury Bond		8.500			02/15/27		10,855,000		10,855,000		14,983,265
		U.S. Treasury Bond		7.125			02/15/23		6,500,000		6,500,000		8,231,665
		U.S. Treasury Bond		4.125			08/15/08		3,665,000		3,665,000		3,637,513

													83,934,601

Income Opportunity
Credit Suisse First Boston LLC		U.S. Treasury Bond		8.500			02/15/20		15,845,000		15,845,000		21,871,012
		U.S. Treasury Bond		7.125			02/15/23		9,795,000		9,795,000		12,404,486
		U.S. Treasury Bond		6.500			11/15/26		24,320,000		24,320,000		29,621,030
		U.S. Treasury Bond		6.125			11/15/27		5,060,000		5,060,000		5,943,122
		U.S. Treasury Bond		6.000			02/15/26		32,000,000		32,000,000		36,787,488

													106,627,138

Lehman Brothers		Resolution Funding Corp.		0.000			04/15/30		6,055,000		6,055,000		1,823,948
		Tennessee Valley Authority		5.880			04/01/36		1,800,000		1,800,000		1,987,812
		Federal National Mortgage Assoc.		5.500			02/01/33		9,500,000		4,500,368		4,443,168
		Tennessee Valley Authority		4.875			12/15/16		2,400,000		2,400,000		2,427,576

													10,682,504

Income Trust
Barclays Capital Inc.		U.S. Treasury Bond		0.000			11/15/24		90,000,000		90,000,000		35,674,380


Credit Suisse First Boston LLC		U.S. Treasury Notes		1.500			03/31/06		40,000,000		40,000,000		39,568,800
		U.S. Treasury Notes		3.750			03/31/07		21,000,000		21,000,000		20,809,740
		U.S. Treasury Notes		4.250			11/15/13		9,000,000		9,000,000		8,814,420

													69,192,960

Lehman Brothers		Federal National Mortgage Assoc.		5.000			06/01/33		5,999,400		5,144,458		4,969,681
		Federal National Mortgage Assoc.		5.000			07/01/34		4,600,000		3,943,200		3,802,810
		Federal National Mortgage Assoc.		5.000			06/01/34		3,000,000		2,327,197		2,247,658
		Federal Home Loan Mortgage Corp.		5.500			05/15/23		7,800,000		7,439,082		7,453,440
		Federal National Mortgage Assoc.		6.500			05/01/31		48,673,696		2,644,117		2,715,191
		Federal National Mortgage Assoc.		5.500			09/01/17		30,215,381		9,217,552		9,286,684
		Federal Home Loan Mortgage Corp.		4.165			01/01/35		1,277,500		1,277,092		1,269,263
		Federal Home Loan Mortgage Corp.		4.959			10/01/34		1,607,000		1,053,328		1,036,222
		Resolution Funding Corp.		0.000			04/15/30		13,000,000		13,000,000		3,915,990
		Federal National Mortgage Assoc.		5.500			10/01/35		5,600,000		5,600,000		5,526,161
		U.S. Treasury Notes		2.500			05/31/06		2,830,000		2,830,000		2,801,700
		U.S. Treasury Bond		0.000			11/15/24		2,000,000		2,000,000		792,764

													45,817,564

Limited Duration
Credit Suisse		DaimlerChrysler NA Holding Corp.		4.050			06/04/08		7,500,000		7,500,000		7,289,700
First Boston LLC		Comcast Cable Communications, Inc.		6.875			06/15/09		6,685,000		6,685,000		7,034,290
		CSC Holdings, Inc.		7.875			12/15/07		6,000,000		6,000,000		6,157,500
		Georgia Pacific Corp.		8.875			02/01/10		5,685,000		5,685,000		6,317,456
		Qwest Corp.		9.125			03/15/12		6,000,000		6,000,000		6,615,000
		Sequa Corp.		8.875			04/01/08		5,350,000		5,350,000		5,523,875
		Western Financial Bank		9.625			05/15/12		4,215,000		4,215,000		4,773,488
		Weyerhaeuser Co.		5.250			12/15/09		7,500,000		7,500,000		7,479,345
		Deutsche Telekom Intl. Finance BV		8.500			06/15/10		5,000,000		5,000,000		5,575,200
		General Motors Acceptance Corp.		6.875			08/28/12		7,500,000		7,500,000		7,201,800
		Ford Motor Credit Co.		7.375			02/01/11		7,500,000		7,500,000		7,043,978
		U.S. Treasury Notes		3.375			12/15/08		17,000,000		17,000,000		16,476,740
		U.S. Treasury Notes		4.250			11/15/13		8,660,000		8,660,000		8,838,656
		U.S. Treasury Notes		3.875			05/15/09		6,000,000		6,000,000		5,889,360
		U.S. Treasury Notes		3.375			09/15/09		3,425,000		3,425,000		3,296,563
		U.S. Treasury Notes		3.750			03/31/07		10,000,000		10,000,000		9,909,400
		U.S. Treasury Notes		4.250			08/15/15		1,815,000		1,815,000		1,770,768

													117,193,119


Trust / Counter Party	Description		Rate			Maturity Date		Original Face		Current Face		Market Value

Limited Duration (continued)
Lehman Brothers
		Caraustar Industries, Inc.		9.875	%		04/01/11		4,250,000	$	4,250,000	$	4,133,125
		Citibank Credit Card Issuance Trust		2.500			04/07/08		2,080,000		2,080,000		2,063,651
		DaimlerChrysler Auto Trust		2.250			08/08/07		6,900,000		4,654,263		4,629,040
		Federal National Mortgage Assoc.		5.000			06/01/20		657,205		648,118		639,408
		Federal National Mortgage Assoc.		5.500			07/01/33		1,281,754		848,745		838,657
		Federal National Mortgage Assoc.		5.500			08/01/33		2,113,543		1,156,356		1,142,611
		Federal National Mortgage Assoc.		5.500			09/01/33		5,852,429		3,835,880		3,790,286
		Federal National Mortgage Assoc.		5.500			10/01/33		3,182,952		1,880,746		1,856,303
		Federal National Mortgage Assoc.		5.500			08/01/20		306,253		298,907		294,956
		Federal National Mortgage Assoc.		7.250			01/15/10		17,000,000		17,000,000		18,582,020
		Goodman Global Holding Co., Inc.		7.875			12/15/12		3,170,000		3,170,000		2,995,650
		Honda Auto Receivables		2.300			10/18/07		7,125,000		5,675,201		5,616,742
		MBNA Credit Card Master Note Trust		5.750			11/15/08		7,910,000		7,910,000		7,965,528
		Tyco Intl. Group SA		6.125			11/01/08		7,500,000		7,500,000		7,721,775

