Edgar Filing: BLACKROCK SENIOR HIGH INCOME FUND, 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 811-07456

Name of Fund: BlackRock Senior High Income Fund, Inc. (ARK)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Senior High Income Fund, 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: 02/28/2011

Date of reporting period: 02/28/2011

Item 1 – Report to Stockholders


	February 28, 2011

Annual Report

BlackRock Corporate High Yield Fund, Inc. (COY)

BlackRock Corporate High Yield Fund III, Inc. (CYE)

BlackRock Debt Strategies Fund, Inc. (DSU)

BlackRock Floating Rate Income Strategies Fund II, Inc. (FRB)

BlackRock Senior High Income Fund, Inc. (ARK)

Not FDIC Insured § No Bank Guarantee § May Lose Value

Table of Contents



	Page

Dear Shareholder		3
Annual Report:
Fund Summaries		4
The Benefits and Risks of Leveraging		14
Derivative Financial Instruments		14
Financial Statements:
Schedules of Investments		15
Statements of Assets and Liabilities		60
Statements of Operations		61
Statements of Changes in Net Assets		62
Statements of Cash Flows		64
Financial Highlights		65
Notes to Financial Statements		70
Report of Independent Registered Public Accounting Firm		79
Important Tax Information (Unaudited)		79
Automatic Dividend Reinvestment Plans		80
Officers and Directors		81
Additional Information		84



2	ANNUAL REPORT	FEBRUARY 28, 2011

Dear Shareholder

Over the past 12 months, we have seen a sluggish, stimulus-driven economic recovery at long last gain real traction, accelerate, and transition into a consumption-driven expansion. For the most part, 2010 was plagued with widely fluctuating economic data, but as the year drew to a close, it became clear that cyclical stimulus had beaten out structural problems as economic data releases generally became more positive and financial markets showed signs of continuing improvement. Although the sovereign debt crises and emerging market inflation that troubled the global economy in 2010 remain a challenge, overall investor sentiment considerably improved. Near the end of the period, geopolitical tensions across the Middle East North Africa (“MENA”) region along with rising oil prices introduced new cause for concern about the future of the global economy. As of this writing, economic news remains fairly positive although we face additional uncertainties related to the aftermath of the devastating earthquake in Japan, with particular focus on the damage to nuclear power plants.

In the United States, strength from the corporate sector and increasing consumer spending have been key drivers of economic growth, while the housing and labor markets have been the heaviest burdens. While housing has yet to show any meaningful sign of improvement, labor statistics have delivered a mixed bag month after month, but became increasingly encouraging toward the end of the period when the unemployment rate fell to its lowest level since April 2009.

Global equity markets experienced uneven growth and high volatility over the course of 2010, but ended the year strong. Following a strong start to 2011, stocks lost their momentum on the back of geopolitical events in the MENA region and a sharp rise in oil prices. Overall, equities posted strong returns for the 12-month period. US stocks outpaced most international markets and small cap stocks outperformed large caps as investors moved into higher-risk assets.

Fixed income markets saw yields trend lower over most of 2010, until the fourth quarter brought an abrupt reversal in sentiment and risk tolerance that drove yields sharply upward (pushing bond prices down) through year end. Improving economic data continued to pressure fixed income yields in 2011; however, escalating geopolitical risks have acted as a counterweight, restoring relative stability to yield movements. Nevertheless, the yield curve remained steep and higher-risk sectors outperformed the fixed income market.

The tax-exempt municipal market enjoyed a powerful rally during the period of low interest rates in 2010; however, when the yield trend reversed, the market was dealt an additional blow as it became evident that the Build America Bond program would expire at year end. In addition, negative headlines regarding fiscal challenges faced by state and local governments damaged investor confidence and further heightened volatility in the municipal market. Tax-exempt mutual funds experienced heavy outflows, resulting in wider quality spreads and further downward pressure on municipal bond prices. These headwinds began to abate as the period came to a close and municipals finally posted gains in February, following a five-month run of negative performance.

Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates remained low. Yields on money market securities remain near all-time lows.


Total returns as of February 28, 2011	6-month		12-month

US large cap equities (S&P 500 Index)	27.73	%	22.57	%

US small cap equities (Russell 2000 Index)	37.55		32.60

International equities (MSCI Europe, Australasia, Far East Index)	23.77		20.00

3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)	0.07		0.14

US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)	(6.04	)	4.76

US investment grade bonds (Barclays Capital US Aggregate Bond Index)	(0.83	)	4.93

Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)	(3.51	)	1.72

US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)	10.05		17.34

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

While no one can peer into a crystal ball and eliminate the uncertainties presented by the economic landscape and financial markets, BlackRock can offer investors the next best thing: partnership with the world’s largest asset management firm and a unique global perspective that allows us to identify trends early and capitalize on market opportunities. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder^® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC



	THIS PAGE NOT PART OF YOUR FUND REPORT	3




Fund Summary as of February 28, 2011	BlackRock Corporate High Yield Fund, Inc.

Investment Objective

BlackRock Corporate High Yield Fund, Inc.’s (COY) (the “Fund”) investment objective is to provide shareholders with current income by investing primarily in a diversified portfolio of fixed income securities, which are rated in the lower rating categories of the established rating services (BB or lower by Standard & Poor’s Corporation (“S&P”) or Ba or lower by Moody’s Investors Service, Inc. (“Moody’s”)) or are unrated securities considered by BlackRock to be of comparable quality. The Fund’s secondary objective is to provide stockholders with capital appreciation. The Fund invests, under normal market conditions, at least 80% of its assets in high yield debt instruments, including high yield bonds (commonly referred to as “junk” bonds) and corporate loans which are below investment grade quality. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary


	How did the Fund perform?

•	For the 12 months ended February 28, 2011, the Fund returned 11.66% based on market price and 22.11% based on net asset value (“NAV”). For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 21.06% based on market price and 21.40% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

	What factors influenced performance?

•	High yield bonds outperformed the broader fixed income market as risk assets rallied during the period. Lower-quality high yield bonds outperformed higher-quality issues. The bank loan sector also posted strong returns, but underperformed high yield. The largest contributor to the Fund’s performance was individual security selection, particularly among lower-quality credits and special situations in the automotive sector, including manufacturers of automobiles, auto parts and components. Within the Fund’s small allocation to common stocks, its holdings in Delphi boosted returns. The Fund’s limited exposure to high-quality, non-investment grade proved beneficial, as did its large allocation to lower-quality credits later in the period.

•	During the period, the Fund maintained leverage at an average amount between 18% and 20% of its total managed assets, which detracted from relative performance versus competitors that maintained higher levels of leverage, as would be expected when markets are advancing. The Fund’s significant holdings in mid-tier speculative grade names for most of the period detracted modestly as they underperformed their lower-quality counterparts. Also having a negative impact was the Fund’s exposure to bank loans; however, the Fund continues to hold a number of loans issued by speculative companies where we believe the loans are the most attractive instrument in the company’s capital structure.

