Edgar Filing: BLACKROCK INCOME TRUST, INC.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2017

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

Name of Fund: BlackRock Income Trust, Inc. (BKT)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Income Trust, Inc.,

55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 08/31/2017

Date of reporting period: 02/28/2017

Item 1 –

Report to Stockholders

FEBRUARY 28, 2017

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Core Bond Trust (BHK)

BlackRock Corporate High Yield Fund, Inc. (HYT)

BlackRock Income Trust, Inc. (BKT)

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

Risk assets, such as stocks and high yield bonds, enjoyed strong performance in the 12 months ended February 28, 2017. It was a different story for higher-quality assets such as U.S. Treasuries, which generated muted returns after struggling in the latter part of 2016 as reflationary expectations in the United States helped drive a pick-up in global growth and investors braced for higher interest rates.

Markets showed great resilience during the period. Big surprises such as the United Kingdom’s vote to leave the European Union and the outcome of the U.S. presidential election brought spikes in equity market volatility, but they were ultimately short-lived. Instead, investors used the sell-offs to seize upon buying opportunities, allowing markets to quickly rebound. We believe this reinforces the case for taking the long view rather than reacting to short-term market noise.

The global reflationary theme — rising nominal growth, wages and inflation — was the dominant driver of asset returns during the period, outweighing significant political upheavals and uncertainty. This trend accelerated after the U.S. election and continued into the beginning of 2017, stoked by expectations for an extra boost to U.S. growth via fiscal policy.

Although economic momentum is gaining traction, the capacity for rapid global growth is restrained by structural factors including an aging population, low productivity growth and excess savings. A tempered economic growth trend and high valuations across most assets have set the stage for muted investment returns going forward.

Equity markets still have room to move, although the disparity between winners and losers is widening, making selectivity increasingly important. Fixed income investors are also facing challenges as bond markets recalibrate to accommodate rising rates and higher inflation expectations. And in a world where political risk and policy uncertainty abound, there is no lack of potential catalysts for higher volatility.

In this environment, investors need to think globally, extend their scope across a broad array of asset classes and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC


Total Returns as of February 28, 2017
	6-month			12-month
U.S. large cap equities (S&P 500^® Index)		10.01	%		24.98	%
U.S. small cap equities (Russell 2000^® Index)		12.61			36.11
International equities (MSCI Europe, Australasia, Far East Index)		4.90			15.75
Emerging market equities (MSCI Emerging Markets Index)		5.51			29.46
3-month Treasury bills (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)		0.22			0.39
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)		(6.17	)		(4.09	)
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)		(2.19	)		1.42
Tax-exempt municipal bonds (S&P Municipal Bond Index)		(2.51	)		0.76
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)		5.43			21.83
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.



2		THIS PAGE NOT PART OF YOUR FUND REPORT


Table of Contents


	Page
The Markets in Review		2
Semi-Annual Report:
Trust Summaries		4
The Benefits and Risks of Leveraging		10
Derivative Financial Instruments		10
Financial Statements:
Schedules of Investments		11
Statements of Assets and Liabilities		65
Statements of Operations		67
Statements of Changes in Net Assets		68
Statements of Cash Flows		71
Financial Highlights		73
Notes to Financial Statements		76
Officers and Trustees		92
Additional Information		93



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	3


Trust Summary as of February 28, 2017				BlackRock Core Bond Trust


Trust Overview

BlackRock Core Bond Trust’s (BHK) (the “Trust”) investment objective is to provide current income and capital appreciation. The Trust seeks to achieve its investment objective by investing at least 75% of its managed assets in bonds that are investment grade quality at the time of investment. The Trust’s investments will include a broad range of bonds, including corporate bonds, U.S. government and agency securities and mortgage-related securities. The Trust may invest up to 25% of its total managed assets in bonds that at the time of investment are rated Ba/BB or below by Moody’s Investors Service, Inc. (“Moody’s”), Standard & Poors Ratings Group (“S&P”), Fitch Ratings (“Fitch”) or another nationally recognized rating agency or bonds that are unrated but judged to be of comparable quality by the investment adviser. The Trust may invest up to 10% of its managed assets in bonds issued in foreign currencies. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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


Trust Information
Symbol on New York Stock Exchange (“NYSE”)		BHK
Initial Offering Date		November 27, 2001
Current Distribution Rate on Closing Market Price as of February 28, 2017 ($13.34)¹		5.85%
Current Monthly Distribution per Common Share²		$0.065
Current Annualized Distribution per Common Share²		$0.780
Economic Leverage as of February 28, 2017³		30%

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate may consist of income, net realized gains and/or a tax return of capital. Past performance does not guarantee future results.

The distribution rate is not constant and is subject to change.

Represents reverse repurchase agreements outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 10.


Performance and Portfolio Management Commentary

Returns for the six months ended February 28, 2017 were as follows:


	Returns Based On
	Market Price			NAV
BHK^1,2		(4.15	)%		(2.10	)%
Lipper Corporate BBB-Rated Debt Funds (Leveraged)³		0.44	%		0.54	%

All returns reflect reinvestment of dividends and/or distributions.

The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on price and performance based on NAV.

Average return.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

What factors influenced performance?

•

The largest detractors from performance included the Trust’s stance with respect to duration (and corresponding interest rate sensitivity) as well as the Trust’s yield curve positioning. Allocations to investment grade corporate securities, global sovereign/supranational/agency issues, residential mortgage-backed securities (“MBS”) and commercial mortgage-backed securities (“CMBS”) also detracted.

•

The largest positive contributions to the Trust’s absolute performance came from holdings of high yield corporate bonds, asset-backed securities (“ABS”) and capital securities.

Describe recent portfolio activity.

•

Over the six-month period, the Trust’s profile with respect to credit risk was essentially unchanged, while sector allocations were rotated to reflect the view that the economy is entering a reflationary period. In addition, the Trust’s allocation in global sovereign/supranational/agency issues was reduced and rotated into emerging market debt, investment grade corporate securities, high yield corporate bonds and CMBS. Lastly, agency collateralized mortgage obligations were added to the portfolio.

Describe portfolio positioning at period end.

•

As of period end, the Trust maintained diversified exposure within non-government spread sectors, including investment grade credit, high yield credit, CMBS and ABS, as well as smaller allocations to non-agency MBS and U.S. municipal bonds. The Trust also held exposure to government-related sectors such as U.S. Treasury securities, agency debt and agency MBS.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.



4	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


		BlackRock Core Bond Trust


Market Price and Net Asset Value Per Share Summary


	2/28/17		8/31/16		Change			High		Low
Market Price	$	13.34	$	14.33		(6.91	)%	$	14.34	$	12.59
Net Asset Value	$	14.50	$	15.25		(4.92	)%	$	15.29	$	13.99


Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments


Portfolio Composition	2/28/17			8/31/16
Corporate Bonds		49	%		47	%
U.S. Treasury Obligations		10			14
Preferred Securities		9			10
Non-Agency Mortgage-Backed Securities		9			10
Asset-Backed Securities		8			8
U.S. Government Sponsored Agency Securities		7			6
Short-Term Securities		1			1
Municipal Bonds		3			2
Foreign Agency Obligations		2			2
Floating Rate Loan Interests		2			1
Options Written		—	¹		(1	)
Other¹		—			—

Representing less than 1% of the Trust’s total investments and Other may include Common Stocks and Options Purchased.


Credit Quality Allocation^2,3	2/28/17			8/31/16
AAA/Aaa⁴		22	%		24	%
AA/Aa		6			4
A		16			14
BBB/Baa		30			22
BB/Ba		12			17
B		8			12
CCC/Caa		3			4
N/R		3			3

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

Excludes Short-Term Securities, Options Purchased and Options Written.

⁴

The investment adviser evaluates the credit quality of not-rated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations as AAA/Aaa.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	5


Trust Summary as of February 28, 2017				BlackRock Corporate High Yield Fund, Inc.

Trust Overview

BlackRock Corporate High Yield Fund, Inc.’s (HYT) (the “Trust”) primary investment objective is to provide shareholders with current income. The Trust’s secondary investment objective is to provide shareholders with capital appreciation. The Trust seeks to achieve its objectives by investing primarily in a diversified portfolio of fixed income securities which are rated at the time of investment to be below investment grade or, if unrated, are considered by the investment adviser to be of comparable quality. The Trust may invest directly in fixed income securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objectives will be achieved.


Trust Information
Symbol on NYSE		HYT
Initial Offering Date		May 30, 2003
Current Distribution Rate on Closing Market Price as of February 28, 2017 ($11.16)¹		7.53%
Current Monthly Distribution per Common Share²		$0.07
Current Annualized Distribution per Common Share²		$0.84
Economic Leverage as of February 28, 2017³		27%

The distribution rate is not constant and is subject to change.

Represents bank borrowings as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 10.

Performance and Portfolio Management Commentary

Returns for the six months ended February 28, 2017 were as follows:


	Returns Based On
	Market Price			NAV
HYT^1,2		7.14	%		8.00	%
Lipper High Yield Funds (Leveraged)³		7.08	%		7.59	%

All returns reflect reinvestment of dividends and/or distributions.

The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on price and performance based on NAV.

Average return.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

What factors influenced performance?

•

High yield corporate bonds and floating rate loan interests (bank loans) both benefited from the strong appetite for credit during the six-month period. On a sector basis, the largest contributors to the Trust’s returns included the independent energy, metals & mining, and wireless sectors. From a credit-rating perspective, B-rated, BB-rated, and CCC-rated names were the largest contributors, as the lower credit-quality portions of both the high yield and bank loan markets drove the overall rally across the two asset classes. Finally, liquid high yield positions were substantial positive contributors to performance given the strong performance of the asset class over the period, including high yield exchange traded funds, credit default swap indexes and total return swaps.

•

From a sector perspective, the sole absolute detractor over the semi-annual period was natural gas. From a credit-rating perspective, CC- and C- names were slight detractors. From an asset allocation perspective, the only detractor for the period came from a small allocation to U.S. Treasury securities.

Describe recent portfolio activity.

•

As the high yield market rallied early in the period, the Trust maintained a slightly overweight market sensitivity, while remaining focused on quality and consistent cash-flow stories where balance sheets and asset coverage are strong. While lower-quality and stressed/distressed portions of the high yield market outperformed over the six months, the Trust remained underweight to the riskier, higher yielding portion of the market in order to prudently manage risk. In that vein, the Trust reduced risk across the consumer cyclical space and with respect to retailers in particular, on the view that the outlook for the space continues to deteriorate under pressure from declining sales and secular changes. By contrast, the Trust added to the cable & satellite and technology sectors over the period.

Describe portfolio positioning at period end.

•

The Trust held the majority of its portfolio in corporate bonds, with a modest allocation to floating rate bank loans. Within high yield corporates, the Trust was underweight in lower-coupon, more interest rate-sensitive bonds while being slightly overweight to single B-rated bonds. The Trust was overweight in high conviction CCC-rated issues while remaining underweight in the highest yielding segment of the lower-related universe where downside risks are greater if volatility picks up or credit sentiment weakens. The Trust continued to favor select equity/equity-like assets with more upside as a substitute to higher-beta (more market sensitive) CCC-rated notes, although this exposure was reduced over the period in favor of high yield issues. The Trust also maintained exposure to equity futures positions to help reduce portfolio risk. The Trust ended the period with a slight long position in equities, and a below-benchmark stance with respect to duration (and corresponding interest rate risk).

•

At period-end, top issuer overweights included Ligado Networks (wireless), Freeport McMoran Inc. (metals & mining), and Amaya Inc. (gaming). Core issuer/credit biases remained centered on cash-flow views, determination of a specific catalyst and/or idiosyncratic characteristics.



6	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


		BlackRock Corporate High Yield Fund, Inc.


Market Price and Net Asset Value Per Share Summary


	2/28/17		8/31/16		Change			High		Low
Market Price	$	11.16	$	10.88		2.57	%	$	11.17	$	9.86
Net Asset Value	$	12.19	$	11.79		3.39	%	$	12.19	$	11.48


Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments


Portfolio Composition	2/28/17			8/31/16
Corporate Bonds		81	%		79	%
Floating Rate Loan Interests		11			9
Preferred Securities		4			4
Asset-Backed Securities		1			2
Common Stocks		3			4
Investment Companies		—	¹		1
Other		—	¹		1

Representing less than 1% of the Trust’s total investments and Other may include Non-Agency Mortgage-Backed Securities, Warrants, Other Interests, Short-Term Securities and Options Purchased.


Credit Quality Allocation^2,3	2/28/17			8/31/16
A		1	%		3	%
BBB/Baa		7			10
BB/Ba		39			40
B		36			35
CCC/Caa		11			8
N/R		6			4

Excludes Short-Term Securities, Options Purchased and Options Written.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	7


Trust Summary as of February 28, 2017				BlackRock Income Trust, Inc.

Trust Overview

BlackRock Income Trust, Inc.’s (BKT) (the “Trust”) investment objective is to manage a portfolio of high-quality securities to achieve both preservation of capital and high monthly income. The Trust seeks to achieve its investment objective by investing at least 65% of its assets in mortgage-backed securities. The Trust invests at least 80% of its assets in securities that are (i) issued or guaranteed by the U.S. government or one of its agencies or instrumentalities or (ii) rated at the time of investment either AAA by S&P or Aaa by Moody’s. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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


Trust Information
Symbol on NYSE		BKT
Initial Offering Date		July 22, 1988
Current Distribution Rate on Closing Market Price as of February 28, 2017 ($6.26)¹		5.08%
Current Monthly Distribution per Common Share²		$0.0265
Current Annualized Distribution per Common Share²		$0.3180
Economic Leverage as of February 28, 2017³		29%

The distribution rate is not constant and is subject to change.

Performance and Portfolio Management Commentary

Returns for the six months ended February 28, 2017 were as follows:


	Returns Based On
	Market Price			NAV
BKT^1,2		(2.74	)%		(0.56	)%
Lipper US Mortgage Funds³		2.34	%		2.78	%

All returns reflect reinvestment of dividends and/or distributions.

The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on price and performance based on NAV.

Average return.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

What factors influenced performance?

•

The largest detractors from performance were the Trust’s allocations within agency collateralized mortgage obligations (“CMOs”), U.S. agency bonds, 30-year agency MBS pass-throughs and swaps/swaptions strategies.

•

The largest contributors to performance during the six-month period were the Trust’s strategies to manage risk utilizing U.S. Treasury futures held as short positions against the Trust’s long positions in agency mortgage-backed securities (“MBS”). This positioning benefited performance as rates moved higher. Other contributions to returns came from allocations

to agency interest-only and principal-only bonds, positions in commercial mortgage-backed securities (“CMBS”) and allocations to legacy (i.e., issued prior to 2008) non-agency residential MBS.

•

The Trust uses interest rate derivatives including futures, options, swaps and swaptions, mainly for the purpose of managing duration, convexity (the rate at which duration changes in response to interest rate movements) and yield curve positioning. The use of derivatives had a positive impact on Trust performance for the period.

Describe recent portfolio activity.

•

The Trust decreased its holdings within agency pass-throughs during the period, while maintaining exposure to agency CMOs. The Trust’s allocation to legacy non-agency residential MBS was unchanged. Within CMBS, exposures were slightly reduced as the risk profile became less favorable in the wake of significant spread tightening. The Trust’s allocation to asset-backed securities remained minimal.

Describe portfolio positioning at period end.

•

As of period end, the Trust continued to be overweight in well-structured agency CMOs with call protected and seasoned collateral, and those which demonstrated more favorable prepayment characteristics. The Trust also maintained non-benchmark positions in legacy non-agency residential MBS and CMBS.



8	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


		BlackRock Income Trust, Inc.


Market Price and Net Asset Value Per Share Summary


	2/28/17		8/31/16		Change			High		Low
Market Price	$	6.26	$	6.60		(5.15	)%	$	6.61	$	6.16
Net Asset Value	$	6.75	$	6.96		(3.02	)%	$	6.98	$	6.71


Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments


Portfolio Composition	2/28/17			8/31/16
U.S. Government Sponsored Agency Securities		123	%		97	%
U.S. Treasury Obligations		3			2
Short-Term Securities		1			1
Non-Agency Mortgage-Backed Securities		1			1
Asset-Backed Securities		—	¹		1
Borrowed Bonds¹		—			—
TBA Sale Commitments		(28	)		(2	)

Representing less than 0.50% of the Trust’s total investments.


Credit Quality Allocation^2,3	2/28/17			8/31/16
AAA/Aaa⁴		99	%		99	%
BBB		1			1

Excludes Money Market Funds.

⁴



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	9


The Benefits and Risks of Leveraging

The Trusts may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Trust on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Trusts (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trusts’ shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV.

To illustrate these concepts, assume a Trust’s capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Trust’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Trust with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Trust’s financing cost of leverage is significantly lower than the income earned on a Trust’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Trusts’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Trusts had not used leverage. Furthermore, the value of the Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of the Trusts’ obligations under their respective leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest

rates can influence the Trusts’ NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that the Trusts’ intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Trust’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Trust’s shares than if the Trust were not leveraged. In addition, each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Trusts to incur losses. The use of leverage may limit a Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Trust incurs expenses in connection with the use of leverage, all of which are borne by shareholders and may reduce income to the shareholders. Moreover, to the extent the calculation of the Trusts’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Trust’s investment adviser will be higher than if the Trusts did not use leverage.

Each Trust may utilize leverage through a credit facility or reverse repurchase agreements as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Trusts are permitted to issue debt up to 33¹/₃% of their total managed assets. A Trust may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Trust may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by its credit facility, which may be more stringent than those imposed by the 1940 Act.

If a Trust segregates or designates on its books and records cash or liquid assets having values not less than the value of a Trust’s obligations under the reverse repurchase agreement (including accrued interest) then such transaction is not considered a senior security and is not subject to the foregoing limitations and requirements under the 1940 Act.


Derivative Financial Instruments

The Trusts may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other asset without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the

transaction or illiquidity of the instrument. The Trusts’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.



10	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017

Schedule of Investments February 28, 2017 (Unaudited)

BlackRock Core Bond Trust (BHK)

(Percentages shown are based on Net Assets)


Asset-Backed Securities		Par (000)		Value
Asset-Backed Securities — 10.4%
ALM VI Ltd., Series 2012-6A, Class B2R, 3.82%, 7/15/26 (a)(b)	USD		1,000	$	1,002,115
Anchorage Capital CLO 9 Ltd., Series 2016-9A, Class D, 4.95%, 1/15/29 (a)(b)			650		651,690
Apidos CDO, Series 2012-9AR, Class DR, 4.92%, 7/15/23 (a)(b)			1,400		1,401,189
Apidos CLO XIX, Series 2014-19A, Class DR, 4.38%, 10/17/26 (a)(b)			1,000		995,211
Ares XXVIII CLO, Ltd., Series 2013-3A, Class D, 4.52%, 10/17/24 (a)(b)			1,000		1,000,874
Ares XXXII CLO, Ltd., Series 2014-32A, Class CR, 4.49%, 11/15/25 (a)(b)			1,250		1,250,000
Atlas Senior Loan Fund, Ltd., 4.95%, 11/30/28 (a)(b)			1,250		1,250,000
Atrium CDO Corp., Series 9A, Class D, 4.44%, 2/28/24 (a)(b)			1,500		1,503,744
Battalion CLO VII Ltd., Series 2014-7A, Class C, 4.92%, 10/17/26 (a)(b)			1,000		991,626
Bowman Park CLO, Ltd., Series 2014-1A, Class D2R, 4.38%, 11/23/25 (a)(b)			3,000		3,000,000
CenterPoint Energy Transition Bond Co. LLC, Series 2012-1, Class A3, 3.03%, 10/15/25			2,210		2,276,248
CIFC Funding Ltd. (a)(b):
Series 2012-3A, Class B1R, 5.04%, 1/29/25			2,500		2,506,672
Series 2013-IA, Class B, 3.83%, 4/16/25			1,000		1,000,896
Series 2014-4A, Class D, 4.42%, 10/17/26			2,000		2,010,825
Countrywide Asset-Backed Certificates, Series 2006-13, Class 3AV2, 0.91%, 1/25/37 (a)			288		279,683
DCP Rights LLC, Series 2014-1A, Class A, 5.46%, 10/25/44 (b)			3,879		3,871,595
Dryden 34 Senior Loan Fund, Series 2014-34A, Class C, 3.82%, 10/15/26 (a)(b)			1,000		996,187
Flatiron CLO Ltd., Series 2014-1A, Class D, 4.62%, 1/15/23 (a)(b)			1,000		1,002,321
Galaxy XV CLO Ltd. (a)(b):
3.62%, 4/15/25			1,000		1,001,147
5.34%, 11/15/26			1,000		1,001,581
GoldenTree Loan Opportunities IX Ltd., Series 2014-9A, Class D, 4.54%, 10/29/26			1,000		995,080
Highbridge Loan Management Ltd., Series 5A-2015, Class C1, 4.24%, 1/29/26 (a)(b)			4,000		4,019,518
Limerock CLO III LLC, Series 2014-3A, Class C, 4.63%, 10/20/26 (a)(b)			3,750		3,697,971
Madison Park Funding IX Ltd., Series 2012-9AR, Class DR, 4.89%, 8/15/22 (a)(b)			1,200		1,201,107
Madison Park Funding XV Ltd., Series 2014-15A, Class B1R, 1.00%, 1/27/26 (a)(b)			1,800		1,800,050
Nelnet Student Loan Trust, Series 2006-1, Class A5, 1.16%, 8/23/27 (a)			795		791,011
Neuberger Berman CLO XVIII Ltd., Series 2014-18A, Class CR, 5.29%, 11/14/27 (a)(b)			2,250		2,267,631
Oaktree EIF II Ltd., Series 2015-B1A, Class C, 4.14%, 2/15/26 (a)(b)			1,000		1,003,683
OCP CLO Ltd., Series 2012-2A, Class DR, 5.52%, 11/22/25 (a)(b)			1,000		1,001,701


Asset-Backed Securities		Par (000)		Value
Asset-Backed Securities (continued)
Octagon Investment Partners XX Ltd., Series 2014-1A (a)(b):
Class C, 3.83%, 8/12/26	USD		750	$	755,381
Class D, 4.68%, 8/12/26			1,000		1,008,673
Octagon Investment Partners XXI Ltd., Series 2014-1A, Class C, 4.69%, 11/14/26 (a)(b)			2,000		1,996,014
Octagon Investment Partners XXII Ltd., Series 2014-1A, Class C1, 4.29%, 11/25/25 (a)(b)			2,000		1,991,308
OneMain Financial Issuance Trust, Series 2015-2A, Class C, 4.32%, 7/18/25 (b)			5,000		4,986,153
OZLM Funding III, Ltd., Series 2013-3A, Class BR, 4.04%, 1/22/29 (a)(b)			1,500		1,506,175
OZLM VII Ltd., Series 2014-7A, Class C, 4.62%, 7/17/26 (a)(b)			470		472,144
OZLM VIII Ltd., Series 2014-8A, Class C, 4.52%, 10/17/26 (a)(b)			1,750		1,749,816
Regatta V Funding Ltd., Series 2014-1A, Class C, 4.49%, 10/25/26 (a)(b)			2,000		1,956,548
SLM Private Credit Student Loan Trust, Series 2004-B, Class A2, 1.16%, 6/15/21 (a)			16		16,208
SLM Private Education Loan Trust (b):
Series 2012-A, Class A1, 2.17%, 8/15/25 (a)			7		7,156
Series 2012-A, Class A2, 3.83%, 1/17/45			690		705,042
Series 2014-A, Class B, 3.50%, 11/15/44			500		498,195
SMB Private Education Loan Trust, Series 2015-C, Class C, 4.50%, 9/17/46 (b)			5,900		5,931,402
Sound Point CLO IV Ltd., Series 2013-3A, Class D, 4.54%, 1/21/26 (a)(b)			700		700,613
Sound Point CLO VII Ltd., Series 2014-3A, Class D, 4.64%, 1/23/27 (a)(b)			1,250		1,256,869
Sound Point CLO XIV Ltd., Series 2016-3A, Class D, 4.73%, 1/23/29 (a)(b)			1,550		1,556,129
Stewart Park CLO Ltd., Series 2015-1A, Class D, 4.47%, 4/15/26 (a)(b)			1,000		996,900
Structured Asset Securities Corp., Series 2002-AL1, Class A2, 3.45%, 2/25/32			730		726,998
Voya CLO Ltd. (a)(b):
Series 2012-2AR, Class CR, 3.97%, 10/15/22			1,500		1,501,233
Series 2016-3A, Class C, 4.67%, 10/18/27			795		797,959
Series 2016-3A, Class D, 7.67%, 10/18/27			615		623,960
World Financial Network Credit Card Master Trust, Series 2012-C, Class C, 4.55%, 8/15/22			2,360		2,419,356
York CLO-4, Ltd., Series 2016-2A, Class D, 5.06%, 1/20/30 (a)(b)			1,500		1,478,833

					81,410,421
Interest Only Asset-Backed Securities — 0.1%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (b)			3,106		208,695
Sterling Coofs Trust, Series 2004-1, Class A, 2.36%, 4/15/29 (b)			7,447		518,861

					727,556
Total Asset-Backed Securities — 10.5%					82,137,977

Portfolio Abbreviations


AUD	Australian Dollar	EUR	Euro	NZD	New Zealand Dollar
CAD	Canadian Dollar	EURIBOR	Euro Interbank Offered Rate	OTC	Over-the-Counter
CDO	Collateralized Debt Obligation	GBP	British Pound	PIK	Payment-In-Kind
CHF	Swiss Franc	GO	General Obligation Bonds	RB	Revenue Bonds
CLO	Collateralized Loan Obligation	JPY	Japanese Yen	SEK	Swedish Krona
CR	Custodian Receipt	LIBOR	London Interbank Offered Rate	USD	U.S. Dollar
DIP	Debtor-In-Possession	LOC	Letter of Credit
ETF	Exchange-Traded Fund	NOK	Norwegian Krone

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	11


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Aerospace & Defense — 1.1%
Accudyne Industries Borrower/Accudyne Industries LLC, 7.75%, 12/15/20 (b)	USD		370	$	324,675
Bombardier, Inc. (b):
8.75%, 12/01/21			621		687,757
6.00%, 10/15/22			84		84,105
6.13%, 1/15/23			107		107,000
7.50%, 3/15/25			306		318,240
Eaton Corp., 4.15%, 11/02/42			500		500,227
Harris Corp., 3.83%, 4/27/25			500		513,924
KLX, Inc., 5.88%, 12/01/22 (b)			361		380,025
Koppers, Inc., 6.00%, 2/15/25 (b)			151		157,040
Lockheed Martin Corp., 4.70%, 5/15/46			1,250		1,370,637
Moog, Inc., 5.25%, 12/01/22 (b)			180		184,500
TransDigm, Inc.:
5.50%, 10/15/20			211		214,693
6.00%, 7/15/22			950		975,631
6.50%, 7/15/24			235		241,462
6.50%, 5/15/25 (b)(c)			133		136,159
6.50%, 5/15/25			110		112,613
6.38%, 6/15/26			26		26,260
United Technologies Corp., 6.13%, 7/15/38 (d)			1,450		1,876,526

					8,211,474
Air Freight & Logistics — 0.3%
FedEx Corp., 4.75%, 11/15/45			1,250		1,313,054
XPO Logistics, Inc.:
5.75%, 6/15/21	EUR		100		111,872
6.50%, 6/15/22 (b)	USD		535		561,750
6.13%, 9/01/23 (b)			78		81,900

					2,068,576
Airlines — 2.3%
Air Canada Pass-Through Trust, Series 2015-1, Class B, 3.88%, 9/15/24 (b)			1,863		1,816,668
American Airlines Pass-Through Trust:
Series 2013-2, Class A, 4.95%, 7/15/24 (d)			3,586		3,827,951
Series 2015-2, Class A, 4.00%, 3/22/29			1,465		1,501,140
Series 2015-2, Class AA, 3.60%, 3/22/29			1,465		1,471,843
Series 2017-1, Class B, 4.95%, 8/15/26			1,925		1,968,313
Continental Airlines Pass-Through Trust:
Series 2010-1, Class B, 6.00%, 7/12/20			401		415,093
Series 2012-3, Class C, 6.13%, 4/29/18			520		542,100
United Airlines Pass-Through Trust:
Series 2013-1, Class A, 4.30%, 2/15/27			3,509		3,688,794
Series 2014-2, Class B, 4.63%, 3/03/24			2,487		2,539,465

					17,771,367
Auto Components — 0.3%
Allison Transmission, Inc., 5.00%, 10/01/24 (b)			199		202,482
CNH Industrial Finance Europe SA, 2.88%, 5/17/23	EUR		175		192,735
Delphi Automotive PLC, 4.40%, 10/01/46	USD		465		444,887
Faurecia, 3.63%, 6/15/23	EUR		100		110,911
Fiat Chrysler Finance Europe, 4.75%, 3/22/21			100		117,064
FTE Verwaltungs GmbH, 9.00%, 7/15/20			100		111,409
Icahn Enterprises LP/Icahn Enterprises Finance Corp.:
4.88%, 3/15/19	USD		367		372,964
6.25%, 2/01/22 (b)			80		82,600
6.75%, 2/01/24 (b)			271		281,162
IHO Verwaltungs GmbH (e):
(2.75% Cash or 3.50% PIK), 2.75%, 9/15/21	EUR		100		109,423
(3.25% Cash or 4.00% PIK), 3.25%, 9/15/23			100		109,913
(4.13% Cash or 4.88% PIK), 4.13%, 9/15/21 (b)	USD		200		202,060


Corporate Bonds		Par (000)		Value
Auto Components (continued)
IHO Verwaltungs GmbH (e) (continued):
(4.50% Cash or 5.25% PIK), 4.50%, 9/15/23 (b)	USD		200	$	191,381

					2,528,991
Automobiles — 0.9%
Ford Motor Co., 4.75%, 1/15/43 (d)			4,255		4,092,353
General Motors Co., 6.25%, 10/02/43 (d)			2,506		2,854,727

					6,947,080
Banks — 1.8%
Allied Irish Banks PLC, 4.13%, 11/26/25 (a)	EUR		100		110,228
Banco Popolare, 2.75%, 7/27/20			100		108,111
Bankia SA, 4.00%, 5/22/24 (a)			200		216,366
Barclays PLC, 3.65%, 3/16/25	USD		4,320		4,213,819
CaixaBank SA, 3.50%, 2/15/27 (a)	EUR		100		109,014
CIT Group, Inc.:
5.50%, 2/15/19 (b)	USD		206		217,073
5.38%, 5/15/20			410		438,700
5.00%, 8/01/23			395		417,713
Commerzbank AG:
7.75%, 3/16/21	EUR		100		127,792
4.00%, 3/23/26			28		30,631
Cooperatieve Rabobank UA, 3.95%, 11/09/22 (d)	USD		1,500		1,540,531
HSBC Holdings PLC, 6.10%, 1/14/42			610		767,192
Santander Holdings USA, Inc., 4.50%, 7/17/25			2,000		2,047,134
Santander UK Group Holdings PLC, 2.88%, 8/05/21			1,250		1,237,315
Wells Fargo & Co., 3.90%, 5/01/45			2,250		2,170,042

					13,751,661
Beverages — 0.6%
Anheuser-Busch InBev Finance, Inc., 4.90%, 2/01/46 (d)			4,250		4,665,123
Biotechnology — 0.4%
Amgen, Inc., 4.40%, 5/01/45			2,250		2,206,318
Gilead Sciences, Inc., 4.80%, 4/01/44			1,000		1,044,178
Senvion Holding GmbH, 6.63%, 11/15/20	EUR		100		110,362

					3,360,858
Building Materials — 0.0%
Dry Mix Solutions Investissements SAS, 3.93%, 6/15/21 (a)			100		105,940
Titan Global Finance PLC, 3.50%, 6/17/21			100		110,005

					215,945
Building Products — 0.3%
American Builders & Contractors Supply Co., Inc., 5.75%, 12/15/23 (b)	USD		183		192,150
Building Materials Corp. of America (b):
5.38%, 11/15/24			65		66,813
6.00%, 10/15/25			200		212,500
CPG Merger Sub LLC, 8.00%, 10/01/21 (b)			520		544,700
Louisiana-Pacific Corp., 4.88%, 9/15/24			61		61,458
Masonite International Corp., 5.63%, 3/15/23 (b)			200		206,500
Ply Gem Industries, Inc., 6.50%, 2/01/22			431		448,326
Standard Industries, Inc. (b):
5.13%, 2/15/21			29		30,233
5.50%, 2/15/23			138		143,520
USG Corp.:
8.25%, 1/15/18			300		315,000
5.50%, 3/01/25 (b)			180		191,250

					2,412,450
Capital Markets — 2.2%
CDP Financial, Inc., 5.60%, 11/25/39 (b)(d)			5,890		7,380,771
Goldman Sachs Group, Inc., 3.75%, 5/22/25 (d)			8,965		9,095,467

See Notes to Financial Statements.



12	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Capital Markets (continued)
Morgan Stanley, 4.00%, 7/23/25	USD		905	$	937,059
State Street Corp., 1.96%, 6/01/77 (a)			140		125,300

					17,538,597
Chemicals — 0.8%
Air Liquide Finance SA, 3.50%, 9/27/46 (b)			360		337,174
Alpha 3 BV/Alpha US Bidco, Inc., 6.25%, 2/01/25 (b)			400		400,000
Axalta Coating Systems LLC, 4.88%, 8/15/24 (b)			161		164,220
Blue Cube Spinco, Inc.:
9.75%, 10/15/23			55		65,588
10.00%, 10/15/25			25		30,375
CF Industries, Inc.:
7.13%, 5/01/20			80		87,700
5.15%, 3/15/34			60		57,038
4.95%, 6/01/43			185		159,100
Chemours Co.:
6.63%, 5/15/23			182		193,147
7.00%, 5/15/25			44		47,795
Hexion, Inc., 10.38%, 2/01/22 (b)			132		135,960
Huntsman International LLC, 4.88%, 11/15/20			101		104,535
Ineos Finance PLC, 4.00%, 5/01/23	EUR		100		110,310
INEOS Group Holdings SA, 5.63%, 8/01/24 (b)(d)	USD		200		203,900
Inovyn Finance PLC, 6.25%, 5/15/21	EUR		100		112,633
Methanex Corp., 3.25%, 12/15/19	USD		1,650		1,665,094
Momentive Performance Materials, Inc., 3.88%, 10/24/21			735		720,300
NOVA Chemicals Corp., 5.25%, 8/01/23 (b)			88		90,640
Platform Specialty Products Corp. (b):
10.38%, 5/01/21			37		41,579
6.50%, 2/01/22			934		976,030
PQ Corp., 6.75%, 11/15/22 (b)			214		231,655
PSPC Escrow Corp., 6.00%, 2/01/23	EUR		100		111,263
Tronox Finance LLC:
6.38%, 8/15/20	USD		141		143,468
7.50%, 3/15/22 (b)			43		44,935
Versum Materials, Inc., 5.50%, 9/30/24 (b)			81		84,746
WR Grace & Co-Conn (b):
5.13%, 10/01/21			187		196,817
5.63%, 10/01/24			80		85,000

					6,601,002
Commercial Services & Supplies — 0.8%
ADT Corp.:
3.50%, 7/15/22			402		381,397
4.13%, 6/15/23			55		52,938
4.88%, 7/15/32 (b)			141		113,505
Advanced Disposal Services, Inc., 5.63%, 11/15/24 (b)			151		154,398
Aviation Capital Group Corp. (b):
4.63%, 1/31/18			1,300		1,332,500
7.13%, 10/15/20			1,800		2,072,250
Brand Energy & Infrastructure Services, Inc., 8.50%, 12/01/21 (b)			439		459,852
Harland Clarke Holdings Corp., 8.38%, 8/15/22 (b)			190		196,294
Iron Mountain, Inc.:
6.00%, 10/01/20 (b)			175		183,801
6.00%, 8/15/23			80		84,672
Mobile Mini, Inc., 5.88%, 7/01/24			299		312,455
Park Aerospace Holdings Ltd., 5.25%, 8/15/22 (b)			162		168,885
Ritchie Bros Auctioneers, Inc., 5.38%, 1/15/25 (b)			125		128,594
Silk Bidco AS, 7.50%, 2/01/22	EUR		100		113,885
United Rentals North America, Inc.:
7.63%, 4/15/22	USD		31		32,366
5.75%, 11/15/24			60		63,720

					5,851,512


Corporate Bonds		Par (000)		Value
Communications Equipment — 0.3%
Alcatel-Lucent USA, Inc., 6.45%, 3/15/29	USD		648	$	716,040
CommScope, Inc., 5.00%, 6/15/21 (b)			250		257,500
Nokia OYJ, 6.63%, 5/15/39			135		144,112
Zayo Group LLC/Zayo Capital, Inc.:
6.00%, 4/01/23			834		881,955
6.38%, 5/15/25			258		277,995
5.75%, 1/15/27 (b)			143		151,194

					2,428,796
Construction & Engineering — 0.6%
BlueLine Rental Finance Corp., 7.00%, 2/01/19 (b)			369		376,380
Engility Corp., 8.88%, 9/01/24 (b)			176		189,200
ITR Concession Co. LLC, 4.20%, 7/15/25 (b)			4,000		4,066,160

					4,631,740
Construction Materials — 0.3%
American Tire Distributors, Inc., 10.25%, 3/01/22 (b)			164		162,770
HD Supply, Inc. (b):
5.25%, 12/15/21			790		833,450
5.75%, 4/15/24			481		508,657
LKQ Italia Bondco SpA, 3.88%, 4/01/24	EUR		157		177,764
PulteGroup, Inc.:
5.50%, 3/01/26	USD		133		137,988
6.00%, 2/15/35			27		26,595
Rexel SA, 3.50%, 6/15/23	EUR		100		110,805

					1,958,029
Consumer Discretionary — 0.0%
Nielsen Co. Luxembourg SARL, 5.00%, 2/01/25 (b)	USD		117		117,877
Silversea Cruise Finance Ltd., 7.25%, 2/01/25 (b)			63		65,678

					183,555
Consumer Finance — 1.9%
Ally Financial, Inc.:
6.25%, 12/01/17			320		330,950
4.63%, 3/30/25			190		194,275
8.00%, 11/01/31			1,803		2,217,690
Capital One Financial Corp., 4.75%, 7/15/21 (d)			1,935		2,096,783
Corivas Campus Living USG LLC, 5.30%, 7/01/50			5,700		5,701,140
Ford Motor Credit Co. LLC:
8.13%, 1/15/20			1,530		1,766,970
4.25%, 9/20/22			1,600		1,675,894
Navient Corp.:
5.00%, 10/26/20			180		180,846
6.63%, 7/26/21			104		108,420
5.50%, 1/25/23			75		71,813
7.25%, 9/25/23			173		177,325
6.13%, 3/25/24			59		56,493
5.88%, 10/25/24			56		52,500
5.63%, 8/01/33			101		81,810
OneMain Financial Holdings LLC (b):
6.75%, 12/15/19			101		105,735
7.25%, 12/15/21			78		81,510

					14,900,154
Containers & Packaging — 0.8%
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.:
6.75%, 1/31/21 (b)			200		207,360
4.25%, 1/15/22	EUR		100		109,362
4.25%, 9/15/22 (b)(c)	USD		200		203,000
2.75%, 3/15/24 (c)	EUR		100		106,062
6.75%, 5/15/24			100		117,196
6.00%, 2/15/25 (b)(c)	USD		402		413,055

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	13


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Containers & Packaging (continued)
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc. (b):
4.63%, 5/15/23	USD		271	$	275,742
7.25%, 5/15/24			1,475		1,607,750
Ball Corp., 5.00%, 3/15/22			141		149,284
Clearwater Paper Corp., 5.38%, 2/01/25 (b)			181		180,548
Crown European Holdings SA, 3.38%, 5/15/25	EUR		100		109,727
Flex Acquisition Co., Inc., 6.88%, 1/15/25 (b)	USD		98		100,205
JH-Holding Finance SA, 8.25%, 12/01/22 (e)	EUR		100		114,773
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu:
5.75%, 10/15/20	USD		194		199,820
6.88%, 2/15/21			305		313,001
4.52%, 7/15/21 (a)(b)			438		449,497
5.13%, 7/15/23 (b)			363		376,159
7.00%, 7/15/24 (b)			393		422,721
Sappi Papier Holding GmbH, 4.00%, 4/01/23	EUR		100		112,296
Sealed Air Corp. (b):
4.88%, 12/01/22	USD		365		377,319
6.88%, 7/15/33			6		6,510
Signode Industrial Group Lux SA/Signode Industrial Group US, Inc., 6.38%, 5/01/22 (b)			333		342,157
Verallia Packaging SASU, 5.13%, 8/01/22	EUR		100		112,402

					6,405,946
Diversified Consumer Services — 0.3%
APX Group, Inc.:
6.38%, 12/01/19	USD		33		33,949
8.75%, 12/01/20			211		218,385
7.88%, 12/01/22 (b)			130		140,725
7.88%, 12/01/22			86		93,095
Prime Security Services Borrower LLC/Prime Finance, Inc., 9.25%, 5/15/23 (b)			1,168		1,277,500
Service Corp. International, 4.50%, 11/15/20			315		321,300
Sotheby’s, 5.25%, 10/01/22 (b)			18		18,360
Tereos Finance Groupe I SA, 4.13%, 6/16/23	EUR		100		109,039

					2,212,353
Diversified Financial Services — 3.6%
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 3.95%, 2/01/22	USD		750		776,160
Aircastle Ltd., 6.25%, 12/01/19			353		384,770
Bank of America Corp. (d):
5.63%, 7/01/20			2,200		2,425,106
3.30%, 1/11/23			6,000		6,045,540
FBM Finance, Inc., 8.25%, 8/15/21 (b)			80		85,616
FMR LLC, 4.95%, 2/01/33 (b)(d)			2,300		2,437,131
Garfunkelux Holdco 3 SA, 8.50%, 11/01/22	GBP		100		129,669
General Electric Capital Corp., 6.15%, 8/07/37 (d)	USD		2,150		2,826,497
General Motors Financial Co., Inc., 4.25%, 5/15/23			807		837,237
IntercontinentalExchange Group, Inc., 4.00%, 10/15/23			470		498,345
Jefferies Finance LLC/JFIN Co-Issuer Corp., 7.38%, 4/01/20 (b)			595		605,412
Mercury Bondco PLC (e):
(7.13% Cash or 7.88% PIK), 7.13%, 5/30/21	EUR		100		104,880
(8.25% Cash or 9.00% PIK), 8.25%, 5/30/21			100		108,059
Moody’s Corp., 4.50%, 9/01/22 (d)	USD		1,800		1,931,924
Northern Trust Corp., 3.95%, 10/30/25 (d)			8,000		8,475,976
UniCredit SpA:
6.95%, 10/31/22	EUR		140		172,292
5.75%, 10/28/25 (a)			107		121,233

					27,965,847


Corporate Bonds		Par (000)		Value
Diversified Telecommunication Services — 3.5%
AT&T, Inc. (d):
6.38%, 3/01/41	USD		520	$	592,076
5.15%, 3/15/42			2,400		2,375,484
4.75%, 5/15/46			2,710		2,534,189
CenturyLink, Inc.:
6.45%, 6/15/21			437		465,680
Series U, 7.65%, 3/15/42			99		90,585
Series Y, 7.50%, 4/01/24			108		116,100
Cincinnati Bell, Inc., 7.00%, 7/15/24 (b)			451		476,933
Consolidated Communications, Inc., 6.50%, 10/01/22			68		67,830
Frontier Communications Corp.:
8.13%, 10/01/18			71		75,970
7.13%, 3/15/19			220		233,750
8.50%, 4/15/20			75		79,500
7.13%, 1/15/23			50		45,250
7.63%, 4/15/24			205		183,988
6.88%, 1/15/25			915		770,887
11.00%, 9/15/25			379		380,895
Level 3 Financing, Inc.:
5.38%, 8/15/22			165		171,064
5.63%, 2/01/23			149		153,843
5.13%, 5/01/23			95		96,900
5.38%, 1/15/24			165		169,331
5.38%, 5/01/25			140		144,550
5.25%, 3/15/26 (b)			223		224,951
OTE PLC, 3.50%, 7/09/20	EUR		100		106,470
SBA Communications Corp., 4.88%, 9/01/24 (b)	USD		177		176,097
Telecom Italia Capital SA:
6.38%, 11/15/33			95		95,950
6.00%, 9/30/34			300		296,250
7.20%, 7/18/36			105		111,195
Telecom Italia SpA:
3.25%, 1/16/23	EUR		141		157,904
3.63%, 1/19/24			200		225,387
Verizon Communications, Inc. (d):
6.40%, 2/15/38	USD		6,879		8,207,514
6.55%, 9/15/43			6,751		8,264,655
Windstream Corp., 7.75%, 10/01/21			17		17,510
Windstream Services LLC, 7.50%, 6/01/22			53		52,470

					27,161,158
Electric Utilities — 5.8%
AES Corp., 4.88%, 5/15/23			210		208,530
Berkshire Hathaway Energy Co., 6.50%, 9/15/37 (d)			5,515		7,221,005
Black Hills Corp., 3.15%, 1/15/27			405		389,123
Cleveland Electric Illuminating Co., 5.95%, 12/15/36			434		489,601
CMS Energy Corp., 5.05%, 3/15/22 (d)			1,832		2,015,510
Duke Energy Carolinas LLC:
6.10%, 6/01/37			640		806,371
6.00%, 1/15/38 (d)			1,675		2,125,434
4.25%, 12/15/41 (d)			750		783,534
Duke Energy Florida LLC, 6.40%, 6/15/38 (d)			770		1,036,207
E.ON International Finance BV, 6.65%, 4/30/38 (b)			3,100		3,775,028
Electricite de France SA, 5.60%, 1/27/40 (b)(d)			2,800		3,112,931
Florida Power Corp., 6.35%, 9/15/37 (d)			2,775		3,696,580
Jersey Central Power & Light Co., 7.35%, 2/01/19			490		535,752
Ohio Power Co., Series D, 6.60%, 3/01/33 (d)			3,000		3,773,514
PacifiCorp, 6.25%, 10/15/37 (d)			1,225		1,605,502
Public Service Co. of Colorado, Series 17, 6.25%, 9/01/37 (d)			2,550		3,325,873
Southern California Edison Co. (d):
5.63%, 2/01/36			1,300		1,587,447
Series A, 5.95%, 2/01/38			2,175		2,770,687
Southern Co., 4.40%, 7/01/46			1,000		996,053

See Notes to Financial Statements.