													62,269,752

Strategic Bond
Credit Suisse First Boston LLC		Wells Fargo & Co.		3.500			04/04/08		2,000,000		2,000,000		1,941,140
		HSBC Bank USA, Inc.		3.875			09/15/09		1,500,000		1,500,000		1,443,735
		Comcast Cable Communications, Inc.		6.875			06/15/09		1,000,000		1,000,000		1,052,250
		SBC Communications, Inc.		6.450			06/15/34		1,500,000		1,500,000		1,512,270
		Bank One Corp.		6.500			02/01/06		1,000,000		1,000,000		1,005,360
		Dominion Resources, Inc.		5.700			09/17/12		1,000,000		1,000,000		1,016,340
		TIAA Global Markets, Inc.		3.875			01/22/08		1,000,000		1,000,000		979,010
		Tyco Intl. Group		6.375			02/15/06		1,132,000		1,132,000		1,137,388
		DaimlerChrysler NA Holding Corp.		7.300			01/15/12		1,000,000		1,000,000		1,074,330
		Citigroup, Inc.		5.750			05/10/06		2,900,000		2,900,000		2,919,575
		General Electric Cap. Corp.		3.450			07/16/07		400,000		400,000		391,488
		Verizon New England, Inc.		6.500			09/15/11		2,000,000		2,000,000		2,067,520

													16,540,406

Lehman Brothers		U.S. Treasury Bond		5.375			02/15/31		410,000		410,000		447,027
		U.S. Treasury Notes		4.250			08/15/13		1,000,000		1,000,000		980,780
		U.S. Treasury Notes		4.750			05/15/14		710,000		710,000		718,989
		U.S. Treasury Notes		2.500			05/31/06		1,010,000		1,010,000		999,900
		General Electric Cap. Corp.		3.450			07/16/07		1,600,000		1,600,000		1,565,952
		News America, Inc.		6.200			12/15/34		1,500,000		1,500,000		1,455,345
		General Mills, Inc.		5.125			02/15/07		1,000,000		1,000,000		1,003,020
		Merck & Co., Inc.		4.375			02/15/13		1,000,000		1,000,000		939,410
		Telecom Italia Cap.		4.950			09/30/14		1,000,000		1,000,000		956,420
		United Technologies Corp.		6.350			03/01/11		1,000,000		1,000,000		1,062,460
		Wellpoint, Inc.		5.950			12/15/34		1,000,000		1,000,000		1,015,700
		Wyeth		6.500			02/01/34		1,000,000		1,000,000		1,097,050
		Vodafone Group PLC		7.750			02/15/10		1,000,000		1,000,000		1,100,770
		European Investment Bank		4.875			09/06/06		500,000		500,000		501,750
		U.S. Treasury Notes		4.125			08/15/10		810,000		810,000		797,850
		U.S. Treasury Notes		2.625			11/15/06		933,000		933,000		916,523

													15,558,946

Dollar Rolls: The Trusts may enter into dollar rolls in which a Trust sells securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date. During the roll period the Trusts forgo principal and interest paid on the securities. The Trusts will be compensated by the interest earned on the cash proceeds of the initial sale and/or by the lower repurchase price at the future date.

Loan Payable: High Yield has a $32 million committed credit facility (the “facility”). Under the terms of the facility, the Trust borrows at the London Interbank Offered Rate (“LIBOR”) plus facility and administrative fees. In addition, the Trust pays a liquidity fee on the unused portion of the facility. The Trust may borrow up to 33 1/3% of its total assets up to the committed amount. In accordance with the terms of the facility, the Trust has pledged its portfolio assets as collateral for the borrowing.

Note 5. Distributions to Shareholders

The tax character of distributions paid during the years ended October 31, 2005 and October 31, 2004 were as follows:


	Year ended October 31, 2005

Distributions Paid from:	Ordinary Income			Non-taxable Return of Capital			Long-term Capital Gains			Total Distributions

Broad Investment Grade		$	3,271,251		$	—		$	525,065		$	3,796,316
Core Bond			27,245,722			—			9,450,907			36,696,629
High Yield			5,087,371			—			—			5,087,371
Income Opportunity			28,509,597			—			8,926,885			37,436,482
Income Trust			30,667,298			4,798,184			—			35,465,482
Limited Duration			52,882,982			—			1,634,766			54,517,748
Strategic Bond			7,935,935			1,898,203			—			9,834,138


	Year ended October 31, 2004

Distributions Paid From:	Ordinary Income			Non-taxable Return of Capital			Long-term Capital Gains			Total Distributions

Broad Investment Grade		$	2,661,384		$	—		$	—		$	2,661,384
Core Bond			29,412,475			—			556,750			29,969,225
High Yield			5,864,606			187,188			—			6,051,794
Income Opportunity			28,937,742			—			—			28,937,742
Income Trust			38,921,208			—			—			38,921,208
Limited Duration			55,077,640			—			—			55,077,640
Strategic Bond			11,337,469			—			—			11,337,469

As of October 31, 2005, the components of distributable earnings on a tax basis were as follows:


Trust	Ordinary Income			Undistributed Long-term Gains			Undistributed Unrealized Net Appreciation

Broad Investment Grade		$	8,125,481		$	—		$	—
Core Bond			2,812,502			7,424,183			—
High Yield			—			—			—
Income Opportunity			2,912,695			8,976,685			—
Income Trust			—			—			—
Limited Duration			6,547,096			—			—
Strategic Bond			—			—			—

Note 6. Capital

There are 200 million of $0.01 par value common shares authorized for each of the Broad Investment Grade, Income Opportunity and Income Trusts. There are an unlimited number of $0.001 par value common shares authorized for Core Bond, High Yield, Limited Duration and Strategic Bond. At October 31, 2005, the common shares outstanding and the shares owned by affiliates of the Advisor of each Trust were:


Trust	Common Shares Outstanding		Common Shares Owned

Broad Investment Grade		2,957,093		—
Core Bond		27,018,774		—
High Yield		6,411,104		—
Income Opportunity		34,449,693		—
Income Trust		63,942,536		—
Limited Duration		36,768,498		6,021
Strategic Bond		7,058,402		—

During the year ended October 31, 2005, High Yield, Income Trust, Limited Duration and Strategic Bond issued additional shares under their dividend reinvestment plans of 7,498, 227,068, 41,211, and 9,684, respectively. During the year ended October 31, 2004, High Yield, Income Trust, Limited Duration and Strategic Bond issued additional shares under their dividend reinvestment plans of 21,958, 325,777, 21,266 and 13,097, respectively.

Note 7. Dividends

Subsequent to October 31, 2005, the Board of each of the Trusts declared dividends per common share payable November 30, 2005 to shareholders of record on November 15, 2005. The per share common dividends declared were as follows:


Trust	Common Dividend Per Share

Broad Investment Grade		$	0.075000
Core Bond			0.077100
High Yield			0.055333
Income Opportunity			0.061900
Income Trust			0.036787
Limited Duration			0.121800
Strategic Bond			0.088000

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees/Directors and Shareholders of:

BlackRock Broad Investment Grade 2009 Term Trust Inc.

BlackRock Core Bond Trust

BlackRock High Yield Trust

BlackRock Income Opportunity Trust

BlackRock Income Trust Inc.

BlackRock Limited Duration Income Trust

BlackRock Strategic Bond Trust

(Collectively the “Trusts”)

We have audited the accompanying statement of assets and liabilities of the Trusts, including the portfolios of investments, as of October 31, 2005, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial 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.