	Describe recent portfolio activity.

•	Over the period, the Fund shifted its overall positioning from a more conservative stance to that which is more consistent with a gradually improving economy. The Fund reduced its exposure to the automotive sector and increased exposure to lower-quality credits as well as sectors where companies are positioned to benefit from rising commodity prices.

	Describe portfolio positioning at period end.

•	At period end, the Fund held 85% of its total portfolio in corporate bonds, 7% in floating rate loan interests and 5% in common stocks. Cash positions were negligible for most of the period. The Fund ended the period with leverage at approximately 20% of its total managed assets.

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	ANNUAL REPORT	FEBRUARY 28, 2011




	BlackRock Corporate High Yield Fund, Inc.

Fund Information


Symbol on New York Stock Exchange (“NYSE”)			COY
Initial Offering Date			June 25, 1993
Yield on Closing Market Price as of February 28, 2011 ($7.03)¹			8.71%
Current Monthly Distribution per Share²			$0.051
Current Annualized Distribution per Share²			$0.612
Leverage as of February 28, 2011³			20%


	¹	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

	²	The distribution rate is not constant and is subject to change.

	³	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Fund (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 Fund, please see The Benefits and Risks of Leveraging on page 14.

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



	2/28/11		2/28/10		Change			High		Low

Market Price	$	7.03	$	6.88		2.18	%	$	7.24	$	5.50
Net Asset Value	$	7.42	$	6.64		11.75	%	$	7.44	$	6.60

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

Portfolio Composition


	2/28/11		2/28/10

Corporate Bonds	85	%	82	%
Floating Rate Loan Interests	7		13
Common Stocks	5		3
Other Interests	2		2
Preferred Stocks	1		—

Credit Quality Allocations⁴


	2/28/11		2/28/10

A	1	%	—
BBB/Baa	4		3	%
BB/Ba	31		30
B	46		46
CCC/Caa	13		12
CC/Ca	—		1
D	—		1
Not Rated	5		7


	⁴	Using the higher of S&P’s or Moody’s ratings.



ANNUAL REPORT	FEBRUARY 28, 2011	5




Fund Summary as of February 28, 2011	BlackRock Corporate High Yield Fund III, Inc.

Investment Objective

BlackRock Corporate High Yield Fund III, Inc.’s (CYE) (the “Fund”) primary investment objective is to provide current income by investing primarily in fixed-income securities, which are rated in the lower rating categories of the established rating services (BBB or lower by S&P or Baa or lower by Moody’s) or are unrated securities of comparable quality. The Fund’s secondary investment objective is to provide capital appreciation. The Fund may invest directly in such securities or synthetically through the use of derivatives.


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

Portfolio Management Commentary


	How did the Fund perform?

•	For the 12 months ended February 28, 2011, the Fund returned 16.99% based on market price and 23.50% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 21.06% based on market price and 21.40% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

	What factors influenced performance?

•	High yield bonds outperformed the broader fixed income market as risk assets rallied during the period. Lower-quality high yield bonds outperformed higher-quality issues. The bank loan sector also posted strong returns, but underperformed high yield. The largest contributor to the Fund’s performance was individual security selection, particularly among lower-quality credits and special situations in the automotive sector, including manufacturers of automobiles, auto parts and components. Within the Fund’s small allocation to common stocks, its holdings in Delphi boosted returns. The Fund’s limited exposure to high-quality, non-investment grade proved beneficial, as did its large allocation to lower-quality credits later in the period.

•	During the period, the Fund maintained leverage at an average amount between 20% and 22% of its total managed assets, which detracted from relative performance versus competitors that maintained higher levels of leverage, as would be expected when markets are advancing. The Fund’s significant holdings in mid-tier speculative grade names for most of the period detracted modestly as they underperformed their lower-quality counterparts. Also having a negative impact was the Fund’s exposure to bank loans; however, the Fund continues to hold a number of loans issued by speculative companies where we believe the loans are the most attractive instrument in the company’s capital structure.

	Describe recent portfolio activity.

•	Over the period, the Fund shifted its overall positioning from a more conservative stance to that which is more consistent with a gradually improving economy. The Fund reduced its exposure to the automotive sector and increased exposure to lower-quality credits as well as sectors where companies are positioned to benefit from rising commodity prices.

	Describe portfolio positioning at period end.

•	At period end, the Fund held 80% of its total portfolio in corporate bonds, 11% in floating rate loan interests and 5% in common stocks. Cash positions were negligible for most of the period. The Fund ended the period with leverage at approximately 24% of its total managed assets.


	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.



6	ANNUAL REPORT	FEBRUARY 28, 2011

BlackRock Corporate High Yield Fund III, Inc.



Fund Information


Symbol on NYSE		CYE
Initial Offering Date		January 30, 1998
Yield on Closing Market Price as of February 28, 2011 ($7.14)¹		8.40%
Current Monthly Distribution per Share²		$0.05
Current Annualized Distribution per Share²		$0.60
Leverage as of February 28, 2011³		24%


	¹	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

	²	The distribution rate is not constant and is subject to change.

	³	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Fund (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 Fund, please see The Benefits and Risks of Leveraging on page 14.

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



	2/28/11		2/28/10		Change			High		Low

Market Price	$	7.14	$	6.67		7.05	%	$	7.24	$	5.29
Net Asset Value	$	7.56	$	6.69		13.00	%	$	7.58	$	6.66

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

Portfolio Composition


	2/28/11		2/28/10

Corporate Bonds	80	%	81	%
Floating Rate Loan Interests	11		13
Common Stocks	5		4
Preferred Stocks	2		—
Other Interests	2		2

Credit Quality Allocations⁴


	2/28/11		2/28/10

BBB/Baa	4	%	3	%
BB/Ba	31		29
B	46		47
CCC/Caa	14		12
D	—		1
Not Rated	5		8


	⁴	Using the higher of S&P’s or Moody’s ratings.



ANNUAL REPORT	FEBRUARY 28, 2011	7




Fund Summary as of February 28, 2011	BlackRock Debt Strategies Fund, Inc.

Investment Objective

BlackRock Debt Strategies Fund, Inc.’s (DSU) (the “Fund”) primary investment objective is to provide current income by investing primarily in a diversified portfolio of US companies’ debt instruments, including corporate loans, which are rated in the lower rating categories of the established rating services (BBB or lower by S&P or Baa or lower by Moody’s) or unrated debt instruments, which are in the judgment of the investment adviser of equivalent quality. The Fund’s secondary objective is to provide capital appreciation. Corporate loans include senior and subordinated corporate loans, both secured and unsecured. The Fund may invest directly in such securities or synthetically through the use of derivatives.


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

Portfolio Management Commentary


	How did the Fund perform?