14	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Electric Utilities (continued)
Virginia Electric & Power Co., Series A, 6.00%, 5/15/37 (d)	USD		3,920	$	4,911,548

					45,166,230
Electrical Equipment — 0.0%
Anixter, Inc., 5.63%, 5/01/19			35		36,925
Areva SA, 4.88%, 9/23/24	EUR		50		53,558
Trionista TopCo GmbH, 6.88%, 4/30/21			110		121,924

					212,407
Electronic Equipment, Instruments & Components — 0.1%
CDW LLC/CDW Finance Corp.:
6.00%, 8/15/22	USD		280		296,450
5.00%, 9/01/23			234		241,020
5.00%, 9/01/25 (c)			72		73,035
SESI LLC, 7.13%, 12/15/21			60		61,650

					672,155
Energy Equipment & Services — 0.8%
Ensco PLC:
4.50%, 10/01/24			99		85,140
5.20%, 3/15/25			25		22,125
Enterprise Products Operating LLC, 6.13%, 10/15/39 (d)			1,400		1,649,409
Gates Global LLC/Gates Global Co., 6.00%, 7/15/22 (b)			378		380,835
Genesis Energy LP/Genesis Energy Finance Corp.:
5.75%, 2/15/21			142		144,130
6.75%, 8/01/22			170		177,225
GrafTech International Ltd., 6.38%, 11/15/20			600		510,000
Halliburton Co., 5.00%, 11/15/45			500		542,783
Noble Holding International Ltd., 4.63%, 3/01/21			8		7,580
Pattern Energy Group, Inc., 5.88%, 2/01/24 (b)			93		95,441
Pioneer Energy Services Corp., 6.13%, 3/15/22			185		172,744
Precision Drilling Corp.:
6.50%, 12/15/21			70		71,925
5.25%, 11/15/24			90		89,100
Transocean, Inc.:
6.00%, 3/15/18			195		199,875
7.38%, 4/15/18			20		20,550
5.80%, 10/15/22			444		415,140
9.00%, 7/15/23 (b)			659		710,072
6.80%, 3/15/38			47		38,540
Trinidad Drilling Ltd., 6.63%, 2/15/25 (b)			243		250,290
Weatherford International Ltd.:
7.75%, 6/15/21			185		199,569
8.25%, 6/15/23			80		86,800
9.88%, 2/15/24 (b)			106		122,430

					5,991,703
Environmental, Maintenance, & Security Service — 0.1%
Befesa Zinc SAU Via Zinc Capital SA, 8.88%, 5/15/18	EUR		100		108,212
Tervita Escrow Corp., 7.63%, 12/01/21 (b)	USD		276		288,420

					396,632
Food & Staples Retailing — 0.7%
Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC (b):
6.63%, 6/15/24			151		160,060
5.75%, 3/15/25			169		169,317
Aramark Services, Inc., 4.75%, 6/01/26			151		151,378
B&M European Value Retail SA, 4.13%, 2/01/22	GBP		100		129,224
Casino Guichard Perrachon SA:
5.98%, 5/26/21	EUR		100		124,811
4.56%, 1/25/23			100		118,464
CVS Health Corp., 5.13%, 7/20/45 (d)	USD		2,000		2,228,126


Corporate Bonds		Par (000)		Value
Food & Staples Retailing (continued)
Dollar Tree, Inc., 5.75%, 3/01/23	USD		914	$	969,982
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp., 5.88%, 1/15/24			42		44,415
Rite Aid Corp.:
6.75%, 6/15/21			258		268,965
6.13%, 4/01/23 (b)			22		23,312
7.70%, 2/15/27			241		287,995
Walgreens Boots Alliance, Inc., 4.80%, 11/18/44			1,000		1,034,985

					5,711,034
Food Products — 0.2%
Acosta, Inc., 7.75%, 10/01/22 (b)			167		146,960
Aramark Services, Inc., 5.13%, 1/15/24			148		155,045
Darling Global Finance BV, 4.75%, 5/30/22	EUR		100		112,357
JBS USA LLC/JBS USA Finance, Inc. (b):
7.25%, 6/01/21	USD		30		30,900
5.88%, 7/15/24			92		96,140
5.75%, 6/15/25			316		326,270
Post Holdings, Inc. (b):
6.75%, 12/01/21			68		72,998
7.75%, 3/15/24			232		257,520
5.50%, 3/01/25			69		70,294
8.00%, 7/15/25			235		264,962
5.00%, 8/15/26			29		28,039
TreeHouse Foods, Inc., 6.00%, 2/15/24 (b)			89		93,673
WhiteWave Foods Co., 5.38%, 10/01/22			119		129,710

					1,784,868
Health Care Equipment & Supplies — 0.4%
Crimson Merger Sub, Inc., 6.63%, 5/15/22 (b)			405		361,463
DJO Finco, Inc./DJO Finance LLC/DJO Finance Corp., 8.13%, 6/15/21 (b)			716		633,660
Fresenius Medical Care US Finance II, Inc., 4.75%, 10/15/24 (b)			80		82,176
IASIS Healthcare LLC/IASIS Capital Corp., 8.38%, 5/15/19			160		156,400
Mallinckrodt International Finance SA/Mallinckrodt CB LLC (b):
5.63%, 10/15/23			192		184,320
5.50%, 4/15/25			240		223,200
Medtronic, Inc., 4.50%, 3/15/42			750		791,765
Teleflex, Inc.:
3.88%, 8/01/17 (f)			50		155,281
5.25%, 6/15/24			170		175,525
4.88%, 6/01/26			39		39,293

					2,803,083
Health Care Providers & Services — 1.6%
Acadia Healthcare Co., Inc.:
5.63%, 2/15/23			296		304,140
6.50%, 3/01/24			41		43,563
Aetna, Inc.:
3.20%, 6/15/26			1,005		1,013,729
4.50%, 5/15/42			575		598,484
Alere, Inc., 6.38%, 7/01/23 (b)			208		211,120
Amsurg Corp., 5.63%, 7/15/22			553		575,811
Centene Corp.:
5.63%, 2/15/21			401		422,052
6.13%, 2/15/24			51		55,335
4.75%, 1/15/25			285		293,194
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18			101		101,631
8.00%, 11/15/19			98		95,795
5.13%, 8/01/21			150		147,375
6.88%, 2/01/22			265		232,537
DaVita HealthCare Partners, Inc., 5.13%, 7/15/24			366		373,549
Envision Healthcare Corp., 5.13%, 7/01/22 (b)			365		373,669

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	15


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Health Care Providers & Services (continued)
HCA, Inc.:
3.75%, 3/15/19	USD		264	$	270,600
6.50%, 2/15/20			652		715,759
4.75%, 5/01/23			562		589,397
5.00%, 3/15/24			315		331,931
5.38%, 2/01/25			772		807,705
5.25%, 4/15/25			66		70,373
5.88%, 2/15/26			284		304,590
5.25%, 6/15/26			361		381,306
4.50%, 2/15/27			408		406,980
HealthSouth Corp.:
5.75%, 11/01/24			176		179,520
5.75%, 9/15/25			141		142,763
2.00%, 12/01/43 (f)			225		270,422
Hologic, Inc., 5.25%, 7/15/22 (b)			360		375,300
MEDNAX, Inc., 5.25%, 12/01/23 (b)			134		138,523
MPH Acquisition Holdings LLC, 7.13%, 6/01/24 (b)			478		515,045
New Amethyst Corp., 6.25%, 12/01/24 (b)			74		78,440
RegionalCare Hospital Partners Holdings, Inc., 8.25%, 5/01/23 (b)			207		222,525
Surgery Center Holdings, Inc., 8.88%, 4/15/21 (b)			48		51,360
Tenet Healthcare Corp.:
6.25%, 11/01/18			159		168,341
6.00%, 10/01/20			324		343,440
4.50%, 4/01/21			21		21,263
4.38%, 10/01/21			112		112,840
7.50%, 1/01/22 (b)			93		100,673
8.13%, 4/01/22			789		826,477
6.75%, 6/15/23			501		496,616

					12,764,173
Health Care Technology — 0.0%
Change Healthcare Holdings LLC/Change Healthcare Finance, Inc., 5.75%, 3/01/25 (b)			121		124,970
Quintiles IMS, Inc., 3.25%, 3/15/25 (b)	EUR		100		106,099

					231,069
Hotels, Restaurants & Leisure — 2.4%
Boyd Gaming Corp., 6.88%, 5/15/23	USD		172		185,760
Caesars Entertainment Resort Properties LLC/Caesars Entertainment Resort Property, 8.00%, 10/01/20			1,346		1,408,252
CPUK Finance Ltd., 7.00%, 2/28/42	GBP		100		130,915
ESH Hospitality, Inc., 5.25%, 5/01/25 (b)	USD		88		88,770
Gateway Casinos & Entertainment Ltd., 8.25%, 3/01/24 (b)			48		48,780
International Game Technology PLC, 4.75%, 2/15/23	EUR		100		115,571
Jacobs Entertainment, Inc., 7.88%, 2/01/24 (b)	USD		45		46,238
McDonald’s Corp., 3.70%, 1/30/26			510		523,295
MGM Resorts International:
8.63%, 2/01/19			47		51,935
5.25%, 3/31/20			50		52,625
6.75%, 10/01/20			127		139,979
6.63%, 12/15/21			620		692,075
7.75%, 3/15/22			20		23,350
4.63%, 9/01/26			86		84,279
New Red Finance, Inc., 6.00%, 4/01/22 (b)			640		667,392
PortAventura Entertainment Barcelona BV, 7.25%, 12/01/20	EUR		100		109,850
Sabre GLBL, Inc. (b):
5.38%, 4/15/23	USD		62		63,085
5.25%, 11/15/23			185		187,775
Scientific Games International, Inc.:
7.00%, 1/01/22 (b)			557		592,412
10.00%, 12/01/22			547		580,504


Corporate Bonds		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)	USD		434	$	446,152
Station Casinos LLC, 7.50%, 3/01/21			570		594,225
Thomas Cook Group PLC, 6.25%, 6/15/22	EUR		100		112,879
Unique Pub Finance Co. PLC:
Series A3, 6.54%, 3/30/21	GBP		2,374		3,210,363
Series A4, 5.66%, 6/30/27			1,089		1,463,389
Series M, 7.40%, 3/28/24			3,000		4,036,351
Series N, 6.46%, 3/30/32			2,390		2,819,020
Vue International Bidco PLC, 7.88%, 7/15/20			100		128,949
Yum! Brands, Inc., 3.88%, 11/01/23	USD		66		64,680

					18,668,850
Household Durables — 0.4%
CalAtlantic Group, Inc.:
8.38%, 1/15/21			53		61,944
5.38%, 10/01/22			2		2,100
5.25%, 6/01/26			5		5,006
Century Communities, Inc., 6.88%, 5/15/22			460		480,125
Lennar Corp.:
4.13%, 1/15/22			77		77,963
4.75%, 11/15/22			130		133,705
4.88%, 12/15/23			85		87,763
4.75%, 5/30/25			180		182,250
Mattamy Group Corp., 6.88%, 12/15/23 (b)			70		73,150
Newell Brands, Inc., 4.20%, 4/01/26			1,000		1,052,029
PulteGroup, Inc., 6.38%, 5/15/33			256		264,960
Riverbed Technology, Inc., 8.88%, 3/01/23 (b)			155		165,462
Standard Pacific Corp., 5.88%, 11/15/24			15		16,088
Tempur Sealy International, Inc., 5.50%, 6/15/26			168		165,060
TRI Pointe Group, Inc.:
4.38%, 6/15/19			10		10,200
4.88%, 7/01/21			125		129,062
5.88%, 6/15/24			125		129,375
William Lyon Homes ,Inc., 5.88%, 1/31/25 (b)			81		81,101

					3,117,343
Household Products — 0.1%
ACCO Brands Corp., 5.25%, 12/15/24 (b)			59		59,738
Prestige Brands, Inc., 6.38%, 3/01/24 (b)			109		115,540
Spectrum Brands, Inc.:
6.63%, 11/15/22			355		375,412
6.13%, 12/15/24			112		119,179
5.75%, 7/15/25			22		23,375

					693,244
Independent Power and Renewable Electricity Producers — 0.2%
Calpine Corp.:
6.00%, 1/15/22 (b)			69		72,364
5.88%, 1/15/24 (b)			84		88,620
5.50%, 2/01/24			5		4,950
Dynegy, Inc.:
6.75%, 11/01/19			425		437,750
7.38%, 11/01/22			151		148,357
7.63%, 11/01/24			80		76,000
8.00%, 1/15/25 (b)			14		13,300
NRG Energy, Inc.:
7.88%, 5/15/21			32		33,200
6.63%, 3/15/23			25		25,313
6.25%, 5/01/24			25		25,000
7.25%, 5/15/26			69		70,984
6.63%, 1/15/27 (b)			379		372,367
NRG Yield Operating LLC, 5.38%, 8/15/24			75		76,875
QEP Resources, Inc., 5.38%, 10/01/22			283		284,415
TerraForm Power Operating LLC, 6.38%, 2/01/23 (b)(g)			126		130,410

					1,859,905

See Notes to Financial Statements.



16	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Industrial Conglomerates — 0.6%
General Electric Co.:
6.75%, 3/15/32 (d)	USD		2,500	$	3,409,900
6.88%, 1/10/39			135		193,672
Smiths Group PLC, 3.63%, 10/12/22 (b)			360		358,458
Vertiv Group Corp, 9.25%, 10/15/24 (b)			293		314,609

					4,276,639
Insurance — 2.9%
Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/25			1,495		1,499,249
American International Group, Inc., 3.75%, 7/10/25 (d)			3,380		3,403,684
Aon PLC:
3.88%, 12/15/25			1,445		1,483,645
4.60%, 6/14/44			500		489,894
Assicurazioni Generali SpA (a):
7.75%, 12/12/42	EUR		100		126,084
5.50%, 10/27/47			100		111,767
AXA SA, 5.25%, 4/16/40 (a)			500		590,092
Five Corners Funding Trust, 4.42%, 11/15/23 (b)(d)	USD		2,050		2,181,963
Groupama SA, 6.00%, 1/23/27	EUR		100		108,293
Hartford Financial Services Group, Inc., 5.13%, 4/15/22	USD		1,860		2,064,381
HUB International Ltd. (b):
9.25%, 2/15/21			117		121,387
7.88%, 10/01/21			426		450,495
Liberty Mutual Group, Inc., 6.50%, 5/01/42 (b)(d)			2,000		2,496,744
Lincoln National Corp., 3.35%, 3/09/25 (d)			1,045		1,039,432
MetLife, Inc., 6.40%, 12/15/66			2,554		2,822,170
Muenchener Rueckversicherungs AG, 6.00%, 5/26/41 (a)	EUR		400		503,124
Prudential Financial, Inc. (d):
5.90%, 3/17/36	USD		500		608,145
5.70%, 12/14/36			1,625		1,913,665
Radian Group, Inc., 5.25%, 6/15/20			185		194,712
Wayne Merger Sub LLC, 8.25%, 8/01/23 (b)			286		301,730

					22,510,656
Internet Software & Services — 0.1%
Equinix, Inc.:
4.88%, 4/01/20			173		177,325
5.88%, 1/15/26			245		261,689
Netflix, Inc.:
5.50%, 2/15/22			8		8,540
5.88%, 2/15/25			11		11,894
4.38%, 11/15/26 (b)			452		448,045
Symantec Corp., 5.00%, 4/15/25 (b)			106		108,803

					1,016,296
IT Services — 0.4%
Ceridian HCM Holding, Inc., 11.00%, 3/15/21 (b)			270		282,825
Fidelity National Information Services, Inc., 4.50%, 8/15/46			1,000		975,666
First Data Corp. (b):
7.00%, 12/01/23			683		734,225
5.75%, 1/15/24			1,424		1,475,620

					3,468,336
Life Sciences Tools & Services — 0.2%
Thermo Fisher Scientific, Inc., 5.30%, 2/01/44			1,000		1,134,017
Machinery — 0.1%
Gardner Denver, Inc., 6.88%, 8/15/21 (b)			90		92,700
Navistar International Corp., 8.25%, 11/01/21			30		30,300
SPX FLOW, Inc. (b):
5.63%, 8/15/24			115		118,162
5.88%, 8/15/26			105		106,575


Corporate Bonds		Par (000)		Value
Machinery (continued)
Terex Corp., 5.63%, 2/01/25 (b)	USD		201	$	206,276
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc., 6.38%, 5/01/22	EUR		100		113,854

					667,867
Marine — 0.3%
Nakilat, Inc., Series A, 6.07%, 12/31/33 (b)(d)	USD		2,150		2,491,420
Media — 6.1%
21st Century Fox America, Inc., 7.63%, 11/30/28			385		507,434
Adria Bidco BV, 7.88%, 11/15/20	EUR		100		110,575
Altice Financing SA:
5.25%, 2/15/23			100		113,186
7.50%, 5/15/26 (b)	USD		607		651,766
Altice Luxembourg SA:
7.75%, 5/15/22 (b)			200		212,750
6.25%, 2/15/25	EUR		100		112,561
7.63%, 2/15/25 (b)	USD		289		307,785
Altice US Finance I Corp. (b):
5.38%, 7/15/23			770		802,725
5.50%, 5/15/26			293		302,889
AMC Networks, Inc.:
4.75%, 12/15/22			192		193,920
5.00%, 4/01/24			191		192,792
Cablevision Systems Corp.:
8.63%, 9/15/17			76		78,375
7.75%, 4/15/18			311		326,550
8.00%, 4/15/20			325		359,125
CBS Radio, Inc., 7.25%, 11/01/24 (b)			149		159,058
CCO Holdings LLC/CCO Holdings Capital Corp.:
5.25%, 9/30/22			280		291,200
5.13%, 5/01/23 (b)			359		372,462
5.75%, 2/15/26 (b)			197		210,790
5.50%, 5/01/26 (b)			278		295,027
5.13%, 5/01/27 (b)			249		258,649
5.88%, 5/01/27 (b)			616		661,646
Cequel Communications Holdings I LLC/Cequel Capital Corp. (b):
6.38%, 9/15/20			100		103,063
5.13%, 12/15/21			562		568,827
7.75%, 7/15/25			960		1,063,200
Charter Communications Operating LLC/Charter Communications Operating Capital, 4.91%, 7/23/25			4,000		4,213,612
Clear Channel International BV, 8.75%, 12/15/20 (b)			284		301,040
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22			2,050		2,090,432
Series B, 7.63%, 3/15/20			95		95,713
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22 (d)			2,600		3,495,778
Comcast Corp.:
6.45%, 3/15/37 (d)			790		1,015,148
4.60%, 8/15/45			2,000		2,079,060
Cox Communications, Inc. (b):
6.95%, 6/01/38			1,000		1,089,372
8.38%, 3/01/39 (d)			3,475		4,341,185
CSC Holdings LLC:
10.13%, 1/15/23 (b)			790		914,425
5.25%, 6/01/24			430		432,687
10.88%, 10/15/25 (b)			510		614,550
Discovery Communications LLC:
3.25%, 4/01/23			1,850		1,819,899
3.45%, 3/15/25			210		200,947
DISH DBS Corp.:
6.75%, 6/01/21			510		562,275
5.88%, 7/15/22			118		126,555

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	17


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Media (continued)
DISH DBS Corp. (continued):
5.88%, 11/15/24	USD		99	$	105,435
7.75%, 7/01/26			575		672,750
DISH Network Corp., 3.38%, 8/15/26 (b)(f)			175		210,656
eircom Finance DAC, 4.50%, 5/31/22	EUR		100		110,919
GTT Escrow Corp., 7.88%, 12/31/24 (b)	USD		50		52,375
Hughes Satellite Systems Corp.:
7.63%, 6/15/21			64		70,960
5.25%, 8/01/26 (b)			329		334,346
6.63%, 8/01/26 (b)			64		66,600
iHeartCommunications, Inc.:
9.00%, 12/15/19			185		161,644
9.00%, 3/01/21			9		7,290
10.63%, 3/15/23			961		797,630
Intelsat Jackson Holdings SA:
7.25%, 4/01/19			467		447,152
7.25%, 10/15/20			249		230,325
5.50%, 8/01/23			427		351,207
Interpublic Group of Cos., Inc., 3.75%, 2/15/23			2,000		2,023,762
LG Finance Co. Corp., 5.88%, 11/01/24 (b)			57		58,639
LGE HoldCo VI BV, 7.13%, 5/15/24	EUR		100		120,904
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance, 7.88%, 5/15/24 (b)	USD		61		59,780
MDC Partners, Inc., 6.50%, 5/01/24 (b)			246		237,697
Midcontinent Communications / Midcontinent Finance Corp. (b):
6.25%, 8/01/21			340		353,260
6.88%, 8/15/23			66		71,115
NAI Entertainment Holdings/NAI Entertainment Holdings Finance Corp., 5.00%, 8/01/18 (b)			117		118,024
National CineMedia LLC, 5.75%, 8/15/26			59		60,180
Nexstar Broadcasting, Inc., 5.63%, 8/01/24 (b)			159		162,577
Nielsen Finance LLC/Nielsen Finance Co., 5.00%, 4/15/22 (b)			211		217,330
Numericable Group SA, 5.38%, 5/15/22	EUR		106		117,125
Outfront Media Capital LLC/Outfront Media Capital Corp.:
5.25%, 2/15/22	USD		55		57,131
5.63%, 2/15/24			160		168,000
SFR Group SA (b):
6.00%, 5/15/22			345		357,831
7.38%, 5/01/26			1,501		1,555,411
Sirius XM Radio, Inc., 4.25%, 5/15/20 (b)			463		468,787
TCI Communications, Inc., 7.88%, 2/15/26 (d)			610		816,190
Telesat Canada/Telesat LLC, 8.88%, 11/15/24 (b)			115		125,638
Time Warner, Inc., 6.10%, 7/15/40			830		951,736
Tribune Media Co., 5.88%, 7/15/22			573		585,176
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, 4.00%, 1/15/25	EUR		100		111,714
Univision Communications, Inc. (b):
5.13%, 5/15/23	USD		561		561,000
5.13%, 2/15/25			351		346,174
UPCB Finance IV Ltd., 4.00%, 1/15/27	EUR		100		109,224
Virgin Media Finance PLC, 5.75%, 1/15/25 (b)	USD		515		528,519
Virgin Media Secured Finance PLC:
5.50%, 8/15/26 (b)			200		204,978
4.88%, 1/15/27	GBP		100		124,892
6.25%, 3/28/29			100		134,682
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (b)	USD		520		540,800
Wind Acquisition Finance SA:
7.00%, 4/23/21	EUR		120		132,404
7.38%, 4/23/21 (b)	USD		800		833,000
Ziggo Bond Finance BV, 5.88%, 1/15/25 (b)			260		264,225

					47,846,227


Corporate Bonds		Par (000)		Value
Metals & Mining — 1.8%
Alcoa, Inc.:
5.40%, 4/15/21	USD		340	$	364,174
5.13%, 10/01/24			445		460,797
5.90%, 2/01/27			70		74,987
5.95%, 2/01/37			30		30,713
Anglo American Capital PLC:
4.45%, 9/27/20 (b)			100		104,700
4.13%, 4/15/21 (b)			200		206,040
3.25%, 4/03/23	EUR		100		115,588
4.88%, 5/14/25 (b)	USD		200		207,500
ArcelorMittal:
7.75%, 10/15/39			64		74,560
7.50%, 3/01/41			216		245,160
Cliffs Natural Resources, Inc. (b):
8.25%, 3/31/20			130		142,025
5.75%, 3/01/25			145		142,245
Constellium NV (b):
8.00%, 1/15/23			650		682,500
6.63%, 3/01/25			832		827,320
First Quantum Minerals Ltd., 7.00%, 2/15/21 (b)			490		507,456
Freeport-McMoRan, Inc.:
2.30%, 11/14/17			189		188,527
2.38%, 3/15/18			1,564		1,556,180
3.10%, 3/15/20			620		607,600
4.00%, 11/14/21			121		116,160
3.55%, 3/01/22			324		300,915
3.88%, 3/15/23			774		712,080
5.40%, 11/14/34			278		243,945
5.45%, 3/15/43			737		630,135
Grinding Media, Inc./MC Grinding Media Canada, Inc., 7.38%, 12/15/23 (b)			121		129,470
Joseph T Ryerson & Son, Inc., 11.00%, 5/15/22 (b)			115		128,225
Kaiser Aluminum Corp., 5.88%, 5/15/24			74		77,700
Kinross Gold Corp.:
5.95%, 3/15/24			25		26,438
6.88%, 9/01/41			45		45,563
Novelis Corp. (b):
6.25%, 8/15/24			623		660,380
5.88%, 9/30/26			610		627,537
Peabody Securities Finance Corp. (b):
6.00%, 3/31/22			82		83,640
6.38%, 3/31/25			86		87,720
Rio Tinto Finance USA Ltd., 4.75%, 3/22/42			400		441,586
Steel Dynamics, Inc.:
5.13%, 10/01/21			550		567,187
5.25%, 4/15/23			345		359,266
5.50%, 10/01/24			48		51,062
Teck Resources Ltd.:
3.00%, 3/01/19			140		143,388
4.50%, 1/15/21			96		99,540
3.75%, 2/01/23			337		328,508
8.50%, 6/01/24 (b)			250		291,875
6.13%, 10/01/35			61		63,135
6.00%, 8/15/40			400		401,000
6.25%, 7/15/41			43		44,613
5.20%, 3/01/42			378		358,034
5.40%, 2/01/43			188		179,070
ThyssenKrupp AG, 1.38%, 3/03/22	EUR		75		79,128
United States Steel Corp., 8.38%, 7/01/21 (b)	USD		215		241,875

					14,057,247
Multi-Utilities — 0.0%
NGL Energy Partners LP/NGL Energy Finance Corp.:
6.88%, 10/15/21			140		144,113
7.50%, 11/01/23 (b)			130		136,825

					280,938

See Notes to Financial Statements.



18	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Multiline Retail — 0.0%
Neiman Marcus Group Ltd., 8.00%, 10/15/21 (b)	USD		155	$	97,263
Oil, Gas & Consumable Fuels — 6.5%
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., 7.88%, 12/15/24 (b)			79		83,543
Anadarko Petroleum Corp., 5.55%, 3/15/26			1,500		1,684,755
Antero Midstream Partners LP/Antero Midstream Finance Corp., 5.38%, 9/15/24 (b)			35		35,525
Antero Resources Corp.:
5.13%, 12/01/22			52		52,260
5.63%, 6/01/23			51		51,638
Apache Corp., 3.25%, 4/15/22			2,000		2,021,394
California Resources Corp., 8.00%, 12/15/22 (b)			352		300,960
Callon Petroleum Co., 6.13%, 10/01/24 (b)			140		145,950
Canadian Natural Resources Ltd., 3.90%, 2/01/25			500		508,139
Carrizo Oil & Gas, Inc., 6.25%, 4/15/23			95		96,188
Cheniere Corpus Christi Holdings LLC (b):
7.00%, 6/30/24			278		311,360
5.88%, 3/31/25			576		609,120
Chesapeake Energy Corp.:
4.27%, 4/15/19 (a)			341		338,442
6.88%, 11/15/20			138		136,620
8.00%, 12/15/22 (b)			184		194,580
8.00%, 1/15/25 (b)(d)			214		212,395
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36 (d)			685		809,147
CONSOL Energy, Inc.:
5.88%, 4/15/22			1,708		1,665,300
8.00%, 4/01/23			48		50,040
Continental Resources, Inc.:
4.50%, 4/15/23			98		96,040
3.80%, 6/01/24			277		256,571
4.90%, 6/01/44			190		166,725
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.:
6.00%, 12/15/20			25		25,719
6.25%, 4/01/23			20		20,750
CrownRock LP/CrownRock Finance, Inc. (b):
7.13%, 4/15/21			525		546,000
7.75%, 2/15/23			85		91,588
DCP Midstream LLC (b):
4.75%, 9/30/21			55		56,788
6.45%, 11/03/36			128		131,520
6.75%, 9/15/37			159		168,540
Denbury Resources, Inc.:
9.00%, 5/15/21 (b)			501		539,827
5.50%, 5/01/22			110		90,750
Diamondback Energy, Inc., 5.38%, 5/31/25 (b)			137		141,795
Eclipse Resources Corp., 8.88%, 7/15/23			45		46,463
Energy Transfer Equity LP:
5.88%, 1/15/24			544		584,800
5.50%, 6/01/27			216		228,690
Energy Transfer Partners LP:
4.05%, 3/15/25			500		502,398
4.75%, 1/15/26			1,250		1,309,505
5.30%, 4/15/47			540		539,633
Ensco Jersey Finance, Ltd., 3.00%, 1/31/24 (b)			341		347,607
Ensco PLC, 8.00%, 1/31/24 (b)			58		59,450
Enterprise Products Operating LLC, 3.70%, 2/15/26			500		506,256
EOG Resources, Inc.:
4.15%, 1/15/26			1,000		1,052,363
5.10%, 1/15/36			200		220,184
EP Energy LLC/Everest Acquisition Finance, Inc.:
9.38%, 5/01/20			221		216,027
8.00%, 11/29/24 (b)			173		183,380


Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Extraction Oil & Gas Holdings LLC/Extraction Finance Corp., 7.88%, 7/15/21 (b)	USD		208	$	221,520
Genesis Energy LP/Genesis Energy Finance Corp., 5.63%, 6/15/24			25		24,938
Great Western Petroleum LLC/Great Western Finance, Inc., 9.00%, 9/30/21 (b)			210		221,550
Gulfport Energy Corp.:
6.63%, 5/01/23			51		51,893
6.00%, 10/15/24 (b)			108		107,460
6.38%, 5/15/25 (b)			60		60,300
Halcon Resources Corp., 6.75%, 2/15/25 (b)			579		573,210
Hess Corp., 4.30%, 4/01/27			1,100		1,100,318
Hilcorp Energy I LP/Hilcorp Finance Co., 5.75%, 10/01/25 (b)			47		46,648
KeySpan Gas East Corp., 5.82%, 4/01/41 (b)(d)			1,010		1,233,762
Kinder Morgan, Inc.:
4.30%, 6/01/25			1,000		1,028,417
5.05%, 2/15/46			1,750		1,742,825
Marathon Petroleum Corp., 6.50%, 3/01/41 (d)			2,049		2,318,247
Matador Resources Co.:
6.88%, 4/15/23			270		284,850
6.88%, 4/15/23 (b)			300		316,500
MEG Energy Corp. (b):
6.50%, 3/15/21			560		572,600
6.38%, 1/30/23			15		13,313
7.00%, 3/31/24			540		486,000
6.50%, 1/15/25			572		559,130
MidAmerican Energy Co., 5.80%, 10/15/36 (d)			1,500		1,853,254
MidAmerican Energy Holdings Co., 5.95%, 5/15/37 (d)			1,750		2,169,984
Murphy Oil Corp.:
6.88%, 8/15/24			177		189,478
6.13%, 12/01/42			45		42,300
Nabors Industries, Inc., 0.75%, 1/15/24 (b)			262		252,830
Newfield Exploration Co., 5.63%, 7/01/24			112		119,840
NGPL PipeCo LLC (b):
7.12%, 12/15/17			623		645,584
7.77%, 12/15/37			391		442,807
Noble Holding International, Ltd., 7.75%, 1/15/24			434		422,065
Oasis Petroleum, Inc.:
6.50%, 11/01/21			272		276,760
6.88%, 3/15/22 (d)			189		192,249
2.63%, 9/15/23 (f)			145		196,384
ONEOK, Inc.:
7.50%, 9/01/23			213		252,937
6.00%, 6/15/35			25		26,313
Paramount Resources Ltd., 6.88%, 6/30/23 (b)			500		528,875
Parker Drilling Co.:
7.50%, 8/01/20			144		140,400
6.75%, 7/15/22			125		115,625
Parsley Energy LLC/Parsley Finance Corp. (b):
6.25%, 6/01/24			122		128,176
5.38%, 1/15/25			77		78,155
5.25%, 8/15/25			110		111,100
PBF Holding Co. LLC/PBF Finance Corp., 8.25%, 2/15/20			94		96,115
Petroleos Mexicanos, 5.38%, 3/13/22 (b)			27		28,241
Plains All American Pipeline LP/PAA Finance Corp., 3.65%, 6/01/22			1,000		1,019,850
Precision Drilling Corp., 7.75%, 12/15/23 (b)			50		54,125
QEP Resources, Inc., 5.25%, 5/01/23			33		32,505
Range Resources Corp. (b):
5.88%, 7/01/22			324		331,290
5.00%, 8/15/22			53		51,675
5.00%, 3/15/23			95		92,031
Resolute Energy Corp., 8.50%, 5/01/20			159		162,180

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	19


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Rockies Express Pipeline LLC (b):
5.63%, 4/15/20	USD		565	$	596,075
6.88%, 4/15/40			284		302,460
Rowan Cos., Inc.:
4.88%, 6/01/22			50		47,750
7.38%, 6/15/25			304		315,400
RSP Permian, Inc.:
6.63%, 10/01/22			179		189,292
5.25%, 1/15/25 (b)			102		104,550
Sanchez Energy Corp.:
7.75%, 6/15/21			322		330,050
6.13%, 1/15/23			568		545,280
SESI LLC, 6.38%, 5/01/19			60		60,225
Seven Generations Energy Ltd., 8.25%, 5/15/20 (b)			88		92,620
SM Energy Co.:
6.13%, 11/15/22			109		109,818
5.00%, 1/15/24			5		4,688
5.63%, 6/01/25			285		269,681
6.75%, 9/15/26			93		94,628
Southwestern Energy Co.:
5.80%, 1/23/20			690		683,100
6.70%, 1/23/25			40		38,400
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 5.75%, 4/15/25			40		40,600
Suncor Energy, Inc., 6.50%, 6/15/38			1,000		1,275,738
Sunoco Logistics Partners Operations LP, 3.90%, 7/15/26			310		306,175
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. (b):
5.50%, 9/15/24			276		278,760
5.13%, 2/01/25			77		80,080
5.38%, 2/01/27			72		75,060
Targa Resources Partners LP/Targa Resources Partners Finance Corp.:
6.38%, 8/01/22			60		61,950
5.25%, 5/01/23			10		10,325
Tesoro Corp. (b):
4.75%, 12/15/23			298		308,430
5.13%, 12/15/26			416		439,920
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 6.13%, 10/15/21			26		27,138
TransCanada PipeLines Ltd., 4.63%, 3/01/34			500		536,560
Weatherford International LLC, 6.80%, 6/15/37			60		56,550
Weatherford International Ltd.:
4.50%, 4/15/22			105		100,406
6.50%, 8/01/36			165		152,212
7.00%, 3/15/38			165		155,512
5.95%, 4/15/42			52		43,550
Western Gas Partners LP, 5.38%, 6/01/21			1,425		1,547,544
Whiting Petroleum Corp.:
5.00%, 3/15/19			480		484,200
5.75%, 3/15/21			23		22,885
6.25%, 4/01/23			40		40,100
WildHorse Resource Development Corp., 6.88%, 2/01/25 (b)			157		155,037
Williams Cos., Inc., 5.75%, 6/24/44			647		653,470
Williams Partners LP:
3.60%, 3/15/22			600		611,352
4.00%, 9/15/25			750		759,406
WPX Energy, Inc.:
7.50%, 8/01/20			50		53,875
6.00%, 1/15/22			33		33,701
8.25%, 8/01/23			125		140,000
5.25%, 9/15/24			145		141,556

					50,829,443


Corporate Bonds		Par (000)		Value
Paper & Forest Products — 0.2%
International Paper Co., 6.00%, 11/15/41	USD		870	$	1,013,612
Mercer International, Inc., 6.50%, 2/01/24 (b)			53		54,060
Pfleiderer GmbH, 7.88%, 8/01/19	EUR		100		110,182
Unifrax I LLC/Unifrax Holding Co., 7.50%, 2/15/19 (b)	USD		180		179,550

					1,357,404
Pharmaceuticals — 2.1%
AbbVie, Inc.:
3.60%, 5/14/25			870		866,340
3.20%, 5/14/26			500		481,120
4.45%, 5/14/46			1,300		1,260,070
Actavis Funding SCS, 4.55%, 3/15/35 (d)			2,140		2,156,157
Actavis, Inc., 3.25%, 10/01/22 (d)			4,000		4,029,100
Baxalta, Inc., 5.25%, 6/23/45			500		543,346
DPx Holdings BV, 7.50%, 2/01/22 (b)			75		79,547
Endo Finance LLC, 5.75%, 1/15/22 (b)			95		88,112
Endo Finance LLC/Endo Finco, Inc. (b):
5.38%, 1/15/23			235		207,975
6.00%, 7/15/23			315		289,800
Forest Laboratories LLC, 5.00%, 12/15/21 (b)			758		821,080
Grifols Worldwide Operations Ltd., 5.25%, 4/01/22			200		207,500
inVentiv Group Holdings, Inc./inVentiv Health, Inc./inVentiv Health Clinical, Inc., 7.50%, 10/01/24 (b)			259		270,655
Jaguar Holding Co. II/Pharmaceutical Product Development LLC, 6.38%, 8/01/23 (b)			795		855,619
Mylan NV, 3.95%, 6/15/26			750		732,570
NBTY, Inc., 7.63%, 5/15/21 (b)			391		412,994
Synlab Bondco PLC, 6.25%, 7/01/22	EUR		100		114,691
Tennessee Merger Sub, Inc., 6.38%, 2/01/25 (b)	USD		470		467,650
Teva Pharmaceutical Finance Netherlands III BV, 4.10%, 10/01/46			500		431,954
Valeant Pharmaceuticals International, Inc. (b):
6.75%, 8/15/18			1,133		1,116,005
6.38%, 10/15/20			505		459,550
5.63%, 12/01/21			364		306,670
5.88%, 5/15/23			220		179,025
6.13%, 4/15/25			320		254,800

					16,632,330
Real Estate Investment Trusts (REITs) — 1.0%
ATF Netherlands BV, 2.13%, 3/13/23	EUR		100		107,522
ERP Operating LP, 4.50%, 6/01/45	USD		1,155		1,208,725
HCP, Inc., 4.00%, 6/01/25 (d)			2,000		2,034,158
Hilton Domestic Operating Co., Inc., 4.25%, 9/01/24 (b)			97		95,933
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. (b):
5.63%, 5/01/24			766		810,045
4.50%, 9/01/26			187		181,857
Simon Property Group LP, 4.75%, 3/15/42 (d)			1,670		1,781,294
Starwood Property Trust, Inc., 5.00%, 12/15/21 (b)			157		163,084
Ventas Realty LP, 4.13%, 1/15/26			870		888,198
Ventas Realty LP/Ventas Capital Corp., 4.75%, 6/01/21			550		591,234

					7,862,050
Real Estate Management & Development — 0.7%
Northwest Florida Timber Finance LLC, 4.75%, 3/04/29 (b)(d)			4,600		4,329,750
Realogy Group LLC/Realogy Co-Issuer Corp. (b):
4.50%, 4/15/19			120		124,200
5.25%, 12/01/21			172		178,880
4.88%, 6/01/23			598		589,030

					5,221,860

See Notes to Financial Statements.



20	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Road & Rail — 1.2%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.:
5.13%, 6/01/22 (b)	USD		495	$	485,719
5.50%, 4/01/23			5		5,000
6.38%, 4/01/24 (b)			20		20,325
5.25%, 3/15/25 (b)			425		406,937
Avis Budget Finance PLC, 4.13%, 11/15/24	EUR		100		105,325
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40 (d)	USD		1,890		2,329,463
CSX Corp., 4.75%, 5/30/42			350		374,109
Herc Rentals, Inc. (b):
7.50%, 6/01/22			118		127,440
7.75%, 6/01/24			8		8,800
Hertz Corp.:
5.88%, 10/15/20			322		313,950
6.25%, 10/15/22			138		131,790
5.50%, 10/15/24 (b)			3		2,708
Lima Metro Line 2 Finance Ltd., 5.88%, 7/05/34 (b)			5,000		5,287,500
United Rentals North America, Inc., 5.50%, 7/15/25			125		131,875

					9,730,941
Semiconductors & Semiconductor Equipment — 0.8%
Advanced Micro Devices, Inc., 7.50%, 8/15/22			51		57,120
Analog Devices, Inc.:
3.90%, 12/15/25			470		483,668
3.50%, 12/05/26			345		343,116
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.88%, 1/15/27 (b)			2,850		2,869,839
Microchip Technology, Inc., 2.13%, 12/15/37 (f)			40		121,050
Micron Technology, Inc.:
5.25%, 8/01/23 (b)			206		207,802
5.50%, 2/01/25			25		25,813
5.63%, 1/15/26 (b)			79		81,172
Series G, 3.00%, 11/15/43 (f)			485		486,516
Microsemi Corp., 9.13%, 4/15/23 (b)			26		29,965
NXP BV/NXP Funding LLC (b):
4.13%, 6/15/20			420		436,876
4.13%, 6/01/21			278		288,592
3.88%, 9/01/22			200		204,750
5.75%, 3/15/23			260		274,300
QUALCOMM, Inc., 4.65%, 5/20/35			250		264,040
Sensata Technologies BV, 5.00%, 10/01/25 (b)			230		233,450
Xilinx, Inc., 2.63%, 6/15/17 (f)			40		81,875

					6,489,944
Software — 1.6%
ACI Worldwide, Inc., 6.38%, 8/15/20 (b)			320		330,240
BMC Software Finance, Inc., 8.13%, 7/15/21 (b)			851		863,765
Ensemble S Merger Sub, Inc., 9.00%, 9/30/23 (b)			210		222,075
Genesys Telecommunications Laboratories Inc/Greeneden Lux 3 Sarl/Greeneden US Ho, 10.00%, 11/30/24 (b)			115		125,062
Inception Merger Sub, Inc./Rackspace Hosting, Inc., 8.63%, 11/15/24 (b)			344		362,490
Infinity Acquisition LLC/Infinity Acquisition Finance Corp., 7.25%, 8/01/22 (b)			31		27,319
Infor US, Inc., 6.50%, 5/15/22			976		1,015,040
Informatica LLC, 7.13%, 7/15/23 (b)			183		176,778
JDA Escrow LLC/JDA Bond Finance, Inc., 7.38%, 10/15/24 (b)			114		119,700
Microsoft Corp., 3.50%, 11/15/42 (d)			4,000		3,695,876
Nuance Communications, Inc. (b):
5.38%, 8/15/20			39		39,760
6.00%, 7/01/24			170		175,737
5.63%, 12/15/26			69		70,466


Corporate Bonds		Par (000)		Value
Software (continued)
Oracle Corp., 5.38%, 7/15/40 (d)	USD		3,025	$	3,556,771
PTC, Inc., 6.00%, 5/15/24			71		75,793
Solera LLC/Solera Finance, Inc., 10.50%, 3/01/24 (b)			557		634,980
SS&C Technologies Holdings, Inc., 5.88%, 7/15/23			246		260,145
TIBCO Software, Inc., 11.38%, 12/01/21 (b)			565		614,437
Veritas US, Inc./Veritas Bermuda Ltd.:
7.50%, 2/01/23	EUR		100		111,767
10.50%, 2/01/24 (b)	USD		200		216,000

					12,694,201
Specialty Retail — 0.6%
Asbury Automotive Group, Inc., 6.00%, 12/15/24			350		364,000
Group 1 Automotive, Inc., 5.00%, 6/01/22			240		247,200
Home Depot, Inc., 5.88%, 12/16/36 (d)			1,660		2,122,494
JC Penney Corp., Inc.:
8.13%, 10/01/19			15		15,975
6.38%, 10/15/36			54		41,310
7.40%, 4/01/37			151		122,310
L Brands, Inc., 6.88%, 11/01/35			251		241,274
Lowe’s Cos, Inc., 4.38%, 9/15/45			1,000		1,056,723
Penske Automotive Group, Inc.:
5.38%, 12/01/24			297		301,455
5.50%, 5/15/26			127		126,136

					4,638,877
Technology Hardware, Storage & Peripherals — 0.7%
Apple, Inc., 4.65%, 2/23/46 (d)			2,400		2,609,674
Diamond 1 Finance Corp./Diamond 2 Finance Corp. (b):
4.42%, 6/15/21			90		94,378
7.13%, 6/15/24			438		483,953
6.02%, 6/15/26			110		120,953
8.35%, 7/15/46			95		123,884
Hewlett Packard Enterprise Co., 4.90%, 10/15/25			1,500		1,560,797
Western Digital Corp.:
7.38%, 4/01/23 (b)			384		421,440
10.50%, 4/01/24			117		136,890

					5,551,969
Textiles, Apparel & Luxury Goods — 0.0%
BiSoho SAS, 5.88%, 5/01/23	EUR		100		113,091
Hanesbrands, Inc., 4.63%, 5/15/24 (b)	USD		36		35,685
Springs Industries, Inc., 6.25%, 6/01/21			36		37,170

					185,946
Tobacco — 1.5%
Altria Group, Inc.:
9.95%, 11/10/38			516		874,302
10.20%, 2/06/39			894		1,531,008
5.38%, 1/31/44 (d)			4,030		4,695,635
3.88%, 9/16/46			1,250		1,179,742
Reynolds American, Inc.:
4.45%, 6/12/25			635		671,424
7.00%, 8/04/41			1,000		1,204,186
5.85%, 8/15/45			1,500		1,783,074

					11,939,371
Transportation Infrastructure — 0.4%
CEVA Group PLC, 7.00%, 3/01/21 (b)			310		275,900
CMA CGM SA, 7.75%, 1/15/21	EUR		100		103,559
I 595 Express LLC, 3.31%, 12/31/31	USD		1,349		1,326,852
Penske Truck Leasing Co. LP/PTL Finance Corp., 3.40%, 11/15/26 (b)			490		475,440
Transurban Finance Co. Property Ltd., 4.13%, 2/02/26 (b)			580		596,742

					2,778,493

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	21


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Corporate Bonds		Par (000)		Value
Utilities — 0.0%
ContourGlobal Power Holdings SA, 5.13%, 6/15/21	EUR		100	$	112,148
Wireless Telecommunication Services — 2.2%
Communications Sales & Leasing, Inc./CSL Capital LLC:
6.00%, 4/15/23 (b)	USD		101		106,050
8.25%, 10/15/23			557		603,649
7.13%, 12/15/24 (b)			261		268,830
Crown Castle Towers LLC, 6.11%, 1/15/40 (b)			3,155		3,441,781
Digicel Ltd., 6.00%, 4/15/21 (b)			1,550		1,432,727
GEO Group, Inc.:
5.13%, 4/01/23			278		278,695
6.00%, 4/15/26			42		43,722
Radiate Holdco LLC/Radiate Finance, Inc., 6.63%, 2/15/25 (b)			181		181,679
Rogers Communications, Inc., 7.50%, 8/15/38 (d)			2,325		3,124,774
Sprint Capital Corp.:
6.90%, 5/01/19			140		149,145
6.88%, 11/15/28			954		1,017,202
8.75%, 3/15/32			110		132,000
Sprint Communications, Inc.:
9.00%, 11/15/18 (b)			1,445		1,580,469
7.00%, 3/01/20 (b)			201		219,593
7.00%, 8/15/20			179		193,096
Sprint Corp.:
7.25%, 9/15/21			240		261,600
7.88%, 9/15/23			681		757,612
7.13%, 6/15/24			896		967,402
7.63%, 2/15/25			120		133,800
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, 3.36%, 3/20/23 (b)			695		697,606
T-Mobile USA, Inc.:
6.63%, 4/28/21			490		509,698
6.73%, 4/28/22			130		135,200
6.00%, 3/01/23			250		264,375
6.84%, 4/28/23			40		42,664
6.50%, 1/15/24			240		257,880
6.38%, 3/01/25			37		39,774
6.50%, 1/15/26			138		151,628

					16,992,651
Total Corporate Bonds — 67.9%					530,709,444



Floating Rate Loan Interests (a)
Air Freight & Logistics — 0.0%
CEVA Group PLC, Synthetic LOC, 6.50%, 3/19/21			18		15,809
CEVA Intercompany BV, Dutch Term Loan, 6.54%, 3/19/21			19		16,269
CEVA Logistics Canada ULC, Canadian Term Loan, 6.54%, 3/19/21			3		2,427
CEVA Logistics US Holdings, Inc., Term Loan, 6.54%, 3/19/21			27		23,122

					57,627
Auto Components — 0.1%
Gates Global LLC, Term Loan B, 4.25%, 7/06/21			273		272,783
Chemicals — 0.0%
Atotech BV, 2017 Term Loan B1, 4.00%, 1/31/24			81		81,810
Chemours Co., Term Loan B, 3.79%, 5/12/22			16		16,368
MacDermid, Inc., Term Loan B5, 4.50%, 6/07/20			61		61,283

					159,461


Floating Rate Loan Interests (a)		Par (000)		Value
Commercial Services & Supplies — 0.0%
Brand Energy & Infrastructure Services, Inc., Term Loan B, 4.76% - 4.79%, 11/26/20	USD		118	$	118,498
Diversified Telecommunication Services — 0.1%
Virgin Media Investment Holdings Ltd., Term Loan I, 3.52%, 1/31/25			370		371,439
Zayo Group LLC:
2017 Term Loan B2, 3.50%, 1/19/24			392		395,670

					767,109
Electric Utilities — 0.1%
TEX Operations Co. LLC:
Exit Term Loan B, 3.53%, 8/04/23			272		273,357
Exit Term Loan C, 3.53%, 8/04/23			59		59,241
Vistra Operations Co. LLC, 2016 Term Loan B2, 4.02%, 12/14/23			201		202,162

					534,760
Energy Equipment & Services — 0.0%
Weatherford International Ltd., Term Loan, 3.09%, 7/13/20			225		219,875
Food & Staples Retailing — 0.0%
BJ’s Wholesale Club, Inc.:
2017 1st Lien Term Loan, 4.75%, 2/03/24			131		129,936
2017 2nd Lien Term Loan, 8.50%, 2/03/25			90		89,869

					219,805
Health Care Equipment & Supplies — 0.1%
Alere, Inc., 2015 Term Loan B, 4.25%, 6/18/22			203		203,524
DJO Finance LLC, 2015 Term Loan, 4.25%, 6/08/20			150		147,113
Immucor, Inc., Refinancing Term Loan B2, 5.00%, 8/17/18			271		267,094

					617,731
Health Care Providers & Services — 0.1%
Community Health Systems, Inc.:
Term Loan G, 3.75%, 12/31/19			54		53,985
Term Loan H, 4.00%, 1/27/21			58		57,383
inVentiv Health, Inc., 2016 Term Loan B, 4.80%, 11/09/23			217		218,322
Team Health, Inc., 1st Lien Term Loan, 3.75%, 2/06/24			230		229,282
Vizient, Inc., 2016 Term Loan B, 5.00%, 2/13/23			68		68,992

					627,964
Health Care Technology — 0.0%
Change Healthcare Holdings, Inc., 2017 Term Loan B, 3.80%, 2/08/24			183		183,763
Hotels, Restaurants & Leisure — 0.2%
Amaya Holdings BV, 1st Lien Term Loan, 5.00%, 8/01/21			208		208,201
Caesars Entertainment Resort Properties LLC, Term Loan B, 7.00%, 10/11/20			1,368		1,379,506

					1,587,707
Industrial Conglomerates — 0.1%
Cortes NP Acquisition Corp., Term Loan B, 6.00% - 6.04%, 11/30/23			457		460,462
Insurance — 0.0%
Alliant Holdings I, Inc., 2015 Term Loan B, 4.50%, 8/12/22			81		82,077
IT Services — 0.0%
TKC Holdings, Inc., 2017 Term Loan, 4.75%, 2/01/23			156		157,170

See Notes to Financial Statements.