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 its 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 circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s 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, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2005, by correspondence with the custodian and brokers; where replies were not received from brokers, 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 the Trusts as of October 31, 2005, the results of their operations and their cash flows 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 periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

(DELOITTE & TOUCHE LLP)

Boston, Massachusetts
December 29, 2005

DIRECTORS/TRUSTEES INFORMATION (Unaudited)


Name, address, age	Current positions held with the Trusts	Term of office and length of time served	Principal occupations during the past five years	Number of portfolios over- seen within the fund complex ¹	Other Directorships held outside the fund complex ¹	Events or transactions by reason of which the Trustee is an interested person as defined in Section 2(a) (19) of the 1940 Act

Interested Directors/Trustees²

Ralph L. Schlosstein BlackRock, Inc. 40 East 52nd Street New York, NY 10022 Age: 54	Chairman of the Board³	3 years⁴/since inception	Director since 1999 and President of BlackRock, Inc. since its formation in 1998 and of BlackRock, Inc.’s predecessor entities since 1988. Member of the Management Committee and Investment Strategy Group of BlackRock, Inc. Formerly, Managing Director of Lehman Brothers, Inc. and Co-head of its Mortgage and Savings Institutions Group. Chairman and President of the BlackRock Liquidity Funds and Director of several of BlackRock’s alternative investment vehicles.	67	Director and Chairman of the Board of Anthracite Capital, Inc. Member of the Visiting Board of Overseers of the John F. Kennedy School of Government at Harvard University, a member of the board of the Financial Institutions Center of The Wharton School of the University of Pennsylvania, a trustee of the American Museum of Natural History, a trustee of Trinity School in New York City, a member of the Board of Advisors of Marujupu LLC, and a trustee of New Visions for Public Education, The Public Theater in New York City and the James Beard Foundation. Formerly, a director of Pulte Corporation, the nation’s largest home- builder, a trustee of Denison University and a member of Fannie Mae’s Advisory Council.	Director and President of the Advisor.

Robert S. Kapito BlackRock, Inc. 40 East 52nd Street New York, NY 10022 Age: 48	President and Trustee	3 years⁴/since August 22, 2002	Vice Chairman of BlackRock, Inc. Head of the Portfolio Management Group. Also a member of the Management Committee, the Investment Strategy Group, the Fixed Income and Global Operating Committees and the Equity Investment Strategy Group. Responsible for the portfolio management of the Fixed Income, Domestic Equity and International Equity, Liquidity, and Alternative Investment Groups of BlackRock.	57	Chairman of the Hope and Heroes Children’s Cancer Fund. President of the Board of Directors of the Periwinkle National Theatre for Young Audiences.	Director and Vice Chairman of the Advisor.

DIRECTORS/TRUSTEES INFORMATION (Unaudited) (Continued)


Name, address, age	Current positions held with the Trusts	Term of office and length of time served	Principal occupations during the past five years	Number of portfolios overseen within the fund complex¹	Other Directorships held outside the fund complex

Independent Directors/ Trustees

Andrew F. Brimmer P.O. Box 4546 New York, NY 10163-4546 Age: 79	Lead Trustee Audit Committee Chairman⁵	3 years⁴/since inception	President of Brimmer & Company, Inc., a Washington, D.C.-based economic and financial consulting firm, also Wilmer D. Barrett Professor of Economics, University of Massachusetts – Amherst. Formerly member of the Board of Governors of the Federal Reserve System. Former Chairman, District of Columbia Financial Control Board.	57	Director of CarrAmerica Realty Corporation and Borg-Warner Automotive. Formerly Director of Airborne Express, BankAmerica Corporation (Bank of America), BellSouth Corporation, College Retirement Equities Fund (Trustee), Commodity Exchange, Inc. (Public Governor), Connecticut Mutual Life Insurance Company, E.I. du Pont de Nemours & Company, Equitable Life Assurance Society of the United States, Gannett Company, Mercedes-Benz of North America, MNC Financial Corporation (American Security Bank), NCM Capital Management, Navistar International Corporation, PHH Corp. and UAL Corporation (United Airlines).

Richard E. Cavanagh P.O. Box 4546 New York, NY 10163-4546 Age: 59	Trustee Audit Committee Member	3 years⁴/since inception⁶	President and Chief Executive Officer of The Conference Board, Inc., a leading global business research organization, from 1995-present. Former Executive Dean of the John F. Kennedy School of Government at Harvard University from 1988-1995. Acting Director, Harvard Center for Business and Government (1991-1993). Formerly Partner (principal) of McKinsey & Company, Inc. (1980-1988). Former Executive Director of Federal Cash Management, White House Office of Management and Budget (1977-1979). Co- author, THE WINNING PERFORMANCE (best selling management book published in 13 national editions).	57	Trustee of Aircraft Finance Trust (AFT) and Chairman of Educational Testing Service (ETS). Director, Arch Chemicals, Fremont Group and The Guardian Life Insurance Company of America.

Kent Dixon P.O. Box 4546 New York, NY 10163-4546 Age: 68	Trustee Audit Committee Member⁵	3 years⁴/since inception	Consultant/Investor. Former President and Chief Executive Officer of Empire Federal Savings Bank of America and Banc PLUS Savings Association, former Chairman of the Board, President and Chief Executive Officer of Northeast Savings.	57	Former Director of ISFA (the owner of INVEST, a national securities broker- age service designed for banks and thrift institutions).

Frank J. Fabozzi P.O. Box 4546 New York, NY 10163-4546 Age: 57	Trustee Audit Committee Member⁵	3 years⁴/since inception	Consultant. Editor of THE JOURNAL OF PORTFOLIO MANAGEMENT and Adjunct Professor of Finance and Becton Fellow at the School of Management at Yale University. Author and editor of several books on fixed income portfolio management. Visiting Professor of Finance and Accounting at the Sloan School of Management, Massachusetts Institute of Technology from 1986 to August 1992.	57	Director, Guardian Mutual Funds Group (18 portfolios).

DIRECTORS/TRUSTEES INFORMATION (Unaudited) (Continued)


Name, address, age	Current positions held with the Trusts	Term of office and length of time served	Principal occupations during the past five years	Number of portfolios overseen within the fund complex¹	Other Directorships held outside the fund complex

Independent Directors/Trustees (continued)

Kathleen F. Feldstein P.O. Box 4546 New York, NY 10163-4546 Age: 63	Trustee	3 years⁴/since January 19, 2005	President of Economics Studies, Inc., a Belmont, MA-based private economic consulting firm, since 1987; Chair, Board of Trustees, McLean Hospital in Belmont, MA.	56	Director of BellSouth Inc. and Knight Ridder, Inc.; Trustee of the Museum of Fine Arts, Boston, Committee for Economic Development and Partners HealthCare, Inc. Corporation Member of Sherrill House, Inc. Member of the Visiting Committee of the Harvard University Art Museums and of the Advisory Board to the International School of Business at Brandeis University.