•	For the 12 months ended February 28, 2011, the Fund returned 12.90% based on market price and 19.92% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 21.06% based on market price and 21.40% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

	What factors influenced performance?

•	High yield bonds outperformed the broader fixed income market as risk assets rallied during the period. Lower-quality high yield bonds outperformed higher-quality issues. The bank loan sector also posted strong returns, but underperformed high yield. While the Fund’s average allocation of 41% to high yield contributed to performance on an absolute basis, its average allocation of 52% to bank loans hurt performance relative to its Lipper category competitors, which invest primarily in high yield bonds. Additionally, the Fund maintained leverage at an average amount between 18% and 23% of its total managed assets, which detracted from relative performance versus competitors that maintained higher levels of leverage, as would be expected when markets are advancing. Lastly, the Fund’s underexposure to lower-quality, speculative grade credits detracted modestly from performance as lower quality outperformed during the period.

•	Contributing positively to performance was security selection within the Fund’s high yield allocation, particularly among lower-quality credits and special situations in the automotive sector, including manufacturers of automobiles, auto parts and components. The Fund’s equity position, although small, boosted returns. In addition, limited exposure to high-quality, non-investment grade proved beneficial.

	Describe recent portfolio activity.

•	Over the period, the Fund shifted its overall positioning from a more conservative stance to that which is more consistent with a gradually improving economy. In particular, the Fund increased its exposure to sectors where companies are positioned to benefit from rising commodity prices. In addition, the Fund increased its leverage during the period.

	Describe portfolio positioning at period end.

•	At period end, the Fund held 43% of its total portfolio in corporate bonds, 53% in floating rate loan interests and 2% in asset-backed securities. Cash positions were negligible for most of the period. The Fund ended the period with leverage at approximately 20% of its total managed assets.


	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.



8	ANNUAL REPORT	FEBRUARY 28, 2011




	BlackRock Debt Strategies Fund, Inc.



Fund Information


Symbol on NYSE		DSU
Initial Offering Date		March 27, 1998
Yield on Closing Market Price as of February 28, 2011 ($4.05)¹		8.00%
Current Monthly Distribution per Share²		$0.027
Current Annualized Distribution per Share²		$0.324
Leverage as of February 28, 2011³		20%


	¹	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

	²	The distribution rate is not constant and is subject to change.

	³	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Fund (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 Fund, please see The Benefits and Risks of Leveraging on page 14.

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



	2/28/11		2/28/10		Change			High		Low

Market Price	$	4.05	$	3.91		3.58	%	$	4.42	$	2.95
Net Asset Value	$	4.28	$	3.89		10.03	%	$	4.28	$	3.89

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



Portfolio Composition


	2/28/11		2/28/10

Floating Rate Loan Interests	53	%	47	%
Corporate Bonds	43		49
Asset-Backed Securities	2		—
Common Stocks	1		4
Other Interests	1		—



Credit Quality Allocations⁴


	2/28/11		2/28/10

BBB/Baa	7	%	5	%
BB/Ba	29		27
B	45		44
CCC/Caa	11		11
D	—		1
Not Rated	8		12


	⁴	Using the higher of S&P’s or Moody’s ratings.



ANNUAL REPORT	FEBRUARY 28, 2011	9




Fund Summary as of February 28, 2011	BlackRock Floating Rate Income Strategies Fund II, Inc.

Investment Objective

BlackRock Floating Rate Income Strategies Fund II, Inc.’s (FRB) (the “Fund”) investment objective is to provide shareholders with high current income and such preservation of capital as is consistent with investment in a diversified, leveraged portfolio consisting primarily of floating rate debt securities and instruments. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in floating rate debt securities, including floating or variable rate debt securities that pay interest at rates that adjust whenever a specified interest rate changes and/or which reset on predetermined dates (such as the last day of a month or calendar quarter). The Fund invests a substantial portion of its investments in floating rate debt securities consisting of secured or unsecured senior floating rate loans that are rated below investment grade. The Fund may invest directly in such securities or synthetically through the use of derivatives.


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

Portfolio Management Commentary


	How did the Fund perform?

•	For the 12 months ended February 28, 2011, the Fund returned 1.19% based on market price and 14.20% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds category posted an average return of 16.47% based on market price and 12.22% based on NAV. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

	What factors influenced performance?

•	The bank loan sector posted strong returns as risk assets rallied during the period. Lower-quality sectors and credits outperformed their higher-quality counterparts and the high yield sector outperformed bank loans. Because the Fund invests primarily in bank loans, the use of leverage had a positive impact on returns (on an absolute basis) as these sectors advanced. Holding a greater allocation to high yield bonds relative to its Lipper category competitors drove the Fund’s outperformance.

•	The Fund maintains a relatively conservative portfolio, weighted toward higher-quality speculative investments, which detracted from relative performance as lower quality outperformed during the period. In addition, the Fund maintains a lower level of leverage (at an average amount between 19% and 23% of its total managed assets) than the average level maintained by its Lipper category competitors, which detracted from performance on a relative basis.

	Describe recent portfolio activity.

•	During the period, the Fund modestly increased its level of risk and use of leverage as market conditions improved. In particular, the Fund increased exposure to lower-quality credits and sectors that are more favorably impacted by rising commodity prices and an improving economy.

	Describe portfolio positioning at period end.

•	At period end, the Fund held 81% of its total portfolio in floating rate loan interests and 15% in corporate bonds, with the remainder in asset-backed securities, common stocks and equity equivalents. Cash positions were negligible for most of the period. The Fund ended the period with leverage at approximately 20% of its total managed assets.


	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.



10	ANNUAL REPORT	FEBRUARY 28, 2011




	BlackRock Floating Rate Income Strategies Fund II, Inc.



Fund Information


Symbol on NYSE		FRB
Initial Offering Date		July 30, 2004
Yield on Closing Market Price as of February 28, 2011 ($14.22)¹		6.33%
Current Monthly Distribution per Share²		$0.075
Current Annualized Distribution per Share²		$0.900
Leverage as of February 28, 2011³		20%


	1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

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

	3	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Fund (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 Fund, please see The Benefits and Risks of Leveraging on page 14.

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



	2/28/11		2/28/10		Change			High		Low

Market Price	$	14.22	$	15.01		(5.26	)%	$	15.63	$	12.80
Net Asset Value	$	14.07	$	13.16		6.91	%	$	14.07	$	13.03

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



Portfolio Composition


	2/28/11		2/28/10

Floating Rate Loan Interests	81	%	73	%
Corporate Bonds	15		26
Asset-Backed Securities	3		—
Other Interests	1		1



Credit Quality Allocations4


	2/28/11		2/28/10

BBB/Baa	7	%	6	%
BB/Ba	34		34
B	42		38
CCC/Caa	8		10
CC/Ca	—		1
D	—		2
Not Rated	9		9


	⁴	Using the higher of S&P’s or Moody’s ratings.