22	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Floating Rate Loan Interests (a)		Par (000)		Value
Machinery — 0.1%
Silver II US Holdings LLC, Term Loan, 4.00%, 12/13/19	USD		310	$	295,532
Media — 0.2%
iHeartCommunications, Inc., Term Loan D, 7.53%, 1/30/19			211		183,384
Intelsat Jackson Holdings SA, Term Loan B2, 3.75%, 6/30/19			924		917,640
Ziggo Secured Finance Partnership, Term Loan E, 3.27%, 4/23/25			149		149,426

					1,250,450
Multiline Retail — 0.0%
Neiman Marcus Group, Inc., 2020 Term Loan, 4.25%, 10/25/20			189		151,870
Oil, Gas & Consumable Fuels — 0.3%
California Resources Corp.:
Second Out Term Loan, 11.38%, 12/31/21			455		512,635
Term Loan A, 3.78%, 10/01/19			369		355,251
Chesapeake Energy Corp., Term Loan, 8.55%, 8/23/21			994		1,073,739
Energy Transfer Equity LP, 2017 Term Loan B, 3.53%, 2/02/24			173		173,087
Peabody Energy Corp., Exit Term Loan, 5.54%, 1/30/22			139		139,984

					2,254,696
Pharmaceuticals — 0.0%
Valeant Pharmaceuticals International, Inc.:
Series A3 Tranche A, 4.54%, 10/20/18			46		45,545
Series D2 Term Loan B, 5.03%, 2/13/19			15		14,977
Series E Term Loan B, 5.27%, 8/05/20			62		62,088

					122,610
Professional Services — 0.0%
Advantage Sales & Marketing, Inc., 2014 1st Lien Term Loan, 4.25%, 7/23/21			179		177,736
Information Resources, Inc., 1st Lien Term Loan, 5.25%, 1/18/24			49		49,582

					227,318
Software — 0.2%
BMC Software Finance, Inc., Term Loan, 5.00%, 9/10/20			481		483,481
Infor (US), Inc., Term Loan B6, 3.75%, 2/01/22			148		148,440
Kronos, Inc., 2nd Lien Term Loan, 9.28%, 11/01/24			353		364,206
Optiv Security, Inc., 1st Lien Term Loan, 4.25%, 2/01/24			138		138,820
RP Crown Parent LLC, 2016 Term Loan B, 4.50%, 10/12/23			111		111,937
Tibco Software Inc., 2017 Term Loan B, 5.50%, 12/04/20			357		361,035
Veritas US Inc.:
Term Loan B1, 6.63%, 1/27/23			188		187,472
USD Last Out Term Loan B2, 8.63%, 1/29/23			16		15,800

					1,811,191
Specialty Retail — 0.0%
Leslie’s Poolmart, Inc., 2016 Term Loan, 4.75%, 8/16/23			26		26,125
Textiles, Apparel & Luxury Goods — 0.0%
Ascend Performance Materials LLC, Term Loan B, 6.50%, 8/12/22			187		188,099
Total Floating Rate Loan Interests — 1.6%					12,394,683


Foreign Agency Obligations		Par (000)		Value
Argentine Republic Government International Bond (b):
7.50%, 4/22/26	USD		3,875	$	4,049,375
7.63%, 4/22/46			3,121		3,142,847
Cyprus Government International Bond, 4.63%, 2/03/20 (b)	EUR		1,210		1,388,602
Iceland Government International Bond, 5.88%, 5/11/22	USD		3,555		4,027,058
Italian Government International Bond, 5.38%, 6/15/33			2,925		3,156,815
Portugal Government International Bond, 5.13%, 10/15/24 (b)			3,970		3,845,628
Slovenia Government International Bond, 5.85%, 5/10/23 (b)			864		986,861
Total Foreign Agency Obligations — 2.6%					20,597,186



Municipal Bonds
City of New York New York Municipal Water Finance Authority, Refunding RB, 2nd General Resolution:
Series EE, 5.50%, 6/15/43			930		1,055,978
Series GG, Build America Bonds, 5.72%, 6/15/42			1,390		1,806,972
Water & Sewer System, Series EE, 5.38%, 6/15/43			770		869,276
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40			1,900		2,437,662
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40			2,535		3,261,202
Metropolitan Transportation Authority, RB, Build America Bonds, Series C, 7.34%, 11/15/39			1,295		1,915,435
Municipal Electric Authority of Georgia Plant Vogtle Units 3 & 4, Refunding RB, Build America Bonds, Series A, 7.06%, 4/01/57			2,000		2,260,680
New York State Dormitory Authority, RB, Build America Bonds:
5.63%, 3/15/39			1,100		1,360,227
5.60%, 3/15/40			1,900		2,373,594
Port Authority of New York & New Jersey, RB, 159th Series, 6.04%, 12/01/29			780		977,831
State of California, GO, Build America Bonds, Various Purposes:
7.55%, 4/01/39			280		413,106
7.63%, 3/01/40			1,720		2,535,985
State of Illinois, GO, Pension, 5.10%, 6/01/33			2,000		1,854,300
University of California, RB, Build America Bonds, 5.95%, 5/15/45			885		1,112,790
Total Municipal Bonds — 3.1%					24,235,038



Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 1.4%
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37			747		656,269
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35			1,379		1,312,743
Series 2006-OA21, Class A1, 0.97%, 3/20/47 (a)			968		672,464
Credit Suisse Mortgage Capital Certificates, Series 2011-2R, Class 2A1, 3.06%, 7/27/36 (a)(b)			509		507,110

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	23


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Non-Agency Mortgage-Backed Securities		Par (000)		Value
Collateralized Mortgage Obligations (continued)
Freddie Mac Mortgage-Backed Securities, Series 4480, Class ZX, 4.00%, 11/15/44	USD		5,879	$	6,128,039
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 5A1, 3.46%, 6/19/35 (a)			518		510,808
GSR Mortgage Loan Trust:
Series 2006-4F, Class 1A1, 5.00%, 5/25/36			104		102,435
Series 2007-4F, Class 3A1, 6.00%, 7/25/37			249		224,579
JPMorgan Mortgage Trust, Series 2006-S3, Class 1A12, 6.50%, 8/25/36			88		71,548
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 3.38%, 5/25/36 (a)			703		580,815
WaMu Mortgage Pass-Through Certificates, Series 2007-OA4, Class 1A, 1.38%, 5/25/47 (a)			242		214,991

					10,981,801
Commercial Mortgage-Backed Securities — 11.0%
Banc of America Merrill Lynch Commercial Mortgage Securities Trust, Series 2015-200P, Class C, 3.60%, 4/14/33 (a)(b)			4,170		4,190,382
Citigroup Commercial Mortgage Trust:
Series 2013-GC15, Class B, 5.11%, 9/10/46 (a)			7,183		7,938,232
Series 2016-P5, Class A4, 2.94%, 10/10/49			6,000		5,876,723
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class AM, 5.65%, 10/15/48			1,723		1,726,179
Commercial Mortgage Trust:
Series 2008-LS1, Class A4B, 6.09%, 12/10/49 (a)			935		947,303
Series 2013-300P, Class A1, 4.35%, 8/10/30 (b)			1,330		1,445,977
Series 2013-CR11, Class B, 5.16%, 10/10/46 (a)			7,000		7,695,331
Series 2013-LC6, Class B, 3.74%, 1/10/46			1,390		1,415,551
Series 2014-CR21, Class A3, 3.53%, 12/10/47			1,300		1,338,028
Series 2015-3BP, Class A, 3.18%, 2/10/35 (b)			7,570		7,602,478
Series 2015-CR22, Class C, 4.13%, 3/10/48 (a)			5,000		4,808,979
Series 2015-LC19, Class C, 4.26%, 2/10/48 (a)			3,500		3,559,626
Core Industrial Trust, Series 2015-TEXW, Class D, 3.85%, 2/10/34 (a)(b)			4,585		4,632,224
Credit Suisse Commercial Mortgage Trust, Series 2010-RR2, Class 2A, 5.94%, 9/15/39 (a)(b)			587		586,409
CSAIL Commercial Mortgage Trust, Series 2015-C1 (a):
Class B, 4.04%, 4/15/50			1,110		1,146,283
Class C, 4.30%, 4/15/50			1,000		1,016,493
Class D, 3.80%, 4/15/50 (b)			480		403,945
DBJPM Mortgage Trust, Series 2016-C3, Class A5, 2.89%, 9/10/49			2,485		2,434,725
DBRR Trust, Series 2011-C32, Class A3A, 5.21%, 6/17/49 (a)(b)			371		371,536
GAHR Commercial Mortgage Trust, Series 2015-NRF, Class DFX, 3.38%, 12/15/34 (a)(b)			6,170		6,234,153
GS Mortgage Securities Corp. II, Series 2013-GC10, Class B, 3.68%, 2/10/46 (b)			2,505		2,558,095
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2004-LN2, Class A2, 5.12%, 7/15/41			23		23,251
Series 2016-NINE, Class A, 2.85%, 10/06/38 (a)(b)			4,800		4,668,290


Non-Agency Mortgage-Backed Securities		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class A3, 5.87%, 9/15/45 (a)	USD		1,935	$	1,970,503
Morgan Stanley Capital I Trust, Series 2014-CPT, Class G, 3.45%, 7/13/29 (a)(b)			3,200		3,107,688
Wachovia Bank Commercial Mortgage Trust, Series 2007-C33, Class A4, 5.98%, 2/15/51 (a)			1,444		1,446,501
Wells Fargo Commercial Mortgage Trust, Series 2015-C28, Class A4, 3.54%, 5/15/48			3,205		3,291,145
WF-RBS Commercial Mortgage Trust, Series 2012-C8:
Class B, 4.31%, 8/15/45			1,395		1,475,028
Class C, 4.90%, 8/15/45 (a)			1,795		1,863,468

					85,774,526
Interest Only Commercial Mortgage-Backed Securities — 0.2%
Commercial Mortgage Loan Trust, Series 2015-LC21, Class XA, 0.87%, 7/10/48 (a)			19,392		851,735
WF-RBS Commercial Mortgage Trust, Series 2012-C8, Class XA, 1.98%, 8/15/45 (a)(b)			9,878		701,579

					1,553,314
Total Non-Agency Mortgage-Backed Securities — 12.6%					98,309,641



Preferred Securities

Capital Trusts
Banks — 3.0%
Banco Santander SA, 6.25% (a)(h)			100		104,484
Bank of Ireland, 7.38% (a)(h)			200		226,358
BNP Paribas SA, 7.20% (a)(b)(h)			2,000		2,157,500
Capital One Financial Corp., Series E, 5.55% (a)(h)			3,500		3,622,500
Citigroup, Inc. (a)(h):
Series M, 6.30%			4,000		4,225,000
Series P, 5.95%			2,100		2,189,250
Series Q, 5.95%			100		104,498
Series R, 6.13%			605		639,824
Credit Agricole SA (a)(b)(h):
6.63%			1,400		1,382,500
7.88%			1,000		1,019,940
Intesa Sanpaolo SpA, 7.00% (a)(h)			200		212,410
Nordea Bank AB, 6.13% (a)(b)(h)			2,960		2,965,920
U.S. Bancorp, Series J, 5.30% (a)(h)			311		316,442
Wells Fargo & Co. (a)(h):
Series S, 5.90%			3,510		3,711,825
Series U, 5.88%			430		464,400

					23,342,851
Capital Markets — 0.7%
Goldman Sachs Group, Inc., Series L, 5.70% (a)(h)			612		630,360
Morgan Stanley, Series H, 5.45% (a)(h)			2,627		2,694,756
State Street Corp., Series F, 5.25% (a)(h)			2,000		2,092,500

					5,417,616
Chemicals — 0.0%
Lanxess AG, 4.50%, 12/06/76 (a)			50		56,943
Solvay Finance SA, 5.12% 2/06/76 (a)(h)			100		116,176

					173,119

See Notes to Financial Statements.



24	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Capital Trusts		Par (000)		Value
Diversified Financial Services — 5.0%
Bank of America Corp. (a)(h):
Series V, 5.13%	USD		385	$	389,331
Series X, 6.25%			4,620		4,943,862
Bank of New York Mellon Corp. (a)(h):
Series D, 4.50% (d)			8,400		7,990,500
Series E, 4.95%			2,000		2,065,000
Barclays PLC (a)(h):
7.25%			200		248,165
7.88%			200		209,810
JPMorgan Chase & Co. (a)(h):
Series 1, 7.90%			7,000		7,280,000
Series Q, 5.15%			3,000		3,008,100
Series U, 6.13%			500		530,725
Series V, 5.00%			6,710		6,750,327
Macquarie Bank Ltd., 10.25%, 6/20/57 (a)			1,800		1,837,379
Royal Bank of Scotland Group PLC, 8.63% (a)(h)			200		211,300
Societe Generale SA (a)(b)(h):
6.00%			3,000		2,827,500
7.88%			1,000		997,500

					39,289,499
Diversified Telecommunication Services — 0.0%
Telefonica Europe BV, 4.20% (a)(h)			200		222,209
Electric Utilities — 0.6%
ComEd Financing III, 6.35%, 3/15/33			300		318,445
Electricite de France SA, 5.25% (a)(b)(h)			4,200		4,105,500
Enel SpA (a):
5.00%, 1/15/75	EUR		100		113,091
7.75%, 9/10/75	GBP		100		137,421
Gas Natural Fenosa Finance BV, 4.13% (a)(h)	USD		100		109,542

					4,783,999
Industrial Conglomerates — 0.3%
General Electric Co., Series D, 5.00% (a)(h)			2,131		2,245,541
Insurance — 1.5%
Allstate Corp (a):
5.75%, 8/15/53			2,000		2,157,500
6.50%, 5/15/57			4,100		4,694,500
Voya Financial, Inc., 5.65%, 5/15/53 (a)			4,500		4,601,250

					11,453,250
Oil, Gas & Consumable Fuels — 0.0%
DCP Midstream LLC, 5.85%, 5/21/43 (a)(b)			30		28,050
Total Capital Trusts — 11.1%					86,956,134



Preferred Stocks		Shares
Banks — 1.2%
U.S. Bancorp, Series G, 6.00% (a)(h)			300,000		7,608,000
Wells Fargo & Co., 5.85% (a)(h)			75,000		2,016,750

					9,624,750
Capital Markets — 0.7%
Goldman Sachs Group, Inc., Series J, 5.50% (a)(h)			92,000		2,451,800
SCE Trust III, 5.75% (a)(h)			25,314		706,767
Morgan Stanley, Series K, 5.85% (a)(h)			82,887		2,142,629

					5,301,196
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series S, 8.25% (a)(h)			10,000		82,500
Total Preferred Stock — 1.9%					15,008,446


Trust Preferred			Shares			Value
Diversified Financial Services — 0.1%
Citigroup Capital XIII, 7.88%, 10/30/40				29,583		$	775,039
Total Preferred Securities — 13.1%							102,739,619



U.S. Government Sponsored Agency Securities	Par (000)
Agency Obligations — 1.5%
Fannie Mae, 5.63%, 7/15/37 (d)		USD		1,600			2,167,971
Federal Home Loan Bank (d):
5.25%, 12/09/22				1,375			1,607,697
5.37%, 9/09/24				2,175			2,613,260
Residual Funding Corp., 0.00%, 4/15/30 (i)				6,055			4,004,232
Resolution Funding Corp., 0.00%, 7/15/18 - 10/15/18 (i)				1,050			1,028,071

							11,421,231
Collateralized Mortgage Obligations — 3.3%
Fannie Mae Mortgage-Backed Securities:
Series 2015-47, Class GL, 3.50%, 7/25/45				1,636			1,642,624
Series 2005-5, Class PK, 5.00%, 12/25/34				161			166,823
Series 1991-87, Class S, 24.62%, 8/25/21 (a)				4			5,050
Series G-49, Class S, 953.85%, 12/25/21 (a)				—	(j)		24
Series G-07, Class S, 1,056.78%, 3/25/21 (a)				—	(j)		192
Freddie Mac Mortgage-Backed Securities:
Series 0173, Class RS, 9.99%, 11/15/21 (a)				—	(j)		2
Series 4350, Class DY, 4.00%, 6/15/44				2,830			3,048,720
Series 4549, Class TZ, 4.00%, 11/15/45				2,576			2,723,136
Series 4398, Class ZX, 4.00%, 9/15/54				8,452			8,924,583
Ginnie Mae Mortgage-Backed Securities, Series 2014-72, Class MQ, 4.00%, 2/20/44				8,858			9,321,457

							25,832,611
Commercial Mortgage-Backed Securities — 0.3%
Freddie Mac, Series K013, Class A2, 3.97%, 1/25/21 (a)				1,870			1,988,495
Interest Only Collateralized Mortgage Obligations — 0.8%
Fannie Mae Mortgage-Backed Securities:
Series 1997-50, Class SI, 1.20%, 4/25/23 (a)				42			1,125
Series 2012-M9, Class X1, 3.99%, 12/25/17 (a)				11,407			154,041
Series 2012-96, Class DI, 4.00%, 2/25/27				5,965			518,085
Series 2012-47, Class NI, 4.50%, 4/25/42				5,721			1,285,239
Series G92-05, Class H, 9.00%, 1/25/22				—	(j)		21
Series 094, Class 2, 9.50%, 8/25/21				—	(j)		33
Series 1990-136, Class S, 19.93%, 11/25/20 (a)				1			2
Series G-10, Class S, 1,022.36%, 5/25/21 (a)				—	(j)		1
Freddie Mac Mortgage-Backed Securities:
Series K707, Class X1, 1.53%, 12/25/18 (a)				4,727			105,264
Series 2611, Class QI, 5.50%, 9/15/32				506			24,232
Series 1254, Class Z, 8.50%, 4/15/22				20			3,483
Series 1043, Class H, 41.53%, 2/15/21 (a)				1			2
Ginnie Mae Mortgage-Backed Securities:
Series 2009-78, Class SD, 5.42%, 9/20/32 (a)				5,962			993,356
Series 2009-116, Class KS, 5.70%, 12/16/39 (a)				2,239			338,596
Series 2011-52, Class NS, 5.90%, 4/16/41 (a)				16,741			3,076,966

							6,500,446

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	25


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


U.S. Government Sponsored Agency Securities		Par (000)			Value
Mortgage-Backed Securities — 4.5%
Fannie Mae Mortgage-Backed Securities:
3.00%, 8/01/43 (d)	USD		10,809		$	10,774,572
4.00%, 12/01/41 - 12/01/43			5,726			6,046,961
4.50%, 7/01/41 - 4/01/42 (d)			12,633			13,609,559
5.00%, 8/01/34			2,195			2,415,064
5.50%, 6/01/38			1,092			1,222,970
6.00%, 12/01/38			929			1,052,461
Freddie Mac Mortgage-Backed Securities, 6.00%, 4/1/17 - 12/1/18			25			27,021
Ginnie Mae Mortgage-Backed Securities:
5.50%, 8/15/33			58			64,459
8.00%, 7/15/24			—	(j)		218

						35,213,285
Principal Only Collateralized Mortgage Obligations — 0.0%
Fannie Mae Mortgage-Backed Securities (i):
Series 203, Class 1, 0.00%, 2/25/23			2			2,278
Series 1993-51, Class E, 0.00%, 2/25/23			8			7,565
Series 1993-70, Class A, 0.00%, 5/25/23			1			1,186
Series 0228, Class 1, 0.00%, 6/25/23			2			1,913

						12,942
Total U.S. Government Sponsored Agency Securities — 10.4%						80,969,010



U.S. Treasury Obligations
U.S. Treasury Bonds (d):
3.00%, 11/15/44			61,400			61,642,223
2.50%, 2/15/46			55,000			49,777,145
Total U.S. Treasury Obligations — 14.2%						111,419,368
Total Long-Term Investments (Cost — $1,034,899,275) — 136.0%						1,063,511,966


Short-Term Securities — 4.0%	Shares		Value
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.42% (k)(l)		31,449,022	$	31,449,022
Total Short-Term Securities (Cost — $31,449,022) — 4.0%				31,449,022
Options Purchased (Cost — $3,749,025) — 0.4%				3,045,231
Total Investments Before Options Written (Cost — $1,070,097,322) — 140.4%				1,098,006,219
Options Written (Premiums Received — $3,892,866) — (0.3)%				(2,608,566	)
Total Investments, Net of Options Written (Cost — $1,066,204,456) — 140.1%				1,095,397,653
Liabilities in Excess of Other Assets — (40.1)%				(313,333,945	)

Net Assets — 100.0%			$	782,063,708


Notes to Schedule of Investments

(a)

Variable rate security. Rate as of period end.

(b)

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

(c)

When-issued security.

(d)

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

(e)

Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates.

(f)

Convertible security.

(g)

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(h)

Perpetual security with no stated maturity date.

(i)

Zero-coupon bond.

(j)

Amount is less than $500.

(k)

During the six months ended February 28, 2017, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at August 31, 2016		Net Activity			Shares Held at February 28, 2017		Value at February 28, 2017		Income		Net Realized Gain¹		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class		—		31,449,022			31,449,022	$	31,449,022	$	26,382	$	77		—
BlackRock Liquidity Funds, TempFund, Institutional Class		12,926,909		(12,926,909	)		—		—		49		—		—
Total								$	31,449,022	$	26,431	$	77		—

¹Includes net capital gain distributions.

See Notes to Financial Statements.



26	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)

(l)

Current yield as of period end.

For Trust compliance purposes, the Trust’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

Reverse Repurchase Agreements

Counterparty

Interest
Rate

Trade
Date

Maturity
Date¹

Face Value

Face Value
Including
Accrued
Interest

Type of Non-Cash
Underlying Collateral

Remaining
Contractual Maturity
of the Agreements

Nomura Securities International, Inc.

0.57

6/28/16

Open

31,762,500

31,875,098

U.S. Treasury Obligations

Open/Demand

RBC Capital Markets, LLC

1.04

6/30/16

Open

2,859,500

2,872,825

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

9/14/16

Open

8,254,800

8,282,023

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

9/14/16

Open

7,598,100

7,623,241

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

9/14/16

Open

8,371,240

8,398,940

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

9/23/16

Open

5,880,000

5,898,097

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.00

10/14/16

Open

2,442,000

2,450,316

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.00

10/14/16

Open

606,450

608,408

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.00

10/14/16

Open

2,659,187

2,667,771

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

10/18/16

Open

4,735,250

4,748,056

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

10/18/16

Open

4,749,375

4,762,219

Corporate Bonds

Open/Demand

HSBC Securities (USA), Inc.

1.00

10/20/16

Open

3,705,000

3,715,333

Corporate Bonds

Open/Demand

HSBC Securities (USA), Inc.

1.00

10/20/16

Open

4,318,000

4,330,042

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

0.64

10/20/16

Open

3,770,000

3,778,780

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

0.64

10/20/16

Open

2,610,000

2,616,078

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

0.64

10/20/16

Open

3,380,000

3,387,872

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

0.64

10/20/16

Open

3,529,500

3,537,720

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

0.64

10/20/16

Open

2,386,250

2,391,807

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

0.64

10/20/16

Open

3,635,250

3,643,716

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

0.64

10/20/16

Open

3,346,875

3,354,670

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

0.64

10/20/16

Open

7,141,925

7,158,558

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

0.64

10/20/16

Open

3,073,000

3,080,157

Corporate Bonds

Open/Demand

HSBC Securities (USA), Inc.

1.00

10/21/16

Open

4,921,000

4,934,437

Corporate Bonds

Open/Demand

HSBC Securities (USA), Inc.

1.00

10/21/16

Open

7,991,000

8,012,820

Capital Trusts

Open/Demand

HSBC Securities (USA), Inc.

1.00

10/26/16

Open

4,193,000

4,204,205

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

(0.50

11/09/16

Open

161,000

160,752

Corporate Bonds

Open/Demand

Deutsche Bank AG

1.45

12/13/16

Open

1,671,000

1,676,052

Corporate Bonds

Open/Demand

Deutsche Bank AG

1.45

12/13/16

Open

1,885,000

1,890,610

Corporate Bonds

Open/Demand

Deutsche Bank AG

1.45

12/13/16

Open

2,185,000

2,191,607

Corporate Bonds

Open/Demand

Deutsche Bank AG

1.45

12/13/16

Open

4,078,000

4,090,138

Corporate Bonds

Open/Demand

Deutsche Bank AG

1.45

12/13/16

Open

3,216,000

3,225,724

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.20

12/15/16

Open

938,437

940,784

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.20

12/15/16

Open

712,500

714,281

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.25

12/15/16

Open

555,000

556,445

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.25

12/15/16

Open

729,844

731,744

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.25

12/15/16

Open

975,562

978,103

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.25

12/15/16

Open

1,005,125

1,007,743

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.25

12/15/16

Open

1,027,187

1,029,862

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.25

12/15/16

Open

2,966,250

2,973,975

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.25

12/15/16

Open

4,818,750

4,831,299

Corporate Bonds

Open/Demand

HSBC Securities (USA), Inc.

1.00

12/15/16

Open

4,132,000

4,140,608

Corporate Bonds

Open/Demand

Merrill Lynch, Pierce, Fenner & Smith, Inc.

0.54

12/15/16

Open

1,290,000

1,291,567

U.S. Government Sponsored Agency Securities

Open/Demand

Merrill Lynch, Pierce, Fenner & Smith, Inc.

0.54

12/15/16

Open

792,281

793,246

U.S. Government Sponsored Agency Securities

Open/Demand

BNP Paribas Securities Corp.

0.61

12/19/16

Open

1,011,169

1,012,385

U.S. Government Sponsored Agency Securities

Open/Demand

BNP Paribas Securities Corp.

0.61

12/19/16

Open

809,375

810,349

U.S. Government Sponsored Agency Securities

Open/Demand

BNP Paribas Securities Corp.

0.61

12/19/16

Open

1,318,625

1,320,211

U.S. Government Sponsored Agency Securities

Open/Demand

BNP Paribas Securities Corp.

0.61

12/19/16

Open

614,831

615,571

U.S. Government Sponsored Agency Securities

Open/Demand

BNP Paribas Securities Corp.

1.11

12/19/16

Open

790,000

791,729

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

0.95

12/19/16

Open

1,452,750

1,455,434

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

0.95

12/19/16

Open

1,117,313

1,119,376

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.00

12/19/16

Open

962,706

964,578

Corporate Bonds

Open/Demand

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	27


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)

Reverse Repurchase Agreements (concluded)

Counterparty

Interest
Rate

Trade
Date

Maturity
Date¹

Face Value

Face Value
Including
Accrued
Interest

Type of Non-Cash
Underlying Collateral

Remaining
Contractual Maturity
of the Agreements

RBC Capital Markets, LLC

1.04

12/19/16

Open

1,698,750

1,702,234

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

1,473,063

1,476,084

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

2,043,878

2,048,070

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

4,675,000

4,684,589

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

1,822,500

1,826,238

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

2,130,975

2,135,346

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

2,009,000

2,013,121

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

1,997,888

2,001,985

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

1,850,000

1,853,795

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

1,900,700

1,904,599

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

3,137,500

3,143,935

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

1,463,000

1,466,001

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

2,200,000

2,204,512

Corporate Bonds

Open/Demand

RBC Capital Markets, LLC

1.04

12/19/16

Open

1,704,938

1,708,435

Corporate Bonds

Open/Demand

BNP Paribas Securities Corp.

0.57

12/29/16

Open

60,555,750

60,619,182

U.S. Treasury Obligations

Open/Demand

Barclays Capital, Inc.

(2.00

2/09/17

Open

176,015

175,829

Corporate Bonds

Open/Demand

HSBC Securities (USA), Inc.

0.75

2/10/17

3/13/17

34,160,000

34,171,387

U.S. Government Sponsored Agency Securities

Up to 30 Days

Deutsche Bank AG

(1.00

2/15/17

Open

198,000

197,934

Corporate Bonds

Open/Demand

Deutsche Bank AG

0.52

2/27/17

Open

22,562,500

22,562,826

U.S. Treasury Obligations

Open/Demand

Total

326,894,364

327,543,464

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

Derivative Financial Instruments Outstanding as of Period End


Futures Contracts
Contracts Long (Short)			Issue	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
	(184	)	2-Year U.S. Treasury Note	June 2017	USD	39,818,750	$	6,859
	504		5-Year U.S. Treasury Note	June 2017	USD	59,322,375		(66,596	)
	(419	)	10-Year U.S. Treasury Note	June 2017	USD	52,198,234		(3,396	)
	11		10-Year U.S. Ultra Long Treasury Note	June 2017	USD	1,473,313		(1,133	)
	(1	)	Euro BOBL	June 2017	USD	140,540		(1	)
	(1	)	Euro Bund Future	June 2017	USD	172,481		(75	)
	(106	)	Long U.S. Treasury Bond	June 2017	USD	16,075,563		6,793
	26		Ultra Long U.S. Treasury Bond	June 2017	USD	4,206,312		24,229
	135		90-Day Euro Future	September 2017	USD	33,274,125		(3,592	)
	(135	)	90-Day Euro Dollar	December 2017	USD	33,223,500		1,470
	130		90-Day Euro Future	December 2018	USD	31,851,625		(14,232	)
	10		90-Day Euro Future	March 2019	USD	2,448,500		(1,690	)
	(110	)	90-Day Euro Future	December 2019	USD	26,874,375		7,214
	25		90-Day Euro Future	March 2020	USD	6,105,000		3,872
	Total						$	(40,278	)


Forward Foreign Currency Exchange Contracts
Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	57,140	EUR	54,000	Bank of America N.A.		3/06/17	$	(76	)
USD	9,314,518	EUR	8,652,000	Citibank N.A.		3/06/17		147,309
USD	2,351,956	EUR	2,185,000	Morgan Stanley & Co. International PLC		3/06/17		36,843
USD	9,747,507	GBP	7,802,000	Barclays Bank PLC		3/06/17		65,813
USD	990,742	GBP	793,000	Barclays Bank PLC		3/06/17		6,689
CHF	3,845,802	EUR	3,610,000	BNP Paribas S.A.		3/15/17		5,338
JPY	436,453,152	NZD	5,340,000	Credit Suisse International		3/15/17		41,861
NOK	16,075,444	AUD	2,540,000	Bank of America N.A.		3/15/17		(29,114	)
NOK	16,075,124	AUD	2,540,000	BNP Paribas S.A.		3/15/17		(29,152	)

See Notes to Financial Statements.



28	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Forward Foreign Currency Exchange Contracts (concluded)
Currency Purchased		Currency Sold			Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
NZD	5,340,000		JPY	434,041,074	Citibank N.A.		3/15/17	$	(20,381	)
USD	3,856,332		GBP	3,100,000	JPMorgan Chase Bank N.A.		3/15/17		8,616
CAD	2,535,889		AUD	2,520,000	Barclays Bank PLC		3/27/17		(21,356	)
CAD	2,563,412		AUD	2,520,000	Barclays Bank PLC		3/27/17		(630	)
SEK	17,302,843		NOK	16,215,000	BNP Paribas S.A.		3/27/17		(15,178	)
USD	9,348,758		EUR	8,806,000	Bank of America N.A.		4/05/17		4,854
USD	2,319,672		EUR	2,185,000	Bank of America N.A.		4/05/17		1,204
USD	9,700,949		GBP	7,801,602	Barclays Bank PLC		4/05/17		11,801
USD	981,087		GBP	789,000	Barclays Bank PLC		4/05/17		1,194
SEK	17,375,591		NZD	2,685,000	Credit Suisse International		4/18/17		(1,741	)
Total								$	213,894

Exchange-Traded Options Purchased

Description

Put/
Call

Expiration
Date

Strike
Price

Contracts

Value

10-Year U.S. Treasury Note Future

Put

5/26/17

USD

122.00

9,765

OTC Interest Rate Swaptions Purchased

Description

Counterparty

Put/
Call

Exercise
Rate

Pay/
Receive
Exercise Rate

Floating Rate
Index

Expiration
Date

Notional
Amount
(000)

Value

10-Year Interest Rate Swap

Goldman Sachs Bank USA

Call

2.24

3-Month LIBOR

Receive

3/06/17

USD

5,100

3,717

2-Year Interest Rate Swap

Citibank N.A.

Call

1.55

3-Month LIBOR

Receive

1/25/18

USD

40,000

72,322

10-Year Interest Rate Swap

Deutsche Bank AG

Call

2.64

3-Month LIBOR

Receive

2/14/18

USD

2,500

91,726

2-Year Interest Rate Swap

Deutsche Bank AG

Call

1.25

3-Month LIBOR

Receive

10/17/18

USD

10,000

14,999

5-Year Interest Rate Swap

JPMorgan Chase Bank N.A.

Call

2.45

3-Month LIBOR

Receive

11/22/19

USD

8,500

208,887

5-Year Interest Rate Swap

Deutsche Bank AG

Call

2.45

3-Month LIBOR

Receive

12/02/19

USD

4,500

110,899

10-Year Interest Rate Swap¹

Deutsche Bank AG

Call

2.60

3-Month LIBOR

Receive

1/25/27

USD

1,900

(22,279

)

10-Year Interest Rate Swap

Deutsche Bank AG

Call

2.40

3-Month LIBOR

Receive

2/08/27

USD

1,875

95,875

10-Year Interest Rate Swap

Goldman Sachs Bank USA

Put

3.10

3-Month LIBOR

Pay

1/03/18

USD

3,000

81,264

10-Year Interest Rate Swap

Deutsche Bank AG

Put

2.64

3-Month LIBOR

Pay

2/14/18

USD

2,500

58,315

5-Year Interest Rate Swap

JPMorgan Chase Bank N.A.

Put

2.45

3-Month LIBOR

Pay

11/22/19

USD

8,500

229,271

5-Year Interest Rate Swap

Deutsche Bank AG

Put

2.45

3-Month LIBOR

Pay

12/02/19

USD

4,500

122,210

10-Year Interest Rate Swap

Bank of America N.A.

Put

3.50

3-Month LIBOR

Pay

2/01/21

USD

4,000

126,923

10-Year Interest Rate Swap

Citibank N.A.

Put

3.50

3-Month LIBOR

Pay

2/01/21

USD

4,380

138,980

5-Year Interest Rate Swap

JPMorgan Chase Bank N.A.

Put

3.25

3-Month LIBOR

Pay

10/25/21

USD

6,890

156,370

5-Year Interest Rate Swap

Barclays Bank PLC

Put

3.15

3-Month LIBOR

Pay

10/27/21

USD

16,560

401,030

5-Year Interest Rate Swap

Morgan Stanley & Co.
International PLC

Put

3.50

3-Month LIBOR

Pay

11/15/21

USD

7,000

136,524

5-Year Interest Rate Swap

Goldman Sachs Bank USA

Put

3.25

3-Month LIBOR

Pay

12/16/21

USD

6,050

140,648

5-Year Interest Rate Swap

JPMorgan Chase Bank N.A.

Put

3.25

3-Month LIBOR

Pay

12/16/21

USD

6,200

144,135

5-Year Interest Rate Swap

Barclays Bank PLC

Put

3.35

3-Month LIBOR

Pay

1/04/22

USD

19,050

418,780

10-Year Interest Rate Swap

Credit Suisse International

Put

1.25

6-Month LIBOR

Pay

1/11/22

JPY

250,000

30,501

10-Year Interest Rate Swap

Credit Suisse International

Put

1.55

6-Month LIBOR

Pay

2/22/22

JPY

250,000

24,374

Total

2,785,471

¹ Forward settling swaption.

OTC Options Purchased

Description

Put/
Call

Counterparty

Expiration
Date

Strike
Price

Notional
Amount
(000)

Value

AUD Currency

Call

Morgan Stanley & Co. International PLC

03/23/17

CAD

1.02

AUD

10,080

48,263

NOK Curency

Call

Citibank N.A.

03/23/17

SEK

1.08

NOK

97,040

54,183

AUD Currency

Put

Morgan Stanley & Co. International PLC

03/17/17

USD

0.75

AUD

15,145

17,557

NZD Currency

Put

BNP Paribas S.A.

03/23/17

JPY

79.50

NZD

10,680

32,433

EUR Currency

Put

UBS AG

08/14/17

USD

1.03

EUR

7,315

97,559

Total

249,995

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	29


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)

OTC Interest Rate Swaptions Written

Description

Counterparty

Put/
Call

Exercise
Rate

Pay/
Receive
Exercise Rate

Floating Rate
Index

Expiration
Date

Notional
Amount
(000)

Value

30-Year Interest Rate Swap

Goldman Sachs Bank USA

Call

2.51

3-Month LIBOR

Pay

3/06/17

USD

1,030

(2,154

)

5-Year Interest Rate Swap

Goldman Sachs Bank USA

Call

1.87

3-Month LIBOR

Pay

3/06/17

USD

4,930

(770

)

10-Year Interest Rate Swap

Citibank N.A.

Call

2.30

3-Month LIBOR

Pay

3/24/17

USD

7,500

(38,559

)

10-Year Interest Rate Swap

Barclays Bank PLC

Call

2.47

3-Month LIBOR

Pay

8/23/17

USD

2,500

(57,771

)

2-Year Interest Rate Swap

Goldman Sachs Bank USA

Call

1.10

3-Month LIBOR

Pay

11/22/17

USD

12,090

(3,022

)

2-Year Interest Rate Swap

Citibank N.A.

Call

1.15

3-Month LIBOR

Pay

11/29/17

USD

21,810

(7,148

)

5-Year Interest Rate Swap

Goldman Sachs Bank USA

Call

0.15

6-Month EURIBOR

Pay

12/04/17

EUR

5,700

(37,332

)

2-Year Interest Rate Swap

Bank of America N.A.

Call

1.10

3-Month LIBOR

Pay

12/04/17

USD

11,020

(3,018

)

2-Year Interest Rate Swap

Goldman Sachs Bank USA

Call

1.10

3-Month LIBOR

Pay

12/04/17

USD

10,790

(2,955

)

2-Year Interest Rate Swap

Barclays Bank PLC

Call

1.05

3-Month LIBOR

Pay

12/15/17

USD

39,800

(9,466

)

2-Year Interest Rate Swap

Deutsche Bank AG

Call

1.45

3-Month LIBOR

Pay

1/19/18

USD

21,500

(27,953

)

2-Year Interest Rate Swap

Citibank N.A.

Call

1.05

3-Month LIBOR

Pay

1/25/18

USD

60,000

(18,998

)

2-Year Interest Rate Swap

Goldman Sachs Bank USA

Call

0.75

3-Month LIBOR

Pay

4/12/18

USD

38,200

(6,466

)

2-Year Interest Rate Swap

Deutsche Bank AG

Call

0.90

3-Month LIBOR

Pay

10/17/18

USD

20,000

(13,004

)

2-Year Interest Rate Swap

Barclays Bank PLC

Call

1.50

3-Month LIBOR

Pay

1/11/19

USD

5,900

(17,317

)

2-Year Interest Rate Swap

Deutsche Bank AG

Call

2.28

3-Month LIBOR

Pay

2/01/19

USD

9,500

(90,150

)

5-Year Interest Rate Swap

Goldman Sachs Bank USA

Call

1.70

3-Month LIBOR

Pay

1/05/22

USD

5,000

(76,156

)

5-Year Interest Rate Swap

Deutsche Bank AG

Call

1.75

3-Month LIBOR

Pay

2/08/22

USD

5,000

(80,280

)

10-Year Interest Rate Swap

Citibank N.A.

Put

2.60

3-Month LIBOR

Receive

3/24/17

USD

7,500

(6,824

)

10-Year Interest Rate Swap

Barclays Bank PLC

Put

2.47%

3-Month LIBOR

Receive

8/23/17

USD

2,500

(45,625

)

5-Year Interest Rate Swap

Goldman Sachs Bank USA

Put

1.15%

6-Month EURIBOR

Receive

9/11/17

EUR

10,800

(4,899

)

5-Year Interest Rate Swap

Royal Bank of Scotland PLC

Put

1.10%

6-Month EURIBOR

Receive

9/25/17

EUR

10,000

(5,958

)

5-Year Interest Rate Swap

Citibank N.A.

Put

1.00%

6-Month EURIBOR

Receive

10/23/17

EUR

6,670

(6,433

)

5-Year Interest Rate Swap

UBS AG

Put

1.00%

6-Month EURIBOR

Receive

10/26/17

EUR

12,300

(12,203

)

5-Year Interest Rate Swap

Goldman Sachs Bank USA

Put

1.00%

6-Month EURIBOR

Receive

10/30/17

EUR

14,000

(14,289

)

2-Year Interest Rate Swap

Wells Fargo Bank N.A.

Put

2.00%

3-Month LIBOR

Receive

11/21/17

USD

26,600

(85,222

)

2-Year Interest Rate Swap

Goldman Sachs Bank USA

Put

2.10%

3-Month LIBOR

Receive

11/22/17

USD

12,090

(30,953

)

2-Year Interest Rate Swap

Citibank N.A.

Put

2.15%

3-Month LIBOR

Receive

11/29/17

USD

21,810

(52,039

)

2-Year Interest Rate Swap

Wells Fargo Bank N.A.

Put

2.40%

3-Month LIBOR

Receive

12/01/17

USD

10,000

(13,592

)

2-Year Interest Rate Swap

Bank of America N.A.