R. Glenn Hubbard P.O. Box 4546 New York, NY 10163-4546 Age: 47	Trustee	3 years⁴/since November 16, 2004	Dean of Columbia Business School since July 1, 2004. Columbia faculty member since 1988. Co-director of Columbia Business School’s Entrepreneurship Program 1994-1997. Visiting professor at the John F. Kennedy School of Government at Harvard and the Harvard Business School, as well as the University of Chicago. Visiting scholar at the American Enterprise Institute in Washington and member of International Advisory Board of the MBA Program of BenGurion University. Deputy assistant secretary of the U.S. Treasury Department for Tax Policy 1991-1993. Chairman of the U.S. Council of Economic Advisers under the President of the United States 2001-2003.	57	Director of ADP, Dex Media, Duke Realty, KKR Financial Corporation, and Ripplewood Holdings. Advisory boards of the Congressional Budget Office, the Council on Competitiveness, the American Council on Capital Formation, the Tax Foundation and the Center for Addiction and Substance Abuse. Trustee of Fifth Avenue Presbyterian Church of New York.

James Clayburn La Force, Jr. P.O. Box 4546 New York, NY 10163-4546 Age: 76	Trustee	3 years⁴/since inception⁷	Dean Emeritus of the John E. Anderson Graduate School of Management, University of California since July 1, 1993. Acting Dean of the School of Business, Hong Kong University of Science and Technology 1990-1993. From 1978 to September 1993, Dean of the John E. Anderson Graduate School of Management, University of California.	57	Director of Payden & Rygel Investment Trust, Metzler-Payden Investment Trust, Advisors Series Trust, Arena Pharmaceuticals, Inc. and CancerVax Corporation. Former director of First Nationwide Bank, Eli Lilly & Company, National Inter- group, Rockwell Interna- tional, Cyprus Mines, Getty Oil Company, The Timken Company, Jacobs Engineer- ing Group, and Motor Cargo Industries.

Walter F. Mondale P.O. Box 4546 New York, NY 10163-4546 Age: 77	Trustee	3 years⁴/since inception⁸	Senior Counsel, Dorsey & Whitney, LLP, a law firm (January 2004-present); Partner, Dorsey & Whitney, LLP, (December 1996- December 2003, September 1987-August 1993). Formerly U.S. Ambassador to Japan (1993-1996). Formerly Vice President of the United States, U.S. Senator and Attorney General of the State of Minnesota. 1984 Democratic Nominee for President of the United States.	57	Chairman of Panasonic Foundation’s Board of Directors and Director of United Health Foundation. Member of the Hubert H. Humphrey Institute of Public Affairs Advisory Board, The Mike and Maureen Mansfield Foundation and the Dean’s Board of Visitors of the Medical School at the University of Minnesota.


¹	The Fund Complex means two or more registered investments companies that: (1) hold themselves out to investors as related companies for purposes of investment and investor services; or (2) have a common investment advisor or have an investment advisor that is an affiliated person of the investment advisor of any of the other registered investment companies.
²	Interested Director/Trustee as defined by Section 2(a)(19) of the Investment Company Act of 1940.
³	Director/Trustee since inception; appointed Chairman of the Board on August 22, 2002.
⁴	The Board is classified into three classes of which one class is elected annually. Each Director/Trustee serves a three-year term concurrent with the class from which they are elected.
⁵	The Board of each Trust has determined that each Trust has three Audit Committee financial experts serving on its Audit Committee, Dr. Brimmer, Mr. Dixon and Mr. Fabozzi, each of whom are independent for the purpose of the definition of Audit Committee financial expert as applicable to the Trusts.
⁶	For Broad Investment Grade, Income Opportunity and Income Trust appointed Director on 8/11/94.
⁷	For Income Opportunity and Income Trust appointed Director on 6/19/92.
⁸	Except during the periods August 12, 1993 through April 15, 1997 and October 31, 2002 through November 11, 2002 for all of the Trusts.

DIVIDEND REINVESTMENT PLANS

Pursuant to each Trust’s respective Dividend Reinvestment Plan (the “Plan”), shareholders of Broad Investment Grade, Income Opportunity and Income Trust may elect, while shareholders of Core Bond, High Yield, Limited Duration and Strategic Bond are automatically enrolled, to have all distributions of dividends and capital gains reinvested by EquiServe 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 distributions 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 Broad Investment Grade and/or Income Opportunity Trust 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 outstanding 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 Core Bond, High Yield, Income Trust, Limited Duration and/or Strategic Bond declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ account, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by open market purchases. If, on the dividend payment date, the 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 commissions (such condition being referred to herein as “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants 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 dividends and distributions. The automatic reinvestment of dividends and distributions 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 participants. 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 commisson. All correspondence concerning the Plan should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021 or (800) 699-1BFM.

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENTS

At a meeting held on May 26, 2005, the board of directors or the board of trustees, as the case may be (the “Board” or the “Trustees”) of each trust in the BlackRock Closed-End Fund Complex (each a “Trust”), including the independent trustees (the “Independent Trustees”), unanimously approved the continuance of an Investment Management Agreement between each Trust and BlackRock Advisors, Inc. (the “Advisor”). For each Investment Management Agreement, the Boards also approved a related Sub-Investment Advisory Agreement, when applicable, among each respective Trust, the Advisor and BlackRock Financial Management, Inc. (the “Sub-Advisor”). The Investment Management Agreements and the Sub-Investment Advisory Agreements sometimes are referred to herein collectively as the “Agreements”. The Advisor and the Sub-Advisor sometimes are referred to herein collectively as “BlackRock”.

Information Received by the Boards

To assist each Board in its evaluation of the Agreements, the Independent Trustees received information from BlackRock on or about April 27, 2005 which detailed, among other things: the organization, business lines and capabilities of BlackRock, including the responsibilities of various departments and key personnel and biographical information relating to key personnel; financial statements for BlackRock, Inc., The PNC Financial Services Group, Inc. and each Trust; the advisory and/or administrative fees paid by each Trust to BlackRock, including comparisons, compiled by an independent third party, with the management fees of funds with similar investment objectives (“Peers”); the profitability of BlackRock and certain industry profitability analyses for advisors to registered investment companies; the expenses of BlackRock in providing the various services; non-investment advisory reimbursements and “fallout” benefits to BlackRock; the expenses of each Trust, including comparisons of the respective Trust’s expense ratios (both before and after any fee waivers) with the expense ratios of its Peers; and each Trust’s performance for the past one-, three-, five- and ten-year periods, when applicable, as well as each Trust’s performance compared to its Peers. This information supplemented the information received by each Board throughout the year regarding each Trust’s performance, expense ratios, portfolio composition, trade execution and compliance.

In addition to the foregoing materials, independent legal counsel to the Independent Trustees provided a legal memorandum outlining, among other things, the duties of the Boards under the Investment Company Act of 1940, as amended (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 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 factors to be considered by the boards in voting on advisory agreements.

Prior to the Board meeting, the Independent Trustees reviewed a preliminary binder of information, and, in consultation with independent counsel, submitted a memorandum on May 12, 2005, to BlackRock setting forth certain questions and requests for additional information. BlackRock responded to these questions in writing on May 24, 2005 and May 25, 2005. The Independent Trustees reviewed these responses with independent counsel on May 25, 2005.