ANNUAL REPORT	FEBRUARY 28, 2011	11




Fund Summary as of February 28, 2011	BlackRock Senior High Income Fund, Inc.

Investment Objective

BlackRock Senior High Income Fund, Inc.’s (ARK) (the “Fund”) investment objective is to provide high current income by investing principally in senior debt obligations of companies, including corporate loans made by banks and other financial institutions and both privately placed and publicly offered corporate bonds and notes. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary


	How did the Fund perform?

•	For the 12 months ended February 28, 2011, the Fund returned 15.13% based on market price and 17.13% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 21.06% based on market price and 21.40% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

	What factors influenced performance?

•	High yield bonds outperformed the broader fixed income market as risk assets rallied during the period. Lower-quality high yield bonds outperformed higher-quality issues. The bank loan sector also posted strong returns, but underperformed high yield. While the Fund’s average allocation to high yield contributed to performance on an absolute basis, its average allocation to bank loans hurt performance relative to its Lipper category competitors, which invest primarily in high yield bonds. Additionally, the Fund maintained leverage at an average amount between 18% and 22% of its total managed assets, which detracted from relative performance versus competitors that maintained higher levels of leverage, as would be expected when markets are advancing. Lastly, the Fund’s underexposure to lower-quality, speculative grade credits detracted modestly from performance as lower quality outperformed during the period.

•	Contributing positively to performance was security selection within the Fund’s high yield allocation, particularly among lower-quality credits and special situations in the automotive sector, including manufacturers of automobiles, auto parts and components. The Fund’s equity position, although small, boosted returns. In addition, limited exposure to high-quality, non-investment grade proved beneficial.

	Describe recent portfolio activity.

•	Over the period, the Fund shifted its overall positioning from a more conservative stance to that which is more consistent with a gradually improving economy. In particular, the Fund increased its exposure to sectors where companies are positioned to benefit from rising commodity prices. In addition, the Fund increased its leverage during the period.

	Describe portfolio positioning at period end.

•	At period end, the Fund held 43% of its total portfolio in corporate bonds and 53% in floating rate loan interests, with the remainder in asset-backed securities, common stocks and equity equivalents. Cash positions were negligible for most of the period. The Fund ended the period with leverage at approximately 17% of its total managed assets.

	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.



12	ANNUAL REPORT	FEBRUARY 28, 2011

BlackRock Senior High Income Fund, Inc.

Fund Information


Symbol on NYSE	ARK
Initial Offering Date	April 30, 1993
Yield on Closing Market Price as of February 28, 2011 ($4.18)¹	7.18	%
Current Monthly Distribution per Common Share²	$0.025
Current Annualized Distribution per Common Share²	$0.300
Leverage as of February 28, 2011³	17	%


	¹	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

	²	The distribution rate is not constant and is subject to change.

	³	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Fund (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 Fund, please see The Benefits and Risks of Leveraging on page 14.

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



	2/28/11		2/28/10		Change			High		Low

Market Price	$	4.18	$	3.94		6.09	%	$	4.48	$	3.59
Net Asset Value	$	4.22	$	3.91		7.93	%	$	4.22	$	3.87

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

Portfolio Composition


	2/28/11			2/28/10

Floating Rate Loan Interests		53	%		46	%
Corporate Bonds		43			52
Asset-Backed Securities		2			—
Common Stocks		1			2
Other Interests		1			—

Credit Quality Allocations⁴


	2/28/11			2/28/10

BBB/Baa		9	%		5	%
BB/Ba		31			33
B		49			43
CCC/Caa		3			11
D		—			1
Not Rated		8			7


	⁴	Using the higher of S&P’s or Moody’s ratings.



ANNUAL REPORT	FEBRUARY 28, 2011	13

The Benefits and Risks of Leveraging

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

The Funds may utilize leverage by borrowing through a credit facility. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders will 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. However, in order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be lower than if the Funds had not used leverage.

To illustrate these concepts, assume a Fund’s capitalization is $100 million and it issues debt securities for an additional $30 million, creating a total value of $130 million available for investment in long-term securities. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund pays interest expense on the $30 million of debt securities based on the lower short-term interest rates. At the same time, the securities purchased by the Fund with assets received from borrowings earn income based on long-term interest rates. In this case, the interest expense of borrowings is significantly lower than the income earned on the Fund’s long-term investments, and therefore the shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Fund pays interest expense on the higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates.

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

The use of leverage may enhance opportunities for increased income to the Funds and shareholders, but as described above, it also creates risks as short or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Funds’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Funds’ net income will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders will be reduced. Each Fund 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 a Fund to incur losses. The use of leverage may limit the Funds’ ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by shareholders and may reduce income.

Under the Investment Company Act of 1940, the Funds are permitted to borrow through their credit facility up to 33¹/₃% of their total managed assets. As of February 28, 2011, the Funds had outstanding leverage from borrowings as a percentage of their total managed assets as follows:



	Percent of Leverage

COY		20	%
CYE		24	%
DSU		20	%
FRB		20	%
ARK		17	%

Derivative Financial Instruments

The Funds may invest in various derivative instruments, including financial futures contracts, swaps, foreign currency exchange contracts and options, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market, equity, credit and/or foreign currency exchange rate risks. Such derivative instruments involve risks, including the imperfect correlation between the value of a derivative instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative instrument. The Funds’ ability to use a derivative instrument

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



14	ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments February 28, 2011	BlackRock Corporate High Yield Fund, Inc. (COY)
	(Percentages shown are based on Net Assets)


Common Stocks	Shares		Value

Auto Components — 0.3%
Dana Holding Corp. (a)		47,900	$	904,352

Capital Markets — 0.2%
E*Trade Financial Corp. (a)		26,900		429,862

Chemicals — 0.0%
Wellman Holdings, Inc. (a)		1,425		71

Commercial Banks — 0.1%
CIT Group, Inc. (a)		6,302		273,003

Communications Equipment — 0.5%
Loral Space & Communications Ltd. (a)		18,513		1,400,694

Construction Materials — 0.0%
Nortek, Inc. (a)		2,020		89,890

Containers & Packaging — 0.0%
Smurfit Kappa Plc (a)		3,634		45,133

Diversified Financial Services — 0.3%
Bank of America Corp.		53,000		757,370

Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)		67,974		1,427

Food Products — 0.1%
Zhongpin, Inc. (a)		10,737		199,601

Health Care Equipment & Supplies — 0.1%
Zimmer Holdings, Inc. (a)		5,148		320,926

Household Durables — 0.3%
Beazer Homes USA, Inc.		65,388		304,054
Pulte Group, Inc. (a)		56,704		391,258