Put

2.10%

3-Month LIBOR

Receive

12/04/17

USD

11,020

(30,289

)

2-Year Interest Rate Swap

Goldman Sachs Bank USA

Put

2.10%

3-Month LIBOR

Receive

12/04/17

USD

10,790

(29,657

)

2-Year Interest Rate Swap

Barclays Bank PLC

Put

1.95%

3-Month LIBOR

Receive

12/15/17

USD

39,800

(159,638

)

10-Year Interest Rate Swap

Goldman Sachs Bank USA

Put

3.00%

3-Month LIBOR

Receive

1/03/18

USD

7,430

(83,305

)

5-Year Interest Rate Swap

UBS AG

Put

1.00%

6-Month EURIBOR

Receive

1/08/18

EUR

7,200

(11,638

)

2-Year Interest Rate Swap

Citibank N.A.

Put

2.30%

3-Month LIBOR

Receive

1/25/18

USD

20,000

(49,176

)

2-Year Interest Rate Swap

Goldman Sachs Bank USA

Put

1.75%

3-Month LIBOR

Receive

4/12/18

USD

38,200

(318,048

)

2-Year Interest Rate Swap

Goldman Sachs Bank USA

Put

1.45%

3-Month LIBOR

Receive

6/27/18

USD

10,000

(136,454

)

2-Year Interest Rate Swap

Citibank N.A.

Put

1.40%

3-Month LIBOR

Receive

7/05/18

USD

10,000

(145,715

)

2-Year Interest Rate Swap

Goldman Sachs Bank USA

Put

1.50%

3-Month LIBOR

Receive

9/06/18

USD

26,000

(367,750

)

2-Year Interest Rate Swap

Barclays Bank PLC

Put

2.50%

3-Month LIBOR

Receive

10/17/18

USD

5,000

(24,583

)

2-Year Interest Rate Swap

Barclays Bank PLC

Put

2.50%

3-Month LIBOR

Receive

1/11/19

USD

5,900

(35,564

)

2-Year Interest Rate Swap

Deutsche Bank AG

Put

2.28%

3-Month LIBOR

Receive

2/01/19

USD

9,500

(74,736

)

10-Year Interest Rate Swap

Bank of America N.A.

Put

5.50%

3-Month LIBOR

Receive

2/01/21

USD

10,000

(70,907

)

10-Year Interest Rate Swap

Citibank N.A.

Put

5.50

3-Month LIBOR

Receive

2/01/21

USD

10,950

(77,643

)

Total

(2,385,659

)

OTC Options Written

Description

Put/
Call

Counterparty

Expiration
Date

Strike
Price

Notional
Amount
(000)

Value

AUD Currency

Call

Morgan Stanley & Co. International PLC

03/17/17

NZD

1.09

AUD

10,090

(3,907

)

NOK Currency

Call

Citibank N.A.

03/23/17

SEK

1.09

NOK

97,040

(21,275

)

NZD Currency

Call

BNP Paribas S.A.

03/23/17

JPY

83.00

NZD

10,680

(10,608

)

NZD Currency

Call

Deutsche Bank AG

04/12/17

SEK

6.55

NZD

16,135

(97,323

)

EUR Currency

Call

UBS AG

05/12/17

CHF

1.09

EUR

14,635

(62,157

)

NZD Currency

Put

Deutsche Bank AG

04/12/17

SEK

6.25

NZD

16,135

(27,637

)

Total

(222,907

)

See Notes to Financial Statements.



30	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)

Centrally Cleared Credit Default Swaps — Sell Protection

Issuer/Index

Receive
Fixed Rate

Expiration
Date

Credit
Rating¹

Notional
Amount
(000)²

Unrealized
Depreciation

Chesapeake Energy Corp.

5.00

12/20/21

CCC

USD

270

(3,069

)

¹Using Standard & Poor’s (“S&P’s”) rating of the issuer or the underlying securities of the index, as applicable.

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

Centrally Cleared Interest Rate Swaps

Fixed
Rate

Floating
Rate

Effective
Date

Expiration
Date

Notional
Amount
(000)

Unrealized
Appreciation
(Depreciation)

0.77

%¹

3-Month LIBOR

N/A

2/05/18

USD

107,000

536,232

1.67

%²

3-Month LIBOR

7/06/17

3/31/19

USD

9,110

(1,469

)

1.67

%²

3-Month LIBOR

7/06/17

3/31/19

USD

9,100

(846

)

1.68

%²

3-Month LIBOR

7/06/17

3/31/19

USD

16,950

1,229

1.61

%¹

3-Month LIBOR

11/16/17

11/16/19

USD

10,100

49,163

1.65

%¹

3-Month LIBOR

11/21/17

11/21/19

USD

19,500

82,506

1.67

%¹

3-Month LIBOR

11/21/17

11/21/19

USD

4,490

17,683

1.95

%¹

3-Month LIBOR

12/18/17

12/18/19

USD

6,300

(6,863

)

2.05

%¹

3-Month LIBOR

12/19/17

12/19/19

USD

6,000

(18,167

)

2.06

%¹

3-Month LIBOR

12/19/17

12/19/19

USD

6,000

(18,518

)

1.87

%¹

3-Month LIBOR

1/19/18

1/19/20

USD

2,600

2,909

1.95

%¹

3-Month LIBOR

2/06/18

2/06/20

USD

260

)

1.93

%¹

3-Month LIBOR

2/14/18

2/14/20

USD

1,300

613

1.96

%¹

3-Month LIBOR

2/16/18

2/16/20

USD

2,500

(208

)

2.00

%¹

3-Month LIBOR

2/16/18

2/16/20

USD

5,500

(5,107

)

2.01

%¹

3-Month LIBOR

2/16/18

2/16/20

USD

1,500

(1,611

)

2.06

%¹

3-Month LIBOR

2/20/18

2/20/20

USD

2,000

(3,865

)

2.00

%¹

3-Month LIBOR

3/02/18

3/02/20

USD

3,500

(1,985

)

2.04

%¹

3-Month LIBOR

3/02/18

3/02/20

USD

2,000

(2,503

)

2.13

%¹

3-Month LIBOR

12/04/18

12/04/20

USD

5,000

3,953

2.16

%¹

3-Month LIBOR

12/04/18

12/04/20

USD

5,000

456

2.11

%¹

3-Month LIBOR

12/10/18

12/10/20

USD

5,000

5,864

2.20

%¹

3-Month LIBOR

12/14/18

12/14/20

USD

5,000

(2,215

)

2.25

%¹

3-Month LIBOR

12/18/18

12/18/20

USD

5,000

(7,133

)

2.32

%¹

3-Month LIBOR

1/24/19

1/24/21

USD

5,000

(11,677

)

1.68

%¹

3-Month LIBOR

7/06/17

8/31/21

USD

26,160

(38,869

)

2.28

%¹

3-Month LIBOR

6/30/17

2/15/24

USD

9,380

(37,706

)

1.97

%²

3-Month LIBOR

10/27/21

10/27/26

USD

2,170

(67,157

)

2.07

%²

3-Month LIBOR

10/29/21

10/29/26

USD

6,160

(163,867

)

2.60

%²

3-Month LIBOR

11/16/21

11/16/26

USD

2,240

(8,209

)

2.95

%²

3-Month LIBOR

12/21/21

12/21/26

USD

4,100

45,445

2.75

%²

3-Month LIBOR

1/05/22

1/05/27

USD

6,930

16,967

2.35

%¹

3-Month LIBOR

N/A

1/06/27

USD

2,060

(4,929

)

2.90

%¹

3-Month LIBOR

1/27/27

1/27/37

USD

730

(2,878

)

2.58

%²

3-Month LIBOR

N/A

1/06/47

USD

830

(1,121

)

Total

356,112

¹Fund pays the fixed rate and receives the floating rate.

²Fund pays the floating rate and receives the fixed rate.

³ Forward Swap.


OTC Credit Default Swaps — Buy Protection
Issuer/Index	Pay Fixed Rate			Counterparty		Expiration Date		Notional Amount (000)			Value			Premiums Paid		Unrealized Depreciation
Australia & New Zealand Banking Group Ltd.		1.00	%		Deutsche Bank AG		9/20/17		USD	1	$	(3	)	$	2	$	(5	)
Westpac Banking Corp.		1.00	%		Deutsche Bank AG		9/20/17		USD	1		(2	)		2		(4	)
Total											$	(5	)	$	4	$	(9	)

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	31


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


OTC Credit Default Swaps — Sell Protection
Issuer/Index	Receive Fixed Rate			Counterparty	Expiration Date		Credit Rating¹	Notional Amount (000)²		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Hellenic Telecommunications Organization SA		5.00	%	Barclays Bank PLC		12/20/21	B+	EUR	20	$	1,502		$	1,296		$	206
UniCredit SpA		1.00	%	Barclays Bank PLC		12/20/21	BBB-	EUR	10		(351	)		(562	)		211
UniCredit SpA		1.00	%	BNP Paribas S.A.		12/20/21	BBB-	EUR	5		(182	)		(229	)		47
Markit CMBX North America, Series 8		3.00	%	Barclays Bank PLC		10/17/57	NR	USD	5,000		(761,170	)		(525,399	)		(235,771	)
Markit CMBX North America, Series 8		3.00	%	Credit Suisse International		10/17/57	NR	USD	2,500		(380,585	)		(259,571	)		(121,014	)
Markit CMBX North America, Series 8		3.00	%	Morgan Stanley & Co. International PLC		10/17/57	NR	USD	5,550		(844,899	)		(768,323	)		(76,576	)
Markit CMBX North America, Series 9		3.00	%	Morgan Stanley & Co. International PLC		9/17/58	NR	USD	9,450		(1,180,041	)		(1,208,523	)		28,482
Total										$	(3,165,726	)	$	(2,761,311	)	$	(404,415	)

¹Using S&P’s rating of the issuer or the underlying securities of the index, as applicable.
²The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

Transactions in Options Written for the Six Months Ended February 28, 2017


	Calls
	Notional (000)
	Contracts	AUD			EUR			GBP			NOK			NZD		USD			Premiums Received
Outstanding options, beginning of period	—		16,190			60,000			—			—			—	$	365,930		$	3,061,679
Options written	—		58,410			146,210			25,215			197,800			26,815		233,425			2,737,169
Options exercised	—		(16,090	)		(25,375	)		—			(100,760	)				—			(308,123	)
Options expired	—		(32,230	)		(98,910	)		(18,940	)		—			—		(25,235	)		(815,492	)
Options closed	—		(16,190	)		(61,590	)		(6,275	)		—			—		(297,550	)		(3,157,950	)

Outstanding options, end of period	—		10,090			20,335			—			97,040			26,815	$	276,570		$	1,517,283


	Puts
	Notional (000)
	Contracts	AUD			CAD			EUR			GBP			NOK			NZD			USD			Premiums Received
Outstanding options, beginning of period	—		—			—			242,300			10,000			—					$	450,260		$	5,907,484
Options written	—		28,185			16,075			89,100			23,815			48,520			54,340			231,200			2,650,734
Options exercised	—		—			—			(23,295	)		(17,540	)		—			—			(13,600	)		(451,215	)
Options expired	—		(28,185	)		(16,075	)		(39,995	)		(16,275	)		—			(38,205	)		(36,080	)		(860,795	)
Options closed	—		—			—			(207,140	)		—			(48,520	)		—			(336,690	)		(4,870,625	)

Outstanding options, end of period	—		—			—			60,970			—			—			16,135		$	295,090		$	2,375,583

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:


Assets — Derivative Financial Instruments		Commodity Contracts	Credit Contracts		Equity Contracts	Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts	Total
Futures contracts	Net unrealized appreciation¹	—		—	—		—	$	50,437	—	$	50,437
Forward foreign currency exchange contracts	Unrealized appreciation on forward foreign currency exchange contracts	—		—	—	$	331,522		—	—		331,522
Options purchased²	Investments at value — unaffiliated³	—		—	—		249,995		2,795,236	—		3,045,231
Swaps — centrally cleared	Net unrealized appreciation¹	—		—	—		—		763,020	—		763,020
Swaps — OTC	Unrealized appreciation on OTC swaps; Swap premiums paid	—	$	30,246	—		—		—	—		30,246

Total		—	$	30,246	—	$	581,517	$	3,608,693	—	$	4,220,456

See Notes to Financial Statements.



32	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)


Liabilities — Derivative Financial Instruments		Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Futures contracts	Net unrealized depreciation¹		—		—		—		—	$	90,715		—	$	90,715
Forward foreign currency exchange contracts	Unrealized depreciation on forward foreign currency exchange contracts		—		—		—	$	117,628		—		—		117,628
Options written	Options written at value		—		—		—		222,907		2,385,659		—		2,608,566
Swaps — centrally cleared	Net unrealized depreciation¹		—	$	3,069		—		—		406,908		—		409,977
Swaps — OTC	Unrealized depreciation on OTC swaps; Swap premiums received		—		3,195,977		—		—		—		—		3,195,977

Total			—	$	3,199,046		—	$	340,535	$	2,883,282		—	$	6,422,863

¹ Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.
² Includes forward settling swaption.
³Includes options purchased at value as reported in the Schedule of Investments.

For the six months ended February 28, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:


Net Realized Gain (Loss) from:	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Futures contracts		—		—		—		—		$	(824,024	)		—	$	(824,024	)
Forward foreign currency exchange contracts		—		—		—	$	219,047			—			—		219,047
Options purchased¹		—		—		—		(2,219,435	)		513,327			—		(1,706,108	)
Options written		—		—		—		1,697,311			900,328			—		2,597,639
Swaps		—	$	208,710		—		—			2,296,753			—		2,505,463

Total		—	$	208,710		—	$	(303,077	)	$	2,886,384			—	$	2,792,017


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—		—		$	(2,161	)		—	$	(2,161	)
Forward foreign currency exchange contracts		—		—		—	$	248,149			—			—		248,149
Options purchased²		—		—		—		264,173			(603,161	)		—		(338,988	)
Options written		—		—		—		(100,588	)		(2,170,197	)		—		(2,270,785	)
Swaps		—	$	14,201		—		—			266,089			—		280,290

Total		—	$	14,201		—	$	411,734		$	(2,509,430	)		—	$	(2,083,495	)

¹ Options purchased are included in net realized gain (loss) from investments.
² Options purchased are included in net change in unrealized appreciation (depreciation) on investments.

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — long	$	126,009,000
Average notional value of contracts — short	$	156,044,800
Forward foreign currency exchange contracts:
Average amounts purchased — in USD	$	90,973,976
Average amounts sold — in USD	$	39,041,487
Options:
Average value of option contracts purchased	$	680,992
Average value of option contracts written	$	711,176
Average notional value of swaption contracts purchased	$	166,762,788
Average notional value of swaption contracts written	$	728,214,606
Credit default swaps:
Average notional value — buy protection	$	1,000
Average notional value — sell protection	$	15,765,133
Interest rate swaps:
Average notional value — pays fixed rate	$	243,620,129
Average notional amount-receives fixed rate	$	42,063,948

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	33


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)

For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments — Offsetting as of Period End

The Trust’s derivative assets and liabilities (by type) were as follows:


	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts		—		$	47,623
Forward foreign currency exchange contracts	$	331,522			117,628
Options		3,067,510	¹		2,630,845
Swaps — centrally cleared		1,148			—
Swaps — OTC²		30,246			3,195,977

Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	3,430,426		$	5,992,073

Derivatives not subject to a master netting agreement or similar agreement (“MNA”)		(10,913	)		(47,623	)

Total derivative assets and liabilities subject to an MNA	$	3,419,513		$	5,944,450

¹ Includes options purchased at value which is included in Investments at value — unaffiliated in the Statements of Assets and Liabilities and reported in the Schedule of Investments.
² Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums paid/received in the Statements of Assets and Liabilities.

The following table presents the Trust’s derivative assets and liabilities by counterparty net of amounts available for offset under a MNA and net of the related collateral received and pledged by the Trust:


Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset¹			Non-cash Collateral Received		Cash Collateral Received²			Net Amount of Derivative Assets^3,6
Bank of America N.A.	$	132,981	$	(132,981	)		—		—
Barclays Bank PLC		907,020		(907,020	)		—		—			—
BNP Paribas S.A.		37,818		(37,818	)		—		—			—
Citibank N.A.		412,794		(412,794	)		—		—			—
Credit Suisse International		96,736		(96,736	)		—		—			—
Deutsche Bank AG		494,028		(433,371	)		—	$	(40,000	)	$	20,657
Goldman Sachs Bank USA		225,629		(225,629	)		—		—			—
JPMorgan Chase Bank N.A.		747,279		—			—		(747,279	)		—
Morgan Stanley & Co. International PLC		267,669		(267,669	)		—		—			—
UBS AG		97,559		(85,998	)		—		—			11,561

Total	$	3,419,513	$	(2,600,016	)		—	$	(787,279	)	$	32,218


Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset¹			Non-cash Collateral Pledged		Cash Collateral Pledged⁴			Net Amount of Derivative Liabilities^5,6
Bank of America N.A.	$	133,404	$	(132,981	)		—		—		$	423
Barclays Bank PLC		1,133,682		(907,020	)		—		—			226,662
BNP Paribas S.A.		55,167		(37,818	)		—		—			17,349
Citibank N.A.		444,191		(412,794	)		—		—			31,397
Credit Suisse International		382,326		(96,736	)		—	$	(285,590	)		—
Deutsche Bank AG		433,371		(433,371	)		—		—			—
Goldman Sachs Bank USA		1,114,210		(225,629	)		—		(888,581	)		—
Morgan Stanley & Co. International PLC		2,057,329		(267,669	)		—		—			1,789,660
Royal Bank of Scotland PLC		5,958		—			—		—			5,958
UBS AG		85,998		(85,998	)		—		—			—
Wells Fargo Bank N.A.		98,814		—			—		—			98,814

Total	$	5,944,450	$	(2,600,016	)		—		$(1,174,171)		$	2,170,263

¹ The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.
² Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.
³ Net amount represents the net amount receivable from the counterparty in the event of default.
⁴ Excess of collateral pledged from the individual counterparty is not shown for financial reporting purposes.
⁵ Net amount represents the net amount payable due to the counterparty in the event of default.
⁶ Net amount may also include forward foreign currency exchange contracts and currency options that are not required to be collateralized.

See Notes to Financial Statements.



34	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Core Bond Trust (BHK)

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities		—		$	74,261,831		$	7,876,146	$	82,137,977
Corporate Bonds		—			523,681,452			7,027,992		530,709,444
Floating Rate Loan Interests		—			12,312,873			81,810		12,394,683
Foreign Agency Obligations		—			20,597,186			—		20,597,186
Municipal Bonds		—			24,235,038			—		24,235,038
Non-Agency Mortgage-Backed Securities		—			98,309,641			—		98,309,641
Preferred Securities	$	15,783,485			86,956,134			—		102,739,619
U.S. Government Sponsored Agency Securities		—			80,969,008			2		80,969,010
U.S. Treasury Obligations		—			111,419,368			—		111,419,368
Short-Term Securities:
Money Market Funds		31,449,022			—			—		31,449,022
Options Purchased:
Interest rate contracts¹		9,765			2,785,471			—		2,795,236
Foreign currency exchange contracts		—			249,995			—		249,995

Total	$	47,242,272		$	1,035,777,997		$	14,985,950	$	1,098,006,219


Derivative Financial Instruments²
Assets:
Credit contracts		—		$	28,946			—	$	28,946
Foreign currency exchange contracts		—			331,522			—		331,522
Interest rate contracts	$	50,437			763,020			—		813,457
Liabilities:
Credit contracts		—			(436,439	)		—		(436,439	)
Foreign currency exchange contracts		—			(340,535	)		—		(340,535	)
Interest rate contracts		(90,715	)		(2,792,567	)		—		(2,883,282	)

Total	$	(40,278	)	$	(2,446,053	)		—	$	(2,486,331	)

¹ Includes forward settling swaption. ² Derivative financial instruments are swaps, futures contracts, forward foreign currency exchange contracts and options written. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument and options written are shown at value.

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, reverse repurchase agreements of $327,543,464 are categorized as Level 2 within the disclosure hierarchy.

During the six months ended February 28, 2017, there were no transfers between Level 1 and Level 2.

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	35


Schedule of Investments (concluded)		BlackRock Core Bond Trust (BHK)

A reconciliation of Level 3 investments is presented when the Trust had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:


	Asset-Backed Securities			Corporate Bonds			Floating Rate Loan Interests			Non-Agency Mortgage-Backed Securities			U.S. Government Sponsored Agency Securities		Total
Assets:
Opening balance, as of August 31, 2016	$	6,235,302		$	7,833,603		$	425,295			—		$	2	$	14,494,202
Transfers into Level 3		—			—			—			—			—		—
Transfers out of Level 3		(1,500,780	)		—			(425,295	)		—			—		(1,926,075	)
Accrued discounts/premiums		(79,704	)		—			—			—			—		(79,704	)
Net realized gain (loss)		(4,600	)		—			—		$	2			—		(4,598	)
Net change in unrealized appreciation (depreciation)^1,2		201,113			(562,287	)		1,013			—			—		(360,161	)
Purchases		6,079,815			—			80,797			—			—		6,160,612
Sales		(3,055,000	)		(243,324	)		—			(2	)		—		(3,298,326	)

Closing Balance, as of February 28, 2017	$	7,876,146		$	7,027,992		$	81,810			—		$	2	$	14,985,950

Net change in unrealized appreciation (depreciation) on investments still held at February 28, 2017²	$	263,227		$	(562,287	)	$	1,013			—			—	$	(298,047	)

¹ Included in the related net change in unrealized appreciation (depreciation) in the Statement of Operations.
² Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at February 28, 2017 is generally due to investments no longer held or categorized as Level 3 at period end.

The Trust’s investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of such Level 3 investments.

See Notes to Financial Statements.



36	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017

Consolidated Schedule of Investments February 28, 2017 (Unaudited)

BlackRock Corporate High Yield Fund, Inc. (HYT)

(Percentages shown are based on Net Assets)


Common Stocks		Shares		Value
Banks — 0.3%
Bank of America Corp.			47,712	$	1,177,532
Citigroup, Inc.			19,346		1,157,084
JPMorgan Chase & Co.			12,869		1,166,189
Wells Fargo & Co.			20,051		1,160,552

					4,661,357
Building Products — 0.0%
JELD-WEN Holding, Inc. (a)			7,573		236,581
Capital Markets — 0.2%
Goldman Sachs Group, Inc.			4,669		1,158,192
Morgan Stanley			25,178		1,149,879
Uranium Participation Corp. (a)			176,860		581,899

					2,889,970
Chemicals — 0.1%
Advanced Emissions Solutions, Inc. (a)			168,580		1,815,607
Consumer Finance — 0.0%
Ally Financial, Inc.			2		45
Diversified Financial Services — 0.3%
Concrete Investments II S.C.A. (a)			4,997		—
Kcad Holdings I Ltd. (a)			2,223,465,984		4,780,452

					4,780,452
Diversified Telecommunication Services — 0.0%
Broadview Networks Holdings, Inc. (a)			137,800		172,249
Energy Equipment & Services (b) — 0.1%
Laricina Energy Ltd. (a)			211,764		1
Osum Oil Sands Corp. (a)			400,000		900,467

					900,468
Media — 0.0%
Emmis Communications Corp., Class A (a)			7,210		19,972
Metals & Mining — 0.1%
Peninsula Energy Ltd. (a)			2,051,920		1,030,451
Teck Resources Ltd., Class B			35,860		717,558

					1,748,009
Oil, Gas & Consumable Fuels — 0.5%
Gener8 Maritime Corp. (a)			965,338		4,710,849
Halcon Convertible Preferred			35		2,720,025

					7,430,874
Real Estate Investment Trusts (REITs) — 0.0%
Ovation Acquisition I LLC, (Acquired 12/29/15, cost $187,463) (c)			12,175		12,175
Semiconductors & Semiconductor Equipment — 0.0%
SunPower Corp. (a)			1,025		8,979
Wireless Telecommunication Services — 0.3%
T-Mobile U.S., Inc. (a)			59,550		3,723,662
Total Common Stocks — 1.9%					28,400,400



Asset-Backed Securities		Par (000)
Asset-Backed Securities — 3.6%
Allegro CLO II, Ltd., Series 2014-1A, Class CR, 4.77%, 1/21/27 (d)(e)	USD		1,000		1,000,000
ALM Loan Funding (d)(e):
Series 2013-7R2A, Class BR, 3.64%, 10/15/27			500		502,150
Series 2013-8A, Class CR, 4.97%, 10/15/28			1,400		1,401,570


Asset-Backed Securities		Par (000)		Value
Asset-Backed Securities (continued)
ALM VII R Ltd., Series 2013-7RA, Class BR, 3.72%, 10/15/28 (d)(e)	USD		500	$	502,167
ALM XI, Ltd., Series 2014-11A, Class D, 5.82%, 10/17/26 (d)(e)			500		464,855
ALM XII Ltd., Series 2015-12A (d)(e):
Class C1, 4.77%, 4/16/27			1,500		1,503,642
Class D, 6.52%, 4/16/27			250		244,941
ALM XIV Ltd., Series 2014-14A, Class C, 4.49%, 7/28/26 (d)(e)			500		497,895
AMMC CLO 18, Ltd., Series 2016-18A, Class D, 5.94%, 5/26/28 (d)(e)			500		501,231
AMMC CLO 19, Ltd., Series 2016-19A, Class C, 3.68%, 10/15/28 (d)(e)			413		411,355
AMMC CLO IX, Ltd., Series 2011-9A (d)(e):
Class DR, 6.67%, 1/15/22			1,000		1,000,448
Class ER, 8.67%, 1/15/22			1,000		1,000,647
Anchorage Capital CLO 3, Ltd., Series 2014-3A, Class C, 4.54%, 4/28/26 (d)(e)			500		501,506
Anchorage Capital CLO 8, Ltd., Series 2016-8A, Class D, 5.24%, 7/28/28 (d)(e)			1,000		1,006,894
Anchorage Capital CLO, Ltd., Series 2012-1A, Class DR, 8.27%, 1/13/27 (d)(e)			600		604,272
APIDOS CLO, Series 2015-20A, Class BR, 3.62%, 1/16/27 (d)(e)			250		250,250
Apidos CLO XIX, Series 2014-19A, Class CR, 3.23%, 10/17/26 (d)(e)			500		498,144
Apidos CLO XVIII, Series 2014-18A, Class C, 4.69%, 7/22/26 (d)(e)			550		552,489
Apidos CLO XXIII, Series 2015-23A, Class D2, 6.97%, 1/14/27 (d)(e)			750		745,675
Ares XXXII CLO, Ltd., Series 2014-32A, Class CR, 4.49%, 11/15/25 (d)(e)			750		750,000
Ares XXXIII CLO, Ltd., Series 2015-1A, Class CR, 5.16%, 12/05/25 (d)(e)			1,000		995,044
Ares XXXIX CLO, Ltd., Series 2016-39A, Class E, 8.27%, 7/18/28 (d)(e)			1,000		1,000,683
Ares XXXVII CLO, Ltd., Series 2015-4A (d)(e):
Class C, 5.27%, 10/15/26			1,000		1,009,198
Class D1, 7.82%, 10/15/26			500		499,547
Atrium CDO Corp., Series 9A, Class D, 4.55%, 2/28/24 (d)(e)			750		751,872
Ballyrock CLO, Ltd., Series 2016-1A, Class C, 3.52%, 10/15/28 (d)(e)			1,000		1,001,031
Betony CLO, Ltd., Series 2015-1A, Class CR, 3.76%, 4/15/27 (d)(e)			250		251,823
BlueMountain CLO Ltd., Series 2012-2A, Class CR, 3.65%, 11/20/28 (d)(e)			500		501,444
Carlyle Global Market Strategies CLO Ltd. (d)(e):
Series 2012-4A, Class DR, 5.13%, 1/20/29			500		500,000
Series 2013-3A, Class B, 3.67%, 7/15/25			500		500,538
Series 2014-1A, Class CR, 3.77%, 4/17/25			500		503,296
Series 2014-5A, Class C, 5.17%, 10/16/25			1,000		1,002,142
Series 2016-3A, Class D, 7.79%, 10/20/29			500		500,906
Cedar Funding, Ltd., Series 2014-3A, Class D, 4.60%, 5/20/26 (d)(e)			535		527,514
CIFC Funding 2014-V, Ltd., Series 2014-5A, Class CR, 3.72%, 1/17/27 (d)(e)			750		755,320
CIFC Funding 2015-III, Ltd., Series 2015-3A, Class E, 7.07%, 10/19/27 (d)(e)			750		744,214
CIFC Funding Ltd. (d)(e):
Series 2014-2A, Class A3LR, 3.28%, 5/24/26			500		500,000
Series 2014-3A, Class C1, 3.84%, 7/22/26			1,250		1,258,288

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	37


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Asset-Backed Securities		Par (000)		Value
Asset-Backed Securities (continued)
Dryden 36 Senior Loan Fund, Series 2014-36A (d)(e):
Class CR, 3.94%, 1/15/28	USD		250	$	250,125
Class DR, 4.64%, 1/15/28			1,000		1,000,000
HPS Loan Management 9-2016, Ltd., Series 9A-2016, Class D2, 7.47%, 7/19/27 (d)(e)			800		784,363
LCM XV LP, Series 15A, Class C, 4.15%, 8/25/24 (d)(e)			500		503,106
Madison Park Funding Ltd., Series 2014-14A,Class D, 4.63%, 7/20/26 (d)(e)			500		502,329
Madison Park Funding XV, Ltd., Series 2014-15A, Class CR, 4.49%, 1/27/26 (d)(e)			500		500,023
Mill Creek II CLO, Ltd., Series 2016-1A, Class E, 8.78%, 4/20/28 (d)(e)			500		500,540
Neuberger Berman CLO XIII, Ltd., Series 2012-13A, Class C, 3.89%, 1/23/24 (d)(e)			1,000		1,000,735
Neuberger Berman CLO XVII Ltd., Series 2014-17A, Class D, 4.58%, 8/04/25 (d)(e)			500		500,526
Neuberger Berman CLO XVIII Ltd., Series 2014-18A (d)(e):
Class BR, 3.59%, 11/14/27			500		503,468
Class CR, 5.29%, 11/14/27			1,500		1,511,754
Neuberger Berman CLO XX, Ltd., Series 2015-20A, Class E, 7.47%, 1/15/28 (d)(e)			500		495,805
Neuberger Berman CLO XXIII, Ltd., Series 2016-23A, Class E, 7.46%, 10/17/27 (d)(e)			500		499,556
OCP CLO, Series 2014-7A, Class A1A, 2.63%, 10/20/26 (d)(e)			500		501,586
Octagon Investment Partners 26 Ltd., Series 2016-1A, Class D, 5.97%, 4/15/27 (d)(e)			500		501,742
Octagon Investment Partners 27, Ltd., Series 2016-1A, Class E, 8.12%, 7/15/27 (d)(e)			1,000		1,002,501
Octagon Investment Partners XII Ltd., Series 2012-1AR, Class ER, 6.53%, 5/05/23 (d)(e)			1,200		1,207,053
Octagon Investment Partners XVII, Ltd., Series 2013-1A, Class A2R, 2.72%, 10/25/25 (d)(e)			1,500		1,500,750
Octagon Investment Partners XXII Ltd., Series 2014-1A (d)(e):
Class C1, 4.29%, 11/25/25			1,000		995,654
Class D1, 4.94%, 11/25/25			1,000		1,000,595
OneMain Financial Issuance Trust, Series 2015-2A, Class C, 4.32%, 7/18/25 (e)			200		199,446
OZLM IX Ltd., Series 2014-9A, Class C, 4.63%, 1/20/27 (d)(e)			1,000		1,000,170
OZLM IX, Ltd., Series 2014-9A Class CR, 1.00%, 1/20/27 (d)(e)(f)			1,000		1,000,000
OZLM XII Ltd., Series 2015-12A, Class D, 6.44%, 4/30/27 (d)(e)			250		239,963
Race Point IX CLO, Ltd., Series 2015-9A, Class A1, 2.53%, 4/15/27 (d)(e)			500		501,013
Race Point VII CLO Ltd., Series 2012-7A, Class CR, 3.69%, 11/08/24 (d)(e)			2,000		2,002,393
Sound Point CLO XII, Ltd., Series 2016-2A, Class E, 7.43%, 10/20/28 (d)(e)			500		498,390
Symphony CLO Ltd., Series 2016-17A, Class D, 5.82%, 4/15/28 (d)(e)			250		251,882


Asset-Backed Securities		Par (000)		Value
Asset-Backed Securities (continued)
Symphony CLO XI, Ltd., Series 2013-11A, Class B1, 3.22%, 1/17/25 (d)(e)	USD		500	$	506,248
Venture XIII CLO Ltd., Series 2013-13A, Class D, 4.50%, 6/10/25 (d)(e)			1,000		1,000,852
Venture XVII CLO, Ltd., Series 2014-17A, Class B1, 3.12%, 7/15/26 (d)(e)			500		501,186
Venture XXVI CLO Ltd., Series 2017-26A, Class D, 5.29%, 1/20/29 (d)(e)			750		750,000
Voya CLO Ltd. (d)(e):
Series 2014-4A, Class C, 5.02%, 10/14/26			1,750		1,752,945
Series 2016-3A, Class C, 4.67%, 10/18/27			1,000		1,003,722
Series 2016-3A, Class D, 7.67%, 10/18/27			500		507,285
Westcott Park CLO, Ltd., Series 2016-1A (d)(e):
Class D, 5.38%, 7/20/28			500		501,131
Class E, 8.23%, 7/20/28			500		505,500
Total Asset-Backed Securities — 3.6%					54,727,328



Corporate Bonds
Aerospace & Defense — 2.2%
Accudyne Industries Borrower/Accudyne Industries LLC, 7.75%, 12/15/20 (e)			2,808		2,464,020
Bombardier, Inc. (e):
8.75%, 12/01/21			4,765		5,277,237
6.00%, 10/15/22			1,726		1,728,158
6.13%, 1/15/23			518		518,000
7.50%, 3/15/25			3,184		3,311,360
KLX, Inc., 5.88%, 12/01/22 (e)			3,539		3,725,505
Koppers, Inc., 6.00%, 2/15/25 (e)			1,190		1,237,600
Meccanica Holdings USA, Inc., 6.25%, 1/15/40 (e)			100		100,500
TransDigm, Inc.:
5.50%, 10/15/20			1,563		1,590,353
6.00%, 7/15/22			7,958		8,172,707
6.50%, 7/15/24			4,577		4,702,867
6.50%, 5/15/25 (e)(f)			195		199,631
6.50%, 5/15/25			960		982,800
6.38%, 6/15/26			341		344,410

					34,355,148
Air Freight & Logistics — 0.6%
Air Medical Merger Sub Corp., 6.38%, 5/15/23 (e)			1,321		1,284,673
National Air Cargo Group, Inc.:
11.88%, 5/02/18			265		257,844
11.88%, 5/08/18			506		492,042
XPO Logistics, Inc.:
5.75%, 6/15/21	EUR		383		428,472
6.50%, 6/15/22 (e)	USD		4,805		5,045,250
6.13%, 9/01/23 (e)			1,317		1,382,850

					8,891,131
Airlines — 1.1%
Norwegian Air Shuttle ASA Pass-Through Trust, Series 2016-1, Class B, 7.50%, 5/10/25 (e)			1,895		2,030,019
US Airways Pass-Through Trust:
Series 2012-2, Class C, 5.45%, 6/03/18			5,720		5,848,700
Series 2013-1, Class B, 5.38%, 5/15/23			4,596		4,745,681
Virgin Australia Trust, Series 2013-1, Class C, 7.13%, 10/23/18 (e)			3,685		3,758,965

					16,383,365

See Notes to Financial Statements.



38	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Auto Components — 1.4%
Adient Global Holdings, Ltd., 3.50%, 8/15/24	EUR		250	$	271,180
Allison Transmission, Inc., 5.00%, 10/01/24 (e)	USD		827		841,472
CNH Industrial Finance Europe SA, 2.88%, 5/17/23	EUR		625		688,340
Faurecia, 3.63%, 6/15/23			300		332,732
Fiat Chrysler Finance Europe:
4.75%, 3/22/21			200		234,127
4.75%, 7/15/22			467		546,390
FTE Verwaltungs GmbH, 9.00%, 7/15/20			100		111,409
Goodyear Tire & Rubber Co., 5.00%, 5/31/26	USD		471		480,420
Icahn Enterprises LP/Icahn Enterprises Finance Corp.:
4.88%, 3/15/19			7,711		7,836,304
6.25%, 2/01/22 (e)			820		846,650
6.75%, 2/01/24 (e)			1,816		1,884,100
IHO Verwaltungs GmbH (g):
(2.75% Cash or 3.50% PIK), 2.75%, 9/15/21	EUR		600		656,540
(3.25% Cash or 4.00% PIK), 3.25%, 9/15/23			475		522,085
(3.75% Cash or 4.50% PIK), 3.75%, 9/15/26			225		242,834
(4.13% Cash or 4.88% PIK), 4.13%, 9/15/21 (e)	USD		1,280		1,269,864
(4.50% Cash or 5.25% PIK), 4.50%, 9/15/23 (e)			1,367		1,332,996
Schaeffler Finance BV:
4.75%, 5/15/23 (e)			1,440		1,481,818
3.25%, 5/15/25	EUR		100		114,560
UCI International, Inc., 8.63%, 2/15/19 (a)(d)(h)	USD		7,080		1,805,400

					21,499,221
Banks — 1.6%
Allied Irish Banks PLC, 4.13%, 11/26/25 (d)	EUR		820		903,873
Banca Popolare di Milano Scarl, 4.25%, 1/30/19			200		222,383
Banca Popolare di Vicenza, 0.50%, 2/03/20			400		419,915
Banco Espirito Santo SA (a)(h):
4.75%, 1/15/18			1,900		598,826
4.00%, 1/21/19			1,100		346,688
Banco Popolare, 2.75%, 7/27/20			800		864,890
Bank of Ireland, 4.25%, 6/11/24 (d)			540		596,389
Bankia SA, 4.00%, 5/22/24 (d)			1,600		1,730,927
CaixaBank SA, 3.50%, 2/15/27 (d)			200		218,027
CIT Group, Inc.:
5.25%, 3/15/18	USD		4,320		4,464,202
6.63%, 4/01/18 (e)			1,400		1,466,500
5.50%, 2/15/19 (e)			6,919		7,290,896
5.00%, 8/01/23			560		592,200
6.00%, 4/01/36			2,800		2,691,500
Commerzbank AG, 7.75%, 3/16/21	EUR		400		511,169
Deutsche Pfandbriefbank AG, 4.60%, 2/22/27			200		220,666
Ibercaja Banco SA, 5.00%, 7/28/25 (d)			300		316,549
Intesa Sanpaolo SpA:
6.63%, 9/13/23			1,100		1,374,788
3.93%, 9/15/26			200		217,018

					25,047,406
Beverages — 0.1%
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., 4.13%, 5/15/23			275		309,966
Horizon Holdings I SASU, 7.25%, 8/01/23			100		112,455
Horizon Parent Holdings Sarl, (8.25% Cash), 8.25%, 2/15/22 (g)			550		601,607
OI European Group BV, 3.13%, 11/15/24			100		108,066

					1,132,094


Corporate Bonds		Par (000)		Value
Biotechnology — 0.1%
Senvion Holding GmbH, 6.63%, 11/15/20	EUR		700	$	772,533
Building Materials — 0.1%
Cemex Finance LLC, 4.63%, 6/15/24			400		448,605
Dry Mix Solutions Investissements SAS (d):
3.93%, 6/15/21			110		116,534
5.18%, 3/15/23			200		215,058
Titan Global Finance PLC, 3.50%, 6/17/21			100		110,005

					890,202
Building Products — 1.7%
American Builders & Contractors Supply Co., Inc. (e):
5.63%, 4/15/21	USD		1,315		1,349,519
5.75%, 12/15/23			982		1,031,100
BMBG Bond Finance SCA, 3.00%, 6/15/21	EUR		225		247,897
Building Materials Corp. of America (e):
5.38%, 11/15/24	USD		665		683,553
6.00%, 10/15/25			2,308		2,452,250
CPG Merger Sub LLC, 8.00%, 10/01/21 (e)			4,330		4,535,675
Louisiana-Pacific Corp., 4.88%, 9/15/24			630		634,725
Masonite International Corp., 5.63%, 3/15/23 (e)			2,950		3,045,875
Ply Gem Industries, Inc., 6.50%, 2/01/22			3,735		3,885,147
Standard Industries, Inc. (e):
5.13%, 2/15/21			284		296,070
5.50%, 2/15/23			1,576		1,639,040
USG Corp.:
8.25%, 1/15/18			4,320		4,536,000
5.50%, 3/01/25 (e)			1,314		1,396,125

					25,732,976
Capital Markets — 1.5%
Blackstone CQP Holdco LP, 9.30%, 3/19/19 (e)			21,244		21,483,119
E*Trade Financial Corp., Series A, 0.00%, 8/31/19 (i)(j)			373		1,246,275

					22,729,394
Chemicals — 2.6%
Alpha 3 BV/Alpha US Bidco, Inc., 6.25%, 2/01/25 (e)			3,350		3,350,000
Axalta Coating Systems Dutch Holding B BV, 3.75%, 1/15/25	EUR		225		248,526
Axalta Coating Systems LLC, 4.88%, 8/15/24 (e)	USD		1,451		1,480,020
Blue Cube Spinco, Inc.:
9.75%, 10/15/23			425		506,813
10.00%, 10/15/25			190		230,850
CF Industries, Inc.:
7.13%, 5/01/20			860		942,775
5.15%, 3/15/34			540		513,338
4.95%, 6/01/43			2,110		1,814,600
Chemours Co.:
6.63%, 5/15/23			375		397,969
7.00%, 5/15/25			1,387		1,506,629
Hexion, Inc., 10.38%, 2/01/22 (e)			1,470		1,514,100
Huntsman International LLC:
4.88%, 11/15/20			286		296,010
5.13%, 4/15/21	EUR		379		447,783
5.13%, 11/15/22	USD		714		749,700
Ineos Finance PLC, 4.00%, 5/01/23	EUR		548		604,499
INEOS Group Holdings SA, 5.38%, 8/01/24			100		111,500
Inovyn Finance PLC, 6.25%, 5/15/21			200		225,266
Momentive Performance Materials, Inc., 3.88%, 10/24/21	USD		6,758		6,622,840
Montichem Holdco 3 SA, 5.25%, 6/15/21	EUR		211		231,916
NOVA Chemicals Corp. (e):
5.25%, 8/01/23	USD		349		359,470
5.00%, 5/01/25			415		420,188

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	39


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Chemicals (continued)
Platform Specialty Products Corp. (e):
10.38%, 5/01/21	USD		1,818	$	2,042,977
6.50%, 2/01/22			7,764		8,113,380
PQ Corp., 6.75%, 11/15/22 (e)			2,197		2,378,252
PSPC Escrow Corp., 6.00%, 2/01/23	EUR		394		438,378
Tronox Finance LLC:
6.38%, 8/15/20	USD		1,817		1,848,797
7.50%, 3/15/22 (e)			481		502,645
Versum Materials, Inc., 5.50%, 9/30/24 (e)			834		872,572
WR Grace & Co-Conn, 5.13%, 10/01/21 (e)			1,817		1,912,392

					40,684,185
Commercial Services & Supplies — 1.4%
ADT Corp.:
3.50%, 7/15/22			3,337		3,165,979
4.13%, 6/15/23			537		516,863
4.88%, 7/15/32 (e)			2,365		1,903,825
Advanced Disposal Services, Inc., 5.63%, 11/15/24 (e)			1,563		1,598,167
Bilbao Luxembourg SA, (10.50% Cash or 11.25% PIK), 10.50%, 12/01/18 (g)	EUR		428		465,805
Brand Energy & Infrastructure Services, Inc., 8.50%, 12/01/21 (e)	USD		1,875		1,964,062
Harland Clarke Holdings Corp., 8.38%, 8/15/22 (e)			1,870		1,931,944
Iron Mountain Europe PLC, 6.13%, 9/15/22	GBP		100		131,375
Mobile Mini, Inc., 5.88%, 7/01/24	USD		2,683		2,803,735
Park Aerospace Holdings Ltd., 5.25%, 8/15/22 (e)			1,631		1,700,317
Ritchie Bros Auctioneers, Inc., 5.38%, 1/15/25 (e)			1,289		1,326,059
Silk Bidco AS, 7.50%, 2/01/22	EUR		247		281,297
United Rentals North America, Inc.:
7.63%, 4/15/22	USD		1,992		2,079,787
5.75%, 11/15/24			1,354		1,437,948
Verisure Holding AB, 6.00%, 11/01/22	EUR		185		213,530

					21,520,693
Communications Equipment — 1.7%
Alcatel-Lucent USA, Inc., 6.45%, 3/15/29	USD		4,706		5,200,130
Avaya, Inc., 7.00%, 4/01/19 (a)(e)(h)			1,135		905,163
CommScope Technologies Finance LLC, 6.00%, 6/15/25 (e)			712		761,840
CommScope, Inc. (e):
5.00%, 6/15/21			2,278		2,346,340
5.50%, 6/15/24			2,169		2,272,028
Nokia OYJ, 6.63%, 5/15/39			3,513		3,750,127
Zayo Group LLC/Zayo Capital, Inc.:
6.00%, 4/01/23			4,466		4,722,795
6.38%, 5/15/25			4,457		4,802,417
5.75%, 1/15/27 (e)			1,481		1,565,861

					26,326,701
Construction & Engineering — 0.4%
BlueLine Rental Finance Corp., 7.00%, 2/01/19 (e)			2,090		2,131,800
Engility Corp., 8.88%, 9/01/24 (e)			1,728		1,857,600
Swissport Investments SA, 6.75%, 12/15/21	EUR		827		960,669
Weekley Homes LLC/Weekley Finance Corp., 6.00%, 2/01/23	USD		862		831,830

					5,781,899
Construction Materials — 1.3%
American Tire Distributors, Inc., 10.25%, 3/01/22 (e)			1,839		1,825,207
Autodis SA:
4.05%, 5/01/22 (d)	EUR		100		109,383
4.38%, 5/01/22			150		165,616


Corporate Bonds		Par (000)		Value
Construction Materials (continued)
Beacon Roofing Supply, Inc., 6.38%, 10/01/23	USD		566	$	611,988
HD Supply, Inc. (e):
5.25%, 12/15/21			10,967		11,570,185
5.75%, 4/15/24			2,803		2,964,172
LKQ Italia Bondco SpA, 3.88%, 4/01/24	EUR		200		226,451
PulteGroup, Inc., 5.50%, 3/01/26	USD		1,373		1,424,488
Rexel SA:
3.50%, 6/15/23	EUR		972		1,077,022
2.63%, 6/15/24 (f)			250		265,247

					20,239,759
Consumer Discretionary — 0.1%
Nielsen Co. Luxembourg SARL, 5.00%, 2/01/25 (e)	USD		1,178		1,186,835
Silversea Cruise Finance Ltd., 7.25%, 2/01/25 (e)			643		670,328

					1,857,163
Consumer Finance — 2.4%
Alliance Data Systems Corp. (e):
5.25%, 12/01/17			150		152,250
5.88%, 11/01/21			3,207		3,319,245
5.38%, 8/01/22			503		500,485
Ally Financial, Inc.:
5.13%, 9/30/24			1,230		1,302,262
4.63%, 3/30/25			904		924,340
8.00%, 11/01/31			18,930		23,283,900
Navient Corp.:
6.63%, 7/26/21			1,074		1,119,645
5.50%, 1/25/23			932		892,390
7.25%, 9/25/23			890		912,250
6.13%, 3/25/24			642		614,715
5.88%, 10/25/24			723		677,813
5.63%, 8/01/33			1,821		1,475,010
OneMain Financial Holdings LLC (e):
6.75%, 12/15/19			1,451		1,519,023
7.25%, 12/15/21			275		287,375

					36,980,703
Containers & Packaging — 3.5%
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.:
6.75%, 1/31/21 (e)			1,458		1,511,654
4.29%, 5/15/21 (d)(e)			393		403,316
6.00%, 6/30/21 (e)			2,447		2,538,762
4.25%, 1/15/22	EUR		991		1,083,776
4.25%, 9/15/22 (e)(f)	USD		1,627		1,651,405
2.75%, 3/15/24 (f)	EUR		875		928,041
6.75%, 5/15/24			450		527,382
6.00%, 2/15/25 (e)(f)	USD		4,549		4,674,097
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc. (e):
6.25%, 1/31/19			3,868		3,929,153
4.63%, 5/15/23			1,738		1,768,415
7.25%, 5/15/24			7,410		8,076,900
Ball Corp.:
5.00%, 3/15/22			710		751,713
4.00%, 11/15/23			1,374		1,372,282
4.38%, 12/15/23	EUR		100		119,257
Crown European Holdings SA:
4.00%, 7/15/22			558		656,171
3.38%, 5/15/25			403		442,201
Flex Acquisition Co., Inc., 6.88%, 1/15/25 (e)	USD		1,012		1,034,770
JH-Holding Finance SA, (8.25% PIK), 8.25%, 12/01/22 (g)	EUR		300		344,318
Norske Skog, 11.75%, 12/15/19			228		230,915

See Notes to Financial Statements.