At the Board meeting on May 26, 2005, BlackRock made a presentation to and responded to additional questions from the Boards. After the presentations and after reviewing the written materials, the Independent Trustees met in executive session with their legal counsel to review the Boards’ duties in reviewing the Agreements and to consider the renewal of the Agreements. With this background, the Boards considered each Agreement and, in consultation with independent counsel, reviewed the factors set out in judicial decisions and Securities and Exchange Commission statements relating to the renewal of the Agreements.

Matters Considered by the Boards

In connection with their deliberations, the Boards considered all factors they believed relevant with respect to each Trust, including the following: the nature, extent and quality of the services to be provided by BlackRock; the investment performance of each Trust; the costs of the services to be provided and profits to be realized by BlackRock and its affiliates from their relationship with the Trusts; the extent to which economies of scale would be realized as the BlackRock closed-end fund complex grows; and whether BlackRock realizes other benefits from its relationship with the Trusts.

Nature and Quality of Investment Advisory and Sub-Advisory Services. In evaluating the nature, extent and quality of BlackRock’s services, the Boards reviewed information concerning the types of services that BlackRock provides and is expected to provide to each Trust, narrative and statistical information concerning each Trust’s performance record and how such performance compares to each Trust’s Peers, information describing BlackRock’s organization and its various departments, the experience and responsibilities of key personnel and available resources. The Boards further noted the willingness of the personnel of BlackRock to engage in open, candid discussions with the Boards. The Boards further considered the quality of BlackRock’s investment process in making portfolio management decisions. Given the Boards’ experience with BlackRock, the Boards noted that they were familiar with and continue to have a good understanding of the organization, operations and personnel of BlackRock.

In addition to advisory services, the Independent Trustees considered the quality of the administrative or non-investment advisory services provided to the Trusts. In this regard, BlackRock provides each Trust with such administrative and other services (exclusive of, and in addition to, any such services provided by others for the Trusts) and officers and other personnel as are necessary for the operations of the respective Trust. In addition to investment management services, BlackRock and its affiliates provide each Trust with a wide range of services, including: preparing shareholder reports and communications, including annual and semi-annual financial statements and Trust web sites; communications 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 service 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 Trust administrative tasks necessary for the operation of the respective Trust

(such as tax reporting and fulfilling regulatory filing requirements). In addition, in evaluating the administrative services, the Boards considered, in particular, BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations in light of the new Securities and Exchange Commission regulations governing compliance. The Boards noted BlackRock’s focus on compliance and its compliance systems. The Independent Trustees noted that BlackRock’s commitment to supporting the secondary market for the common shares of its closed-end funds is particularly noteworthy.

The Investment Performance of the Trusts. As previously noted, the Boards received myriad performance information regarding each Trust and its Peers. Among other things, the Boards received materials reflecting each Trust’s historic performance and each Trust’s performance compared to its Peers. More specifically, each Trust’s one-, three-, five- and ten-year total returns (when applicable) were evaluated relative to its respective Peers (including the performance of individual Peers as well as the Peers’ average performance).

The Boards also reviewed a narrative analysis of the Peer rankings that was prepared by an independent third party and summarized by BlackRock at the Boards’ request. The summary placed the Peer rankings into context by analyzing various factors that affect these comparisons. In evaluating the performance information, in certain limited instances, the Boards noted that the Peers most similar to a given Trust still would not adequately reflect such Trust’s investment objectives and strategies, thereby limiting the usefulness of the comparisons of such Trust’s performance with that of its Peers. The Boards noted the quality of information provided by BlackRock throughout the year with respect to the performance of the Trusts. The Boards considered this information in connection with its deliberations as to whether the level of management services provided to each Trust, in light of all the other facts and circumstances relating to that Trust, supports a conclusion that the Trust’s Agreement should be renewed.

Fees and Expenses. In evaluating the management fees and expenses that a Trust is expected to bear, the Boards considered each Trust’s current management fee structure and the Trust’s expected expense ratios in absolute terms as well as relative to the fees and expense ratios of applicable Peers. In reviewing fees, the Boards, among other things, reviewed comparisons of each Trust’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 the applicable Peers. The Boards also reviewed a narrative analysis of the Peer rankings that was prepared by an independent third party and summarized by BlackRock at the request of the Boards. This summary placed the rankings into context by analyzing various factors that affect these comparisons.

The Boards also compared the management fees charged to the Trusts by BlackRock to the management fees BlackRock charges other types of clients (such as open-end investment companies and separately managed institutional accounts). With respect to open-end investment companies, the management fees charged to the Trusts generally were higher than those charged to the open-end investment companies. The Boards also noted that BlackRock provides the Trusts with certain services not provided to open-end funds, such as leverage management in connection with the issuance of preferred shares, stock exchange listing compliance requirements, rating agency compliance with respect to the leverage employed by the Trusts and secondary market support and other services not provided to the Trusts, such as monitoring of subscriptions and redemptions. With respect to separately managed institutional accounts, the management fees for such accounts were generally lower than those charged to the comparable Trusts. The Boards noted, however, the various services that are provided and the costs incurred by BlackRock in managing and operating the Trusts. For instance, BlackRock and its affiliates provide numerous services to the Trusts that are not provided to institutional accounts including, but not limited to: preparing shareholder reports and communications, including annual and semi-annual financial statements; preparing periodic filings with regulators and stock exchanges; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; income monitoring; expense budgeting; preparing proxy statements; and performing other Trust administrative tasks necessary for the operation of the respective Trust (such as tax reporting and fulfilling regulatory filing requirements). Further, the Boards noted the increased compliance requirements for the Trusts in light of new Securities and Exchange Commission regulations and other legislation. These services are generally not required to the same extent, if at all, for separate accounts.

The Boards considered this information in connection with its deliberations as to whether the fees paid by each Trust under its Agreements, in light of all the other facts and circumstances relating to that Trust, supports a conclusion that the Trust’s Agreements should be renewed.

Profitability. The Trustees also considered BlackRock’s profitability in conjunction with their review of fees. The Trustees reviewed BlackRock’s revenues, expenses and profitability margins on an after-tax basis. In reviewing profitability, the Trustees recognized that one of the most difficult issues in determining profitability is establishing a method of allocating expenses. The Trustees also reviewed BlackRock’s assumptions and methodology of allocating expenses. In this regard, the methods of allocation used appeared reasonable but the Boards noted the inherent limitations in allocating costs among various advisory products. The Boards also recognized that individual fund or product line profitability of other advisors is generally not publicly available.

The Boards recognized that profitability may be affected by numerous factors including, among other things, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited. Nevertheless, to the extent available, the Boards considered BlackRock’s pre-tax profit margin compared to the pre-tax profitability of various publicly-traded investment management companies and/or investment management companies that publicly disclose some or all of their financial results.

In evaluating the reasonableness of BlackRock’s compensation, the Boards also considered any other revenues paid to BlackRock, including partial reimbursements paid to BlackRock for certain non-investment advisory services. The Boards noted that these payments were less than BlackRock’s costs for providing these services. The Boards also considered indirect benefits (such as soft dollar arrangements) that BlackRock and its affiliates are expected to receive that are attributable to their management of the Trusts.