				695,312

Machinery — 0.2%
Navistar International Corp. (a)		7,184		445,264

Media — 1.0%
Charter Communications, Inc. (a)		50,616		2,316,694
Clear Channel Outdoor Holdings, Inc., Class A (a)		10,254		151,144

				2,467,838

Metals & Mining — 0.1%
African Minerals Ltd. (a)		27,300		240,319

Oil, Gas & Consumable Fuels — 0.7%
Alpha Natural Resources, Inc. (a)		11,200		607,264
Marathon Oil Corp.		26,200		1,299,520

				1,906,784

Paper & Forest Products — 0.2%
Ainsworth Lumber Co. Ltd. (a)		36,744		121,402
Ainsworth Lumber Co. Ltd. (a)(b)		41,686		137,730
Western Forest Products, Inc. (a)		147,968		112,703
Western Forest Products, Inc. (a)(b)		41,528		31,631

				403,466

Road & Rail — 0.3%
Dollar Thrifty Automotive Group, Inc. (a)		16,300		865,693


Common Stocks	Shares		Value

Semiconductors & Semiconductor Equipment — 0.4%
Spansion, Inc., Class A (a)		42,792	$	901,627
SunPower Corp., Class B (a)		352		5,942

				907,569

Software — 0.2%
Bankruptcy Management Solutions, Inc. (a)		468		1,637
HMH Holdings/EduMedia (a)		82,415		412,075

				413,712

Wireless Telecommunication Services — 0.7%
American Tower Corp., Class A (a)		10,566		570,141
Crown Castle International Corp. (a)		25,463		1,073,266
FiberTower Corp. (a)		76,542		254,119

				1,897,526

Total Common Stocks — 5.7%				14,665,812




Corporate Bonds		Par (000)

Aerospace & Defense — 0.3%
DynCorp International, Inc., 10.38%, 7/01/17 (b)	USD		230	247,250
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17			430	484,825

				732,075

Air Freight & Logistics — 0.5%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15			663	663,146
Series 2, 12.38%, 10/08/15			670	669,517

				1,332,663

Airlines — 2.9%
Air Canada, 9.25%, 8/01/15 (b)			970	1,037,900
American Airlines, Inc.:
10.50%, 10/15/12			870	954,825
Series 2001-2, 7.86%, 4/01/13			390	402,675
Continental Airlines, Inc.:
6.75%, 9/15/15 (b)			540	554,850
Series 1997-4-B, 6.90%, 7/02/18			382	387,652
Series 2001-1-C, 7.03%, 12/15/12			177	178,186
Series 2010-1-B, 6.00%, 7/12/20			400	399,000
Delta Air Lines, Inc.:
Series 2010-1-B, 6.38%, 7/02/17			447	444,765
Series B, 9.75%, 12/17/16			879	949,590
United Air Lines, Inc., 12.75%, 7/15/12			1,964	2,194,949

				7,504,392

Auto Components — 1.5%
Allison Transmission, Inc. (b):
11.00%, 11/01/15			220	239,250
11.25%, 11/01/15 (c)			164	178,760
Delphi International Holdings Unsecured, 12.00%, 10/06/14			41	44,741
Exide Technologies, 8.63%, 2/01/18 (b)			340	362,525
Icahn Enterprises LP, 8.00%, 1/15/18			2,995	3,099,825

				3,925,101

Portfolio Abbreviations

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


CAD	Canadian Dollar
EUR	Euro
FKA	Formerly Known As
GBP	British Pound
MSCI	Morgan Stanley Capital International
USD	US Dollar


See Notes to Financial Statements.

	ANNUAL REPORT	FEBRUARY 28, 2011	15




Schedule of Investments (continued)	BlackRock Corporate High Yield Fund, Inc. (COY)
	(Percentages shown are based on Net Assets)


Corporate Bonds		Par (000)		Value

Beverages — 0.2%
Cott Beverages, Inc., 8.13%, 9/01/18	USD		245	$	263,681
Crown European Holdings SA, 7.13%, 8/15/18 (b)	EUR		225		330,673

					594,354

Biotechnology — 0.2%
QHP Pharma, 10.25%, 3/15/15 (b)	USD		477		480,405

Building Products — 1.2%
Associated Materials LLC, 9.13%, 11/01/17 (b)			450		486,563
Building Materials Corp. of America (b):
6.88%, 8/15/18			490		502,250
7.00%, 2/15/20			570		600,637
Momentive Performance Materials, Inc.:
11.50%, 12/01/16			155		168,175
9.00%, 1/15/21 (b)			1,175		1,249,906

					3,007,531

Capital Markets — 0.6%
American Capital Ltd., 7.96%, 12/31/13 (d)			470		481,313
E*Trade Financial Corp., 3.43%, 8/31/19 (b)(e)(f)			226		349,170
KKR Group Finance Co., 6.38%, 9/29/20 (b)			600		618,195

					1,448,678

Chemicals — 3.4%
American Pacific Corp., 9.00%, 2/01/15			800		786,000
Chemtura Corp., 7.88%, 9/01/18 (b)			490		523,075
Georgia Gulf Corp., 9.00%, 1/15/17 (b)			155		172,437
Hexion U.S. Finance Corp.:
8.88%, 2/01/18			690		740,887
9.00%, 11/15/20 (b)			340		361,675
Huntsman International LLC (b):
6.88%, 11/15/13	EUR		260		366,862
8.63%, 3/15/21	USD		460		510,600
Ineos Finance Plc, 9.00%, 5/15/15 (b)			385		422,537
KRATON Polymers LLC, 6.75%, 3/01/19 (b)			115		117,300
MacDermid, Inc., 9.50%, 4/15/17 (b)			1,180		1,256,700
Nalco Co., 6.63%, 1/15/19 (b)			305		315,294
Nexeo Solutions LLC, 8.38%, 3/01/18 (b)(g)			170		172,975
OXEA Finance/Cy SCA (b):
9.50%, 7/15/17			115		126,213
9.63%, 7/15/17	EUR		385		595,675
Omnova Solutions, Inc., 7.88%, 11/01/18 (b)	USD		135		138,544
Polymer Group, Inc., 7.75%, 2/01/19 (b)			134		139,528
PolyOne Corp., 7.38%, 9/15/20			200		212,000
Rhodia SA, 6.88%, 9/15/20 (b)			720		737,100
TPC Group LLC, 8.25%, 10/01/17 (b)			310		329,762
Wellman Holdings, Inc., Subordinate Note (e):
(Second Lien), 10.00%, 1/29/19 (b)			790		687,300
(Third Lien), 5.00%, 1/29/19 (c)			265		103,526

					8,815,990

Commercial Banks — 2.8%
CIT Group, Inc.:
7.00%, 5/01/16			2,125		2,143,594
7.00%, 5/01/17			5,100		5,138,250