40	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Containers & Packaging (continued)
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu:
5.75%, 10/15/20	USD		6,454	$	6,647,620
4.52%, 7/15/21 (d)(e)			3,894		3,996,217
5.13%, 7/15/23 (e)			1,259		1,304,639
7.00%, 7/15/24 (e)			4,659		5,011,337
Sappi Papier Holding GmbH, 4.00%, 4/01/23	EUR		150		168,445
Sealed Air Corp.:
4.88%, 12/01/22 (e)	USD		709		732,929
4.50%, 9/15/23	EUR		560		664,129
6.88%, 7/15/33 (e)	USD		700		759,500
Signode Industrial Group Lux SA/Signode Industrial Group US, Inc., 6.38%, 5/01/22 (e)			1,901		1,953,277
Smurfit Kappa Acquisitions Unltd Co.:
2.38%, 2/01/24	EUR		100		108,345
2.75%, 2/01/25			376		411,954
Verallia Packaging SASU, 5.13%, 8/01/22			575		646,313

					54,449,233
Diversified Consumer Services — 1.0%
APX Group, Inc.:
6.38%, 12/01/19	USD		337		346,689
8.75%, 12/01/20			1,935		2,002,725
7.88%, 12/01/22			975		1,055,437
7.88%, 12/01/22 (e)			1,520		1,645,400
Cognita Financing PLC, 7.75%, 8/15/21	GBP		225		295,083
Prime Security Services Borrower LLC/Prime Finance, Inc., 9.25%, 5/15/23 (e)	USD		8,349		9,131,719
Sotheby’s, 5.25%, 10/01/22 (e)			242		246,840
Tereos Finance Groupe I SA, 4.13%, 6/16/23	EUR		300		327,116

					15,051,009
Diversified Financial Services — 1.4%
Aircastle Ltd.:
7.63%, 4/15/20	USD		128		145,120
5.13%, 3/15/21			643		686,402
5.50%, 2/15/22			2,119		2,285,871
Arrow Global Finance PLC, 5.13%, 9/15/24	GBP		125		158,594
Cabot Financial Luxembourg SA, 6.50%, 4/01/21			100		127,857
Deutsche Bank AG, 4.25%, 10/14/21 (e)	USD		525		530,937
DFC Finance Corp., (12.00% Cash or 11.00% PIK), 12.00%, 6/16/20 (e)(g)			2,107		1,327,604
FBM Finance, Inc., 8.25%, 8/15/21 (e)			625		668,875
Garfunkelux Holdco 3 SA, 8.50%, 11/01/22	GBP		225		291,755
HRG Group, Inc., 7.88%, 7/15/19	USD		2,745		2,851,369
Jefferies Finance LLC/JFIN Co-Issuer Corp. (e):
7.38%, 4/01/20			2,695		2,742,162
6.88%, 4/15/22			2,552		2,481,820
Lehman Brother Holding Escrow, 1.00%, 9/22/18			430		27,735
Lehman Brothers Holdings, Inc.:
5.38%, 10/17/17	EUR		350		30,127
4.75%, 1/16/18			1,890		162,684
1.00%, 2/05/18			3,950		313,847
1.00%, 12/31/49	USD		1,535		99,007
Lincoln Finance, Ltd., 6.88%, 4/15/21	EUR		100		114,517
Mercury Bondco PLC (g):
(7.13% Cash or 7.88% PIK), 7.13%, 5/30/21			825		865,265
(8.25% Cash or 9.00% PIK), 8.25%, 5/30/21			564		609,210
Pershing Square Holdings, Ltd., 5.50%, 7/15/22 (e)	USD		2,100		2,139,690
ProGroup AG, 5.13%, 5/01/22	EUR		206		231,924
UniCredit SpA:
6.95%, 10/31/22			375		461,497
5.75%, 10/28/25 (d)			700		793,111
4.38%, 1/03/27 (d)			675		733,953


Corporate Bonds		Par (000)		Value
Diversified Financial Services (continued)
WMG Acquisition Corp., 4.13%, 11/01/24	EUR		250	$	279,787

					21,160,720
Diversified Telecommunication Services — 3.7%
CenturyLink, Inc.:
6.45%, 6/15/21	USD		6,956		7,412,522
Series U, 7.65%, 3/15/42			503		460,245
Series Y, 7.50%, 4/01/24			1,426		1,532,950
Cincinnati Bell, Inc., 7.00%, 7/15/24 (e)			4,076		4,310,370
Consolidated Communications, Inc., 6.50%, 10/01/22			1,020		1,017,450
Frontier Communications Corp.:
8.13%, 10/01/18			1,113		1,190,910
7.13%, 3/15/19			1,445		1,535,313
8.50%, 4/15/20			3,080		3,264,800
6.25%, 9/15/21			2,025		1,933,875
7.13%, 1/15/23			1,330		1,203,650
7.63%, 4/15/24			1,897		1,702,557
6.88%, 1/15/25			4,856		4,091,180
11.00%, 9/15/25			1,955		1,964,775
Level 3 Financing, Inc.:
5.38%, 8/15/22			315		326,576
5.63%, 2/01/23			1,551		1,601,408
5.13%, 5/01/23			1,292		1,317,840
5.38%, 1/15/24			1,771		1,817,489
5.38%, 5/01/25			2,302		2,376,815
5.25%, 3/15/26 (e)			1,973		1,990,264
OTE PLC, 3.50%, 7/09/20	EUR		300		319,409
SBA Communications Corp., 4.88%, 9/01/24 (e)	USD		2,489		2,476,306
SoftBank Group Corp., 4.75%, 7/30/25	EUR		310		368,710
Telecom Italia Capital SA:
6.38%, 11/15/33	USD		831		839,310
6.00%, 9/30/34			3,879		3,830,512
7.20%, 7/18/36			690		730,710
Telecom Italia Finance SA, 7.75%, 1/24/33	EUR		380		525,767
Telecom Italia SpA:
6.38%, 6/24/19	GBP		900		1,221,306
3.25%, 1/16/23	EUR		300		335,967
5.88%, 5/19/23	GBP		400		557,489
5.30%, 5/30/24 (e)	USD		640		651,200
Telenet Finance V Luxembourg SCA, 6.75%, 8/15/24	EUR		1,982		2,328,495
Windstream Corp., 7.75%, 10/01/21	USD		964		992,920
Windstream Services LLC, 7.50%, 6/01/22			841		832,590

					57,061,680
Electric Utilities — 0.0%
Viridian Group FundCo II Ltd., 7.50%, 3/01/20	EUR		454		510,427
Electrical Equipment — 0.2%
Areva SA, 4.88%, 9/23/24			700		749,811
Belden, Inc., 5.50%, 4/15/23			472		531,289
Trionista Holdco GmbH, 5.00%, 4/30/20			1,405		1,520,160
Trionista TopCo GmbH, 6.88%, 4/30/21			418		463,310

					3,264,570
Electronic Equipment, Instruments & Components — 0.4%
CDW LLC/CDW Finance Corp.:
5.00%, 9/01/23	USD		4,354		4,484,620
5.00%, 9/01/25 (f)			714		724,267
SESI LLC, 7.13%, 12/15/21			655		673,013

					5,881,900
Energy Equipment & Services — 2.0%
Ensco PLC:
4.50%, 10/01/24			884		760,240
5.20%, 3/15/25			270		238,950

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	41


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Energy Equipment & Services (continued)
Gates Global LLC/Gates Global Co.:
5.75%, 7/15/22	EUR		110	$	115,951
6.00%, 7/15/22 (e)	USD		2,587		2,606,402
Genesis Energy LP/Genesis Energy Finance Corp.:
5.75%, 2/15/21			283		287,245
6.75%, 8/01/22			2,236		2,331,030
Noble Holding International Ltd., 4.63%, 3/01/21			61		57,798
Pattern Energy Group, Inc., 5.88%, 2/01/24 (e)			935		959,544
Pioneer Energy Services Corp., 6.13%, 3/15/22			2,090		1,951,537
Precision Drilling Corp.:
6.50%, 12/15/21			785		806,588
5.25%, 11/15/24			600		594,000
Transocean, Inc.:
4.25%, 10/15/17			1,339		1,346,900
6.00%, 3/15/18			4,050		4,151,250
7.38%, 4/15/18			175		179,813
5.55%, 10/15/22			2,075		1,940,125
9.00%, 7/15/23 (e)			5,695		6,136,362
6.80%, 3/15/38			925		758,500
Trinidad Drilling Ltd., 6.63%, 2/15/25 (e)			2,272		2,340,160
Weatherford International Ltd.:
7.75%, 6/15/21			1,271		1,371,091
8.25%, 6/15/23			420		455,700
9.88%, 2/15/24 (e)			1,245		1,437,975

					30,827,161
Environmental, Maintenance, & Security Service — 0.2%
Befesa Zinc SAU Via Zinc Capital SA, 8.88%, 5/15/18	EUR		380		411,207
Tervita Escrow Corp., 7.63%, 12/01/21 (e)	USD		2,397		2,504,865

					2,916,072
Food & Staples Retailing — 1.5%
Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC (e):
6.63%, 6/15/24			1,082		1,146,920
5.75%, 3/15/25			1,564		1,566,933
B&M European Value Retail SA, 4.13%, 2/01/22	GBP		225		290,754
Bakkavor Finance 2 PLC, 8.25%, 2/15/18			326		406,033
Casino Guichard Perrachon SA:
5.98%, 5/26/21	EUR		200		249,622
4.56%, 1/25/23			600		710,782
3.25%, 3/07/24			500		581,129
3.58%, 2/07/25			100		109,276
Dollar Tree, Inc.:
5.25%, 3/01/20	USD		262		269,467
5.75%, 3/01/23			5,504		5,841,120
Family Dollar Stores, Inc., 5.00%, 2/01/21			1,434		1,530,795
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp., 5.88%, 1/15/24			445		470,588
Rite Aid Corp.:
9.25%, 3/15/20			2,080		2,147,600
6.75%, 6/15/21			1,091		1,137,368
6.13%, 4/01/23 (e)			4,650		4,927,372
7.70%, 2/15/27			256		305,920
Tesco PLC:
5.00%, 3/24/23	GBP		230		316,439
6.00%, 12/14/29			200		282,309

					22,290,427
Food Products — 1.1%
Acosta, Inc., 7.75%, 10/01/22 (e)	USD		1,859		1,635,920
Aramark Services, Inc.:
5.75%, 3/15/20			321		326,128
5.13%, 1/15/24			1,915		2,006,154
Darling Global Finance BV, 4.75%, 5/30/22	EUR		100		112,357


Corporate Bonds		Par (000)		Value
Food Products (continued)
FAGE International SA/FAGE USA Dairy Industry, Inc., 5.63%, 8/15/26 (e)	USD		1,079	$	1,103,277
JBS USA LLC/JBS USA Finance, Inc. (e):
7.25%, 6/01/21			340		350,200
5.88%, 7/15/24			737		770,165
5.75%, 6/15/25			1,962		2,025,765
Post Holdings, Inc. (e):
7.75%, 3/15/24			3,953		4,387,830
8.00%, 7/15/25			869		979,798
5.00%, 8/15/26			1,243		1,201,819
TreeHouse Foods, Inc., 6.00%, 2/15/24 (e)			976		1,027,240
WhiteWave Foods Co., 5.38%, 10/01/22			1,255		1,367,950

					17,294,603
Health Care Equipment & Supplies — 1.0%
Crimson Merger Sub, Inc., 6.63%, 5/15/22 (e)			3,373		3,010,403
DJO Finco, Inc./DJO Finance LLC/DJO Finance Corp., 8.13%, 6/15/21 (e)			5,986		5,297,610
Fresenius Medical Care US Finance, Inc., 5.75%, 2/15/21 (e)			1,055		1,148,631
IASIS Healthcare LLC/IASIS Capital Corp., 8.38%, 5/15/19			1,504		1,470,160
IDH Finance PLC, 6.25%, 8/15/22	GBP		105		124,752
Mallinckrodt International Finance SA/Mallinckrodt CB LLC (e):
4.88%, 4/15/20	USD		980		982,450
5.75%, 8/01/22			1,250		1,225,000
5.50%, 4/15/25			1,870		1,739,100
Teleflex, Inc., 4.88%, 6/01/26			684		689,130

					15,687,236
Health Care Providers & Services — 7.1%
Acadia Healthcare Co., Inc.:
5.13%, 7/01/22			502		505,765
5.63%, 2/15/23			1,992		2,046,780
6.50%, 3/01/24			434		461,125
Alere, Inc., 6.38%, 7/01/23 (e)			1,898		1,926,470
Amsurg Corp., 5.63%, 7/15/22			5,476		5,701,885
Centene Corp.:
5.63%, 2/15/21			2,516		2,648,090
4.75%, 5/15/22			2,467		2,556,429
6.13%, 2/15/24			391		424,235
4.75%, 1/15/25			1,385		1,424,819
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18			427		429,669
8.00%, 11/15/19			993		970,657
5.13%, 8/01/21			1,320		1,296,900
6.88%, 2/01/22			2,609		2,289,397
DaVita HealthCare Partners, Inc.:
5.13%, 7/15/24			788		804,253
5.00%, 5/01/25			2,669		2,685,521
Envision Healthcare Corp., 5.13%, 7/01/22 (e)			835		854,831
HCA Holdings, Inc., 6.25%, 2/15/21			5		5,444
HCA, Inc.:
3.75%, 3/15/19			2,911		2,983,775
6.50%, 2/15/20			4,735		5,198,036
7.50%, 2/15/22			1,059		1,221,821
5.88%, 3/15/22			1,840		2,030,900
4.75%, 5/01/23			512		536,960
5.88%, 5/01/23			4,096		4,454,400
5.00%, 3/15/24			4,905		5,168,644
5.38%, 2/01/25			4,860		5,084,775
5.25%, 4/15/25			813		866,861
5.88%, 2/15/26			3,125		3,351,562
5.25%, 6/15/26			4,406		4,653,837
4.50%, 2/15/27			2,772		2,765,070

See Notes to Financial Statements.



42	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Health Care Providers & Services (continued)
HealthSouth Corp.:
5.13%, 3/15/23	USD		2,840	$	2,840,000
5.75%, 11/01/24			2,360		2,407,200
5.75%, 9/15/25			835		845,438
Hologic, Inc., 5.25%, 7/15/22 (e)			1,930		2,012,025
HomeVi SAS, 6.88%, 8/15/21	EUR		141		157,791
Marcolin SpA, 4.13%, 2/15/23 (d)			125		135,835
MEDNAX, Inc., 5.25%, 12/01/23 (e)	USD		1,134		1,172,272
MPH Acquisition Holdings LLC, 7.13%, 6/01/24 (e)			4,698		5,062,095
New Amethyst Corp., 6.25%, 12/01/24 (e)			837		887,220
RegionalCare Hospital Partners Holdings, Inc., 8.25%, 5/01/23 (e)			2,189		2,353,175
Sterigenics-Nordion Holdings LLC, 6.50%, 5/15/23 (e)			424		433,540
Surgery Center Holdings, Inc., 8.88%, 4/15/21 (e)			388		415,160
Surgical Care Affiliates, Inc., 6.00%, 4/01/23 (e)			2,641		2,848,979
Tenet Healthcare Corp.:
6.25%, 11/01/18			1,308		1,384,845
4.75%, 6/01/20			1,805		1,841,100
4.46%, 6/15/20 (d)			1,432		1,449,900
6.00%, 10/01/20			3,835		4,065,100
4.50%, 4/01/21			74		74,925
4.38%, 10/01/21			525		528,938
7.50%, 1/01/22 (e)			949		1,027,292
8.13%, 4/01/22			4,228		4,428,830
6.75%, 6/15/23			6,195		6,140,794
Voyage Care Bondco PLC, 6.50%, 8/01/18	GBP		386		483,758
WellCare Health Plans, Inc., 5.75%, 11/15/20	USD		1,066		1,100,778

					109,445,901
Health Care Technology — 0.1%
Change Healthcare Holdings LLC/Change Healthcare Finance, Inc., 5.75%, 3/01/25 (e)			1,375		1,420,114
Quintiles IMS, Inc., 3.25%, 3/15/25 (e)	EUR		350		371,346

					1,791,460
Hotels, Restaurants & Leisure — 3.3%
Boyd Gaming Corp., 6.88%, 5/15/23	USD		1,096		1,183,680
Caesars Entertainment Resort Properties LLC/Caesars Entertainment Resort Property, 8.00%, 10/01/20			4,753		4,972,826
CPUK Finance Ltd., 7.00%, 2/28/42	GBP		275		360,015
ESH Hospitality, Inc., 5.25%, 5/01/25 (e)	USD		1,800		1,815,750
Gateway Casinos & Entertainment Ltd., 8.25%, 3/01/24 (e)			502		510,158
International Game Technology PLC:
6.25%, 2/15/22 (e)			400		432,000
4.75%, 2/15/23	EUR		310		358,270
Jacobs Entertainment, Inc., 7.88%, 2/01/24 (e)	USD		465		477,788
KFC Holding Co/Pizza Hut Holdings LLC/Taco Bell of America LLC (e):
5.00%, 6/01/24			255		261,783
5.25%, 6/01/26			1,176		1,215,690
MGM Resorts International:
8.63%, 2/01/19			790		872,950
6.75%, 10/01/20			2,727		3,005,699
6.63%, 12/15/21			1,130		1,261,363
7.75%, 3/15/22			610		712,175
4.63%, 9/01/26			792		776,152
New Red Finance, Inc., 6.00%, 4/01/22 (e)			4,455		4,645,674
Pizzaexpress Financing 2 PLC, 6.63%, 8/01/21	GBP		300		383,423
PortAventura Entertainment Barcelona BV, 7.25%, 12/01/20	EUR		439		482,240
Regal Entertainment Group, 5.75%, 2/01/25	USD		489		503,670


Corporate Bonds		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
Sabre GLBL, Inc. (e):
5.38%, 4/15/23	USD		1,516	$	1,542,530
5.25%, 11/15/23			807		819,105
Scientific Games International, Inc.:
7.00%, 1/01/22 (e)			4,183		4,449,000
10.00%, 12/01/22			4,940		5,242,575
Six Flags Entertainment Corp., 5.25%, 1/15/21 (e)			3,247		3,337,916
Snai SpA, 6.38%, 11/07/21	EUR		100		110,135
Station Casinos LLC, 7.50%, 3/01/21	USD		5,785		6,030,862
Thomas Cook Group PLC, 6.25%, 6/15/22	EUR		540		609,547
Unique Pub Finance Co. PLC:
Series A3, 6.54%, 3/30/21	GBP		687		929,316
Series A4, 5.66%, 6/30/27			670		900,802
Series N, 6.46%, 3/30/32			1,000		1,179,506
Vue International Bidco PLC, 7.88%, 7/15/20			520		670,536
Yum! Brands, Inc., 3.88%, 11/01/23	USD		721		706,580

					50,759,716
Household Durables — 1.7%
Brookfield Residential Properties, Inc./Brookfield Residential US Corp., 6.13%, 7/01/22 (e)			1,604		1,652,120
CalAtlantic Group, Inc.:
8.38%, 1/15/21			2,680		3,132,250
5.25%, 6/01/26			255		255,319
Lennar Corp.:
4.50%, 11/15/19			2,482		2,565,767
4.75%, 4/01/21			314		326,953
4.13%, 1/15/22			884		895,050
4.75%, 11/15/22			1,753		1,802,960
4.88%, 12/15/23			968		999,460
Mattamy Group Corp., 6.88%, 12/15/23 (e)			708		739,860
PulteGroup, Inc., 6.38%, 5/15/33			2,805		2,903,175
Riverbed Technology, Inc., 8.88%, 3/01/23 (e)			2,192		2,339,960
Ryland Group, Inc., 6.63%, 5/01/20			1,160		1,278,900
Standard Pacific Corp., 5.88%, 11/15/24			1,650		1,769,625
Tempur Sealy International, Inc., 5.50%, 6/15/26			1,487		1,460,978
TRI Pointe Group, Inc.:
4.38%, 6/15/19			1,060		1,081,200
4.88%, 7/01/21			1,275		1,316,438
5.88%, 6/15/24			770		796,950
William Lyon Homes ,Inc., 5.88%, 1/31/25 (e)			1,005		1,006,256

					26,323,221
Household Products — 0.4%
ACCO Brands Corp., 5.25%, 12/15/24 (e)			539		545,738
Prestige Brands, Inc., 6.38%, 3/01/24 (e)			1,026		1,087,560
Spectrum Brands, Inc.:
6.63%, 11/15/22			1,385		1,464,637
6.13%, 12/15/24			1,832		1,949,431
5.75%, 7/15/25			635		674,688

					5,722,054
Independent Power and Renewable Electricity Producers — 1.2%
Calpine Corp.:
6.00%, 1/15/22 (e)			251		263,236
5.38%, 1/15/23			514		519,140
5.88%, 1/15/24 (e)			1,389		1,465,395
Dynegy, Inc.:
6.75%, 11/01/19			4,240		4,367,200
7.38%, 11/01/22			1,735		1,704,638
7.63%, 11/01/24			805		764,750
8.00%, 1/15/25 (e)			167		158,650
MPM Escrow LLC, 8.88%, 10/15/20 (d)			3,738		—
NRG Energy, Inc.:
7.88%, 5/15/21			427		443,013
6.63%, 3/15/23			210		212,625

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	43


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Independent Power and Renewable Electricity Producers (continued)
NRG Energy, Inc. (continued):
6.25%, 5/01/24	USD		185	$	185,000
7.25%, 5/15/26			731		752,016
6.63%, 1/15/27 (e)			4,087		4,015,477
NRG Yield Operating LLC, 5.38%, 8/15/24			645		661,125
QEP Resources, Inc., 5.38%, 10/01/22			2,169		2,179,845
TerraForm Power Operating LLC, 6.38%, 2/01/23 (e)(k)			1,301		1,346,535

					19,038,645
Industrial Conglomerates — 0.2%
Vertiv Group Corp, 9.25%, 10/15/24 (e)			2,512		2,697,260
Insurance — 0.8%
Assicurazioni Generali SpA (d):
7.75%, 12/12/42	EUR		400		504,337
5.50%, 10/27/47			200		223,533
BNP Paribas Cardif SA, 4.03% (d)(l)			100		105,388
Credit Agricole Assurances SA, 4.50% (d)(l)			200		208,702
Groupama SA, 6.00%, 1/23/27			200		216,585
HUB International Ltd. (e):
9.25%, 2/15/21	USD		874		906,775
7.88%, 10/01/21			5,484		5,799,330
Old Mutual PLC, 8.00%, 6/03/21	GBP		100		144,973
Pension Insurance Corp. PLC, 6.50%, 7/03/24			175		223,234
Radian Group, Inc.:
5.25%, 6/15/20	USD		706		743,065
7.00%, 3/15/21			366		408,090
Wayne Merger Sub LLC, 8.25%, 8/01/23 (e)			2,687		2,834,785

					12,318,797
Internet Software & Services — 0.6%
Equinix, Inc.:
5.38%, 1/01/22			1,110		1,172,438
5.88%, 1/15/26			2,567		2,741,864
Netflix, Inc.:
5.50%, 2/15/22			2,087		2,227,873
5.88%, 2/15/25			241		260,581
4.38%, 11/15/26 (e)			2,326		2,305,647
Symantec Corp., 5.00%, 4/15/25 (e)			1,076		1,104,454

					9,812,857
IT Services — 2.2%
Ceridian HCM Holding, Inc., 11.00%, 3/15/21 (e)			1,349		1,413,077
First Data Corp. (e):
7.00%, 12/01/23			9,254		9,948,050
5.75%, 1/15/24			17,655		18,294,994
WEX, Inc., 4.75%, 2/01/23 (e)			4,804		4,779,980

					34,436,101
Leisure Time — 0.0%
Carlson Travel, Inc., 6.75%, 12/15/23 (e)			517		541,558
Machinery — 0.4%
Gardner Denver, Inc., 6.88%, 8/15/21 (e)			730		751,900
Navistar International Corp., 8.25%, 11/01/21			830		838,300
SPX FLOW, Inc. (e):
5.63%, 8/15/24			993		1,020,308
5.88%, 8/15/26			993		1,007,895
Terex Corp., 5.63%, 2/01/25 (e)			1,562		1,603,002
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc., 6.38%, 5/01/22	EUR		490		557,883

					5,779,288
Media — 15.1%
Adria Bidco BV, 7.88%, 11/15/20			350		387,012
Altice Financing SA:
5.25%, 2/15/23			485		548,953
6.63%, 2/15/23 (e)	USD		345		363,113
7.50%, 5/15/26 (e)			6,112		6,562,760


Corporate Bonds		Par (000)		Value
Media (continued)
Altice Finco SA, 9.00%, 6/15/23	EUR		100	$	120,772
Altice Luxembourg SA:
7.25%, 5/15/22			300		337,286
7.75%, 5/15/22 (e)	USD		2,649		2,817,874
6.25%, 2/15/25	EUR		260		292,659
7.63%, 2/15/25 (e)	USD		653		695,445
Altice US Finance I Corp. (e):
5.38%, 7/15/23			6,270		6,536,475
5.50%, 5/15/26			2,435		2,517,181
AMC Networks, Inc.:
4.75%, 12/15/22			2,358		2,381,580
5.00%, 4/01/24			756		763,091
Cablevision Systems Corp.:
8.63%, 9/15/17			949		978,656
7.75%, 4/15/18			1,393		1,462,650
8.00%, 4/15/20			2,224		2,457,520
CBS Radio, Inc., 7.25%, 11/01/24 (e)			2,102		2,243,885
CCO Holdings LLC/CCO Holdings Capital Corp.:
5.25%, 9/30/22			1,235		1,284,400
5.13%, 5/01/23 (e)			678		703,425
5.75%, 2/15/26 (e)			1,227		1,312,890
5.50%, 5/01/26 (e)			3,108		3,298,365
5.13%, 5/01/27 (e)			2,013		2,091,004
5.88%, 5/01/27 (e)			5,014		5,385,537
Cellnex Telecom SA, 2.38%, 1/16/24	EUR		200		213,999
Cequel Communications Holdings I LLC/Cequel Capital Corp. (e):
5.13%, 12/15/21	USD		7,150		7,238,990
7.75%, 7/15/25			6,079		6,732,492
Clear Channel International BV, 8.75%, 12/15/20 (e)			3,146		3,334,760
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22			14,758		15,169,287
Series B, 7.63%, 3/15/20			5,090		5,128,175
Columbus Cable Barbados Ltd., 7.38%, 3/30/21 (e)			2,647		2,816,752
CSC Holdings LLC:
7.88%, 2/15/18			368		385,480
7.63%, 7/15/18			351		373,376
10.13%, 1/15/23 (e)			4,320		5,000,400
5.25%, 6/01/24			4,065		4,090,406
6.63%, 10/15/25 (e)			1,341		1,480,129
10.88%, 10/15/25 (e)			7,081		8,532,605
DISH DBS Corp.:
6.75%, 6/01/21			109		120,173
5.88%, 7/15/22			2,817		3,021,232
5.00%, 3/15/23			2,119		2,177,272
5.88%, 11/15/24			1,001		1,066,065
7.75%, 7/01/26			5,340		6,247,800
DISH Network Corp., 3.38%, 8/15/26 (e)(j)			1,894		2,279,902
eircom Finance DAC, 4.50%, 5/31/22	EUR		300		332,756
GTT Escrow Corp., 7.88%, 12/31/24 (e)	USD		1,435		1,503,163
Hughes Satellite Systems Corp.:
7.63%, 6/15/21			595		659,706
5.25%, 8/01/26 (e)			3,678		3,737,767
6.63%, 8/01/26 (e)			801		833,537
iHeartCommunications, Inc.:
9.00%, 12/15/19			2,102		1,836,623
9.00%, 3/01/21			241		195,210
9.00%, 9/15/22			3,845		3,095,225
10.63%, 3/15/23			1,980		1,643,400
Intelsat Jackson Holdings SA:
7.25%, 4/01/19			3,414		3,268,905
7.25%, 10/15/20			3,097		2,864,725
5.50%, 8/01/23			3,868		3,181,430
LG Finance Co. Corp., 5.88%, 11/01/24 (e)			598		615,193

See Notes to Financial Statements.



44	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Media (continued)
LGE HoldCo VI BV, 7.13%, 5/15/24	EUR		300	$	362,712
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance, 7.88%, 5/15/24 (e)	USD		639		626,220
MDC Partners, Inc., 6.50%, 5/01/24 (e)			2,003		1,935,399
Midcontinent Communications / Midcontinent Finance Corp. (e):
6.25%, 8/01/21			3,901		4,053,139
6.88%, 8/15/23			296		318,940
NAI Entertainment Holdings/NAI Entertainment Holdings Finance Corp., 5.00%, 8/01/18 (e)			2,039		2,056,841
National CineMedia LLC, 5.75%, 8/15/26			605		617,100
Nexstar Broadcasting, Inc., 5.63%, 8/01/24 (e)			1,540		1,574,650
Nielsen Finance LLC/Nielsen Finance Co., 5.00%, 4/15/22 (e)			1,882		1,938,460
Numericable Group SA, 5.38%, 5/15/22	EUR		280		309,387
Outfront Media Capital LLC/Outfront Media Capital Corp.:
5.25%, 2/15/22	USD		650		675,188
5.63%, 2/15/24			1,064		1,117,200
Play Finance 2 SA, 5.25%, 2/01/19	EUR		1,070		1,148,271
Radio One, Inc., 7.38%, 4/15/22 (e)	USD		805		835,188
SFR Group SA (e):
6.00%, 5/15/22			4,689		4,863,384
7.38%, 5/01/26			10,275		10,647,469
Sirius XM Radio, Inc. (e):
4.25%, 5/15/20			2,204		2,231,550
5.75%, 8/01/21			1,811		1,886,690
4.63%, 5/15/23			230		235,175
Sterling Entertainment Corp., 9.75%, 12/15/19			4,810		4,761,900
TEGNA, Inc., 5.13%, 10/15/19			857		879,496
Telesat Canada/Telesat LLC, 8.88%, 11/15/24 (e)			1,246		1,361,255
Townsquare Media, Inc., 6.50%, 4/01/23 (e)			517		507,953
Tribune Media Co., 5.88%, 7/15/22			5,320		5,433,050
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH:
5.63%, 4/15/23	EUR		166		189,505
4.00%, 1/15/25			1,111		1,241,139
5.00%, 1/15/25 (e)	USD		500		513,750
4.63%, 2/15/26	EUR		100		114,966
3.50%, 1/15/27			300		324,176
6.25%, 1/15/29			100		121,195
Univision Communications, Inc. (e):
5.13%, 5/15/23	USD		9,800		9,800,000
5.13%, 2/15/25			4,868		4,801,065
UPC Holding BV, 6.75%, 3/15/23	EUR		200		230,157
UPCB Finance IV Ltd., 4.00%, 1/15/27			400		436,896
Virgin Media Finance PLC:
4.50%, 1/15/25			183		204,048
5.75%, 1/15/25 (e)	USD		3,518		3,610,347
Virgin Media Receivables Financing Notes I DAC, 5.50%, 9/15/24	GBP		300		383,331
Virgin Media Secured Finance PLC:
5.25%, 1/15/26 (e)	USD		730		738,213
5.50%, 8/15/26 (e)			1,144		1,172,474
4.88%, 1/15/27	GBP		200		249,783
6.25%, 3/28/29			829		1,116,513
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (e)	USD		4,428		4,605,120
Wind Acquisition Finance SA:
4.75%, 7/15/20 (e)			250		254,063
7.00%, 4/23/21	EUR		400		441,346
7.38%, 4/23/21 (e)	USD		3,885		4,045,256
Ziggo Bond Finance BV, 5.88%, 1/15/25 (e)			2,643		2,685,949
Ziggo Secured Finance BV, 4.25%, 1/15/27	EUR		100		111,345

					232,486,722


Corporate Bonds		Par (000)		Value
Metals & Mining — 7.7%
Alcoa Nederland Holding BV, 7.00%, 9/30/26 (e)	USD		681	$	747,398
Alcoa, Inc.:
6.15%, 8/15/20			1,330		1,456,350
5.13%, 10/01/24			3,854		3,990,817
5.90%, 2/01/27			760		814,150
6.75%, 1/15/28			477		524,700
5.95%, 2/01/37			674		690,008
Anglo American Capital PLC:
6.88%, 5/01/18	GBP		100		131,842
1.50%, 4/01/20	EUR		800		866,610
3.63%, 5/14/20 (e)	USD		1,116		1,134,135
4.45%, 9/27/20 (e)			412		431,364
2.88%, 11/20/20	EUR		300		340,773
2.50%, 4/29/21			100		112,424
3.50%, 3/28/22			200		234,093
3.25%, 4/03/23			100		115,588
4.88%, 5/14/25 (e)	USD		2,578		2,674,675
ArcelorMittal:
7.75%, 10/15/39			400		466,000
7.50%, 3/01/41			1,498		1,700,230
Cliffs Natural Resources, Inc. (e):
8.25%, 3/31/20			1,240		1,354,700
5.75%, 3/01/25			1,494		1,465,614
Constellium NV (e):
8.00%, 1/15/23			5,915		6,210,750
5.75%, 5/15/24			575		544,813
6.63%, 3/01/25			3,856		3,834,310
First Quantum Minerals Ltd. (e):
7.00%, 2/15/21			2,967		3,072,699
7.25%, 5/15/22			1,533		1,584,739
Freeport-McMoRan, Inc.:
2.30%, 11/14/17			1,337		1,333,657
2.38%, 3/15/18			15,430		15,352,850
3.10%, 3/15/20			2,080		2,038,400
4.00%, 11/14/21			2,078		1,994,880
3.55%, 3/01/22			4,332		4,023,345
3.88%, 3/15/23			7,561		6,956,120
5.40%, 11/14/34			689		604,598
5.45%, 3/15/43			7,799		6,668,145
Grinding Media, Inc./MC Grinding Media Canada, Inc., 7.38%, 12/15/23 (e)			1,252		1,339,640
Joseph T Ryerson & Son, Inc., 11.00%, 5/15/22 (e)			1,378		1,536,470
Kaiser Aluminum Corp., 5.88%, 5/15/24			773		811,650
Kinross Gold Corp.:
5.95%, 3/15/24			210		222,075
6.88%, 9/01/41			495		501,188
Novelis Corp. (e):
6.25%, 8/15/24			6,700		7,102,000
5.88%, 9/30/26			6,133		6,309,324
Peabody Securities Finance Corp. (e):
6.00%, 3/31/22			639		651,780
6.38%, 3/31/25			671		684,420
Steel Dynamics, Inc.:
5.13%, 10/01/21			3,085		3,181,406
6.38%, 8/15/22			1,345		1,405,525
5.25%, 4/15/23			949		988,241
5.50%, 10/01/24			1,540		1,638,252
5.00%, 12/15/26 (e)			40		41,346
Teck Resources Ltd.:
3.00%, 3/01/19			1,460		1,495,332
4.50%, 1/15/21			902		935,261
3.75%, 2/01/23			2,129		2,075,349
8.50%, 6/01/24 (e)			2,795		3,263,162
6.13%, 10/01/35			502		519,570
6.00%, 8/15/40			3,304		3,312,260

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	45


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Metals & Mining (continued)
Teck Resources Ltd. (continued):
6.25%, 7/15/41	USD		482	$	500,075
5.20%, 3/01/42			2,173		2,058,222
5.40%, 2/01/43			2,441		2,325,052
ThyssenKrupp AG, 1.38%, 3/03/22	EUR		375		395,638
United States Steel Corp., 8.38%, 7/01/21 (e)	USD		2,224		2,502,000

					119,266,015
Multi-Utilities — 0.2%
NGL Energy Partners LP/NGL Energy Finance Corp.:
6.88%, 10/15/21			1,230		1,266,131
7.50%, 11/01/23 (e)			1,765		1,857,663

					3,123,794
Multiline Retail — 0.1%
Groupe Fnac SA, 3.25%, 9/30/23	EUR		225		241,940
Neiman Marcus Group Ltd., 8.00%, 10/15/21 (e)	USD		1,298		814,495

					1,056,435
Offshore Drilling & Other Services — 0.1%
Sensata Technologies BV, 5.63%, 11/01/24 (e)			903		952,665
Oil, Gas & Consumable Fuels — 13.8%
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., 7.88%, 12/15/24 (e)			801		847,058
Antero Midstream Partners LP/Antero Midstream Finance Corp., 5.38%, 9/15/24 (e)			385		390,775
Antero Resources Corp.:
5.13%, 12/01/22			744		747,720
5.63%, 6/01/23			644		652,050
California Resources Corp., 8.00%, 12/15/22 (e)			3,808		3,255,840
Callon Petroleum Co., 6.13%, 10/01/24 (e)			817		851,723
Carrizo Oil & Gas, Inc., 6.25%, 4/15/23			871		881,888
Cheniere Corpus Christi Holdings LLC (e):
7.00%, 6/30/24			3,678		4,119,360
5.88%, 3/31/25			3,575		3,780,562
Chesapeake Energy Corp.:
4.27%, 4/15/19 (d)			3,254		3,229,595
6.88%, 11/15/20			1,262		1,249,380
8.00%, 12/15/22 (e)			2,477		2,619,427
8.00%, 1/15/25 (e)			2,362		2,344,285
CONSOL Energy, Inc.:
5.88%, 4/15/22			15,816		15,420,600
8.00%, 4/01/23			116		120,930
Continental Resources, Inc.:
4.50%, 4/15/23			769		753,620
3.80%, 6/01/24			3,669		3,398,411
4.90%, 6/01/44			1,260		1,105,650
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.:
6.00%, 12/15/20			230		236,613
6.25%, 4/01/23			175		181,563
CrownRock LP/CrownRock Finance, Inc. (e):
7.13%, 4/15/21			2,753		2,863,120
7.75%, 2/15/23			1,519		1,636,722
DCP Midstream LLC (e):
6.45%, 11/03/36			1,258		1,292,595
6.75%, 9/15/37			1,490		1,579,400
Denbury Resources, Inc.:
9.00%, 5/15/21 (e)			2,046		2,204,565
5.50%, 5/01/22			2,617		2,159,025
4.63%, 7/15/23			910		709,800
Diamondback Energy, Inc., 5.38%, 5/31/25 (e)			1,071		1,108,485
Eclipse Resources Corp., 8.88%, 7/15/23			550		567,875


Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Energy Transfer Equity LP:
7.50%, 10/15/20	USD		665	$	747,294
5.88%, 1/15/24			4,667		5,017,025
5.50%, 6/01/27			1,965		2,080,444
Ensco PLC, 8.00%, 1/31/24 (e)			984		1,008,600
EP Energy LLC/Everest Acquisition Finance, Inc.:
9.38%, 5/01/20			1,802		1,761,455
8.00%, 11/29/24 (e)			2,318		2,457,080
Extraction Oil & Gas Holdings LLC/Extraction Finance Corp., 7.88%, 7/15/21 (e)			1,843		1,962,795
Genesis Energy LP/Genesis Energy Finance Corp., 5.63%, 6/15/24			445		443,888
Great Western Petroleum LLC/Great Western Finance, Inc., 9.00%, 9/30/21 (e)			2,007		2,117,385
Gulfport Energy Corp.:
6.63%, 5/01/23			638		649,165
6.00%, 10/15/24 (e)			722		718,390
6.38%, 5/15/25 (e)			661		664,305
Halcon Resources Corp., 6.75%, 2/15/25 (e)			4,522		4,476,780
Hilcorp Energy I LP/Hilcorp Finance Co. (e):
5.00%, 12/01/24			1,758		1,683,285
5.75%, 10/01/25			102		101,235
MEG Energy Corp. (e):
6.50%, 3/15/21			4,781		4,888,572
6.38%, 1/30/23			665		590,188
7.00%, 3/31/24			3,561		3,204,900
6.50%, 1/15/25			5,797		5,666,567
Murphy Oil Corp.:
6.88%, 8/15/24			2,221		2,377,580
6.13%, 12/01/42			353		331,820
Newfield Exploration Co., 5.63%, 7/01/24			872		933,040
NGPL PipeCo LLC (e):
7.12%, 12/15/17			5,652		5,856,885
7.77%, 12/15/37			3,279		3,713,467
Noble Holding International, Ltd., 7.75%, 1/15/24			4,421		4,299,422
Noble Holding US Corp/Noble Drilling Services 6 LLC/Noble Drilling Holding LLC, 7.50%, 3/15/19			675		707,063
Oasis Petroleum, Inc.:
6.50%, 11/01/21			3,886		3,954,005
6.88%, 3/15/22			2,023		2,057,775
ONEOK, Inc.:
7.50%, 9/01/23			1,400		1,662,500
6.00%, 6/15/35			260		273,650
Paramount Resources Ltd., 6.88%, 6/30/23 (e)			4,305		4,553,614
Parker Drilling Co.:
7.50%, 8/01/20			790		770,250
6.75%, 7/15/22			1,350		1,248,750
Parsley Energy LLC/Parsley Finance Corp. (e):
6.25%, 6/01/24			1,171		1,230,276
5.38%, 1/15/25			805		817,075
5.25%, 8/15/25			1,134		1,145,340
Petroleos Mexicanos, 5.38%, 3/13/22 (e)			270		282,407
QEP Resources, Inc., 5.25%, 5/01/23			1,240		1,221,400
Range Resources Corp. (e):
5.88%, 7/01/22			3,456		3,533,760
5.00%, 8/15/22			530		516,750
5.00%, 3/15/23			1,058		1,024,938
Resolute Energy Corp., 8.50%, 5/01/20			1,549		1,579,980
Rockies Express Pipeline LLC (e):
6.00%, 1/15/19			1,984		2,083,200
5.63%, 4/15/20			695		733,225
6.88%, 4/15/40			3,820		4,068,300

See Notes to Financial Statements.