In reviewing each Trust’s fees and expenses, the Boards examined the potential benefits of economies of scale, and whether any economies of scale should be reflected in the Trusts’ fee structures, for example through the use of breakpoints. In this connection, the Boards reviewed

information provided by BlackRock, noting that most closed-end fund complexes do not have fund-level breakpoints, as 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 information also revealed that only one closed-end fund complex used a complex-level breakpoint structure, and that this complex generally is homogeneous with regard to the types of funds managed and is about four times as large as the Trusts’ complex. The Boards concluded that breakpoints were not warranted at this time.

Other Benefits. In evaluating fees, the Boards also considered indirect benefits or profits BlackRock or its affiliates may receive as a result of their relationships with the Trusts. The Trustees, including the Independent Trustees, considered the intangible benefits that accrue to BlackRock and its affiliates by virtue of their relationships with the Trusts, including potential benefits accruing to BlackRock and its affiliates as a result of potentially stronger relationships with members of the broker-dealer community, increased name recognition of BlackRock and its affiliates, enhanced sales of other investment funds and products sponsored by BlackRock and its affiliates and increased assets under management which may increase the benefits realized by BlackRock from soft dollar arrangements with broker-dealers. The Boards also considered the unquantifiable nature of these potential benefits.

Miscellaneous. During the Boards’ deliberations in connection with the Agreements, the Boards were aware that the Advisor pays compensation, out of its own assets, to the lead underwriter and to certain qualifying underwriters of many of its closed-end funds, and to employees of BlackRock’s affiliates that participated in the offering of such funds. The Boards considered whether the management fee met applicable standards in light of the services provided by BlackRock, without regard to whether BlackRock ultimately pays any portion of the anticipated compensation to the underwriters.

Conclusion

The Trustees did not identify any single factor discussed above as all-important or controlling. The Trustees, including a majority of Independent Trustees, 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 Trust, was acceptable for each Trust and supported the Trustees’ conclusion that the terms of each Agreement were fair and reasonable, that the respective Trust’s fees are reasonable in light of the services provided to the respective Trust, and that the renewal of each Agreement should be approved.

ADDITIONAL INFORMATION

The Joint Annual Meeting of Shareholders was held on May 26, 2005 to elect a certain number of Directors/Trustees for each of the following Trusts to three-year terms, unless otherwise indicated, expiring in 2008:


Broad Investment Grade

	Elected the Class II Trustees as follows:
	Trustee	Votes For	Votes Withheld

	Frank J. Fabozzi	2,724,305	110,182
	Kathleen F. Feldstein	2,805,454	29,033
	Walter F. Mondale	2,798,565	35,922
	Ralph L. Schlosstein	2,807,102	27,385

	Elected Class I Trustee as follows:
	Trustee	Votes For	Votes Withheld

	R. Glenn Hubbard¹	2,806,685	27,802

Core Bond

	Elected the Class I Trustees as follows:
	Trustee	Votes For	Votes Withheld

	Richard E. Cavanagh	23,643,324	404,054
	R. Glenn Hubbard	23,623,775	423,603
	James Clayburn La Force, Jr.	23,586,832	460,546

	Elected Class II Trustee as follows:
	Trustee	Votes For	Votes Withheld

	Kathleen F. Feldstein¹	23,620,007	427,371

High Yield

	Elected the Class III Trustees as follows:
	Trustee	Votes For	Votes Withheld

	Andrew F. Brimmer	6,002,200	134,114
	Kent Dixon	6,005,218	131,096
	Robert S. Kapito	6,033,610	102,704

Income Opportunity

	Elected the Class I Directors as follows:
	Director	Votes For	Votes Withheld

	Richard E. Cavanagh	30,256,745	1,232,563
	R. Glenn Hubbard	30,189,633	1,299,675
	James Clayburn La Force, Jr.	30,168,983	1,320,325

	Elected Class II Director as follows:
	Director	Votes For	Votes Withheld

	Kathleen F. Feldstein¹	30,240,041	1,249,267

Income Trust

	Elected the Class I Directors as follows:
	Director	Votes For	Votes Withheld

	Richard E. Cavanagh	57,413,396	884,310
	R. Glenn Hubbard	57,414,518	883,188
	James Clayburn La Force, Jr.	57,351,067	946,639

	Elected Class II Director as follows:
	Director	Votes For	Votes Withheld

	Kathleen F. Feldstein¹	57,366,673	931,033

Limited Duration

	Elected the Class II Trustees as follows:
	Trustee	Votes For	Votes Withheld

	Frank J. Fabozzi	33,675,201	389,514
	Kathleen F. Feldstein	33,659,680	405,035
	Walter F. Mondale	33,590,950	473,765
	Ralph L. Schlosstein	33,663,141	401,574


Strategic Bond

	Elected the Class I Trustees as follows:
	Trustee	Votes For	Votes Withheld

	Richard E. Cavanagh	5,904,793	69,039
	R. Glenn Hubbard	5,905,293	68,539
	James Clayburn La Force, Jr.	5,896,023	77,809

	Elected Class II Trustee as follows:
	Trustee	Votes For	Votes Withheld

	Kathleen F. Feldstein¹	5,905,293	68,539



¹	Mr. Hubbard and Ms. Feldstein will serve until the end of the term for the class of Directors/Trustees to which they were elected, if such class was not standing for election at the May 26, 2005 annual shareholders meeting.

The following Trusts had an additional proposal (Proposal #2A) to amend its respective Declaration of Trust in order to change the maximum number of permitted Trustees allowed on its respective Board to 11:


	Votes For	Votes Against	Votes Withheld

Core Bond	23,442,122	419,368	185,888
Limited Duration	33,074,495	646,876	343,344
Strategic Bond	5,800,367	93,187	80,278

The following Trust had an additional proposal (Proposal #2B) to amend its respective Declaration of Trust in order to reduce the maximum number of permitted Trustees allowed on its respective Board from 15 to 11:


	Votes For	Votes Against	Votes Withheld

High Yield	6,027,273	64,513	44,528

The Trusts listed for trading on the New York Stock Exchange (NYSE) has filed with the NYSE its chief executive officer certification regarding compliance with the NYSE’s listing standards and each Trust listed for trading on the American Stock Exchange (AMEX) has filed with the AMEX its corporate governance certification regarding compliance with the AMEX’s listing standards. All of the Trusts have filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts’share are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of such Trust’s offering and the information contained in each Trust’s Statement of Additional Information may have become outdated.

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

Quarterly performance and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com/indiv/products/closedendfunds/funds.html. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRock’s website into this report.

Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for the Advisor or Sub-Advisor: Robert S. Kapito—Director and Vice Chairman of the Advisor and the Sub-Advisor, Henry Gabbay, Anne Ackerley and Bartholomew Battista—Managing Directors of the Advisor and the Sub-Advisor, James Kong and Vincent Tritto—Managing Directors of the Sub-Advisor, and Jeff Gary and Brian P. Kindelan—Managing Director of the Advisor.

TAX INFORMATION (Unaudited)

The information set forth below is for the Trusts’ tax year as required by the Internal Revenue Service.¹Shareholders, however, must report distributions on a calendar year basis for income tax purposes. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January 2006. Please consult your tax advisor for proper treatment of this information.