					7,281,844

Commercial Services & Supplies — 1.7%
ACCO Brands Corp., 10.63%, 3/15/15			695		785,350
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)			480		516,000
Casella Waste Systems, Inc., 7.75%, 2/15/19 (b)			350		358,750
International Lease Finance Corp., 8.25%, 12/15/20			298		331,525
Mobile Mini, Inc., 7.88%, 12/01/20 (b)			210		223,650
RSC Equipment Rental, Inc. (b):
10.00%, 7/15/17			555		638,250
8.25%, 2/01/21			540		571,050


Corporate Bonds		Par (000)		Value

Commercial Services & Supplies (concluded)
West Corp. (b):
8.63%, 10/01/18	USD		695	$	736,700
7.88%, 1/15/19			185		189,856

					4,351,131

Communications Equipment — 0.2%
Avaya Inc., 7.00%, 4/01/19 (b)			390		386,100

Computers & Peripherals — 0.3%
EMC Corp., 1.75%, 12/01/13 (e)			460		803,850

Construction Materials — 1.3%
Nortek, Inc.:
11.00%, 12/01/13			2,029		2,160,861
10.00%, 12/01/18 (b)			1,090		1,163,575

					3,324,436

Consumer Finance — 0.7%
Credit Acceptance Corp., 9.13%, 2/01/17			640		689,600
Ford Motor Credit Co. LLC:
3.05%, 1/13/12 (h)			195		196,987
7.80%, 6/01/12			200		213,289
6.63%, 8/15/17			770		818,955

					1,918,831

Containers & Packaging — 2.2%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (b)	EUR		435		619,791
Ball Corp., 6.75%, 9/15/20	USD		475		497,563
Berry Plastics Corp.:
8.25%, 11/15/15			125		133,906
9.75%, 1/15/21 (b)			850		852,125
Graham Packaging Co. LP, 8.25%, 10/01/18			230		247,825
Graphic Packaging International, Inc.:
9.50%, 6/15/17			810		899,100
7.88%, 10/01/18			365		392,375
OI European Group BV, 6.88%, 3/31/17	EUR		152		218,406
Pregis Corp., 12.38%, 10/15/13	USD		535		539,012
Smurfit Kappa Acquisitions (b):
7.25%, 11/15/17	EUR		465		680,181
7.75%, 11/15/19			440		649,684

					5,729,968

Diversified Consumer Services — 1.2%
Service Corp. International, 7.00%, 6/15/17	USD		2,800		2,982,000

Diversified Financial Services — 5.7%
Ally Financial, Inc.:
7.50%, 12/31/13			350		381,500
2.51%, 12/01/14 (h)			371		364,565
8.30%, 2/12/15			1,080		1,219,050
6.25%, 12/01/17 (b)			710		741,063
8.00%, 3/15/20			1,390		1,565,487
7.50%, 9/15/20 (b)			1,120		1,225,000
8.00%, 11/01/31			930		1,064,850
8.00%, 11/01/31			810		927,768
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16			410		452,025
FCE Bank Plc, 7.13%, 1/15/13	EUR		550		799,772
Leucadia National Corp., 8.13%, 9/15/15	USD		1,120		1,232,000
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)			1,195		1,272,675
Reynolds Group Issuer, Inc. (b):
7.75%, 10/15/16	EUR		350		511,964
7.13%, 4/15/19	USD		540		553,500
9.00%, 4/15/19			1,580		1,647,150
6.88%, 2/15/21			360		360,900
8.25%, 2/15/21			450		451,125

					14,770,394


See Notes to Financial Statements.

16	ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments (continued)	BlackRock Corporate High Yield Fund, Inc. (COY)
	(Percentages shown are based on Net Assets)


Corporate Bonds		Par (000)		Value

Diversified Telecommunication Services — 4.1%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12	USD		1,000	$	996,250
Frontier Communications Corp.:
8.25%, 4/15/17			350		386,750
8.50%, 4/15/20			325		360,750
GCI, Inc., 8.63%, 11/15/19			1,100		1,210,000
ITC Deltacom, Inc., 10.50%, 4/01/16			320		351,200
Level 3 Communications, Inc., 6.50%, 10/01/16 (e)			250		356,875
Level 3 Financing, Inc.:
5.50%, 11/01/14			120		123,900
8.75%, 2/15/17			1,350		1,326,375
Qwest Communications International, Inc.:
7.50%, 2/15/14			1,890		1,918,350
8.00%, 10/01/15			500		545,625
Series B, 7.50%, 2/15/14			1,385		1,405,775
Qwest Corp., 7.63%, 6/15/15			500		573,750
Windstream Corp.:
8.13%, 8/01/13			400		440,500
7.88%, 11/01/17			600		651,750

					10,647,850

Electronic Equipment, Instruments & Components — 0.7%
CDW LLC:
11.00%, 10/12/15			110		119,625
11.50%, 10/12/15 (c)			610		661,850
8.00%, 12/15/18 (b)			520		559,000
NXP BV, 3.05%, 10/15/13 (h)			475		472,625

					1,813,100

Energy Equipment & Services — 1.4%
Bayou Well Services, 0.16%, 12/22/13			575		575,000
Calfrac Holdings LP, 7.50%, 12/01/20 (b)			225		230,625
Compagnie Générale de Géophysique-Veritas:
7.50%, 5/15/15			910		941,850
7.75%, 5/15/17			235		248,512
Exterran Holdings, Inc., 7.25%, 12/01/18 (b)			405		415,125
Frac Tech Services LLC, 7.13%, 11/15/18 (b)			575		595,125
Precision Drilling Corp., 6.63%, 11/15/20 (b)			105		108,413
Thermon Industries, Inc., 9.50%, 5/01/17			500		541,250

					3,655,900

Food & Staples Retailing — 0.7%
AmeriQual Group LLC, 9.50%, 4/01/12 (b)			520		514,800
BI-LO LLC, 9.25%, 2/15/19 (b)			305		317,200
Rite Aid Corp.:
9.75%, 6/12/16			380		427,975
7.50%, 3/01/17			580		583,625

					1,843,600

Food Products — 0.5%
B&G Foods, Inc., 7.63%, 1/15/18			200		213,500
Blue Merger Sub Inc., 7.63%, 2/15/19 (b)			240		242,400
Darling International, Inc., 8.50%, 12/15/18 (b)			220		237,325
Reddy Ice Corp., 11.25%, 3/15/15			410		430,500
Smithfield Foods, Inc., 10.00%, 7/15/14			59		69,620

					1,193,345

Health Care Equipment & Supplies — 1.4%
DJO Finance LLC, 10.88%, 11/15/14			2,255		2,472,044
Hologic, Inc., 2.00%, 12/15/37 (d)(e)			1,295		1,248,056