46	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Rowan Cos., Inc.:
4.88%, 6/01/22	USD		195	$	186,225
7.38%, 6/15/25			3,003		3,115,612
RSP Permian, Inc.:
6.63%, 10/01/22			2,065		2,183,737
5.25%, 1/15/25 (e)			1,046		1,072,150
Sanchez Energy Corp.:
7.75%, 6/15/21			138		141,450
6.13%, 1/15/23			6,455		6,196,800
SESI LLC, 6.38%, 5/01/19			480		481,800
Seven Generations Energy Ltd., 8.25%, 5/15/20 (e)			852		896,730
SM Energy Co.:
1.50%, 7/01/21 (j)			729		720,343
6.50%, 11/15/21			730		746,425
6.13%, 11/15/22			2,096		2,111,720
6.50%, 1/01/23			523		524,308
5.00%, 1/15/24			38		35,625
6.75%, 9/15/26			694		706,145
Southwestern Energy Co.:
5.80%, 1/23/20			5,361		5,307,390
6.70%, 1/23/25			460		441,600
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 5.75%, 4/15/25			696		706,440
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. (e):
5.50%, 9/15/24			1,206		1,218,060
5.13%, 2/01/25			548		569,920
5.38%, 2/01/27			581		605,693
Targa Resources Partners LP/Targa Resources Partners Finance Corp.:
6.38%, 8/01/22			4,053		4,184,722
5.25%, 5/01/23			78		80,535
Tesoro Corp. (e):
4.75%, 12/15/23			2,707		2,801,745
5.13%, 12/15/26			3,533		3,736,147
Tesoro Logistics LP/Tesoro Logistics Finance Corp.:
6.13%, 10/15/21			321		335,044
6.25%, 10/15/22			3,154		3,374,780
Tullow Oil PLC:
6.00%, 11/01/20 (e)			200		188,500
6.00%, 11/01/20			200		188,500
6.25%, 4/15/22 (e)			200		186,500
Weatherford International LLC, 6.80%, 6/15/37			702		661,635
Weatherford International Ltd.:
4.50%, 4/15/22			655		626,344
6.50%, 8/01/36			1,505		1,388,362
7.00%, 3/15/38			1,576		1,485,380
5.95%, 4/15/42			476		398,650
Whiting Petroleum Corp.:
5.00%, 3/15/19			506		510,428
5.75%, 3/15/21			772		768,140
6.25%, 4/01/23			1,575		1,578,937
WildHorse Resource Development Corp., 6.88%, 2/01/25 (e)			1,624		1,603,700
Williams Cos., Inc.:
4.55%, 6/24/24			1,004		1,019,060
5.75%, 6/24/44			4,687		4,733,870
WPX Energy, Inc.:
7.50%, 8/01/20			385		414,838
6.00%, 1/15/22			1,673		1,708,551
8.25%, 8/01/23			1,115		1,248,800

					212,715,803


Corporate Bonds		Par (000)		Value
Paper & Forest Products — 0.4%
Mercer International, Inc., 6.50%, 2/01/24 (e)	USD		1,219	$	1,243,380
Norbord, Inc., 6.25%, 4/15/23 (e)			1,605		1,697,288
Pfleiderer GmbH, 7.88%, 8/01/19	EUR		430		473,782
Unifrax I LLC/Unifrax Holding Co., 7.50%, 2/15/19 (e)	USD		2,865		2,857,837

					6,272,287
Personal Products — 0.0%
Avon International Operations, Inc., 7.88%, 8/15/22 (e)			569		605,211
Pharmaceuticals — 3.2%
DPx Holdings BV, 7.50%, 2/01/22 (e)			2,670		2,831,869
Endo Finance LLC/Endo Finco, Inc. (e):
7.25%, 1/15/22			696		673,815
6.00%, 7/15/23			1,609		1,480,280
6.00%, 2/01/25			2,781		2,485,519
Ephios Bondco PLC, 6.25%, 7/01/22	EUR		675		774,162
Ephios Holdco II PLC, 8.25%, 7/01/23			159		185,537
Grifols Worldwide Operations Ltd., 5.25%, 4/01/22	USD		4,047		4,198,763
inVentiv Group Holdings, Inc./inVentiv Health, Inc./inVentiv Health Clinical, Inc., 7.50%, 10/01/24 (e)			2,048		2,140,160
Jaguar Holding Co. II/Pharmaceutical Product Development LLC, 6.38%, 8/01/23 (e)			7,115		7,657,519
NBTY, Inc., 7.63%, 5/15/21 (e)			3,231		3,412,744
Synlab Bondco PLC, 6.25%, 7/01/22	EUR		210		240,850
Tennessee Merger Sub, Inc., 6.38%, 2/01/25 (e)	USD		4,530		4,507,350
Valeant Pharmaceuticals International, Inc.:
6.75%, 8/15/18 (e)			813		800,805
7.00%, 10/01/20 (e)			4,173		3,880,890
6.38%, 10/15/20 (e)			3,366		3,063,060
7.50%, 7/15/21 (e)			2,475		2,273,906
6.75%, 8/15/21 (e)			3,378		3,006,420
5.50%, 3/01/23 (e)			77		62,081
4.50%, 5/15/23	EUR		226		187,081
5.88%, 5/15/23 (e)	USD		2,587		2,105,171
6.13%, 4/15/25 (e)			4,188		3,334,695

					49,302,677
Real Estate Investment Trusts (REITs) — 0.9%
ATF Netherlands BV, 2.13%, 3/13/23	EUR		300		322,568
Hilton Domestic Operating Co., Inc., 4.25%, 9/01/24 (e)	USD		1,269		1,255,041
iStar, Inc.:
4.00%, 11/01/17			685		687,569
5.00%, 7/01/19			480		488,400
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. (e):
5.63%, 5/01/24			6,392		6,759,540
4.50%, 9/01/26			2,305		2,241,613
NH Hotel Group SA, 3.75%, 10/01/23	EUR		225		249,885
Starwood Property Trust, Inc., 5.00%, 12/15/21 (e)	USD		1,695		1,760,681

					13,765,297
Real Estate Management & Development — 0.9%
Annington Finance No 5 PLC, (13.00% Cash), 13.00%, 1/15/23 (g)	GBP		360		514,836
Aroundtown Property Holdings PLC (j):
3.00%, 5/05/20	EUR		300		418,759
1.50%, 1/18/21			100		109,425
Punch Taverns Finance B Ltd., Series A6, 5.94%, 9/30/22	GBP		527		677,984
Punch Taverns Finance PLC, Series M3, 5.86%, 10/15/27 (d)			622		771,035

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	47


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Real Estate Management & Development (continued)
Realogy Group LLC/Realogy Co-Issuer Corp. (e):
4.50%, 4/15/19	USD		806	$	834,210
5.25%, 12/01/21			2,405		2,501,200
4.88%, 6/01/23			5,876		5,787,860
Rialto Holdings LLC/Rialto Corp., 7.00%, 12/01/18 (e)			1,065		1,083,638
Woodside Homes Co. LLC/Woodside Homes Finance, Inc., 6.75%, 12/15/21 (e)			1,195		1,251,762

					13,950,709
Road & Rail — 0.9%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.:
5.13%, 6/01/22 (e)			1,055		1,035,219
5.50%, 4/01/23			45		45,000
6.38%, 4/01/24 (e)			1,105		1,122,956
5.25%, 3/15/25 (e)			1,810		1,733,075
Avis Budget Finance PLC, 4.13%, 11/15/24	EUR		350		368,639
EC Finance PLC, 5.13%, 7/15/21			675		741,017
Florida East Coast Holdings Corp., 6.75%, 5/01/19 (e)	USD		2,037		2,093,017
Herc Rentals, Inc. (e):
7.50%, 6/01/22			853		921,240
7.75%, 6/01/24			83		91,300
Hertz Corp.:
5.88%, 10/15/20			1,355		1,321,125
7.38%, 1/15/21			953		953,000
6.25%, 10/15/22			2,221		2,121,055
Hertz Holdings Netherlands BV, 4.13%, 10/15/21	EUR		425		453,442
Loxam SAS, 3.50%, 5/03/23			150		156,885
Watco Cos. LLC/Watco Finance Corp., 6.38%, 4/01/23 (e)	USD		1,093		1,144,918

					14,301,888
Semiconductors & Semiconductor Equipment — 1.2%
Advanced Micro Devices, Inc.:
7.50%, 8/15/22			422		472,640
7.00%, 7/01/24			409		436,738
Micron Technology, Inc.:
5.25%, 8/01/23 (e)			1,989		2,006,404
5.50%, 2/01/25			220		227,150
5.63%, 1/15/26 (e)			851		874,403
Series G, 3.00%, 11/15/43 (j)			1,428		1,432,462
Microsemi Corp., 9.13%, 4/15/23 (e)			257		296,193
NXP BV/NXP Funding LLC (e):
4.13%, 6/15/20			2,409		2,505,794
4.13%, 6/01/21			1,448		1,503,169
4.63%, 6/15/22			1,319		1,401,437
3.88%, 9/01/22			1,422		1,455,772
5.75%, 3/15/23			1,070		1,128,850
4.63%, 6/01/23			1,145		1,219,425
Sensata Technologies BV, 5.00%, 10/01/25 (e)			3,923		3,981,845

					18,942,282
Software — 3.7%
BMC Software Finance, Inc., 8.13%, 7/15/21 (e)			6,672		6,772,080
CDW LLC/CDW Finance Corp., 5.50%, 12/01/24			4,917		5,162,850
Ensemble S Merger Sub, Inc., 9.00%, 9/30/23 (e)			1,553		1,642,298
Genesys Telecommunications Laboratories Inc/Greeneden Lux 3 Sarl/Greeneden US Ho, 10.00%, 11/30/24 (e)			1,055		1,147,313
Inception Merger Sub, Inc./Rackspace Hosting, Inc., 8.63%, 11/15/24 (e)			3,971		4,184,441
Infinity Acquisition LLC/Infinity Acquisition Finance Corp., 7.25%, 8/01/22 (e)			244		215,025


Corporate Bonds		Par (000)		Value
Software (continued)
Infor Software Parent LLC/Infor Software Parent, Inc., (7.13% Cash or 7.88% PIK), 7.13%, 5/01/21 (e)(g)	USD		3,521	$	3,617,827
Infor US, Inc., 6.50%, 5/15/22			7,829		8,142,160
Informatica LLC, 7.13%, 7/15/23 (e)			946		913,836
JDA Escrow LLC/JDA Bond Finance, Inc., 7.38%, 10/15/24 (e)			1,465		1,538,250
Nuance Communications, Inc. (e):
5.38%, 8/15/20			356		362,935
6.00%, 7/01/24			1,600		1,654,000
5.63%, 12/15/26			903		922,189
PTC, Inc., 6.00%, 5/15/24			722		770,735
Solera LLC/Solera Finance, Inc., 10.50%, 3/01/24 (e)			7,107		8,101,980
SS&C Technologies Holdings, Inc., 5.88%, 7/15/23			4,047		4,279,702
TIBCO Software, Inc., 11.38%, 12/01/21 (e)			4,736		5,150,400
Veritas US, Inc./Veritas Bermuda Ltd.:
7.50%, 2/01/23	EUR		300		335,300
7.50%, 2/01/23 (e)	USD		500		530,000
10.50%, 2/01/24 (e)			873		942,840

					56,386,161
Specialty Retail — 1.0%
Asbury Automotive Group, Inc., 6.00%, 12/15/24			2,413		2,509,520
JC Penney Corp., Inc.:
8.13%, 10/01/19			117		124,605
6.38%, 10/15/36			874		668,610
7.40%, 4/01/37			874		707,940
L Brands, Inc.:
8.50%, 6/15/19			3,925		4,381,281
6.88%, 11/01/35			1,843		1,771,584
Penske Automotive Group, Inc.:
5.75%, 10/01/22			2,181		2,262,787
5.38%, 12/01/24			1,192		1,209,880
5.50%, 5/15/26			1,358		1,348,766
THOM Europe SAS, 7.38%, 7/15/19	EUR		100		110,707

					15,095,680
Technology Hardware, Storage & Peripherals — 0.9%
Diamond 1 Finance Corp./Diamond 2 Finance Corp. (e):
4.42%, 6/15/21	USD		1,565		1,641,131
7.13%, 6/15/24			4,522		4,996,430
6.02%, 6/15/26			2,940		3,232,750
8.35%, 7/15/46			945		1,232,322
Western Digital Corp.:
7.38%, 4/01/23 (e)			1,339		1,469,553
10.50%, 4/01/24			1,493		1,746,810

					14,318,996
Textiles, Apparel & Luxury Goods — 0.1%
BiSoho SAS, 5.88%, 5/01/23	EUR		400		452,364
Levi Strauss & Co., 3.38%, 3/15/27			225		242,870
Springs Industries, Inc., 6.25%, 6/01/21	USD		274		282,905

					978,139
Thrifts & Mortgage Finance — 0.1%
Amigo Luxembourg SA, 7.63%, 1/15/24	GBP		275		348,404
Jerrold Finco PLC:
6.25%, 9/15/21			225		288,265
6.13%, 1/15/24			225		276,399
MGIC Investment Corp., 5.75%, 8/15/23	USD		1,117		1,181,228

					2,094,296
Trading Companies & Distributors — 0.0%
Ashtead Capital, Inc., 5.63%, 10/01/24 (e)			278		294,680

See Notes to Financial Statements.



48	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Corporate Bonds		Par (000)		Value
Transportation Infrastructure — 0.0%
CMA CGM SA, 7.75%, 1/15/21	EUR		100	$	103,558
WFS Global Holding SAS, 9.50%, 7/15/22			365		406,015

					509,573
Utilities — 0.0%
ContourGlobal Power Holdings SA:
5.13%, 6/15/21			175		196,259
Series FEB, 5.13%, 6/15/21			125		140,185

					336,444
Wireless Telecommunication Services — 5.6%
Communications Sales & Leasing, Inc./CSL Capital LLC:
6.00%, 4/15/23 (e)	USD		837		878,850
8.25%, 10/15/23			4,380		4,746,825
7.13%, 12/15/24 (e)			2,239		2,306,170
Digicel Group Ltd., 7.13%, 4/01/22 (e)			2,085		1,689,413
Digicel Ltd., 6.00%, 4/15/21 (e)			5,407		4,997,906
GEO Group, Inc.:
5.88%, 1/15/22			350		364,438
5.13%, 4/01/23			300		300,750
5.88%, 10/15/24			2,030		2,090,900
6.00%, 4/15/26			530		551,730
Matterhorn Telecom SA, 3.88%, 5/01/22	EUR		635		697,946
Radiate Holdco LLC/Radiate Finance, Inc., 6.63%, 2/15/25 (e)	USD		1,857		1,863,964
Sprint Capital Corp.:
6.90%, 5/01/19			640		681,805
6.88%, 11/15/28			9,002		9,598,382
8.75%, 3/15/32			408		489,600
Sprint Communications, Inc.:
9.00%, 11/15/18 (e)			17,517		19,159,219
7.00%, 3/01/20 (e)			673		735,252
7.00%, 8/15/20			597		644,014
Sprint Corp.:
7.25%, 9/15/21			922		1,004,980
7.88%, 9/15/23			3,897		4,335,412
7.13%, 6/15/24			13,385		14,451,651
T-Mobile USA, Inc.:
6.63%, 4/28/21			2,180		2,267,636
6.13%, 1/15/22			367		388,103
6.73%, 4/28/22			1,227		1,276,080
6.00%, 3/01/23			2,599		2,748,442
6.50%, 1/15/24			2,638		2,834,531
6.38%, 3/01/25			994		1,068,530
6.50%, 1/15/26			3,558		3,909,352
Wind Acquisition Finance SA, 4.00%, 7/15/20	EUR		824		889,531

					86,971,412
Total Corporate Bonds — 110.2%					1,699,613,635



Floating Rate Loan Interests (d)
Air Freight & Logistics — 0.3%
Avolon TLB Borrower 1 (Luxembourg) Sarl, Term Loan B2, 3.50%, 1/13/22	USD		2,287		2,326,565
CEVA Group PLC, Synthetic LOC, 6.50%, 3/19/21			916		796,643
CEVA Intercompany BV, Dutch Term Loan, 6.54%, 3/19/21			943		820,674
CEVA Logistics Canada ULC, Canadian Term Loan, 6.54%, 3/19/21			143		124,621
CEVA Logistics US Holdings, Inc., Term Loan, 6.54%, 3/19/21			1,343		1,168,523

					5,237,026


Floating Rate Loan Interests (d)		Par (000)		Value
Airlines — 0.4%
Delta Air Lines, Inc., 2018 Term Loan B1, 3.27%, 10/18/18	USD		2,295	$	2,307,443
Northwest Airlines, Inc., Term Loan:
3.08%, 3/10/17			886		885,579
2.46%, 9/10/18			3,247		3,203,494

					6,396,516
Auto Components — 0.2%
Gates Global LLC, Term Loan B, 4.25%, 7/06/21			3,640		3,640,695
Building Products — 0.1%
Wilsonart LLC, 2016 Term Loan, 4.50%, 12/19/23			1,437		1,445,608
Chemicals — 0.1%
Atotech BV, 2017 Term Loan B1, 4.00%, 1/31/24			828		836,280
Axalta Coating Systems US Holdings, Inc., Term Loan B1, 3.50%, 2/01/23			169		170,930
Chemours Co., Term Loan B, 3.79%, 5/12/22			121		122,279
MacDermid, Inc., Term Loan B5, 4.50%, 6/07/20			674		681,774

					1,811,263
Commercial Services & Supplies — 0.2%
Brand Energy & Infrastructure Services, Inc., Term Loan B, 4.76% - 4.79%, 11/26/20			3,731		3,731,447
Containers & Packaging — 0.2%
Flex Acquisition Company, Inc., 1st Lien Term Loan, 4.25%, 12/29/23			3,263		3,285,025
Diversified Consumer Services — 0.3%
Gol LuxCo S.A., 1st Lien Term Loan, 6.50%, 8/31/20			3,885		3,977,269
Diversified Telecommunication Services — 0.8%
Consolidated Communications, Inc., Term Loan B2, 4.00%, 10/05/23			2,185		2,197,476
Hawaiian Telcom Communications, Inc., Term Loan B, 5.25% - 5.29%, 6/06/19			1,399		1,399,272
Virgin Media Investment Holdings Ltd., Term Loan I, 3.52%, 1/31/25			3,886		3,901,117
Zayo Group LLC:
2017 Term Loan B2, 3.50%, 1/19/24			3,996		4,033,403

					11,531,268
Electric Utilities — 0.5%
Energy Future Intermediate Holding Co. LLC, 2016 DIP Term Loan, 4.30%, 6/30/17			1,443		1,446,607
TEX Operations Co. LLC:
Exit Term Loan B, 3.53%, 8/04/23			3,335		3,350,194
Exit Term Loan C, 3.53%, 8/04/23			686		688,607
Vistra Operations Co. LLC, 2016 Term Loan B2, 4.02%, 12/14/23			2,079		2,091,017

					7,576,425
Energy Equipment & Services — 0.2%
Weatherford International Ltd., Term Loan, 3.09%, 7/13/20			2,249		2,198,740
Food & Staples Retailing — 0.2%
BJ’s Wholesale Club, Inc.:
2017 1st Lien Term Loan, 4.75%, 2/03/24			1,369		1,357,884
2017 2nd Lien Term Loan, 8.50%, 2/03/25			934		932,636

					2,290,520
Health Care Equipment & Supplies — 0.4%
Alere, Inc., 2015 Term Loan B, 4.25%, 6/18/22			1,611		1,613,823
DJO Finance LLC, 2015 Term Loan, 4.25%, 6/08/20			1,895		1,858,999

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	49


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Floating Rate Loan Interests (d)		Par (000)		Value
Health Care Equipment & Supplies (continued)
Immucor, Inc., Refinancing Term Loan B2, 5.00%, 8/17/18	USD		2,185	$	2,156,331
Mallinckrodt International Finance SA, Term Loan B, 3.75%, 9/24/24			765		767,869

					6,397,022
Health Care Providers & Services — 0.7%
Air Medical Group Holdings, Inc., Term Loan B, 4.25%, 4/28/22			1,645		1,647,006
Community Health Systems, Inc.:
Term Loan G, 3.75%, 12/31/19			608		602,801
Term Loan H, 4.00%, 1/27/21			843		827,815
inVentiv Health, Inc., 2016 Term Loan B, 4.80%, 11/09/23			2,254		2,267,727
MPH Acquisition Holdings LLC, 2016 Term Loan B, 5.00%, 6/07/23			1,037		1,052,693
Surgery Center Holdings, Inc., 1st Lien Term Loan, 4.75%, 11/03/20			947		952,147
Team Health, Inc., 1st Lien Term Loan, 3.75%, 2/06/24			2,334		2,326,718
Vizient, Inc., 2016 Term Loan B, 5.00%, 2/13/23			668		677,074

					10,353,981
Health Care Technology — 0.1%
Change Healthcare Holdings, Inc., 2017 Term Loan B, 3.80%, 2/08/24			1,724		1,731,189
Hotels, Restaurants & Leisure — 1.8%
Amaya Holdings BV:
1st Lien Term Loan, 5.00%, 8/01/21			4,850		4,853,300
2nd Lien Term Loan, 8.00%, 8/01/22			248		248,607
Bronco Midstream Funding LLC, Term Loan B, 5.06%, 8/15/20			5,185		5,210,790
Caesars Entertainment Operating Co., Term Loan B7 (Non RSA), 4.00%, 3/01/22			3,447		4,139,081
Caesars Entertainment Resort Properties LLC, Term Loan B, 7.00%, 10/11/20			13,218		13,328,254
Four Seasons Holdings, Inc., 1st Lien Term Loan, 4.00%, 11/30/23			275		278,732

					28,058,764
Industrial Conglomerates — 0.3%
Cortes NP Acquisition Corp., Term Loan B, 6.00% - 6.03%, 11/30/23			4,617		4,649,939
Insurance — 0.1%
Alliant Holdings I, Inc., 2015 Term Loan B, 4.50%, 8/12/22			715		720,743
AssuredPartners, Inc., 2016 Term Loan B, 5.25%, 10/21/22			1,220		1,232,428

					1,953,171
IT Services — 0.1%
TKC Holdings, Inc., 2017 Term Loan, 4.75%, 2/01/23			1,572		1,583,790
Machinery — 0.3%
Signode Industrial Group US, Inc., Term Loan B, 4.00%, 5/01/21			959		962,529
Silver II US Holdings LLC, Term Loan, 4.00%, 12/13/19			3,353		3,196,560

					4,159,089
Media — 1.0%
iHeartCommunications, Inc., Term Loan D, 7.53%, 1/30/19			6,888		5,977,400
Intelsat Jackson Holdings SA, Term Loan B2, 3.75%, 6/30/19			8,606		8,547,644


Floating Rate Loan Interests (d)		Par (000)		Value
Media (continued)
Ziggo Secured Finance Partnership, Term Loan E, 2.27%, 4/23/25	USD		1,507	$	1,511,310

					16,036,354
Metals & Mining — 0.1%
FMG Resources August 2006 Property Ltd., Term Loan B, 3.75%, 6/30/19			1,248		1,254,984
Multiline Retail — 0.1%
Neiman Marcus Group, Inc., 2020 Term Loan, 4.25%, 10/25/20			1,434		1,153,555
Oil, Gas & Consumable Fuels — 1.9%
California Resources Corp.:
Second Out Term Loan, 11.38%, 12/31/21			3,580		4,033,479
Term Loan A, 3.78%, 10/01/19			3,790		3,645,131
Chesapeake Energy Corp., Term Loan, 8.55%, 8/23/21			10,287		11,109,445
CITGO Holding, Inc., 2015 Term Loan B, 9.50%, 5/12/18			2,503		2,542,460
Energy Transfer Equity LP, 2017 Term Loan B, 3.53%, 2/02/24			1,762		1,766,193
Peabody Energy Corp., Exit Term Loan, 5.54%, 1/30/22			1,456		1,466,308
Ultra Resources, Inc., Revolver, 0.00%, 4/06/17 (a)(h)			4,600		4,697,750

					29,260,766
Pharmaceuticals — 0.5%
DPx Holdings BV, 2014 Incremental Term Loan, 4.25%, 3/11/21			1,472		1,477,853
Jaguar Holding Co. II, 2015 Term Loan B, 4.25%, 8/18/22			3,552		3,569,980
Valeant Pharmaceuticals International, Inc.:
Series A3 Tranche A, 4.54%, 10/20/18			353		352,995
Series C2 Term Loan B, 5.28%, 12/11/19			677		680,453
Series D2 Term Loan B, 5.03%, 2/13/19			124		124,808
Series E Term Loan B, 5.27%, 8/05/20			1,515		1,523,520
Series F1 Term Loan B, 5.53%, 4/01/22			9		9,258

					7,738,867
Professional Services — 0.1%
Advantage Sales & Marketing, Inc., 2014 1st Lien Term Loan, 4.25%, 7/23/21			1,662		1,653,441
Information Resources, Inc., 1st Lien Term Loan, 5.25%, 1/18/24			508		514,035

					2,167,476
Semiconductors & Semiconductor Equipment — 0.0%
Microsemi Corp., 2015 Term Loan B, 3.03%, 1/15/23			289		291,064
Software — 1.5%
BMC Software Finance, Inc., Term Loan, 5.00%, 9/10/20			5,171		5,197,261
Infor (US), Inc., Term Loan B6, 3.75%, 2/01/22			1,970		1,971,795
Kronos, Inc.:
1st Lien Term Loan, 5.00% - 5.03%, 11/01/23			3,719		3,761,211
2nd Lien Term Loan, 9.28%, 11/01/24			3,635		3,755,202
Optiv Security, Inc., 1st Lien Term Loan, 4.25%, 2/01/24			1,419		1,427,429
RP Crown Parent LLC, 2016 Term Loan B, 4.50%, 10/12/23			1,163		1,172,816
Tibco Software Inc., 2017 Term Loan B, 5.50%, 12/04/20			3,311		3,351,206
Veritas US Inc.:
Term Loan B1, 6.63%, 1/27/23			2,011		2,005,349
USD Last Out Term Loan B2, 8.63%, 1/29/23			125		123,437

					22,765,706

See Notes to Financial Statements.



50	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Floating Rate Loan Interests (d)		Par (000)		Value
Specialty Retail — 0.0%
Leslie’s Poolmart, Inc., 2016 Term Loan, 4.75%, 8/16/23	USD		267	$	267,456
Technology Hardware, Storage & Peripherals — 0.0%
Oberthur Technologies SA, 2016 Term Loan B1, 4.70%, 12/15/23			258		260,752
Textiles, Apparel & Luxury Goods — 0.4%
Ascend Performance Materials LLC, Term Loan B, 6.50%, 8/12/22			5,321		5,358,097
Wireless Telecommunication Services — 2.0%
Ligado Networks LLC, 2015 2nd Lien Term Loan, 13.50%, 12/07/20 (a)(h)			37,045		29,126,247
Radiate Holdco LLC, 1st Lien Term Loan, 3.78%, 2/01/24			1,851		1,864,623

					30,990,870
Total Floating Rate Loan Interests — 14.9%					229,554,694



Investment Companies — 0.1%		Shares
United States — 0.1%
SPDR S&P Oil & Gas Exploration & Production ETF			25,675		972,055



Non-Agency Mortgage-Backed Securities		Par (000)
Commercial Mortgage-Backed Securities — 0.1%
GAHR Commercial Mortgage Trust 2015-NRF, Series 2015-NRF, Class FFX, 3.38%, 12/15/34 (d)(e)	USD		1,925		1,874,969



Other Interests (m)		Beneficial Interest (000)
United States — 0.0%
Lear Corp. Escrow			1,250		13



Preferred Securities		Par (000)

Capital Trusts
Banks — 1.4%
Allied Irish Banks PLC, 7.38% (d)(l)	USD		410		451,185
Banco Bilbao Vizcaya Argentaria SA (d)(l):
7.00%			400		415,289
8.88%			200		232,600
Banco Popular Espanol SA, 8.25% (d)(l)			600		550,623
Banco Santander SA, 6.25% (d)(l)			700		731,386
Bank of Ireland, 7.38% (d)(l)			250		282,947
BNP Paribas SA, 7.20%			100		107,875
Citigroup, Inc. (d)(l):
5.95%			1,405		1,477,835
Series O, 5.88%			2,405		2,483,162
Series P, 5.95%			1,452		1,513,710
Series Q, 5.95%			1,165		1,217,408
Series R, 6.13%			615		650,399
Cooperatieve Rabobank UA, (d)(l)
5.50%			200		217,262
6.63%			200		228,724


Capital Trusts		Par (000)		Value
Banks (continued)
Danske Bank A/S, 5.75% (d)(l)	USD		200	$	224,329
DNB Bank ASA, 6.50% (d)(l)			400		420,000
Intesa Sanpaolo SpA (d)(l):
7.00%			375		398,268
7.70% (e)			200		189,750
7.75%			250		270,422
National Westminster Bank PLC, Series C, 1.19% (d)(l)			100		81,500
RZB Finance Jersey IV Ltd., 1.62% (d)(l)			300		302,492
Swedbank Hypotek AB, 6.00% (d)(l)			200		206,300
U.S. Bancorp, Series J, 5.30% (d)(l)			3,084		3,137,970
Wells Fargo & Co. (d)(l):
Series S, 5.90%			3,460		3,658,950
Series U, 5.88%			1,375		1,485,000

					20,935,386
Capital Markets — 0.7%
Goldman Sachs Group, Inc., Series L, 5.70% (d)(l)			5,218		5,374,540
Morgan Stanley (d)(l):
Series H, 5.45%			3,309		3,394,346
Series J, 5.55%			440		457,600
UBS Group AG (d)(l):
5.75%			800		925,915
7.00%			425		457,415

					10,609,816
Chemicals — 0.0%
Lanxess AG, 4.50%, 12/06/76 (d)			225		256,242
Solvay Finance SA, 5.12% (d)(l)			310		360,148

					616,390
Diversified Financial Services — 1.9%
Bank of America Corp. (d)(l):
Series AA, 6.10%			3,011		3,212,361
Series V, 5.13%			2,205		2,229,806
Series X, 6.25%			2,874		3,075,467
Series Z, 6.50%			1,816		1,983,399
Barclays PLC (d)(l):
7.88%			325		340,941
7.38%			450		558,371
Credit Agricole SA, 6.50% (d)(l)			600		659,749
HBOS Capital Funding LP, 6.85% (l)			400		407,000
JPMorgan Chase & Co., (d)(l):
6.75%			5,324		5,896,330
Series Q, 5.15%			850		852,295
Series U, 6.13%			4,228		4,487,811
Series V, 5.00%			3,075		3,093,481
Royal Bank of Scotland Group PLC, 8.63% (d)(l)			982		1,037,483
Societe Generale SA, (d)(l):
7.38%			200		264,301
7.88% (e)			300		303,750
UniCredit SpA, 9.25% (d)(l)			425		483,901

					28,886,446
Diversified Telecommunication Services — 0.3%
Koninklijke KPN NV, 6.13% (d)(l)			566		642,373
Orange SA, 4.00% (d)(l):
4.00%			600		669,011
5.75%			100		131,394
Telefonica Europe BV (d)(l):
3.75%			200		214,264
4.20%			1,500		1,666,568
6.50%			600		683,630
6.75%			200		266,758

					4,273,998

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	51


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Capital Trusts		Par (000)		Value
Electric Utilities — 0.1%
Enel SpA (d):
6.50%, 1/10/74	USD		689	$	788,320
7.75%, 9/10/75			105		144,292
Origin Energy Finance Ltd. (d):
4.00%, 6/16/71			410		442,998
7.88%, 9/16/74			100		113,275

					1,488,885
Insurance — 0.0%
Ethias SA, 5.00%, 1/14/26			200		207,040
Media — 0.0%
NBCUniversal Enterprise, Inc., 5.25% (e)(l)			400		422,000
Metals & Mining — 0.0%
BHP Billiton Finance, Ltd., 4.75%, 4/22/76 (d)			300		353,281
Oil, Gas & Consumable Fuels — 0.2%
DCP Midstream LLC, 5.85%, 5/21/43 (d)(e)			225		210,375
Gas Natural Fenosa Finance BV, 3.38% (d)(l)			1,200		1,231,361
Repsol International Finance BV, 4.50%, 3/25/75 (d)			489		524,688
TOTAL SA, 3.88% (d)(l)			625		704,964

					2,671,388
Total Capital Trusts — 4.6%					70,464,630



Preferred Stocks		Shares
Capital Markets — 0.3%
Morgan Stanley, Series K, 5.85% (d)(l)			171,786		4,440,668
Diversified Financial Services — 0.0%
Concrete Investments II			4,997		550,557
Hotels, Restaurants & Leisure — 1.1%
Amaya, Inc. (j)			19,851		16,586,839
Wireless Telecommunication Services — 0.0%
CF-B L2 (D) LLC, (Aquired 4/08/15, cost $629,122) (c)			633,461		597,544
Total Preferred Stocks — 1.4%					22,175,608


Trust Preferred — 0.4%	Shares		Value
Diversified Financial Services — 0.4%
GMAC Capital Trust I, Series 2, 6.82%, 2/15/40 (d)		256,246	$	6,571,218
Total Preferred Securities — 6.4%				99,211,456


Warrants
Metals & Mining — 0.0%
Peninsula Energy Ltd.:
(1 Share for 1 Warrant, Expires 12/31/17, Strike Price AUD 0.08)		288,820		2
(1 Share for 1 Warrant, Expires 12/31/18, Strike Price AUD 0.05)		515,378		37,539

				37,541
Software — 0.0%
HMH Holdings/EduMedia (Issued/exercisable 3/09/10, 19 Shares for 1 Warrant, Expires 6/22/19, Strike Price $42.27)		6,494		1,688
Transportation Infrastructure — 0.0%
Jack Cooper Enterprises, Inc., Class B (Issued/exercisable 4/26/17, 1 Share for 1 Warrant, Expires 4/26/27, Strike Price $0.01)		10,633		68,264
Total Warrants — 0.0%				107,493
Total Long-Term Investments (Cost — $2,116,332,827) — 137.2%				2,114,462,043



Short-Term Securities
Money Market Fund
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.42% (n)(o)		534,637		534,637
Total Short-Term Securities (Cost — $534,637) — 0.0%				534,637
Options Purchased (Cost — $991,640) — 0.0%				444,198
Total Investments Before Options Written (Cost — $2,117,859,104) — 137.2%				2,115,440,878
Options Written (Premiums Received — $103,169) — (0.0)%				(78,960	)
Total Investments, Net of Options Written (Cost — $2,117,755,935) — 137.2%				2,115,361,918
Liabilities in Excess of Other Assets — (37.2)%				(573,555,545	)

Net Assets — 100.0%			$	1,541,806,373

Notes to Schedule of Investments

(a)

Non-income producing security.

(b)

All or a portion of security is held by a wholly owned subsidiary. See Note 1 of the Notes to Financial Statements for details on the wholly owned subsidiary.

(c)

Restricted security as to resale, excluding 144A securities. As of period end, the Trust held restricted securities with a current value of $609,719 and an original cost of $816,585, which was 0.04% of its net assets.

(d)

Variable rate security. Rate as of period end.

(e)

(f)

When-issued security.

(g)

Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates.

(h)

Issuer filed for bankruptcy and/or is in default.

(i)

Zero-coupon bond.

(j)

Convertible security.

(k)

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(l)

Perpetual security with no stated maturity date.

See Notes to Financial Statements.



52	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)

(m)

Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.

(n)


Affiliate	Shares Held at August 31, 2016		Shares Purchased			Shares Sold			Shares Held at February 28, 2017		Value at February 28, 2017		Income		Net Realized Gain¹		Change in Unrealized Depreciation
BlackRock Liquidity Funds, T-Fund, Institutional Class		—		534,637	²		—			534,637	$	534,637	$	3,649	$	5		—
iShares iBoxx USD High Yield Corporate Bond ETF		152,000		279,142			(431,142	)		—		—		172,128		32,072	$	(129,580	)
Total											$	534,637	$	175,777	$	32,077	$	(129,580	)

¹ Includes net capital gain distributions.
² Represents net shares purchased.

(o)

Current yield as of period end.

Derivative Financial Instruments Outstanding as of Period End


Futures Contracts
Contracts Short			Issue	Expiration	Notional Value			Unrealized Appreciation (Depreciation)
	(5	)	5-Year U.S. Treasury Note	June 2017		USD	588,516	$	814
	(20	)	Euro BOBL	June 2017		USD	2,810,799		(19	)
	(15	)	Euro Bund Future	June 2017		USD	2,587,212		(1,124	)
	(61	)	Russell 2000 E-Mini Index	March 2017		USD	4,224,250		(93,852	)
	Total							$	(94,181	)


Forward Foreign Currency Exchange Contracts
Currency Purchased		Currency Sold			Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
EUR	400,000		USD	430,186	Goldman Sachs International		3/06/17	$	(6,367	)
EUR	614,000		USD	662,016	Royal Bank of Canada		3/06/17		(11,454	)
GBP	1,000,000		USD	1,246,555	Australia and New Zealand Bank Group		3/06/17		(5,630	)
GBP	200,000		USD	249,736	Australia and New Zealand Bank Group		3/06/17		(1,551	)
GBP	600,000		USD	748,985	Commonwealth Bank of Australia		3/06/17		(4,430	)
GBP	1,500,000		USD	1,875,198	Northern Trust Co.		3/06/17		(13,811	)
USD	1,214,853		AUD	1,605,000	National Australia Bank Ltd.		3/06/17		(15,581	)
USD	18,126,923		CAD	23,625,000	National Australia Bank Ltd.		3/06/17		339,214
USD	5,291		EUR	5,000	Australia and New Zealand Bank Group		3/06/17		(6	)
USD	20,147		EUR	19,000	Australia and New Zealand Bank Group		3/06/17		15
USD	795,730		EUR	750,000	Goldman Sachs International		3/06/17		1,069
USD	104,944		EUR	99,000	Goldman Sachs International		3/06/17		49
USD	380,941		EUR	360,000	Goldman Sachs International		3/06/17		(496	)
USD	77,093,561		EUR	71,621,000	Morgan Stanley & Co. International PLC		3/06/17		1,207,672
USD	924,369		EUR	875,000	Northern Trust Co.		3/06/17		(2,735	)
USD	16,747,671		GBP	13,405,000	Barclays Bank PLC		3/06/17		113,077
USD	1,916,160		GBP	1,529,000	Citibank N.A.		3/06/17		18,786
USD	1,230,073		AUD	1,605,000	Citibank N.A.		4/05/17		487
USD	17,859,597		CAD	23,625,000	Morgan Stanley & Co. International PLC		4/05/17		68,032
USD	77,590,656		EUR	73,086,000	Bank of America N.A.		4/05/17		40,282
USD	3,091,533		EUR	2,905,000	Royal Bank of Scotland PLC		4/05/17		9,084
USD	14,286,066		GBP	11,489,000	Barclays Bank PLC		4/05/17		17,379
Total								$	1,753,085

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	53


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)

Exchange-Traded Options Purchased

Description

Put/
Call

Expiration
Date

Strike
Price

Contracts

Value

SPDR S&P 500 ETF Trust

Put

4/21/17

USD

230.00

940

195,050

OTC Interest Rate Swaptions Purchased

Description

Counterparty

Put/
Call

Exercise
Rate

Pay/
Receive
Exercise Rate

Floating Rate
Index

Expiration
Date

Notional
Amount
(000)

Value

10-Year Interest Rate Swap

Citibank N.A.

Put

2.60

Pay

3-Month LIBOR

4/26/17

USD

25,310

97,689

10-Year Interest Rate Swap

Citibank N.A.

Put

2.75

Pay

3-Month LIBOR

6/26/17

USD

25,310

151,459

Total

249,148

OTC Options Purchased

Description

Put/
Call

Counterparty

Expiration
Date

Strike
Price

Contract

Value

Marsico Parent Superholdco LLC

Call

Goldman Sachs & Co.

12/14/19

USD

942.86

—

Exchange-Traded Options Written

Description

Put/
Call

Expiration
Date

Strike
Price

Contracts

Value

SPDR S&P 500 ETF Trust

Put

4/21/17

USD

220.00

940

(78,960

)

Centrally Cleared Credit Default Swaps — Sell Protection

Issuer/Index

Receive
Fixed Rate

Expiration
Date

Credit
Rating¹

Notional
Amount
(000)²

Unrealized
Appreciation
(Depreciation)

Chesapeake Energy Corp.

5.00%

12/20/21

CCC

USD

425

(4,831

)

Markit CDX North America High Yield Index, Series 27, Version 2

5.00%

12/20/21

B+

USD

113,512

3,839,224

Total

3,834,393


OTC Credit Default Swaps — Sell Protection
Issuer/Index	Receive Fixed Rate			Counterparty	Expiration Date		Credit Rating¹	Notional Amount (000)²			Value			Premiums Paid (Received)			Unrealized Appreciation
CCO Holdings LLC		8.00	%	Deutsche Bank AG		9/20/17	NR		USD	8,180	$	485,805			—		$	485,805
UniCredit SpA		1.00	%	Barclays Bank PLC		12/20/21	BBB-		EUR	100		(3,510	)	$	(5,622	)		2,112
Hellenic Telecommunications Organization SA		5.00	%	Goldman Sachs International		12/20/21	B+		EUR	170		12,764			9,818			2,946
Total											$	495,059		$	4,196		$	490,863

¹ Using Standard & Poor’s (“S&P’s”) rating of the issuer or the underlying securities of the index, as applicable.
²The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.


OTC Total Return Swaps
Reference Entity	Fixed Rate/ Floating Rate	Counterparty	Effective Date	Expiration Date		Notional Amount (000)			Value		Premiums Received			Unrealized Appreciation
iBoxx USD Liquid High Yield Index	3-Month LIBOR	Goldman Sachs International	N/A		3/20/17		USD	13,000	$	756,925		—		$	756,925
iBoxx USD Liquid High Yield Index	3-Month LIBOR	Goldman Sachs International	N/A		6/20/17		USD	1,800		92,232		—			92,232
iBoxx USD Liquid High Yield Index	3-Month LIBOR	Citibank N.A.	N/A		6/20/17		USD	2,000		87,640		—			87,640
iBoxx USD Liquid High Yield Index	3-Month LIBOR	Goldman Sachs International	N/A		6/20/17		USD	5,800		61,563	$	(8,195	)		69,758
iBoxx USD Liquid High Yield Index	3-Month LIBOR	JPMorgan Chase Bank N.A.	N/A		9/20/17		USD	2,700		24,933		(3,740	)		28,673
Morgan Stanley Energy Long Basket Index	FED Funds Effective Rate plus 0.25%	Morgan Stanley & Co. International PLC	N/A		12/29/17		USD	29		—		—			—
Total									$	1,023,293	$	(11,935	)	$	1,035,228

See Notes to Financial Statements.



54	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)

Transactions in Options Written for the Period Ended February 28, 2017


	Puts
	Contracts			Notional (000)			Premiums Received
Outstanding options, beginning of period		—		$	10,000		$	19,000
Options written		6,044			—			574,078
Options exercised		—			—			—
Options expired		—			(10,000	)		(19,000	)
Options closed		(5,104	)		—			(470,909	)

Outstanding options, end of period		940			—		$	103,169

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Consolidated Statement of Assets and Liabilities were as follows:


Assets — Derivative Financial Instruments		Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Futures contracts	Net unrealized appreciation¹		—		—		—		—	$	814		—	$	814
Forward foreign currency exchange contracts	Unrealized appreciation on forward foreign currency exchange contracts		—		—		—	$	1,815,146		—		—		1,815,146
Options purchased	Investments at value — unaffiliated²		—		—	$	195,050		—		249,148		—		444,198
Swaps — centrally cleared	Net unrealized appreciation¹		—	$	3,839,224		—		—		—		—		3,839,224
Swaps — OTC	Unrealized appreciation on OTC swaps; Swap premiums paid		—		500,681		—		—		1,035,228		—		1,535,909

Total			—	$	4,339,905	$	195,050	$	1,815,146	$	1,285,190		—	$	7,635,291


Liabilities — Derivative Financial Instruments
Futures contracts	Net unrealized depreciation¹		—		—	$	93,852		—	$	1,143		—	$	94,995
Forward foreign currency exchange contracts	Unrealized depreciation on forward foreign currency exchange contracts		—		—		—	$	62,061		—		—		62,061
Options written	Options written at value		—		—		78,960		—		—		—		78,960
Swaps — centrally cleared	Net unrealized depreciation¹		—	$	4,831		—		—		—		—		4,831
Swaps — OTC	Unrealized depreciation on OTC swaps; Swap premiums received		—		5,622		—		—		11,935		—		17,557

Total			—	$	10,453	$	172,812	$	62,061	$	13,078		—	$	258,404

¹ Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Consolidated Schedule of Investments. Only current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities.
² Includes options purchased at value as reported in the Consolidated Schedule of Investments.

For the six months ended February 28, 2017, the effect of derivative financial instruments in the Consolidated Statement of Operations was as follows:


Net Realized Gain (Loss) from:	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Futures contracts		—		—	$	(3,983,948	)		—		$	(79,268	)		—	$	(4,063,216	)
Forward foreign currency exchange contracts		—		—		—		$	(2,045,808	)		—			—		(2,045,808	)
Options purchased¹		—		—		(1,345,642	)		—			1,406,631			—		60,989
Options written		—		—		422,268			—			19,000			—		441,268
Swaps		—	$	2,190,991		227,611			—			1,555,796			—		3,974,398

Total		—	$	2,190,991	$	(4,679,711	)	$	(2,045,808	)	$	2,902,159			—	$	(1,632,369	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—	$	1,258,810			—		$	(329	)		—	$	1,258,481
Forward foreign currency exchange contracts		—		—		—		$	1,859,320			—			—		1,859,320
Options purchased²		—		—		(64,318	)		—			(452,861	)		—		(517,179	)
Options written		—		—		24,209			—			3,041			—		27,250
Swaps		—	$	3,595,831		(215,712	)		—			(564,523	)		—		2,815,596

Total		—	$	3,595,831	$	1,002,989		$	1,859,320		$	(1,014,672	)		—	$	5,443,468

¹ Options purchased are included in net realized gain (loss) from investments.
² Options purchased are included in net change in unrealized appreciation (depreciation) on investments.

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	55


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	18,887,419
Forward foreign currency exchange contracts:
Average amounts purchased — in USD	$	232,807,868
Average amounts sold — in USD	$	6,349,214
Options:
Average value of option contracts purchased	$	344,712
Average value of option contracts written	$	146,913
Average value of options swaption contracts purchased	$	63,285,000
Average value of options swaption contracts written	$	10,000,000	¹
Credit default swaps:
Average notional value — buy protection	$	5,674,920	¹
Average notional value — sell protection	$	108,988,200
Total return swaps:
Average notional value	$	33,919,697
¹Actual amounts for the period are shown due to limited outstanding derivative financial instruments as of each quarter.

For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments — Offsetting as of Period End

The Trust’s derivative assets and liabilities (by type) were as follows:


	Assets			Liabilities
Futures contracts	$	66,506			—
Forward foreign currency exchange contracts		1,815,146		$	62,061
Options		444,198	¹		78,960
Swaps — Centrally cleared		46,823			—
Swaps — OTC²		1,535,909			17,557

Total derivative assets and liabilities in the Consolidated Statement of Assets and Liabilities	$	3,908,582		$	158,578

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(308,379	)		(78,960	)

Total derivative assets and liabilities subject to an MNA	$	3,600,203		$	79,618

¹ Includes options purchased at value which is included in Investments at value — unaffiliated in the Consolidated Statement of Assets and Liabilities and reported in the Consolidated Schedule of Investments.
² Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums paid/received in the Consolidated Statement of Assets and Liabilities.

The following table presents the Trust’s derivative assets (and liabilities) by counterparty net of amounts available for offset under a MNA and net of the related collateral received by the Trust:


Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset¹			Non-cash Collateral Received	Cash Collateral Received²			Net Amount of Derivative Assets^3,5
Australia and New Zealand Bank Group	$	15	$	(15	)	—		—			—
Bank of America N.A.		40,282		—		—		—		$	40,282
Barclays Bank PLC		132,568		(5,622	)	—		—			126,946
Citibank N.A.		356,061		—		—	$	(350,000	)		6,061
Deutsche Bank AG		485,805		—		—		(485,805	)		—
Goldman Sachs International		932,797		(15,058	)	—		(917,739	)		—
JPMorgan Chase Bank N.A.		28,673		(3,740	)	—		(24,933	)		—
Morgan Stanley & Co. International PLC		1,275,704		—		—		—			1,275,704
National Austrailia Bank Ltd.		339,214		(15,581	)	—		—			323,633
Royal Bank of Scotland PLC		9,084		—		—		—			9,084

Total	$	3,600,203	$	(40,016	)	—	$	(1,778,477	)	$	1,781,710

See Notes to Financial Statements.