For the tax year ended October 31, 2005, the Trusts designated distributions paid during the year as follows:


	Ordinary Income Per Share			Non-taxable Return of Capital Per Share			Long-term Capital Gains Per Share				Total

Broad Investment Grade (BCT)		$	1.10624		$	0.00000		$	0.17756	$	1.28380
High Yield (BHY)			0.79352			0.00000			0.00000		0.79352
Income Opportunity (BNA)			0.82757			0.00000			0.25913		1.08670
Income Trust (BKT)			0.47961			0.07504			0.00000		0.55465
Limited Duration (BLW)			1.43827			0.00000			0.04446		1.48273
Strategic Bond (BHD)			1.12432			0.26893			0.00000		1.39325

Further, we wish to advise you that your income dividends received do not qualify for the corporate dividend received deduction and are not subject to the 15% rate entitled to qualified dividend income for taxable non-corporate shareholders.


¹	Core Bond Trust (BHK) has a December tax year end, therefore not required to be included in this notice.

SECTION 19 NOTICES

Set forth below is a summary of notices sent by each Trust, if any, pursuant to Section 19 of the Investment Company Act of 1940. Section 19 requires each Trust to accompany dividend payments with a notice if any part of that payment is from a source other than accumulated net income, not including profits or losses from the sale of securities or other properties. These notices are not for tax reporting purposes and were provided only for informational purposes in order to comply with the requirements of Section 19 of the Investment Company Act of 1940. In January 2006, after the completion of each Trust’s tax year, shareholders will receive a Form 1099-DIV which will reflect the amount of income, capital gain and return of capital paid by the Trust taxable in calendar year 2005 and reportable on your 2005 federal and other income tax returns.


		Total distributions			Net Investment Income				Distributions from proceeds from the sale of securities				Distributions from return of capital

BlackRock High Yield Trust	Jan-05		($0.06833	)		($0.06833		)		$	—			$	—
	Feb-05		($0.06833	)		($0.06833		)		$	—			$	—
	Mar-05		($0.06833	)		($0.06833		)		$	—			$	—
	Apr-05		($0.06833	)		($0.06833		)		$	—			$	—
	May-05		($0.06833	)		($0.06833		)		$	—			$	—
	Jun-05		($0.06833	)		($0.06833		)		$	—			$	—
	Jul-05		($0.06833	)		($0.06833		)		$	—			$	—
	Aug-05		($0.06833	)		($0.06833		)		$	—			$	—
	Sep-05		($0.05530	)		($0.05530		)		$	—			$	—
	Oct-05		($0.05530	)		($0.05530		)		$	—			$	—
BlackRock Core Bond Trust	Jan-05		($0.30790	)		($0.08750		)		($	0.22040	)		$	—
	Sep-05		($0.12939	)		$	—			($	0.12939	)		$	—
BlackRock Strategic Bond Trust	Jan-05		($0.13000	)		($0.07387		)		$	—			($	0.05613	)
	Feb-05		($0.13000	)		($0.08424		)		$	—			($	0.04576	)
	Mar-05		($0.11500	)		($0.08953		)		$	—			($	0.02547	)
	Apr-05		($0.11500	)		($0.09282		)		$	—			($	0.02218	)
	May-05		($0.11500	)		($0.09046		)		$	—			($	0.02454	)
	Jun-05		($0.11500	)		($0.09198		)		$	—			($	0.02302	)
	Jul-05		($0.10875	)		($0.08398		)		$	—			($	0.02477	)
	Aug-05		($0.10875	)		($0.08152		)		$	—			($	0.02723	)
	Sep-05		($0.10875	)		($0.08907		)		$	—			($	0.01968	)
	Oct-05		($0.08800	)		($0.08764		)		$	—			($	0.00036	)
BlackRock Income Trust	Jan-05		($0.05104	)		($0.05104		)		$	—			$	—
	Feb-05		($0.05104	)		($0.04314		)		$	—			($	0.00790	)
	Mar-05		($0.05104	)		($0.02296		)		$	—			($	0.02808	)
	Apr-05		($0.05104	)		($0.04072		)		$	—			($	0.01032	)
	May-05		($0.05104	)		($0.03806		)		$	—			($	0.01298	)
	Jun-05		($0.05104	)		($0.04484		)		$	—			($	0.00620	)
	Jul-05		($0.03710	)		($0.03292		)		$	—			($	0.00418	)
	Aug-05		($0.03710	)		($0.03373		)		$	—			($	0.00337	)
	Sep-05		($0.03710	)		($0.03509		)		$	—			($	0.00201	)
BlackRock Income Opportunity Trust	Jan-05		($0.34910	)		($0.07000		)		($	0.27910	)		($	0.00000	)
	Jul-05		($0.06190	)		($0.04976		)		($	0.01214	)		($	0.00000	)
BlackRock Limited Duration	Jan-05		($0.12500	)		($0.08054		)		($	0.04446	)		$	—
	Jun-05		($0.11670	)		($0.01164		)		($	0.10506	)		$	—
BlackRock Broad Investment Grade Trust	Oct-05		$0.38380			$0.20624				$	0.17756			$	—

BlackRock Closed-End Funds


Directors/Trustees
Ralph L. Schlosstein, Chairman
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
R. Glenn Hubbard
Robert S. Kapito
James Clayburn La Force, Jr.
Walter F. Mondale

Officers
Robert S. Kapito, President
Henry Gabbay, Treasurer
Bartholomew Battista, Chief Compliance Officer
Anne Ackerley, Vice President
Jeff Gary, Vice President
James Kong, Assistant Treasurer
Vincent B. Tritto, Secretary
Brian P. Kindelan, Assistant Secretary

Investment Advisor
BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM

Sub-Advisor¹
BlackRock Financial Management, Inc.
40 East 52nd Street
New York, NY 10022

Accounting Agent and Custodian
State Street Bank and Trust Company
2 Avenue de Lafayette
Boston, MA 02111


¹ For Core Bond, Limited Duration and Strategic Bond.



Transfer Agent
EquiServe Trust Company, N.A.
c/o Computershare Investor Services
250 Royall Street
Canton, MA 02021
(800) 699-1BFM

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116

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

Legal Counsel – Independent Trustees
Debevoise & Plimpton LLP
919 Third Avenue
New York, NY 10022

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change.


BlackRock Closed-End Funds
c/o BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 699-1BFM.

The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor’s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the “Commission”) at http://www.sec.gov.

Information on how proxies relating to the Trusts’ voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (800) 699-1BFM or on the website of the Commission at http://www.sec.gov.

The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust’s Form N-Q will be available on the Commission’s website at http://www.sec.gov. Each Trust’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Each Trust’s Form N-Q may also be obtained, upon request, by calling (800) 699-1BFM.


This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change.

CEF-ANN-3

Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

(b) Not applicable.

(c) The Registrant has not amended its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(d) The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(e) Not applicable.

(f) The Registrant's Code of Ethics is attached as an Exhibit hereto.