					3,720,100


Corporate Bonds		Par (000)		Value

Health Care Providers & Services — 5.6%
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (b)	USD		255	$	265,837
ConvaTec Healthcare E SA (b):
7.38%, 12/15/17	EUR		400		574,062
10.50%, 12/15/18	USD		440		469,700
DaVita, Inc., 6.38%, 11/01/18			360		364,950
Gentiva Health Services Inc., 11.50%, 9/01/18			655		737,694
HCA, Inc.:
9.13%, 11/15/14			1,645		1,725,194
8.50%, 4/15/19			935		1,047,200
7.25%, 9/15/20			2,145		2,313,919
inVentiv Health, Inc., 10.00%, 8/15/18 (b)			600		616,500
Omnicare, Inc.:
6.13%, 6/01/13			164		164,615
6.88%, 12/15/15			400		413,000
7.75%, 6/01/20			580		619,150
Priory Group Ltd., 7.00%, 2/15/18 (b)	GBP		124		206,620
Tenet Healthcare Corp.:
9.00%, 5/01/15	USD		1,717		1,888,700
10.00%, 5/01/18			622		730,850
8.88%, 7/01/19			2,010		2,286,375

					14,424,366

Health Care Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (b)			2,235		2,620,537
MedAssets, Inc., 8.00%, 11/15/18 (b)			150		154,125

					2,774,662

Hotels, Restaurants & Leisure — 3.8%
Boyd Gaming Corp., 9.13%, 12/01/18 (b)			570		598,500
Caesars Entertainment Operating Co., Inc., 10.00%, 12/15/18			3,455		3,247,700
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18	EUR		50		71,758
CityCenter Holdings LLC, 7.63%, 1/15/16 (b)	USD		310		323,175
Diamond Resorts Corp., 12.00%, 8/15/18 (b)			1,100		1,179,750
Enterprise Inns Plc, 6.50%, 12/06/18	GBP		388		572,406
Harrah’s Operating Co., Inc., 11.25%, 6/01/17	USD		615		698,025
Inn of the Mountain Gods Resort & Casino (b):
1.25%, 11/30/20 (c)			961		499,720
8.75%, 11/30/20			427		405,650
Little Traverse Bay Bands of Odawa Indians, 9.00%, 8/31/20 (b)			340		280,500
MGM Mirage, 13.00%, 11/15/13			90		107,775
MGM Resorts International:
10.38%, 5/15/14			235		263,200
11.13%, 11/15/17			780		898,950
Palace Entertainment Holding LLC, 8.88%, 4/15/17 (b)			110		112,200
Travelport LLC:
4.94%, 9/01/14 (h)			145		129,413
9.88%, 9/01/14			170		165,962
9.00%, 3/01/16			110		103,950
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(i)			315		32

					9,658,666

Household Durables — 4.1%
American Standard Americas, 10.75%, 1/15/16 (b)			380		403,750
Ashton Woods USA LLC, 21.57%, 6/30/15 (b)(j)			805		523,250
Beazer Homes USA, Inc.:
8.13%, 6/15/16			295		299,794
12.00%, 10/15/17			1,425		1,656,562
9.13%, 6/15/18			1,620		1,672,650
Jarden Corp., 7.50%, 1/15/20	EUR		285		410,003
K. Hovnanian Enterprises, Inc., 10.63%, 10/15/16	USD		1,620		1,755,675
Ryland Group, Inc., 6.63%, 5/01/20			625		612,500


See Notes to Financial Statements.

	ANNUAL REPORT	FEBRUARY 28, 2011	17




Schedule of Investments (continued)	BlackRock Corporate High Yield Fund, Inc. (COY)
	(Percentages shown are based on Net Assets)


Corporate Bonds		Par (000)		Value

Household Durables (concluded)
Standard Pacific Corp.:
10.75%, 9/15/16	USD		1,285	$	1,509,875
8.38%, 5/15/18			420		445,200
8.38%, 5/15/18 (b)			440		466,400
8.38%, 1/15/21 (b)			715		754,325

					10,509,984

IT Services — 1.8%
First Data Corp. (b):
8.88%, 8/15/20			1,175		1,286,625
8.25%, 1/15/21			1,610		1,601,950
12.63%, 1/15/21			763		799,242
SunGard Data Systems, Inc. (b):
7.38%, 11/15/18			440		454,300
7.63%, 11/15/20			550		567,875

					4,709,992

Independent Power Producers & Energy Traders — 3.2%
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)			1,190		1,291,150
Calpine Corp. (b):
7.50%, 2/15/21			435		444,788
7.88%, 1/15/23			585		601,087
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)			3,115		3,243,811
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20			161		168,060
NRG Energy, Inc., 7.63%, 1/15/18 (b)			2,515		2,618,744

					8,367,640

Industrial Conglomerates — 2.5%
Sequa Corp. (b):
11.75%, 12/01/15			2,190		2,376,150
13.50%, 12/01/15 (c)			3,759		4,162,818

					6,538,968

Insurance — 1.0%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (b)			1,600		1,692,000
CNO Financial Group, Inc., 9.00%, 1/15/18 (b)			316		336,540
USI Holdings Corp., 4.16%, 11/15/14 (b)(h)			630		607,950

					2,636,490

Machinery — 1.9%
AGY Holding Corp., 11.00%, 11/15/14			900		801,000
Navistar International Corp.:
3.00%, 10/15/14 (e)			1,680		2,347,800
8.25%, 11/01/21			630		697,725
Oshkosh Corp., 8.25%, 3/01/17			90		99,900
Titan International, Inc. (b):
5.63%, 1/15/17 (e)			220		573,100
7.88%, 10/01/17			430		460,100

					4,979,625

Marine — 0.7%
Horizon Lines, Inc., 4.25%, 8/15/12 (e)			1,985		1,841,087

Media — 13.0%
AMC Entertainment Holdings, Inc., 9.75%, 12/01/20 (b)			470		504,075
Affinion Group, Inc., 7.88%, 12/15/18 (b)			525		502,687
CCH II LLC, 13.50%, 11/30/16			502		608,488
CCO Holdings LLC:
7.88%, 4/30/18			430		459,025
8.13%, 4/30/20			430		463,863
CMP Susquehanna Corp., 3.44%, 5/15/14 (b)(h)			150		105,738
CSC Holdings, Inc., 8.50%, 4/15/14			370		414,400
Catalina Marketing Corp., 10.50%, 10/01/15 (b)(c)			555		600,787
Cengage Learning Acquisitions, Inc., 10.50%, 1/15/15 (b)			1,345		1,395,437