56	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund, Inc. (HYT)


Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset¹			Non-cash Collateral Pledged	Cash Collateral Pledged	Net Amount of Derivative Liabilities^4,5
Australia and New Zealand Bank Group	$	7,187	$	(15	)	—	—	$	7,172
Barclays Bank PLC		5,622		(5,622	)	—	—		—
Commonwealth Bank of Australia		4,430		—		—	—		4,430
Goldman Sachs International		15,058		(15,058	)	—	—		—
JPMorgan Chase Bank N.A.		3,740		(3,740	)	—	—		—
National Austrailia Bank Ltd.		15,581		(15,581	)	—	—		—
Northern Trust Co.		16,546		—		—	—		16,546
Royal Bank of Canada		11,454		—		—	—		11,454

Total	$	79,618	$	(40,016	)	—	—	$	39,602

¹ The amount of derivatives available for offset is limited to the amount of derivative asset and/or liabilities that are subject to an MNA.
² Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.
³ Net amount represents the net amount receivable from the counterparty in the event of default.
⁴ Net amount represents the net amount payable due to counterparty in the event of default.
⁵ Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

Fair Value Hierarchy as of Period End

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks	$	15,104,159		$	7,603,146		$	5,693,095	$	28,400,400
Asset-Backed Securities		—			47,720,703			7,006,625		54,727,328
Corporate Bonds		—			1,694,101,849			5,511,786		1,699,613,635
Floating Rate Loan Interests		—			222,898,943			6,655,751		229,554,694
Investment Companies		972,055			—			—		972,055
Non-Agency Mortgage-Backed Securities		—			1,874,969			—		1,874,969
Other Interests		—			—			13		13
Preferred Securities		11,011,886			70,464,630			17,137,396		98,613,912
Warrants		—			37,541			69,952		107,493
Short-Term Securities		534,637			—			—		534,637
Options Purchased:
Equity contracts		195,050			—			—		195,050
Interest rate contracts		—			249,148			—		249,148
Unfunded floating rate loan interests¹		—			6,020			—		6,020

Subtotal	$	27,817,787		$	2,044,956,949		$	42,074,618	$	2,114,849,354

Investments Valued at NAV²										597,544

Total									$	2,115,446,898


	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments³
Assets:
Credit contracts		—		$	4,330,087			—	$	4,330,087
Foreign currency exchange contracts		—			1,815,146			—		1,815,146
Interest rate contracts	$	814			1,035,228			—		1,036,042
Liabilities:
Credit contracts		—			(4,831	)		—		(4,831	)
Equity contracts		(172,812	)		—			—		(172,812	)
Foreign currency exchange contracts		—			(62,061	)		—		(62,061	)
Interest rate contracts		(1,143	)		—			—		(1,143	)

Total	$	(173,141	)	$	7,113,569			—	$	6,940,428

¹ Unfunded floating rate loan interests are valued at the unrealized appreciation (depreciation) on the commitment.
² As of February 28, 2017, certain of the Trust’s Investments were fair valued using net asset value (“NAV”) per share and have been excluded from the fair value hierarchy.
³ Derivative financial instruments are swaps, futures contracts, forward foreign currency exchange contracts, and options written. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument and options written are shown at value.

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	57


Consolidated Schedule of Investments (concluded)		BlackRock Corporate High Yield Fund, Inc. (HYT)

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, bank borrowings payable of $577,000,000 are categorized as Level 2 within the disclosure hierarchy.

During the six months ended February 28, 2017, there were no transfers between Level 1 and Level 2.

A reconciliation of Level 3 Investments is presented when the Trust had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:


	Common Stocks		Asset-Backed Securities			Corporate Bonds			Floating Rate Loan Interests			Other Interests		Preferred Securities			Warrants			Total
Assets:
Opening balance, as of August 31, 2016¹	$	1,725,910	$	13,191,932		$	5,853,024		$	22,184,147		$	13	$	17,201,711		$	13,361		$	60,170,098
Transfers into Level 3		—		—			—			—			—		—			—			—
Transfers out of Level 3²		—		(8,516,932	)		—			(16,467,970	)		—		—			(130	)		(24,985,032	)
Accrued discounts/premiums		—		466			1,774			47,661			—		—			—			49,901
Net realized gain (loss)		—		25,342			(1,850,180	)		54,555			—		—			—			(1,770,283	)
Net change in unrealized appreciation (depreciation)^3,4		3,967,185		15,196			1,827,348			574			—		(64,315	)		56,721			5,802,709
Purchases		—		4,990,621			—			3,701,213			—		—			—			8,691,834
Sales		—		(2,700,000	)		(320,180	)		(2,864,429	)		—		—			—			(5,884,609	)
Closing Balance, as of February 28, 2017	$	5,693,095	$	7,006,625		$	5,511,786		$	6,655,751		$	13	$	17,137,396		$	69,952		$	42,074,618

Net change in unrealized appreciation (depreciation) on investments still held at February 28, 2017⁴	$	3,967,185	$	40,538		$	(20,659	)	$	574			—	$	(64,315	)	$	56,721		$	3,980,044

¹ The opening balance of preferred securities has been restated to exclude certain investments in the amount of $523,176 that were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.
² As of August 31, 2016, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2017, the Trust used observable inputs in determining the value of the same investments. As a result, investments at beginning of period value were transferred from Level 3 to Level 2 in the disclosure hierarchy.
³ Included in the related net change in unrealized appreciation (depreciation) in the Consolidated Statement of Operations.
⁴ Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at February 28, 2017 is generally due to investments no longer held or categorized as Level 3 at period end.

See Notes to Financial Statements.



58	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017

Schedule of Investments February 28, 2017 (Unaudited)

BlackRock Income Trust, Inc. (BKT)

(Percentages shown are based on Net Assets)


Asset-Backed Securities	Par (000)			Value
Asset-Backed Securities — 0.4%
Securitized Asset Backed Receivables LLC Trust, Series 2005-OP2, Class M1, 1.21%, 10/25/35 (a)	$	1,875		$	1,730,551
Small Business Administration Participation Certificates, Series 1997-20C, Class 1, 7.15%, 3/01/17		6			5,789

					1,736,340
Interest Only Asset-Backed Securities — 0.1%
Small Business Administration Participation Certificates, Series 2000-1, 1.00%, 3/15/21		286			2,499
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (b)		1,654			111,132
Sterling Coofs Trust, Series 2004-1, Class A, 2.36%, 4/15/29		4,634			322,846

					436,477
Total Asset-Backed Securities — 0.5%					2,172,817



Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 0.5%
Deutsche Securities, Inc. Mortgage Alternate Loan Trust, Series 2006-AR5, Class 22A, 5.50%, 10/25/21		188			182,602
HomeBanc Mortgage Trust, Series 2005-4, Class A1, 1.05%, 10/25/35 (a)		1,404			1,357,979
Kidder Peabody Acceptance Corp., Series 1993-1, Class A6, 15.18%, 8/25/23 (a)		34			36,638
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-11, Class A, 3.26%, 8/25/34 (a)		759			753,562

					2,330,781
Interest Only Collateralized Mortgage Obligations — 0.4%
CitiMortgage Alternative Loan Trust, Series 2007-A5, Class 1A7, 6.00%, 5/25/37		421			93,393
IndyMac INDX Mortgage Loan Trust, Series 2006-AR33, Class 4AX, 0.17%, 1/25/37		41,794			52,242
MASTR Adjustable Rate Mortgages Trust, Series 2004-3, Class 3AX, 0.48%, 4/25/34 (c)		5,313			106,268
MASTR Alternative Loans Trust, Series 2003-9, Class 15X2, 6.00%, 1/25/19		91			4,701
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 1AX, 5.00%, 5/25/19		57			842
Sequoia Mortgage Trust, Series 2005-2, Class XA, 0.78%, 3/20/35 (a)		22,888			629,430
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-7, Class 3AS, 2.08%, 8/25/36 (a)		9,708			703,800
Vendee Mortgage Trust, Series 1999-2, Class 1, 0.05%, 5/15/29 (a)		25,145			25

					1,590,701
Principal Only Collateralized Mortgage Obligations — 0.1%
Countrywide Home Loan Mortgage Pass-Through Trust, Series 2003-J8, 0.00%, 9/25/23		31			28,733
Drexel Burnham Lambert CMO Trust, Series K, Class 1, 0.00%, 9/23/17		—	(d)		13
Residential Asset Securitization Trust, Series 2005-A15, Class 1A8, 0.00%, 2/25/36		314			254,503
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2005-9, Class CP, 0.00%, 11/25/35		131			94,307

					377,556
Total Non-Agency Mortgage-Backed Securities — 1.0%					4,299,038


U.S. Government Sponsored Agency Securities	Par (000)			Value
Agency Obligations — 2.5%
Federal Housing Administration:
USGI Projects, Series 99, 7.43%, 6/01/21 - 10/01/23	$	2,422		$	2,313,965
Reilly Projects, Series 41, 8.28%, 3/01/20		28			27,113
Residual Funding Corp.,, 0.00%, 4/15/30 (e)		13,000			8,597,030

					10,938,108
Collateralized Mortgage Obligations — 63.6%
Fannie Mae Mortgage-Backed Securities:
Series 2011-142, Class PE, 3.50%, 1/25/42		15,567			15,694,170
Series 2014-28, Class BD, 3.50, 8/25/43		6,050			6,336,976
Series 2014-28, Class BD,
Series 2010-136, Class CY, 4.00%, 12/25/40		3,060			3,296,679
Series 2011-117, Class CP, 4.00%, 11/25/41		14,350			15,434,228
Series 2011-99, Class CB, 4.50%, 10/25/41		43,000			47,801,079
Series 2010-47, Class JB, 5.00%, 5/25/30		10,000			10,857,927
Series 2003-135, Class PB, 6.00%, 1/25/34		8,212			8,716,231
Series 2004-31, Class ZG, 7.50%, 5/25/34		4,785			5,716,054
Series 1993-247, Class SN, 10.00%, 12/25/23 (a)		100			121,145
Series 2005-73, Class DS, 15.53%, 8/25/35 (a)		586			681,909
Series 1991-87, Class S, 24.62%, 8/25/21 (a)		9			11,035
Series G-49, Class S, 953.85%, 12/25/21 (a)		—	(d)		51
Series G-07, Class S, 1,056.78%, 3/25/21 (a)		—	(d)		413
Series 1991-46, Class S, 2,340.76%, 5/25/21 (a)		—	(d)		1
Freddie Mac Mortgage-Backed Securities:
Series T-11, Class A9, 3.11%, 1/25/28 (a)		774			806,474
Series 4242, Class PA, 3.50%, 5/15/41		6,202			6,435,270
Series 3762, Class LN, 4.00%, 11/15/40		2,000			2,121,739
Series 4269, Class PM, 4.00%, 8/15/41		8,884			9,337,157
Series 4016, Class BX, 4.00%, 9/15/41		15,408			16,772,174
Series 3688, Class PB, 4.50%, 8/15/32		10,000			10,480,194
Series 4316, Class VB, 4.50%, 3/15/34		10,787			11,691,266
Series 3856, Class PB, 5.00%, 5/15/41		10,000			11,200,545
Series 2758, Class KV, 5.50%, 5/15/23		1,324			1,330,281
Series 2927, Class BZ, 5.50%, 2/15/35		4,009			4,382,261
Series 2542, Class UC, 6.00%, 12/15/22		1,645			1,756,341
Series 0040, Class K, 6.50%, 8/17/24		99			112,860
Series 0019, Class F, 8.50%, 3/15/20		7			6,778
Series 2218, Class Z, 8.50%, 3/15/30		1,954			2,318,816
Series 0173, Class RS, 9.99%, 11/15/21 (a)		—	(d)		2
Series 1160, Class F, 36.89%, 10/15/21 (a)		5			7,223
Ginnie Mae Mortgage-Backed Securities:
Series 2010-99, Class JM, 3.75%, 12/20/38		19,300			19,885,838
Series 2010-112, Class TL, 4.00%, 1/20/39		15,000			15,535,538
Series 2011-80, Class PB, 4.00%, 10/20/39		11,489			11,990,041
Series 2012-16, Class HJ, 4.00%, 9/20/40		10,000			10,536,849
Series 2011-88, Class PY, 4.00%, 6/20/41		15,402			16,072,150
Series 2015-96, Class ZM, 4.00%, 7/20/45		6,665			7,093,549
Series 2004-89, Class PE, 6.00%, 10/20/34		84			86,696

					274,627,940
Commercial Mortgage-Backed Securities — 0.1%
Ginnie Mae Mortgage-Backed Securities, Series 2014-124, Class IE, 0.75%, 5/16/54 (a)		9,674			455,429
Interest Only Collateralized Mortgage Obligations — 2.0%
Fannie Mae Mortgage-Backed Securities:
Series 1997-50, Class SI, 1.20%, 4/25/23 (a)		85			2,249
Series G92-60, Class SB, 1.60%, 10/25/22 (a)		42			1,439
Series 2012-96, Class DI, 4.00%, 2/25/27		3,796			328,846
Series 2013-45, Class EI, 4.00%, 4/25/43		6,484			1,119,019
Series 2010-74, Class DI, 5.00%, 12/25/39		4,084			243,441
Series 2011-124, Class GS, 5.92%, 3/25/37 (a)		7,974			665,822
Series 1997-90, Class M, 6.00%, 1/25/28		1,366			182,402
Series 1999-W4, 6.50%, 12/25/28		123			11,723

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	59


Schedule of Investments (continued)		BlackRock Income Trust, Inc. (BKT)


U.S. Government Sponsored Agency Securities	Par (000)			Value
Interest Only Collateralized Mortgage Obligations (continued)
Fannie Mae Mortgage-Backed Securities (continued):
Series 089, Class 2, 8.00%, 10/25/18	$	—	(d)	$	1
Series G92-05, Class H, 9.00%, 1/25/22		1			53
Series 094, Class 2, 9.50%, 8/25/21		1			70
Series 1990-136, Class S, 19.30%, 11/25/20 (a)		3			4
Series 1991-139, Class PT, 648.35%, 10/25/21		—	(d)		1
Series G-10, Class S, 1,022.36%, 5/25/21 (a)		—	(d)		2
Series G-12, Class S, 1,084.94%, 5/25/21 (a)		—	(d)		1
Freddie Mac Mortgage-Backed Securities:
Series 2559, 0.50%, 8/15/30 (a)		34			192
Series 3745, Class IN, 4.00%, 1/15/35		11,643			623,806
Series 3744, Class PI, 4.00%, 6/15/39		9,068			1,006,823
Series 4026, 4.50%, 4/15/32		2,780			369,910
Series 2611, Class QI, 5.50%, 9/15/32		462			22,113
Series 1043, Class H, 41.53%, 2/15/21 (a)		3			4
Ginnie Mae Mortgage-Backed Securities (a):
Series 2009-116, Class KS, 5.70%, 12/16/39		1,297			196,218
Series 2011-52, Class MJ, 5.87%, 4/20/41		9,557			1,698,930
Series 2011-52, Class NS, 5.90%, 4/16/41		11,040			2,029,094

					8,502,163
Mortgage-Backed Securities — 76.4%
Fannie Mae Mortgage-Backed Securities:
2.50%, 4/01/31 - 10/01/31		10,122			10,171,616
3.00%, 1/01/43 - 3/01/47		86,808			86,449,579
3.50%, 10/01/42 - 10/01/45		24,535			25,266,360
4.00%, 1/01/41 - 3/01/47 (f)		60,269			63,584,891
4.50%, 8/01/25 - 9/01/41		53,897			58,290,907
5.00%, 1/01/23 - 10/01/41 (f)		34,728			38,291,731
5.50%, 7/01/17 - 10/01/39		14,874			16,606,291
6.50%, 12/01/37 - 10/01/39		4,880			5,517,410
7.50%, 2/01/22		—	(d)		11
9.50%, 1/01/19 - 9/01/19		1			897
Freddie Mac Mortgage-Backed Securities:
2.93%, 10/01/34 (a)		100			102,079
3.11%, 1/01/35 (a)		167			170,901
5.00%, 2/01/22 - 4/01/22		144			152,417
5.50%, 1/01/39		17,876			20,067,432
9.00%, 9/01/20		4			3,686
Ginnie Mae Mortgage-Backed Securities:
5.00%, 10/15/39		4,607			5,121,063
7.50%, 8/15/21 - 11/15/23		63			65,837
8.00%, 10/15/22 - 8/15/27		36			39,602
9.00%, 4/15/20 - 9/15/21		2			1,969

					329,904,679
Principal Only Collateralized Mortgage Obligations — 0.2%
Fannie Mae Mortgage-Backed Securities: (e)
Series 1991-7, Class J, 0.00%, 2/25/21		2			1,888
Series G93-2, Class KB, 0.00%, 1/25/23		52			49,152
Series 1993-51, Class E, 0.00%, 2/25/23		17			16,242
Series 203, Class 1, 0.00%, 2/25/23		5			4,891
Series 1993-70, Class A, 0.00%, 5/25/23		3			2,545
Series 0228, Class 1, 0.00%, 6/25/23		4			4,108
Series 1999-W4, 0.00%, 2/25/29		49			45,547
Series 2002-13, Class PR, 0.00%, 3/25/32		110			100,767
Freddie Mac Mortgage-Backed Securities: (e)
Series 1418, Class M, 0.00%, 11,15,22		17			16,096
Series 1571, Class G, 0.00%, 8/15/23		128			122,541
Series 1691, Class B, 0.00%, 3/15/24		257			238,558
Series T-8, Class A10, 0.00%, 11/15/28		29			29,284

					631,619
Total U.S. Government Sponsored Agency Securities — 144.8%					625,059,938


U.S. Treasury Obligations	Par (000)			Value
U.S. Treasury Bonds, 2.50%, 2/15/46	$	2,500		$	2,262,598
U.S. Treasury Notes:
1.00%, 11/30/19 (f)		2,965			2,931,875
1.38%, 8/31/20 (f)		4,045			4,010,553
1.63%, 11/15/22		780			762,846
2.00%, 8/15/25		2,860			2,787,719
Total U.S. Treasury Obligations — 2.9%					12,755,591
Total Long-Term Investments (Cost — $657,330,981) — 149.2%					644,287,384



Short-Term Securities	Shares
Money Market Funds — 1.3%
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.42% (g)(h)		5,700,134			5,700,134

	Par (000)
Borrowed Bond Agreement (i)(j) — 0.2%
Credit Suisse Securities (USA) LLC, 0.40%, Open (Purchased on 12/19/16 to be repurchased at $856,934. Collateralized by U.S. Treasury Bonds, 2.75%, 11/15/42, par and fair values of $917,000 and 880,141, respectively)	$	856			856,249
Total Short-Term Securities (Cost — $6,556,383) — 1.5%					6,556,383
Total Investments Before Borrowed Bonds and TBA Sale Commitments (Cost — $663,887,364) — 150.7%					650,843,767



Borrowed Bonds
U.S. Treasury Bonds, 2.75%, 11/15/42		(917	)		(880,141	)
Total Borrowed Bonds (Proceeds — $842,347) — (0.2)%					(880,141	)



TBA Sale Commitments
Fannie Mae Mortgage-Backed Securities (k):
2.50%, 3/01/32		10,100			(10,126,582	)
3.00%, 3/01/47 - 4/01/47		76,350			(75,794,261	)
4.00%, 3/01/47 - 4/01/47		41,000			(43,050,349	)
5.00%, 3/01/47		12,900			(14,142,760	)
Total TBA Sale Commitments (Proceeds — $142,589,225) — (33.1)%					(143,113,952	)
Total Investments, Net of Borrowed Bonds and TBA Sale Commitments (Cost — $520,455,792) — 117.4%					506,849,674
Liabilities in Excess of Other Assets — (17.4)%					(75,077,622	)

Net Assets — 100.0%				$	431,772,052

See Notes to Financial Statements.



60	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Income Trust, Inc. (BKT)

Notes to Schedule of Investments

(a)

Variable rate security. Rate as of period end.

(b)

(c)

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(d)

Amount is less than $500.

(e)

Zero-coupon bond.

(f)

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

(g)


Affiliate	Shares Held at August 31, 2016		Net Activity			Shares Held at February 28, 2017		Value at February 28, 2017		Income		Net Realized Gain¹		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class		—		5,700,134			5,700,134	$	5,700,134	$	17,431	$	57		—
BlackRock Liquidity Funds, TempFund, Institutional Class		7,183,580		(7,183,580	)		—		—		—		—		—
Total								$	5,700,134	$	17,431	$	57		—

¹ Includes net capital gain distributions.

(h)

Current yield as of period end.

(i)

The amount to be repurchased assumes the maturity will be the day after period end.

(j)

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

(k)

Represents or includes a TBA transaction. As of period end, unsettled TBA transactions were as follows:


Counterparty	Value			Unrealized Appreciation (Depreciation)
Bank of Amareica N.A.	$	(4,537,781	)	$	(4,579	)
Barclays Bank PLC	$	(14,300,161	)	$	(36,782	)
Citigroup Global Marekets, Inc.	$	(7,889,619	)	$	2,557
Credit Suisse Securities (USA) LLC	$	(15,783,295	)	$	(27,263	)
Deutsche Bank Securities, Inc.	$	(1,584,259	)	$	1,952
Goldman Sachs & Co.	$	(27,759,201	)	$	(27,372	)
J.P. Morgan Securities LLC	$	(25,175,913	)	$	97,404

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.


Reverse Repurchase Agreements
Counterparty	Interest Rate			Trade Date		Maturity Date¹		Face Value		Face Value Including Accrued Interest		Type of Non-Cash Underlying Collateral	Remaining Contractual Maturity of the Agreements
BNP Paribas Securities Corp.		0.06	%		12/19/16		Open	$	2,924,231	$	2,924,577	U.S. Treasury Obligations	Open/Demand¹
BNP Paribas Securities Corp.		0.54	%		12/19/16		Open		4,004,550		4,008,815	U.S. Treasury Obligations	Open/Demand¹
HSBC Securities (USA), Inc.		0.75	%		2/10/17		3/13/17		163,705,000		163,759,568	U.S. Government Sponsored Agency Securities	Up to 30 Days
Citigroup Global Markets, Inc.		0.78	%		2/16/17		3/16/17		4,306,000		4,307,213	U.S. Government Sponsored Agency Securities	Up to 30 Days
Total								$	174,939,781	$	175,000,173

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

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	61


Schedule of Investments (continued)		BlackRock Income Trust, Inc. (BKT)

Derivative Financial Instruments Outstanding as of Period End


Futures Contracts
Contracts Long (Short)			Issue	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
	(90	)	5-Year U.S. Treasury Note	June 2017	$	10,593,281	$	21,854
	(71	)	10-Year U.S. Ultra Long Treasury Note	June 2017	$	9,509,563		(64,317	)
	92		2-Year U.S. Treasury Note	June 2017	$	19,909,375		(5,919	)
	(644	)	Long U.S. Treasury Bond	June 2017	$	97,666,625		41,382
	285		Ultra Long U.S. Treasury Bond	June 2017	$	46,107,656		766,759
	Total						$	759,759


OTC Interest Rate Swaps
Fixed Rate			Floating Rate	Counterparty	Effective Date		Expiration Date		Notional Amount (000)		Value			Premiums Received			Unrealized Appreciation (Depreciation)
	4.31	%¹	3-Month LIBOR	Deutsche Bank AG		N/A		10/01/18	$	60,000	$	(3,643,801	)		—		$	(3,643,801	)
	3.43	%²	3-Month LIBOR	JPMorgan Chase Bank N.A.		N/A		3/28/21	$	6,000		440,292		$	(115,487	)		555,779
	5.41	%²	3-Month LIBOR	JPMorgan Chase Bank N.A.		N/A		8/15/22	$	9,565		1,707,555			—			1,707,555
	Total										$	(1,495,954	)	$	(115,487	)	$	(1,380,467	)

	¹Fund pays a fixed rate and receives the floating rate.
	²Fund pays a floating rate and receives the fixed rate.

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:


Assets — Derivative Financial Instruments		Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Futures contracts	Net unrealized appreciation¹		—		—		—		—	$	829,995		—	$	829,995
Swaps — OTC	Unrealized appreciation on OTC swaps		—		—		—		—		2,263,334		—		2,263,334

Total			—		—		—		—	$	3,093,329		—	$	3,093,329


Liabilities — Derivative Financial Instruments
Futures contracts	Net unrealized depreciation¹		—		—		—		—	$	70,236		—	$	70,236
Swaps — OTC	Unrealized depreciation on OTC swaps; Swap premiums received		—		—		—		—		3,759,288		—		3,759,288

Total			—		—		—		—	$	3,829,524		—	$	3,829,524

¹Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

For the six months ended February 28, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:


Net Realized Gain (Loss) from:	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Futures contracts		—		—		—		—	$	7,619,008			—	$	7,619,008
Swaps		—		—		—		—		(766,747	)		—		(766,747	)

Total		—		—		—		—	$	6,852,261			—	$	6,852,261


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—		—	$	672,901			—	$	672,901
Swaps		—		—		—		—		541,175			—		541,175

Total		—		—		—		—	$	1,214,076			—	$	1,214,076

See Notes to Financial Statements.



62	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Schedule of Investments (continued)		BlackRock Income Trust, Inc. (BKT)


Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — long	$	67,283,156
Average notional value of contracts — short	$	137,136,461
Interest rate swaps:
Average notional value — pays fixed rate	$	60,000,000
Average notional value — receives fixed rate	$	15,565,000

For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.


Derivative Financial Instruments — Offsetting as of Period End

The Trust’s derivative assets and liabilities (by type) were as follows:


	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	149,968		$	181,156
Swaps — OTC¹		2,263,334			3,759,288

Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	2,413,302		$	3,940,444

Derivatives not subject to a master netting agreement or similar agreement (“MNA”)		(149,968	)		(181,156	)

Total derivative assets and liabilities subject to an MNA	$	2,263,334		$	3,759,288

¹Includes unrealized appreciation(depreciation) on OTC swaps and swap premiums paid/received in the Statements of Assets and Liabilities.


Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset¹			Non-cash Collateral Received		Cash Collateral Received²			Net Amount of Derivative Assets³
JPMorgan Chase Bank N.	$	2,263,334	$	(115,487	)		—	$	(2,147,847	)		—

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset¹			Non-cash Collateral Pledged		Cash Collateral Pledged⁴			Net Amount of Derivative Liabilities⁵
Deutsche Bank AG	$	3,643,801		—			—	$	(3,643,801	)		—
JPMorgan Chase Bank N.A		115,487	$	(115,487	)		—		—			—

Total	$	3,759,288	$	(115,487	)		—	$	(3,643,801	)		—

¹ The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.
² Excess of collateral received from the individual counterparty is not shown for financial reporting purposes
³ Net amount represents the net amount receivable from the counterparty in the event of default.
⁴ Excess of collateral pledged from the individual counterparty is not shown for financial reporting purposes.
⁵ Net amount represents the net amount payable due to the counterparty in the event of default.

Fair Value Hierarchy as of Period End

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities		—	$	1,736,340	$	436,477	$	2,172,817
Non-Agency Mortgage-Backed Securities		—		2,807,298		1,491,740		4,299,038
U.S. Government Sponsored Agency Securities		—		622,718,858		2,341,080		625,059,938
U.S. Treasury Obligations		—		12,755,591		—		12,755,591
Short-Term Securities:
Money Market Funds	$	5,700,134		—		—		5,700,134
Borrowed Bond Agreement		—		856,249		—		856,249

See Notes to Financial Statements.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	63


Schedule of Investments (concluded)		BlackRock Income Trust, Inc. (BKT)


	Level 1			Level 2			Level 3		Total
Liabilities:
Investments:
Borrowed Bonds		—		$	(880,141	)		—	$	(880,141	)
TBA Sale Commitments		—			(143,113,952	)		—		(143,113,952	)

Total	$	5,700,134		$	496,880,243		$	4,269,297	$	506,849,674


Derivative Financial Instruments¹
Assets:
Interest rate contracts	$	829,995		$	2,263,334			—	$	3,093,329
Liabilities:
Interest rate contracts		(70,236	)		(3,643,801	)		—		(3,714,037	)

Total	$	759,759		$	(1,380,467	)		—	$	(620,708	)

¹ Derivative financial instruments are swaps and futures contracts. Swaps and futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, reverse repurchase agreements of $175,000,173 are categorized as Level 2 within the disclosure hierarchy.

During the six months ended February 28, 2017, there were no transfers between Level 1 and Level 2.


	Asset-Backed Securities			Non-Agency Mortgage-Backed Securities			U.S. Government Sponsored Agency Securities			Total
Assets:
Opening Balance, as of August 31, 2016	$	468,888		$	1,589,583		$	2,580,068		$	4,638,539
Transfers into Level 3		—			12,150			—			12,150
Transfers out of Level 3		—			—			—			—
Accrued discounts/premiums		(61,704	)		—			(5,071	)		(66,775	)
Net realized gain (loss)		(43,544	)		(107	)		(5,220	)		(48,871	)
Net change in unrealized appreciation (depreciation)^1,2		72,837			(109,882	)		21,459			(15,586	)
Purchases		—			—			—			—
Sales		—			(4	)		(250,156	)		(250,160	)

Closing Balance, as of February 28, 2017	$	436,477		$	1,491,740		$	2,341,080		$	4,269,297

Net change in unrealized appreciation (depreciation) on investments held as of February 28, 2017²	$	72,837		$	(109,882	)	$	21,459		$	(15,586	)

¹ Included in the related net change in unrealized appreciation (depreciation) in the Statements of Operations.
² Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments held as of February 28, 2017 is generally due to investments no longer held or categorized as Level 3 at period end.

The Trust’s investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information inputs could result in a significantly lower or higher value of such Level 3 investments.

See Notes to Financial Statements.



64	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Statements of Assets and Liabilities


February 28, 2017 (Unaudited)	BlackRock Core Bond Trust (BHK)		BlackRock Corporate High Yield Fund, Inc. (HYT)¹			BlackRock Income Trust, Inc. (BKT)

Assets
Investments at value — unaffiliated²	$	1,066,557,197	$	2,114,906,241		$	645,143,633
Investments at value — affiliated³		31,449,022		534,637			5,700,134
Cash		22,374		791,505			—
Cash pledged:
Collateral — reverse repurchase agreements		6,527,000		—			—
Collateral — OTC derivatives		1,370,000		—			3,940,000
Futures contracts		778,548		275,150			1,842,260
Centrally cleared swaps		1,229,940		5,879,000			—
Foreign currency at value⁴		1,635,287		207,963			—
Receivables:
Investments sold		2,136,009		15,839,220			158,743
Options written		1,923		—			—
TBA sale commitments		—		—			142,589,225
Dividends — unaffiliated		27,422		15,600			—
Dividends — affiliated		8,793		1,054			3,987
Interest — unaffiliated		11,522,081		30,009,359			2,035,191
Principal paydowns		—		—			13,367
Variation margin on futures contracts		—		66,506			149,968
Variation margin on centrally cleared swaps		1,148		46,823			—
Swap premiums paid		1,300		9,818			—
Unrealized appreciation on:
Forward foreign currency exchange contracts		331,522		1,815,146			—
OTC swaps		28,946		1,526,091			2,263,334
Unfunded floating rate loan interests		—		6,020			—
Prepaid expenses		36,668		76,314			28,315
Other assets		813,905		—			763

Total assets		1,124,479,085		2,172,006,447			803,868,920


Liabilities
Bank overdraft		—		—			3,341
Cash received:
Collateral — OTC derivatives		890,000		2,080,000			2,330,000
Collateral — reverse repurchase agreements		2,013,000		—			31,697
Collateral — TBA commitments		—		—			32,000
Borrowed bonds at value⁵		—		—			880,141
Options written at value⁶		2,608,566		78,960			—
TBA sale commitments at value⁷		—		—			143,113,952
Reverse repurchase agreements		327,543,464		—			175,000,173
Payables:
Investments purchased		4,545,939		47,031,103			46,055,069
Swaps		—		299,457			—
Administration fees		—		—			49,625
Bank borrowings		—		577,000,000			—
Income dividends		65,634		393,168			47,332
Interest expense		—		879,284			7,384
Investment advisory fees		422,128		967,030			214,482
Officer’s and Trustees’ fees		201,343		532,044			196,404
Options written		9,796		—			—
Other accrued expenses		373,232		859,410			194,824
Principle paydowns		140,287		—			—
Variation margin on futures contracts		47,623		—			181,156
Swap premiums received		2,762,607		17,557			115,487
Unrealized appreciation on:
Forward foreign currency exchange contracts		117,628		62,061			—
OTC swaps		433,370		—			3,643,801
Other liabilities		240,760		—			—
Contingencies		—		—	⁸		—

Total liabilities		342,415,377		630,200,074			372,096,868

Net Assets	$	782,063,708	$	1,541,806,373		$	431,772,052


Statements of Assets and Liabilities (concluded)


February 28, 2017 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund, Inc. (HYT)¹			BlackRock Income Trust, Inc. (BKT)

Net Assets Consist of
Paid-in capital^9,10,11	$	761,161,052		$	1,777,217,959		$	478,262,054
Undistributed (distributions in excess of) net investment income		(534,465	)		456,259			1,863,640
Accumulated net realized loss		(7,875,939	)		(240,339,842	)		(34,127,152	)
Net unrealized appreciation (depreciation)		29,313,060			4,471,997			(14,226,490	)

Net Assets	$	782,063,708		$	1,541,806,373		$	431,772,052

Net asset value, offering and redemption price per share	$	14.50		$	12.19		$	6.75

¹ Consolidated Statement of Assets and Liabilities.
² Investments at cost — unaffiliated	$	1,038,648,300		$	2,117,324,467		$	658,187,230
³ Investments at cost — affiliated	$	31,449,022		$	534,637		$	5,700,134
⁴ Foreign currency at cost	$	1,618,775		$	208,836			—
⁵ Proceeds received from borrowed bonds		—			—		$	842,347
⁶ Premiums received	$	3,892,866		$	103,169			—
⁷ Proceeds from TBA sale commitments		—			—		$	142,589,225
⁸ See Note 12 of the Notes to Financial Statements for details of contingencies.
⁹ Par value	$	0.001		$	0.100		$	0.010
¹⁰ Shares outstanding		53,935,126			126,458,988			63,942,535
¹¹ Shares authorized		Unlimited			200 million			200 million


Statements of Operations


Six Months Ended February 28, 2017 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund, Inc. (HYT)¹			BlackRock Income Trust, Inc. (BKT)

Investment Income
Interest — unaffiliated	$	24,555,273		$	63,340,837		$	10,370,390
Dividends — unaffiliated		361,288			936,762			—
Dividends — affiliated		26,431			175,777			17,431
Foreign taxes withheld		(15	)		(11,836	)		—

Total investment income		24,942,977			64,441,540			10,387,821


Expenses
Investment advisory		2,740,787			6,160,096			1,408,579
Professional		86,505			215,746			52,999
Accounting services		74,376			53,743			51,051
Custodian		51,222			101,761			18,630
Officer and Trustees		49,529			98,413			32,904
Transfer agent		45,025			77,615			35,452
Printing		13,401			18,648			10,455
Registration		10,999			25,816			13,030
Administration		—			—			325,057
Miscellaneous		51,101			73,959			20,179

Total expenses excluding interest expense and income tax		3,122,945			6,825,797			1,968,336
Interest expense		1,089,968			3,892,868			604,614
Income tax		—			24,570			—

Total expenses		4,212,913			10,743,235			2,572,950
Less fees waived by the Manager		(5,164	)		(21,535	)		(3,753	)

Total expenses after fees waived		4,207,749			10,721,700			2,569,197

Net investment income		20,735,228			53,719,840			7,818,624


Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated		2,586,448			19,064,267			1,991,847
Investments — affiliated		—			32,072			—
Capital gain distributions from investment companies — affiliated		77			5			57
Payment by affiliate		—			29,894			—
Futures contracts		(824,024	)		(4,063,216	)		7,619,008
Forward foreign currency exchange contracts		219,047			(2,045,808	)		—
Foreign currency transactions		1,090,673			6,469,269			—
Options written		2,597,639			441,268			—
Swaps		2,505,463			3,974,398			(766,747	)
Borrowed bonds		23,345			—			—

		8,198,668			23,902,149			8,844,165

Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		(46,591,830	)		26,848,523			(20,958,587	)
Investments — affiliated		—			(129,580	)		—
Futures contracts		(2,161	)		1,258,481			672,901
Forward foreign currency exchange contracts		248,149			1,859,320			—
Foreign currency translations		(50,064	)		(277,799	)		—
Options written		(2,270,785	)		27,250			—
Swaps		282,290			2,815,596			541,175
Borrowed bonds		—			—			138,517
Unfunded floating rate loan interests		—			6,020			—

		(48,384,401	)		32,407,811			(19,605,994	)

Net realized and unrealized gain (loss)		(40,185,733	)		56,309,960			(10,761,829	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(19,450,505	)	$	110,029,800		$	(2,943,205	)

¹ Consolidated Statement of Operations.


Statements of Changes in Net Assets		BlackRock Core Bond Trust (BHK)


Increase (Decrease) in Net Assets:	Six Months Ended February 28, 2017 (Unaudited)			Year Ended August 31, 2016

Operations
Net investment income	$	20,735,228		$	42,442,765
Net realized gain (loss)		8,198,668			(9,103,783	)
Net change in unrealized appreciation (depreciation)		(48,384,401	)		63,936,110

Net increase (decrease) in net assets resulting from operations		(19,450,505	)		97,275,092


Distributions to Shareholders¹
From net investment income		(21,034,700	)		(45,548,216	)


Net Assets
Total increase (decrease) in net assets		(40,485,205	)		51,726,876
Beginning of period		822,548,913			770,822,037

End of period	$	782,063,708		$	822,548,913

Distribution in excess of net investment income, end of period	$	(534,465	)	$	(234,993	)

Distributions for annual periods determined in accordance with federal income tax regulations.


Consolidated Statements of Changes in Net Assets		BlackRock Corporate High Yield Fund, Inc. (HYT)


Increase (Decrease) in Net Assets:	Six Months Ended February 28, 2017 (Unaudited)			Year Ended August 31, 2016

Operations
Net investment income	$	53,719,840		$	104,178,797
Net realized gain (loss)		23,902,149			(81,809,717	)
Net change in unrealized appreciation (depreciation)		32,407,811			68,616,518

Net increase in net assets resulting from operations		110,029,800			90,985,598


Distributions to Shareholders¹
From net investment income		(59,618,596	)		(125,343,672	)


Capital Share Transactions
Redemption of shares resulting from share repurchase program (including transaction costs)		(1,553,292	)		—


Net Assets
Total increase (decrease) in net assets		48,857,912			(34,358,074	)
Beginning of period		1,492,948,461			1,527,306,535

End of period	$	1,541,806,373		$	1,492,948,461

Undistributed net investment income, end of period	$	456,259		$	6,355,015

Distributions for annual periods determined in accordance with federal income tax regulations.


Statements of Changes in Net Assets		BlackRock Income Trust, Inc. (BKT)


Increase (Decrease) in Net Assets:	Six Months Ended February 28, 2017 (Unaudited)			Year Ended August 31, 2016

Operations
Net investment income	$	7,818,624		$	17,954,552
Net realized gain (loss)		8,844,165			(7,232,394	)
Net change in unrealized appreciation (depreciation)		(19,605,994	)		3,604,122

Net increase (decrease) in net assets resulting from operations		(2,943,205	)		14,326,280


Distributions to Shareholders¹
From net investment income		(10,166,864	)		(22,060,177	)


Net Assets
Total decrease in net assets		(13,110,069	)		(7,733,897	)
Beginning of period		444,882,121			452,616,018

End of period	$	431,772,052		$	444,882,121

Undistributed net investment income, end of period	$	1,863,640		$	4,211,880

Distributions for annual periods determined in accordance with federal income tax regulations.


Statements of Cash Flows


Six Months Ended February 28, 2017 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund, Inc. (HYT)¹			BlackRock Income Trust, Inc. (BKT)

Cash Provided by (Used for) Operating Activities
Net increase (decrease) in net assets resulting from operations	$	(19,450,505	)	$	110,029,800		$	(2,943,205	)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:
Proceeds from sales of long-term investments and principal paydowns		211,695,566			752,471,248			617,030,975
Net proceeds from sales of short-term securities		—			—			1,562,537
Purchases of long-term investments		(232,412,782	)		(723,595,275	)		(650,317,401	)
Net purchases of short-term securities		(18,522,113	)		(534,637	)		—
Amortization of premium and accretion of discount on investments		1,891,105			(1,659,214	)		2,767,063
Payments for borrowed bonds		(1,758,089	)		—			—
Proceeds from borrowed bonds		1,781,434			—			—
Premiums paid on closing options written		(7,878,141	)		(48,641	)		—
Premiums received from options written		5,548,886			574,078			—
Net realized loss on investments and options written		(4,972,043	)		(18,492,773	)		(1,716,327	)
Net unrealized gain (loss) on investments, options written, swaps, borrowed bonds and foreign currency translations		48,685,283			(27,221,257	)		20,278,536
(Increase) Decrease in Assets:
Cash pledged:
Collateral — OTC derivatives		2,650,000			—			1,100,000
Collateral — reverse repurchase agreements		(6,527,000	)		—			682,769
Futures contracts		571,422			1,293,000			681,000
Centrally cleared swaps		10,000			(3,022,000	)		—
Receivables:
Dividends — unaffiliated		—			(6,839	)		—
Dividends — affiliated		(5,656	)		(488	)		2,589
Interest — unaffiliated		(397,412	)		(285,006	)		94,458
Variation margin on futures contracts		75,335			66,389			(57,218	)
Variation margin on centrally cleared swaps		4,758			(46,823	)		—
Swap premiums paid		(1,293	)		43,420			—
Prepaid expenses		(23,060	)		(46,651	)		(16,668	)
Other assets		(807,963	)		—			5
Increase (Decrease) in Liabilities:
Cash received:
Collateral — reverse repurchase agreements		809,000			—			31,697
Collateral — borrowed bond agreements								32,000
Collateral — OTC derivatives		370,000			(250,000	)		(1,000,000	)
Payables:
Swaps		—			299,457			—
Administration fees		—			—			(63,618	)
Interest expense and fees		99,965			120,692			(25,378	)
Investment advisory fees		(511,669	)		(1,094,774	)		(275,271	)
Officer’s and Trustees’ fees		4,395			25,322			14,250
Other accrued expenses		73,890			86,574			20,645
Variation margin on futures contracts		44,454			—			127,031
Variation margin on centrally cleared swaps		—			(99,311	)		—
Swap premiums received		1,961,252			(781	)		(13,385	)

Net cash provided by (used for) operating activities		(16,990,981	)		88,605,510			(12,002,916	)

¹ Consolidated Statement of Cash Flows.


Statements of Cash Flows (concluded)


Six Months Ended February 28, 2017 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund, Inc. (HYT)¹			BlackRock Income Trust, Inc. (BKT)

Cash Provided by (Used for) Financing Activities
Cash dividends paid to Common Shareholders	$	(21,051,920	)	$	(59,680,116	)	$	(10,167,288	)
Net payments on redemption of Common Shares		—			(1,553,292	)		—
Payments on the bank borrowings		—			(332,000,000	)		—
Proceeds from bank borrowings		—			305,000,000			—
Increase (decrease) in bank overdraft		—			(2,604	)		3,341
Net borrowing of reverse repurchase agreements		39,204,610			—			22,166,863

Net cash provided by (used for) financing activities		18,152,690			(88,236,012	)		12,002,916


Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations	$	13,477		$	(1,488	)		—


Cash and Foreign Currency
Net increase (decrease) in cash and foreign currency at value		1,175,186			368,010			—
Cash and foreign currency at value at beginning of period		482,475			631,458			—

Cash and foreign currency at value at end of period	$	1,657,661		$	999,468			—


Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest expense	$	990,003		$	3,772,176		$	629,992

¹ Consolidated Statement of Cash Flows.


Financial Highlights		BlackRock Core Bond Trust (BHK)


	Six Months Ended February 28, 2017 (Unaudited)			Year Ended August 31,
	Six Months Ended February 28, 2017 (Unaudited)			2016			2015			2014			2013			2012

Per Share Operating Performance
Net asset value, beginning of period	$	15.25		$	14.29		$	15.24		$	14.05		$	15.21		$	13.78

Net investment income¹		0.38			0.79			0.86			0.87			0.89			0.88
Net realized and unrealized gain (loss)		(0.74	)		1.01			(0.73	)		1.23			(1.11	)		1.37

Net increase (decrease) from investment operations		(0.36	)		1.80			0.13			2.10			(0.22	)		2.25

Distributions:²
From net investment income		(0.39	)		(0.84	)		(1.04	)		(0.91	)		(0.94	)		(0.82	)
In excess of net investment income³		—			—			(0.04	)		—			—			—

Total distributions		(0.39	)		(0.84	)		(1.08	)		(0.91	)		(0.94	)		(0.82	)

Net asset value, end of period	$	14.50		$	15.25		$	14.29		$	15.24		$	14.05		$	15.21

Market price, end of period	$	13.34		$	14.33		$	12.63		$	13.64		$	12.50		$	15.41


Total Return⁴
Based on net asset value		(2.10)%	⁵		13.67%			1.62%			16.09%	⁶		(1.42)%			17.06%

Based on market price		(4.15)%	⁵		20.85%			0.35%			16.78%			(13.43)%			28.78%


Ratios to Average Net Assets
Total expenses		1.08%	⁷		0.97%			0.95%	⁸		1.06%	⁸		1.03%			0.95%

Total expenses after fees waived		1.08%	⁷		0.97%			0.95%	⁸		1.02%	⁸		0.98%			0.94%

Total expenses after fees waived and excluding interest expense		0.80%	⁷		0.78%			0.82%	⁸		0.91%	⁸		0.86%			0.86%

Net investment income		5.33%	⁷		5.48%			5.83%			5.94%			5.92%			6.13%


Supplemental Data
Net assets, end of period (000)	$	782,064		$	822,549		$	770,822		$	412,078		$	379,913		$	411,136

Borrowings outstanding, end of period (000)	$	327,543		$	288,239		$	303,651		$	168,301		$	172,537		$	182,679

Portfolio turnover rate⁹		19%			35%			55%			82%			100%			290%

Based on average shares outstanding.

Distributions for annual periods determined in accordance with federal income tax regulations.

Taxable distribution.

⁴

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁵

Aggregate total return.

⁶

Includes proceeds received from a settlement of litigation, which impacted the Trust’s total return. Excluding these proceeds, the total return would have been 16.01%.

⁷

Annualized.