Item 3. Audit Committee Financial Expert.
The Registrant's Board of Trustees has determined that it has three audit committee financial experts serving on its audit committee, each of whom is an "independent" Trustee: Dr. Andrew F. Brimmer, Kent Dixon and Frank Fabozzi. Under applicable securities laws, a person who is 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 of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.
(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $57,235 for the fiscal year ended October 31, 2005 and $52,500 for the fiscal year ended October 31, 2004.

(b) Audit-Related Fees. The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported above in Item 4(a) were $5,784 for the fiscal year ended October 31, 2005 and

$0 for the fiscal year ended October 31, 2004. The nature of these services was attest services not required by statute or regulation, overhead and out-of-pocket expenses.

(c) Tax Fees. The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were $7,500 for the fiscal year ended October 31, 2005 and $10,500 for the fiscal year ended October 31, 2004. The nature of these services was federal, state and local income and excise tax return preparation and related advice and planning and miscellaneous tax advice.

(d) All Other Fees. There were no fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported above in Items 4(a) through (c).

(e) Audit Committee Pre-Approval Policies and Procedures.
(1) The Registrant has polices and procedures (the "Policy") for the pre-approval by the Registrant's Audit Committee of Audit, Audit-Related, Tax and Other Services (as each is defined in the Policy) provided by the Registrant’s independent auditor (the "Independent Auditor") to the Registrant and other "Covered Entities" (as defined below). The term of any such pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The amount of any such pre-approval is set forth in the appendices to the Policy (the "Service Pre-Approval Documents"). At its first meeting of each calendar year, the Audit Committee will approve or re-approve the Service Pre-Approval Documents for that year, together with any changes deemed necessary or desirable by the Audit Committee. The Audit Committee may, from time to time, modify the nature of the services pre-approved, the aggregate level of fees pre-approved or both.

For the purposes of the Policy, "Covered Services" means (A) all engagements for audit and non-audit services to be provided by the Independent Auditor to the Registrant and (B) all engagements for non-audit services that directly impacted the operations and financial reporting or the Registrant to be provided by the Independent Auditor to any Covered Entity. "Covered Entities" means (1) BlackRock Advisors, Inc. (the “Advisor”) or (2) any entity controlling, controlled by or under common control with the Advisor that provides ongoing services to the Registrant.

In the intervals between the scheduled meetings of the Audit Committee, the Audit Committee delegates pre-approval authority under this Policy to the Chairman of the Audit Committee (the "Chairman"). The Chairman shall report any pre-approval decisions under this Policy to the Audit Committee at its next scheduled meeting. At each scheduled meeting, the Audit Committee will review with the Independent Auditor the Covered Services pre-approved by the Chairman pursuant to delegated authority, if any, and the fees related thereto. Based on these reviews, the Audit Committee can modify, at its discretion, the pre-approval originally granted by the Chairman pursuant to delegated authority. This modification can be to the nature of services pre-approved, the aggregate level of fees approved, or both. Audit Committee may modify or withdraw this delegated authority at any time the Audit Committee determines that it is appropriate to do so.

Fee levels for all Covered Services to be provided by the Independent Auditor and pre-approved under this Policy will be established annually by the Audit Committee and set forth in the Service Pre-Approval Documents. Any increase in pre-approved fee levels will require specific pre-approval by the Audit Committee (or the Chairman pursuant to delegated authority).

The terms and fees of the annual Audit services engagement for the Registrant are subject to the specific pre-approval of the Audit Committee. The Audit Committee (or the Chairman pursuant to delegated authority) will approve, if necessary, any changes in terms, conditions or fees resulting from changes in audit scope, Registrant structure or other matters.

In addition to the annual Audit services engagement specifically approved by the Audit Committee, any other Audit services for the Registrant not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).

Audit-Related services are assurance and related services that are not required for the audit, but are reasonably related to the performance of the audit or review of the financial statements of the Registrant and, to the extent they are Covered Services, the other Covered Entities or that are traditionally performed by the Independent Auditor. Audit-Related services that are Covered Services and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).

The Audit Committee believes that the Independent Auditor can provide Tax services to the Registrant and Covered Entities such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the Independent Auditor in connection with a transaction, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. Tax services that are Covered Services and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).

All Other services that are covered and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority).

Requests or applications to provide Covered Services that require approval by the Audit Committee (or the Chairman pursuant to delegated authority) must be submitted to the Audit Committee or the Chairman, as the case may be, by both the Independent Auditor and the Chief Financial Officer of the Registrant or the respective Covered Entity, and must include a joint statement as to whether, in their view, (a) the request or application is consistent with the rules of the Securities and Exchange Commission ("SEC") on auditor independence and (b) the requested service is or is not a non-audit service prohibited by the SEC. A request or application submitted to the Chairman between scheduled meetings of the Audit Committee should include a discussion as to why approval is being sought prior to the next regularly scheduled meeting of the Audit Committee.

(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) The aggregate non-audit fees billed by the Registrant's accountant for services rendered to the Registrant, the Advisor (except for any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) or any entity controlling, controlled by, or under common control with the Advisor that provides ongoing services to the Registrant for each of the last two fiscal years were $1,341,450 for the fiscal year ended October 31, 2005 and $835,100 for the fiscal year ended October 31, 2004.

(h) The Registrant's Audit Committee of the Board of Trustees has considered whether the provision of non-audit services that were rendered to the Registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another 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.

Item 5. Audit Committee of Listed Registrants.
The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The Audit Committee of the Registrant is comprised of: Dr. Andrew F. Brimmer; Richard E. Cavanagh; Kent Dixon and Frank J. Fabozzi.

Item 6. Schedule of Investments.
The Registrant’s Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
The Registrant has delegated the voting of proxies relating to its voting securities to its investment advisor, BlackRock Advisors, Inc. (the "Advisor") and its sub-advisor, BlackRock Financial Management, Inc. (the "Sub-Advisor"). The Proxy Voting Policies and Procedures of the Advisor and Sub-Advisor (the "Proxy Voting Policies") are attached as an Exhibit 99.PROXYPOL hereto.

Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Companies and Affiliated Purchasers.
Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.
The Registrant’s Nominating Committee will consider nominees to the Board of Trustees recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and sets 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.
(a) The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrant’s management, including its principle executive and principle financial officers, as appropriate to allow timely decisions regarding required disclosure.

(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 (17 CFR 270.30a -3(d)) that occurred during the Registrant's fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Code of Ethics attached as EX-99.CODE ETH.

(a) (2) Certifications of Principal Executive and Financial Officers pursuant to Rule 30a-2(a) under the 1940 Act attached as EX-99.CERT.

(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906CERT.

Proxy Voting Policies attached as EX-99.PROXYPOL.

SIGNATURES

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.

(Registrant)	BlackRock Income Trust, Inc.


By:	/s/ Henry Gabbay

Name: Henry Gabbay Title: Treasurer and Principal Financial Officer Date: January 9, 2006

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

By:	/s/ Robert S. Kapito

Name: Robert S. Kapito Title: President and Principal Executive Officer Date: January 9, 2006


By:	/s/ Henry Gabbay

Name: Henry Gabbay Title: Treasurer and Principal Financial Officer Date: January 9, 2006