⁸

Includes reorganization costs associated with the Trust’s merger. Without these costs, total expenses, total expenses after fees waived and paid indirectly, and total expenses after fees waived and paid indirectly and excluding interest expense would have been 0.94%, 0.94% and 0.82% for the year ended August 31, 2015 and 1.00%, 0.96% and 0.85% for the year ended August 31, 2014, respectively.

⁹

Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:


	Six Months Ended February 28, 2017 (Unaudited)		Year Ended August 31,
	Six Months Ended February 28, 2017 (Unaudited)		2016		2015		2014		2013		2012

Portfolio turnover (excluding MDRs)		19%		35%		51%		48%		63%		237%


Consolidated Financial Highlights		BlackRock Corporate High Yield Fund, Inc. (HYT)


	Six Months Ended February 28, 2017 (Unaudited)			Year Ended August 31,
	Six Months Ended February 28, 2017 (Unaudited)			2016			2015			2014			2013			2012

Per Share Operating Performance
Net asset value, beginning of period	$	11.79		$	12.06		$	13.47		$	12.62		$	12.32		$	11.49

Net investment income¹		0.42			0.82			0.87			0.98			1.00			1.04
Net realized and unrealized gain (loss)		0.45			(0.10	)		(1.31	)		0.91			0.41			0.83

Net increase (decrease) from investment operations		0.87			0.72			(0.44	)		1.89			1.41			1.87

Distributions from net investment income²		(0.47	)		(0.99	)		(0.97	)		(1.04	)		(1.11	)		(1.04	)

Net asset value, end of period	$	12.19		$	11.79		$	12.06	³	$	13.47		$	12.62		$	12.32

Market price, end of period	$	11.16		$	10.88		$	9.97		$	12.07		$	11.37		$	12.96


Total Return⁴
Based on net asset value		8.00%	⁵		7.76%			(2.40)%	³		16.21%			11.90%			17.14%

Based on market price		7.14%	⁵		20.29%			(9.96)%			15.58%			(4.16)%			26.30%


Ratios to Average Net Assets
Total expenses		1.44%	^6,7		1.39%	⁷		1.37%			1.35%	⁸		1.54%	⁹		1.51%

Total expenses after fees waived		1.44%	^6,7		1.39%	⁷		1.37%			1.35%	⁸		1.54%	⁹		1.51%

Total expenses after fees waived and excluding interest expense and income tax		0.92%	^6,7		0.93%	⁷		0.96%			0.98%	⁸		1.16%	^9,10		1.19%	¹¹

Net investment income		7.22%	⁶		7.30%			6.88%			7.40%			7.83%			8.84%


Supplemental Data
Net assets, end of period (000)	$	1,541,806		$	1,492,948		$	1,527,307		$	1,705,422		$	446,847		$	435,955

Borrowings outstanding, end of period (000)	$	577,000		$	604,000		$	631,000		$	723,000		$	191,000		$	181,000

Asset coverage, end of period $1,000 of bank borrowing	$	3,672		$	3,472		$	3,419		$	3,359		$	3,340		$	3,409

Portfolio turnover rate		36%			66%			57%			64%			77%			61%

Based on average shares outstanding.

Distributions for annual periods determined in accordance with federal income tax regulations.

For financial reporting purposes, the market value of certain total return swaps were adjusted as of report date. Accordingly, the net asset value (“NAV”) per share and total return performance based on net asset value presented herein are different than the information previously published on August 31, 2015.

⁴

⁵

Aggregate total return.

⁶

Annualized.

⁷

Does not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.07% and 0.11% for the six months ended February 28, 2017 and the year ended August 31, 2016, respectively.

⁸

Includes reorganization costs. Without these costs, total expenses, total expenses after fees waived and paid indirectly, and total expenses after fees waived and paid indirectly and excluding interest expense would have been 1.34%, 1.34% and 0.97%, respectively.

⁹

¹⁰

For the year ended August 31, 2013, the total expense ratio after fees waived and paid indirectly and excluding interest expense, borrowing costs and income tax was 1.15%.

¹¹

For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense and borrowing costs was 1.09%.


Financial Highlights		BlackRock Income Trust, Inc. (BKT)


	Six Months Ended February 28, 2017 (Unaudited)			Year Ended August 31,
	Six Months Ended February 28, 2017 (Unaudited)			2016			2015			2014			2013			2012

Per Share Operating Performance
Net asset value, beginning of period	$	6.96		$	7.08		$	7.27		$	7.32		$	7.94		$	7.96

Net investment income¹		0.12			0.28			0.32			0.35			0.32			0.39
Net realized and unrealized gain (loss)		(0.17	)		(0.05	)		(0.11	)		0.03			(0.46	)		0.06

Net increase (decrease) from investment operations		(0.05	)		0.23			0.21			0.38			(0.14	)		0.45

Distributions:²
From net investment income		(0.16	)		(0.35	)		(0.40	)		(0.43	)		(0.48	)		(0.27	)
From net realized gain		—			—			—			—			—			(0.20	)

Total distributions		(0.16	)		(0.35	)		(0.40	)		(0.43	)		(0.48	)		(0.47	)

Net asset value, end of period	$	6.75		$	6.96		$	7.08		$	7.27		$	7.32		$	7.94

Market price, end of period	$	6.26		$	6.60		$	6.30		$	6.42		$	6.40		$	7.63


Total Return³
Based on net asset value		(0.56)%	⁴		3.64%			3.56%			6.05%			(1.45)%			6.24%

Based on market price		(2.74)%	⁴		10.44%			4.35%			7.12%			(10.34)%			13.19%


Ratios to Average Net Assets
Total expenses		1.19%	^5.6		1.08%			0.99%	⁶		1.02%	⁷		1.00%			0.97%

Total expenses after fees waived		1.19%	^5,6		1.08%			0.99%	⁶		1.02%	⁷		1.00%			0.97%

Total expenses after fees waived and excluding interest expense		0.91%	^5,6		0.89%			0.90%	⁶		0.96%	⁷		0.90%			0.90%

Net investment income		3.61%	⁵		4.01%			4.48%			4.74%			4.18%			4.86%


Supplemental Data
Net assets, end of period (000)	$	431,772		$	444,882		$	452,616		$	464,933		$	467,948		$	507,852

Borrowings outstanding, end of period (000)	$	175,000		$	152,859		$	173,695		$	205,415		$	148,344		$	119,706

Portfolio turnover rate⁸		132%			141%			191%			256%			358%			487%

Based on average shares outstanding.

Distributions for annual periods determined in accordance with federal income tax regulations.

⁴

Aggregate total return.

⁵

Annualized.

⁶

Does not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.01%.

⁷

⁸

Includes MDRs. Additional information regarding portfolio turnover rate is as follows:


	Six Months Ended February 28, 2017 (Unaudited)		Year Ended August 31,
	Six Months Ended February 28, 2017 (Unaudited)		2016		2015		2014		2013		2012

Portfolio turnover (excluding MDRs)		55%		63%		78%		125%		196%		230%


Notes to Financial Statements (Unaudited)

1. Organization:

The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to herein collectively as the “Trusts”, or individually, a “Trust”:

Trust Name

Herein Referred To As

Organized

Diversification Classification

BlackRock Core Bond Trust

BHK

Delaware

Diversified

BlackRock Corporate High Yield Trust, Inc.

HYT

Maryland

Diversified

BlackRock Income Trust, Inc.

BKT

Maryland

Diversified

The Boards of Directors and Boards of Trustees of the Trusts are collectively referred to throughout this report as the “Board of Trustees” or the “Board,” and the directors/trustees thereof are collectively referred to throughout this report as “Trustees.” The Trusts determine and make available for publication the net asset value (“NAV”) of their Common Shares on a daily basis.

The Trusts, together with certain other registered investment companies advised by BlackRock Advisors, LLC (“the “Manager”) or its affiliates, are included in a complex of closed-end Trusts referred to as the Closed-End Complex.

Basis of Consolidation: The accompanying consolidated financial statements of HYT include the accounts of BLK HYT (Luxembourg) Investments, S.a.r.l., BLK HYV (Luxembourg) Investments, S.a.r.l., BLK COY (Luxembourg) Investments, S.a.r.l. and BLK CYE (Luxembourg) Investments, S.a.r.l. collectively, (the “Taxable Subsidiaries”), which are wholly owned taxable subsidiaries of HYT which hold shares of private Canadian companies, Laricina Energy Ltd. and Osum Oil Sands Corp. Such shares are held in the Taxable Subsidiaries in order to realize benefits under the Double Tax Avoidance Convention between Canada and Luxembourg, the result of which is gains on the sale of such shares will generally not be subject to capital gains taxes in Canada. Income earned on the investment held by the Taxable Subsidiary may be taxable to such subsidiary in Luxembourg. A tax provision, if any, is included in expenses in the Consolidated Statement of Operations for HYT. The net assets of the Taxable Subsidiaries as of period end were $900,468, which is 0.1% of HYT’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated. The Taxable Subsidiaries are subject to the same investment policies and restrictions that apply to HYT.

2. Significant Accounting Policies:

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Trust is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Foreign Currency: Each Trust‘s books and records are maintained in U.S. dollars. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Trust does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Trust reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Segregation and Collateralization: In cases where a Trust enters into certain investments (e.g., dollar rolls, TBA sale commitments, futures contracts, forward foreign currency exchange contracts, options written, swaps and short sales) or certain borrowings (e.g., reverse repurchase transactions) that would be treated as “senior securities” for 1940 Act purposes, a Trust may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowing to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Trust may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Trusts are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.



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Distributions: Distributions from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. Portions of return of capital distributions under U.S. GAAP may be taxed at ordinary income rates. The character of distributions is determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP. The portion of distributions that exceeds a Trust’s current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Realized net capital gains can be offset by capital losses carried forward from prior years. However, certain Trusts have capital loss carryforwards from pre-2012 tax years that offset realized net capital gains but do not offset current earnings and profits. Consequently, if distributions in any tax year are less than the Trust’s current earnings and profits but greater than net investment income and net realized capital gains (taxable income), distributions in excess of taxable income are not treated as non-taxable return of capital, but rather may be taxable to shareholders at ordinary income rates. Under certain circumstances, taxable excess distributions could be significant.

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

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust, if applicable. Deferred compensation liabilities are included in officer’s and trustees’ fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance with the Plan.

Recent Accounting Standards: In November 2016, the Financial Accounting Standards Board issued Accounting Standards Update “Restricted Cash” which will require entities to include the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the beginning and ending cash balances in the Statements of Cash Flows. The guidance will be applied retrospectively and is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Management is evaluating the impact, if any, of this guidance on the Trusts’ presentation in the Statements of Cash Flows.

Indemnifications: In the normal course of business, a Trust enters into contracts that contain a variety of representations that provide general indemnification. A Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Trust, which cannot be predicted with any certainty.

Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several Funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

Through May 31, 2016, the Trusts had an arrangement with their custodian whereby credits were earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges. Credits previously earned may have been utilized until December 31, 2016. Under current arrangements effective June 1, 2016, the Trusts no longer earn credits on uninvested cash, and may incur charges on uninvested cash balances and overdrafts, subject to certain conditions.

3. Investment Valuation and Fair Value Measurements:

Investment Valuation Policies: The Trusts’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Trust’s assets and liabilities:

•

Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

•

Fixed-income securities for which market quotations are readily available are generally valued using the last available bid prices or current market quotations provided by independent dealers or third party pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more independent brokers or dealers as obtained from a third party pricing service. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but the Trusts may hold or transact in such securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), credit quality information, perceived market



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movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Funds’ net assets. Each business day, the Funds use a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and over-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets

•

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

•

Investments in open-end U.S. mutual funds are valued at NAV each business day.

•

Futures contracts traded on exchanges are valued at their last sale price.

•

Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the NYSE. Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available

•

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

•

Swap agreements are valued utilizing quotes received daily by the Trusts’ pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.

•

To-be-announced (“TBA”) commitments are valued on the basis of last available bid prices or current market quotations provided by pricing services.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include Market approach, Income approach and Cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Trust might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement.

The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of Each Trust’s pricing vendors, regular reviews of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis. As a result of the inherent uncertainty in valuation of these investments, the fair values may differ from the values that would have been used had an active market existed.

For investments in equity or debt issued by privately-held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by third party pricing services utilize one or a combination of, but not limited to, the following inputs.



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Notes to Financial Statements (continued)

Standard Inputs Generally Considered By Third Party Pricing Services


Market approach		(i) recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii) market multiples of comparable issuers.
Income approach		(i) future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach		(i) audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii) relevant news and other public sources; and (iv) known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing Market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by a Trust. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date a Trust is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Trust could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

•

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Trust has the ability to access

•

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

•

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of February 28, 2017, certain investments of the HYT were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. Securities and Other Investments:

Asset-Backed and Mortgage-Backed Securities: Asset-backed securities are generally issued as pass-through certificates or as debt instruments. Asset-backed securities issued as pass-through certificates represent undivided fractional ownership interests in an underlying pool of assets. Asset-backed securities issued as debt instruments, which are also known as collateralized obligations are typically issued as the debt of a special purpose entity



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organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security will have the effect of shortening the maturity of the security. In addition, a Trust may subsequently have to reinvest the proceeds at lower interest rates. If a Trust has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.

For mortgage pass-through securities (the “Mortgage Assets”), there are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by Ginnie Mae are guaranteed as to the timely payment of principal and interest by Ginnie Mae and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed mortgage pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States, but are supported by the right of the issuer to borrow from the U.S. Treasury.

Non-agency mortgage-backed securities are securities issued by non-governmental issuers and have no direct or indirect government guarantees of payment and are subject to various risks. Non-agency mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity. The ability of a borrower to repay a loan is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, acts of God, terrorism, social unrest and civil disturbances, may impair a borrower’s ability to repay its loans.

Collateralized Debt Obligations: Collateralized debt obligations (“CDOs”), including collateralized bond obligations (“CBOs”) and collateralized loan obligations (“CLOs”), which are types of asset-backed securities. A CDO is an entity that is backed by a diversified pool of debt securities (CBOs) or syndicated bank loans (CLOs). The cash flows of the CDO can be split into multiple segments, called “tranches,” which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CDO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive investment grade ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.

Multiple Class Pass-Through Securities: Multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities, may be issued by Ginnie Mae, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by a pool of residential or commercial mortgage loans or mortgage pass-through securities (the “Mortgage Assets”). The payments on these are used to make payments on the CMOs or multiple pass-through securities. Multiple class pass-through securities represent direct ownership interests in the Mortgage Assets. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated prepayments of principal, a Trust’s initial investment in the IOs may not fully recoup.

Stripped Mortgage-Backed Securities: Stripped mortgage-backed securities are typically issued by the U.S. Government, its agencies and instrumentalities. Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest (IOs) and principal (POs) distributions on a pool of Mortgage Assets. Stripped mortgage-backed securities may be privately issued.

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

Capital Securities and Trust Preferred Securities: Capital securities, including trust preferred securities, are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics. In the case of trust preferred securities, an affiliated business trust of a corporation issues these securities, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured with either a fixed or adjustable coupon that can have either a perpetual or stated maturity date. For trust preferred securities, the issuing bank or corporation pays interest to the trust, which is then distributed to holders of these securities as a dividend. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of



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payments does not affect the purchase or sale of these securities in the open market. Payments on these securities are treated as interest rather than dividends for U.S. federal income tax purposes. These securities generally are rated below that of the issuing company’s senior debt securities and are freely callable at the issuer’s option.

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

Warrants: Warrants entitle a Trust to purchase a specified number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any. If the price of the underlying stock does not rise above the strike price before the warrant expires, the warrant generally expires without any value and a Trust will lose any amount it paid for the warrant. Thus, investments in warrants may involve more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock.

Floating Rate Loan Interests: Floating rate loan interests are typically issued to companies (the “borrower”) by banks, other financial institutions, or privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged or in bankruptcy proceedings. In addition, transactions in floating rate loan interests may settle on a delayed basis, which may result to proceeds from the sale to not be readily available for a Trust to make additional investments or meet its redemption obligations. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. Since the rates reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the NAV of a Trust to the extent that it invests in floating rate loan interest. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. These investments are treated as investments in debt securities for purposes of a Trust’s investment policies.

When a Trust purchases a floating rate loan interest, it may receive a facility fee and when it sells a floating rate loan interest, 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 amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by a Trust upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. A Trust may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. A Trust may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in a Trust having a contractual relationship only with the lender, not with the borrower. A Trust has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, a Trust generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower. A Trust may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, a Trust assumes the credit risk of both the borrower and the lender that is selling the Participation. A Trust’s investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, a Trust may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in a Trust having a direct contractual relationship with the borrower, and a Trust may enforce compliance by the borrower with the terms of the loan agreement.

In connection with floating rate loan interests, the Trusts may also enter into unfunded floating rate loan interests (“commitments”). In connection with these commitments, a Trust earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in interest income in the Statements of Operations, is recognized ratably over the commitment period. Unfunded floating rate loan interests are marked-to-market daily, and any unrealized appreciation (depreciation) is included in the Statements of Assets and Liabilities and Statements of Operations. As of period end, the Trusts had the following unfunded floating rate loan interests:


Trust	Borrower	Par		Commitment Amount		Value		Unrealized Appreciation
HYT	Oberthur Technologies S.A.	$	418,671	$	416,578	$	422,598	$	6,020



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Forward Commitments and When-Issued Delayed Delivery Securities: Certain Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A Trust may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a Trust may be required to pay more at settlement than the security is worth. In addition, a Trust is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a Trust assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a Trust’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

TBA Commitments: TBA commitments are forward agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms. When entering into TBA commitments, a Trust may take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

In order to better define contractual rights and to secure rights that will help a Trust mitigate their counterparty risk, TBA commitments may be entered into by a Trust under Master Securities Forward Transaction Agreements (each, an “MSFTA”). An MSFTA typically contains, among other things, collateral posting terms and netting provisions in the event of default and/or termination event. The collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of the collateral currently pledged by a Trust and the counterparty. Cash collateral that has been pledged to cover the obligations of a Trust and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as cash pledged as collateral for TBA commitments or cash received as collateral for TBA commitments, respectively. Non-cash collateral pledged by a Trust, if any, is noted in the Schedules of Investments. Typically, a Trust is permitted to sell, repledge or use the collateral it receives; however, the counterparty is not permitted to do so. To the extent amounts due to a Trust are not fully collateralized, contractually or otherwise, a Trust bears the risk of loss from counterparty non-performance.

Mortgage Dollar Roll Transactions: Certain Trusts may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (i.e., same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, a Trust is not entitled to receive interest and principal payments on the securities sold. Mortgage dollar roll transactions are treated as purchases and sales and realize gains and losses on these transactions. Mortgage dollar rolls involve the risk that the market value of the securities that a Trust is required to purchase may decline below the agreed upon repurchase price of those securities.

Borrowed Bond Agreements: Repurchase agreements may be referred to as borrowed bond agreements when entered into in connection with short sales of bonds. In a borrowed bond agreement, a Trust borrows a bond from a counterparty in exchange for cash collateral. The agreement contains a commitment that the security and the cash will be returned to the counterparty and a Trust at a mutually agreed upon date. Certain agreements have no stated maturity and can be terminated by either party at any time. Earnings on cash collateral and compensation to the lender of the bond are based on agreed upon rates between a Trust and the counterparty. The value of the underlying cash collateral approximates the market value and accrued interest of the borrowed bond. To the extent that a borrowed bond transaction exceeds one business day, the value of the cash collateral in the possession of the counterparty is monitored on a daily basis to ensure the adequacy of the collateral. As the market value of the borrowed bond changes, the cash collateral is periodically increased or decreased with a frequency and in amounts prescribed in the borrowed bond agreement. A Trust may also experience delays in gaining access to the collateral.

Reverse Repurchase Agreements: Reverse repurchase agreements are agreements with qualified third party broker dealers in which a Trust sells securities to a bank or broker-dealer and agrees to repurchase the same securities at a mutually agreed upon date and price. A Trust receives cash from the sale to use for other investment purposes. During the term of the reverse repurchase agreement, a Trust continues to receive the principal and interest payments on the securities sold. Certain agreements have no stated maturity and can be terminated by either party at any time. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates determined at the time of issuance. A Trust may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. Reverse repurchase agreements involve leverage risk. If a Trust suffers a loss on its investment of the transaction proceeds from a reverse repurchase agreement, a Trust would still be required to pay the full repurchase price. Further, a Trust remains subject to the risk that the market value of the securities repurchased declines below the repurchase price. In such cases, a Trust would be required to return a portion of the cash received from the transaction or provide additional securities to the counterparty.

Cash received in exchange for securities delivered plus accrued interest due to the counterparty is recorded as a liability in the Statements of Assets and Liabilities at face value including accrued interest. Due to the short-term nature of the reverse repurchase agreements, face value approximates fair value. Interest payments made by a Trust to the counterparties are recorded as a component of interest expense in the Statements of Operations. In periods of increased demand for the security, a Trust may receive a fee for use of the security by the counterparty, which may result in interest income to a Trust.



82	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Notes to Financial Statements (continued)

For the six months ended February 28, 2017, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rates were as follows:


	Average Amount Outstanding		Daily Weighted Average Interest Rate
BHK	$	321,790,078		0.68	%
BKT	$	164,212,684		0.74	%

Borrowed bond agreements and reverse repurchase transactions are entered into by a Trust under Master Repurchase Agreements (each, an “MRA”), which permit a Trust, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from a Trust. With borrowed bond agreements and reverse repurchase transactions, typically a Trust and the counterparty under an MRA are permitted to sell, re-pledge, or use the collateral associated with the transaction. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, a Trust receives or posts securities as collateral with a market value in excess of the repurchase price to be paid or received by a Trust upon the maturity of the transaction. Upon a bankruptcy or insolvency of the MRA counterparty, a Trust is considered an unsecured creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed.

As of period end, the following table is a summary of the Trust’s open reverse repurchase agreements by counterparty which are subject to offset under an MRA on a net basis:


BHK
Counterparty	Reverse Repurchase Agreements		Fair Value of Non-cash Collateral Pledged Including Accrued Interest¹			Cash Collateral Pledged/Received		Net Amount²
Barclays Capital, Inc	$	14,100,817	$	(14,100,817	)		—		—
BNP Paribas Securities Corp.		65,169,427		(65,169,427	)		—		—
Credit Suisse Securities (USA) LLC		9,265,883		(9,265,883	)		—		—
Deutsche Bank AG		35,834,891		(35,834,891	)		—		—
HSBC Securities (USA), Inc.		63,508,832		(63,508,832	)		—		—
Merrill Lynch, Pierce, Fenner & Smith, Inc		2,084,813		(2,084,813	)		—		—
Nomura Securities International, Inc		31,875,098		(31,875,098	)		—		—
RBC Capital Markets, LLC		105,703,703		(105,703,703	)		—		—

Total	$	327,543,464	$	(327,543,464	)		—		—

Collateral with a value of $343,075,306 has been pledged in connection with open reverse repurchase agreements. Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

Net amount represents the net amount payable due to counterparty in the event of default.


BKT
Counterparty	Reverse Repurchase Agreements		Fair Value of Non-cash Collateral Pledged Including Accrued Interest¹			Cash Collateral Pledged/Received	Net Amount²
BNP Paribas Securities Corp.	$	6,933,392	$	(6,933,392	)	—	—
Citigroup Global Markets, Inc.		4,307,213		(4,307,213	)	—	—
HSBC Securities (USA), Inc.		163,759,568		(163,759,568	)	—	—

Total	$	175,000,173	$	(175,000,173	)	—	—

Collateral with a value of $180,030,468 has been pledged in connection with open reverse repurchase agreements. Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

Net amount represents the net amount payable due to the counterparty in the event of default.

As of period end, the following table is a summary of the Trust’s open borrowed bond agreements by counterparty which are subject to offset under an MRA on a net basis:


BKT
Counterparty	Borrowed Bond Agreements¹		Borrowed Bonds at Value including Accrued Interest²			Exposure Due (to)/ from Counterparty before Collateral			Non-cash Collateral Received		Cash Collateral Received		Non-cash Collateral Pledged		Cash Collateral Pledged		Net Collateral (Received)/ Pledged		Net Exposure Due (to)/from Counterparty³
Credit Suisse Securities (USA) LLC	$	856,249	$	(887,525	)	$	(31,276	)		—		—		—		—		—	$	(31,276	)

Included in investments at value-unaffiliated in the Statements of Assets and Liabilities.

Includes accrued interest on borrowed bonds in the amount of $7,384 which is included in interest expense payable in the Statements of Assets and Liabilities.

Net exposure represents the net receivable (payable) that would be due from/to the counterparty in the event of default.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	83


Notes to Financial Statements (continued)

In the event the counterparty of securities under an MRA files for bankruptcy or becomes insolvent, a Trust’s use of the proceeds from the agreement may be restricted while the counterparty, or its trustee or receiver, determines whether or not to enforce a Trust’s obligation to repurchase the securities.

Short Sale Transactions: In short sale transactions, a Trust sells a security it does not hold in anticipation of a decline in the market price of that security. When a Trust makes a short sale, it will borrow the security sold short (borrowed bond) and deliver the fixed-income security to the counterparty to which it sold the security short. An amount equal to the proceeds received by a Trust is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. A Trust is required to repay the counterparty interest on the security sold short, which, if applicable, is shown as interest expense in the Statements of Operations. A Trust is exposed to market risk based on the amount, if any, that the market value of the security increases beyond the market value at which the position was sold. Thus, a short sale of a security involves the risk that instead of declining, the price of the security sold short will rise. The short sale of securities involves the possibility of an unlimited loss since there is an unlimited potential for the market price of the security sold short to increase. A gain is limited to the price at which a Trust sold the security short. A realized gain or loss is recognized upon the termination of a short sale if the market price is either less than or greater than the proceeds originally received. There is no assurance that a Trust will be able to close out a short position at a particular time or at an acceptable price.

5. Derivative Financial Instruments:

The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: Certain Trusts invest in long and/or short positions in futures and options on futures contracts to gain exposure to, or manage exposure to changes in interest rates (interest rate risk), changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Trusts and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Trusts are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract.

Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

Forward Foreign Currency Exchange Contracts: Certain Trusts enter into forward foreign currency exchange contracts to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Trusts are denominated and in some cases, may be used to obtain exposure to a particular market.

The contract is marked to market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Statements of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies.

Options: Certain Trusts purchase and write call and put options to increase or decrease their exposure to the risks of underlying instruments, including equity risk, interest rate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.

A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period.



84	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Notes to Financial Statements (continued)

Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value — unaffiliated and options written at value, respectively, in the Statements of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Statements of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Statements of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Trusts write a call option, such option is typically “covered,” meaning that they hold the underlying instrument subject to being called by the option counterparty. When the Trusts write a put option, such option is covered by cash in an amount sufficient to cover the obligation.

•

Swaptions — Certain Trusts purchase and write options on swaps (“swaptions”) primarily to preserve a return or spread on a particular investment or portion of the Trusts’ holdings, as a duration management technique or to protect against an increase in the price of securities it anticipates purchasing at a later date. The purchaser and writer of a swaption is buying or granting the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.

•

Foreign Currency Options — Certain Trusts purchase and write foreign currency options, foreign currency futures and options on foreign currency futures to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk). Foreign currency options give the purchaser the right to buy from or sell to the writer a foreign currency at any time before the expiration of the option.

In purchasing and writing options, the Trusts bear the risk of an unfavorable change in the value of the underlying instrument or the risk that they may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Trusts purchasing or selling a security when it otherwise would not, or at a price different from the current market value.

Swaps: Certain Trusts enter into swap contracts to manage exposure to issuers, markets and securities. Such contracts are agreements between the Trusts and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”).

For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statements of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statements of Assets and Liabilities. Payments received or paid are recorded in the Statements of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts’ basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Trusts’ counterparty on the swap agreement becomes the CCP. The Trusts are required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Trusts are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statements of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statements of Operations.

•

Credit default swaps — Certain Trusts enter into credit default swaps to manage their exposure to the market or certain sectors of the market, to reduce their risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed (credit risk).

The Trusts may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Trusts will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Trusts will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

•

Total return swaps — Certain Trusts enter into total return swaps to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one market (e.g., fixed income) with another market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	85


Notes to Financial Statements (continued)

Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument in exchange for fixed or floating rate interest payments. If the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Trusts receive payment from or make a payment to the counterparty

•

Interest rate swaps — Certain Trusts enter into interest rate swaps to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate (interest rate risk).

Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. In more complex interest rate swaps, the notional principal amount may decline (or amortize) over time.

•

Forward swaps — Certain Trusts enter into forward interest rate swaps and forward total return swaps. In a forward swap, the Trust and the counterparty agree to make periodic net payments beginning on a specified date or a net payment at termination.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Master Netting Arrangements: In order to define their contractual rights and to secure rights that will help them mitigate their counterparty risk, the Trusts may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their counterparties. An ISDA Master Agreement is a bilateral agreement between each Trust and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, each Trust may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to terminate derivative contracts prior to maturity in the event the Trusts’ net assets decline by a stated percentage or the Trusts fail to meet the terms of their ISDA Master Agreements. The result would cause the Trusts to accelerate payment of any net liability owed to the counterparty.

Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Trust and the counterparty.

Cash collateral that has been pledged to cover obligations of the Trusts and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Trusts, if any, is noted in the Schedules of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Trusts. Any additional required collateral is delivered to/pledged by the Trusts on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A Trust generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Trusts from their counterparties are not fully collateralized, they bear the risk of loss from counterparty non-performance. Likewise, to the extent the Trusts have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, they bear the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, the Trusts not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.

6. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock, Inc. (“BlackRock”) for 1940 Act purposes.

Investment Advisory: Each Trust, entered into an Investment Advisory Agreement with the Manager, the Trust’s investment adviser, an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Trust’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Trust.



86	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Notes to Financial Statements (continued)

For such services, BHK pays the Manager a monthly fee based on an annual rate of 0.50% of the average weekly value of the Trust’s managed assets. For purposes of calculating this fee, “managed assets” means the total assets of the Trust minus the sum of its accrued liabilities (other than the aggregate indebtedness constituting financial leverage).

For such services, HYT pays the Manager a monthly fee at an annual rate equal to 0.60% of the average daily value of the Trust’s net assets, plus the proceeds of any debt securities or outstanding borrowings used for leverage. For purposes of calculating this fee, “net assets” means the total assets of the Trust minus the sum of its accrued liabilities.

For such services, BKT pays the Manager a monthly fee at an annual rate equal to 0.65% of the average weekly value of the Trust’s net assets. For purposes of calculating this fee, “net assets” means the total assets of the Trust minus the sum of its accrued liabilities (including the aggregate indebtedness constituting financial leverage).

The Manager provides investment management and other services to the Taxable Subsidiary. The Manager does not receive separate compensation from the Taxable Subsidiary for providing investment management or administrative services. However, HYT pays the Manager based on HYT’s net assets, plus the proceeds of any debt securities or outstanding borrowings used for leverage, which includes the assets of the Taxable Subsidiary

Distribution Fees: HYT has entered into a Distribution Agreement with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager, to provide for distribution of HYT’s common shares on a reasonable best efforts basis through an equity shelf offering (a “Shelf Offering”) (the “Distribution Agreement”); however, as of February 28, 2017, HYT is no longer actively engaged in a Shelf Offering and has not filed a registration statement or a prospectus for any current Shelf Offering. Pursuant to the Distribution Agreement, HYT would compensate BRIL with respect to sales of common shares at a commission rate of 1.00% of the gross proceeds of the sale of HYT’s Common Shares and a portion of such commission would be re-allowed to broker-dealers engaged by BRIL.

Administration: BKT has an Administration Agreement with the Manager. The administration fee paid to the Manager is computed at an annual rate of 0.15% of the BKT’s average weekly net assets/managed assets.

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Trusts with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets.

Expense Waivers: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). These amounts are included in fees waived by the Manager in the Statements of Operations. For the six months ended February 28, 2017, the amounts waived were as follows:


	BHK		HYT		BKT
Amounts waived	$	5,164	$	778	$	3,753

Effective September 1, 2016, the Manager voluntarily agreed to waive its investment advisory fee with respect to any portion of the Trusts’ assets invested in affiliated equity or fixed-income mutual funds or affiliated exchange-traded funds that have a contractual management fee. Prior to September 1, 2016, the Manager did not waive such fees. On December 2, 2016, Manager entered into a Master Advisory Fee Agreement (“Agreement”), contractually committing to this arrangement through June 30, 2017. The Agreement can be renewed for annual periods thereafter, and may be terminated on 90 days’ notice, each subject to approval by a majority of the Trusts’ independent trustees. For the six months ended February 28, 2017, HYT waived $20,757 in investment advisory fees pursuant to these arrangements.

Officers and Trustees: Certain officers and/or trustees of the Trusts are officers and/or directors of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts’ Chief Compliance Officer, which is included in Officer and Trustees in the Statements of Operations.

Other Transactions: During the six months ended February 28, 2017, HYT received a reimbursement of $29,894 from an affiliate, which is shown as payment by affiliate in the Consolidated Statement of Operations, related to an operating error.

The Trusts may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the six months ended February 28, 2017, the purchase and sale transactions and any net realized gains (losses) with an affiliated funds in compliance with Rule 17a-7 under the 1940 Act were as follows:


	Purchases		Sales		Net Realized Loss
HYT		—	$	117,656	$	(47	)



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	87


Notes to Financial Statements (continued)

7. Purchases and Sales:

For the six months ended February 28, 2017, purchases and sales of investments including paydowns, mortgage dollar rolls and TBA transactions and excluding short-term securities, were as follows:


Purchases
	BHK		HYT		BKT
Non-U.S. Government Securities	$	223,041,361	$	740,274,879	$	696,372,470
U.S. Government Securities		—		—		—

Total Purchases	$	223,041,361	$	740,274,879	$	696,372,470

Sales
	BHK		HYT		BKT
Non-U.S. Government Securities	$	178,988,653	$	756,181,005	$	745,496,202
U.S. Government Securities		22,938,080		—		—

Total Sales	$	201,926,733	$	756,181,005	$	745,496,202

For the six months ended February 28, 2017, purchases and sales related to mortgage dollar rolls for BKT were $405,818,828 and $405,207,080, respectively.

8. Income Tax Information:

It is the Trusts’ policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of their taxable income to their shareholders. Therefore, no U.S. federal income tax provision is required, except with respect to any taxes related to the Taxable Subsidiaries.

Each Trust files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Trust’s U.S. federal tax returns generally remains open for each of the four years ended August 31, 2016. The statutes of limitations on each Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Trusts as of February 28, 2017, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Trusts’ financial statements.

As of August 31, 2016, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


Expires August 31,	BHK		HYT		BKT
No expiration date¹	$	11,373,636	$	114,202,809	$	43,751,932
2017		5,617,079		95,246,388		—
2018		—		55,665,607		—

Total	$	16,990,715	$	265,114,804	$	43,751,932

Must be utilized prior to losses subject to expiration.

As of February 28, 2017, gross unrealized appreciation and depreciation based on cost for U.S. federal income tax purposes were as follows:


	BHK			HYT			BKT
Tax cost	$	1,069,927,918		$	2,121,095,756		$	663,931,304

Gross unrealized appreciation	$	52,688,720		$	80,617,397		$	18,230,038
Gross unrealized depreciation		(24,610,419	)		(86,272,275	)		(31,317,575	)

Net unrealized appreciation (depreciation)	$	28,078,301		$	(5,654,878	)	$	(13,087,537	)

9. Bank Borrowings:

HYT is party to a senior committed secured, 360-day rolling line of credit facility and a separate security agreement (the “SSB Agreement”) with State Street Bank and Trust Company (“SSB”). SSB may elect to terminate its commitment upon 360-days written notice to the Trust. As of period end, HYT has not received any notice to terminate. HYT has granted a security interest in substantially all of their assets to SSB.

The SSB Agreement allows for a maximum commitment of $732,000,000 for HYT.

Advances will be made by SSB to HYT, at HYT’s option of (a) the higher of (i) 0.80% above the Fed Trusts rate and (ii) 0.80% above Overnight LIBOR or (b) 0.80% above 7-day, 30-day, 60-day or 90-day LIBOR.



88	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Notes to Financial Statements (continued)

In addition, HYT pays a commitment fee (based on the daily unused portion of the commitments). The fees associated with each of the agreements are included in the Statements of Operations as borrowing costs, if any. Advances to the Trusts as of period end are shown in the Statements of Assets and Liabilities as bank borrowings payable. Based on the short-term nature of the borrowings under the line of credit and the variable interest rate, the carrying amount of the borrowings approximates fair value.

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

For the six months ended February 28, 2017, the average amount of bank borrowings and the daily weighted average interest rates for HYT for loans under the revolving credit agreements were $569,364,641 and 1.38%, respectively.

10. Principal Risks:

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Trust’s ability to buy or sell bonds. As a result, a trust may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Trust needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

In the normal course of business, the Trusts invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer to meet all its obligations, including the ability to pay principal and interest when due (issuer credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly involving the issuers of securities owned by the Trusts. Changes arising from the general economy, the overall market and local, regional or global political and/or social instability, as well as currency, interest rate and price fluctuations, may also affect the securities’ value.

Each Trust may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Trust to reinvest in lower yielding securities. Each Trust may also be exposed to reinvestment risk, which is the risk that income from each Trust’s portfolio will decline if each Trust invests the proceeds from matured, traded or called fixed income securities at market interest rates that are below each Trust portfolio’s current earnings rate.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A Trust may invest in illiquid investments and may experience difficulty in selling those investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Trust’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a Trust may lose value, regardless of the individual results of the securities and other instruments in which a Trust invests.

The price a Trust could receive upon the sale of any particular portfolio investment may differ from a Trust’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore a Trust’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Trust, and a Trust could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. A Trust’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

Counterparty Credit Risk: Similar to issuer credit risk, the Trusts may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Trusts.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

A Trust’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain less the value of any collateral held by such Trust.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	89


Notes to Financial Statements

For OTC options purchased, each Trust bears the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral held by the Trusts should the counterparty fail to perform under the contracts. Options written by the Trusts do not typically give rise to counterparty credit risk, as options written generally obligate the Trusts, and not the counterparty, to perform. The Trusts may be exposed to counterparty credit risk with respect to options written to the extent the Trusts deposit collateral with its counterparty to a written option.

With exchange-traded options purchased and futures and centrally cleared swaps, there is less counterparty credit risk to the Trusts since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Trust does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Trusts.

Concentration Risk: Certain Trusts may invest in securities that are rated below investment grade quality (sometimes called “junk bonds”), which are predominantly speculative, have greater credit risk and generally are less liquid and have more volatile prices than higher quality securities.

The Trusts invest a significant portion of their assets in fixed income securities and/or use derivatives tied to the fixed income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. The Trusts may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

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

11. Capital Share Transactions:

BHK is authorized to issue an unlimited number of shares par value $0.001, all of which were initially classified as Common Shares. HYT is authorized to issue 200 million shares, par value $0.10, all of which were initially classified as Common Shares. BKT is authorized to issue 200 million shares, par value $0.01, all of which were initially classified as Common Shares. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders.

Common Shares: HYT had previously filed a final prospectus with the U.S. Securities and Exchange Commission (“SEC”) allowing it to issue an additional 10,425,000 Common Shares through an equity shelf program (a “Shelf Offering”). HYT is no longer actively engaged in a Shelf Offering and has not filed a registration statement or a prospectus for any current Shelf Offering. HYT did not issue any Common Shares through the Shelf Offering. See Additional Information — Shelf Offering Program for additional information about the Shelf Offering.

Costs incurred by HYT in connection with the Shelf Offering are recorded as a deferred charge and amortized over 12 months.

On October 26, 2016, the Board approved the Trusts’ participation in an open market share repurchase program. The Trusts are eligible to purchase, at prevailing market prices, up to 5% of their common shares outstanding as of the close of business on October 28, 2016, subject to certain conditions. Repurchases may be made through November 30, 2017. There is no assurance that the Trusts will purchase shares in any particular amounts. For the six months ended February 28, 2017, HYT repurchased 140,680 shares at a cost of $1,553,292, including transaction costs. The total amount of the repurchase offer is reflected in HYT’s Consolidated Statement of Changes in Net Assets.

For the six months ended February 28, 2017 shares issued and outstanding remained constant for BHK and BKT. For the year ended August 31, 2016, shares issued and outstanding remained constant for BHK, HYT and BKT.

12. Contingencies:

In May 2015, the Motors Liquidation Company Avoidance Action Trust, as the Trust Administrator and Trustee of the General Motors bankruptcy estate, began serving amended complaints on defendants, which include former holders of certain General Motors debt (the “Debt”), in an adversary proceeding in the United States Bankruptcy Court for the Southern District of New York. In addition to HYT, the lawsuit also names over five hundred other institutional investors as defendants, some of which are also managed by BlackRock Advisors, LLC or its affiliates. The plaintiffs are seeking an order that HYT and other defendants return proceeds received in 2009 in full payment of the principal and interest on the Debt. The holders received a full repayment of a term loan pursuant to a court order in the General Motors bankruptcy proceeding with the understanding that the Debt was fully secured at the time of repayment. The plaintiffs contend that HYT and other defendants were not secured creditors at the time of the 2009 payments and therefore not entitled to the payments in full. HYT cannot predict the outcome of the lawsuit, or the effect, if any, on HYT’s net asset value. As such, no liability for litigation related to this



90	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Notes to Financial Statements (concluded)

matter is reflected in the financial statements. Management cannot determine the amount of loss that will be realized by HYT but does not expect the loss to exceed the payment received in 2009. The amount of the proceeds received in 2009 is $3,528,671.

13. Subsequent Events:

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


	Common Dividend Per Share
	Paid¹		Declared²
BHK	$	0.0650	$	0.0650
HYT	$	0.0700	$	0.0700
BKT	$	0.0265	$	0.0265

Net investment income dividend paid on March 31, 2017 to Common Shareholders of record on March 15, 2017.

Net investment income dividend declared on April 3, 2017, payable to Common Shareholders of record on April 13, 2017.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	91


Officers and Trustees

Richard E. Cavanagh, Chair of the Board and Trustee

Karen P. Robards, Vice Chair of the Board and Trustee

Michael J. Castellano, Trustee

Cynthia L. Egan, Trustee

Frank J. Fabozzi, Trustee

Jerrold B. Harris, Trustee

R. Glenn Hubbard, Trustee

W. Carl Kester, Trustee

Catherine A. Lynch, Trustee

Barbara G. Novick, Trustee

John M. Perlowski, Trustee, President and Chief Executive Officer

Jonathan Diorio, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

Janey Ahn, Secretary

For HYT.



92	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Additional Information

Trust Certification

The Trusts are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Trusts filed with the SEC the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

Dividend Policy

Each Trust’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the distributions paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The portion of distributions that exceeds a Trust’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. Distributions in excess of a Trust’s taxable income and net capital gains, but not in excess of a Trust’s earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

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

In accordance with Section 23(c) of the 1940 Act, the Trusts from time to time may purchase shares of its Common Shares in the open market or in private transactions.

During the period, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charter or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the 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’ portfolios.

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

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the Trusts’ electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.

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

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

Householding

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 call the Trusts at (800) 882-0052.



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	93


Additional Information (continued)

General Information (concluded)

Availability of Quarterly Schedule of Investments

The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Trusts’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 882-0052; and (2) on the SEC’s website at http://www.sec.gov.

Availability of Trust Updates

BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Trusts. 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 in this report.

Section 19(a) Notices

BHK’s amounts and sources of distributions reported are estimates and are being provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Trust’s investment experience during the remainder of the fiscal year and may be subject to changes based on tax regulations. The Trust will provide a Form 1099-DIV each calendar year that will tell you how to report these distributions for U.S. federal income tax purposes.


February 28, 2017
	Total Cumulative Distributions for the Fiscal Period										% Breakdown of the Total Cumulative Distributions for the Fiscal Period
	Net Investment Income		Net Realized Capital Gains Short Term		Net Realized Capital Gains Long Term		Return of Capital		Total Per Common Share		Net Investment Income			Net Realized Capital Gains Short Term			Net Realized Capital Gains Long Term			Return of Capital			Total Per Common Share
BHK	$	0.390000		—		—		—	$	0.390000		100	%		0	%		0	%		0	%		100	%

The Trust estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder's investment in the Trust is returned to the shareholder. A return of capital does not necessarily reflect the Trust's investment performance and should not be confused with "yield" or "income". When distributions exceed total return performance, the difference will incrementally reduce the Trust's net asset value per share.

Section 19(a) notices for the Trusts, as applicable, are available on the BlackRock website http://www.blackrock.com.



94	SEMI-ANNUAL REPORT	FEBRUARY 28, 2017


Additional Information (concluded)

Shelf Offering Program

From time-to-time, each Trust may seek to raise additional equity capital through an equity shelf program (a “Shelf Offering”). In a Shelf Offering, a Trust may, subject to market conditions, raise additional equity capital by issuing new Common Shares from time to time in varying amounts at a net price at or above the Trust’s net asset value (“NAV”) per Common Share (calculated within 48 hours of pricing). While any such Shelf Offering may allow a Trust to pursue additional investment opportunities without the need to sell existing portfolio investments, it could also entail risks — including that the issuance of additional Common Shares may limit the extent to which the Common Shares are able to trade at a premium to NAV in the secondary market.

None of the Trusts have filed a registration statement with respect to any current Shelf Offerings. This report is not an offer to sell Trust Common Shares and is not a solicitation of an offer to buy Trust Common Shares. If a Trust files a registration statement with respect to any current Shelf Offering, the prospectus contained therein will contain more complete information about the Trust and should be read carefully before investing.

BlackRock Privacy Principles

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

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

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

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

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



SEMI-ANNUAL REPORT	FEBRUARY 28, 2017	95

This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

LOGO


CEFBHK-2/17-SAR

Item 2 –

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

Item 3 –

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

Item 4 –

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

Item 5 –

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

Item 6 –

Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 –

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

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies

(a)

Not Applicable to this semi-annual report.

(b)

Effective September 30, 2016, Akiva Dickstein and Thomas Musmanno are no longer portfolio managers to the Fund.

Item 9 –

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

Item 10 –

Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 –

Controls and Procedures

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

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

Item 12 –

Exhibits attached hereto

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

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(b) – Certifications – Attached hereto

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

BlackRock Income Trust, Inc.

By: /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Income Trust, Inc.

Date: May 3, 2017

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

By: /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Income Trust, Inc.

Date: May 3, 2017

By: /s/ Neal J. Andrews

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock Income Trust, Inc.

Date: May 3, 2017