Corporate Bonds		Par (000)		Value

Media (concluded)
Checkout Holding Corp., 10.98%, 11/15/15 (b)(f)	USD		805	$	519,225
Citadel Broadcasting Corp., 7.75%, 12/15/18 (b)			235		252,038
Clear Channel Communications, Inc., 9.00%, 3/01/21 (b)			235		238,819
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17			1,404		1,558,440
Series B, 9.25%, 12/15/17			5,160		5,740,500
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18			617		617,372
Loan Close 3, 12.00%, 8/15/18			706		705,833
Shares Loan, 4.00%, 8/15/18			728		727,963
DISH DBS Corp., 7.00%, 10/01/13			90		96,750
Gray Television, Inc., 10.50%, 6/29/15			900		956,250
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (h)			330		296,175
9.50%, 5/15/15			390		383,175
Interactive Data Corp., 10.25%, 8/01/18 (b)			945		1,058,400
Liberty Global, Inc., 4.50%, 11/15/16 (e)			370		641,025
Liberty Media Corp., 3.13%, 3/30/23 (e)			1,023		1,260,847
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)			740		762,200
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)			570		612,750
Nielsen Finance LLC:
11.63%, 2/01/14			45		52,875
7.75%, 10/15/18 (b)			2,085		2,254,406
ProQuest LLC, 9.00%, 10/15/18 (b)			460		476,100
ProtoStar I Ltd., 18.00%, 10/15/12 (a)(b)(i)			812		8,118
Rainbow National Services LLC (b):
8.75%, 9/01/12			410		411,538
10.38%, 9/01/14			1,496		1,557,710
Regal Entertainment Group, 9.13%, 8/15/18			305		326,350
UPC Germany GmbH (b):
8.13%, 12/01/17			640		686,400
8.13%, 12/01/17	EUR		407		604,468
9.63%, 12/01/19			530		831,028
UPC Holding BV, 9.88%, 4/15/18 (b)	USD		500		555,000
UPCB Finance II Ltd., 6.38%, 7/01/20	EUR		753		1,026,090
Unitymedia GmbH, 9.63%, 12/01/19			158		247,740
Univision Communications, Inc., 7.88%, 11/01/20 (b)	USD		425		455,813
Virgin Media Secured Finance Plc, 7.00%, 1/15/18	GBP		537		940,627
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)	EUR		343		507,642
Ziggo Finance BV, 6.13%, 11/15/17 (b)			735		1,037,090

					33,461,257

Metals & Mining — 4.3%
Drummond Co., Inc.:
9.00%, 10/15/14 (b)	USD		580		619,150
7.38%, 2/15/16			215		222,525
FMG Resources August 2006 Property Ltd., 7.00%, 11/01/15 (b)			1,460		1,514,750
Foundation PA Coal Co., 7.25%, 8/01/14			1,850		1,887,000
Goldcorp, Inc., 2.00%, 8/01/14 (e)			550		692,313
New World Resources NV, 7.88%, 5/01/18	EUR		627		930,126
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (e)	USD		395		526,831
Novelis, Inc., 8.75%, 12/15/20 (b)			3,235		3,566,587
Ryerson, Inc.:
7.66%, 11/01/14 (h)			380		364,800
12.00%, 11/01/15			245		263,375
Steel Dynamics, Inc., 7.38%, 11/01/12			200		212,500
Vedanta Resources Plc, 9.50%, 7/18/18 (b)			185		203,963

					11,003,920


See Notes to Financial Statements.

18	ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments (continued)	BlackRock Corporate High Yield Fund, Inc. (COY)
	(Percentages shown are based on Net Assets)


Corporate Bonds		Par (000)		Value

Multiline Retail — 1.8%
Dollar General Corp., 11.88%, 7/15/17 (c)	USD		4,007	$	4,633,094

Oil, Gas & Consumable Fuels — 7.5%
Arch Coal, Inc., 7.25%, 10/01/20			790		839,375
Berry Petroleum Co., 8.25%, 11/01/16			470		496,438
Bill Barrett Corp., 9.88%, 7/15/16			40		44,800
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18 (b)			210		223,125
Chaparral Energy Inc., 8.25%, 9/01/21 (b)			230		234,025
Chesapeake Energy Corp.:
6.63%, 8/15/20			1,460		1,533,000
6.13%, 2/15/21			870		887,400
2.25%, 12/15/38 (e)			775		709,125
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)			243		264,870
Concho Resources, Inc., 7.00%, 1/15/21			375		392,813
Connacher Oil and Gas Ltd. (b):
11.75%, 7/15/14			165		178,613
10.25%, 12/15/15			1,075		1,136,812
Consol Energy, Inc., 8.25%, 4/01/20			1,825		2,012,062
Continental Resources, Inc., 7.13%, 4/01/21			340		362,100
Crosstex Energy LP, 8.88%, 2/15/18			165		181,913
Denbury Resources Inc.:
8.25%, 2/15/20			652		725,350
6.38%, 8/15/21			320		323,200
Energy Transfer Equity LP, 7.50%, 10/15/20			125		135,469
Energy XXI Gulf Coast, Inc. (b):
9.25%, 12/15/17			390		419,250
7.75%, 6/15/19			480		484,800
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)			710		749,050
Linn Energy LLC (b):
8.63%, 4/15/20			1,005		1,120,575
7.75%, 2/01/21			545		579,062
MarkWest Energy Partners LP, 6.75%, 11/01/20			240		246,000
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)			1,730		1,885,700
Oasis Petroleum, Inc., 7.25%, 2/01/19 (b)			210		213,150
Peabody Energy Corp., 6.50%, 9/15/20			505		540,350
Petrohawk Energy Corp.:
10.50%, 8/01/14			350		402,500
7.88%, 6/01/15			450		477,000
Range Resources Corp., 8.00%, 5/15/19			400		440,500
SM Energy Co., 6.63%, 2/15/19 (b)			260		262,925
Teekay Corp., 8.50%, 1/15/20			610		656,512
United Refining Co., 10.50%, 2/28/18 (b)(g)			240		237,600

					19,395,464

Paper & Forest Products — 2.8%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(c)			345		350,280
Boise Paper Holdings LLC:
9.00%, 11/01/17			310		345,650
8.00%, 4/01/20			140		154,350
Clearwater Paper Corp.:
10.63%, 6/15/16			370		422,725
7.13%, 11/01/18 (b)			535		555,063
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)			1,525		1,719,437
NewPage Corp., 11.38%, 12/31/14			2,510		2,503,725
Verso Paper Holdings LLC:
11.50%, 7/01/14			785		865,462
8.75%, 2/01/19 (b)			215		224,675

					7,141,367

Pharmaceuticals — 0.9%
Angiotech Pharmaceuticals, Inc., 4.06%, 12/01/13 (h)			845		709,800
Grifols, Inc., 8.25%, 2/01/18 (b)			120		123,300
Novasep Holding SAS, 9.63%, 12/15/16 (b)	EUR		486		543,234


Corporate Bonds		Par (000)		Value

Pharmaceuticals (concluded)
Valeant Pharmaceuticals International (b):
6.75%, 10/01/17	USD	350	$	362,250
7.00%, 10/01/20		445		460,019

				2,198,603

Professional Services — 0.3%
FTI Consulting, Inc., 6.75%, 10/01/20 (b)		850		850,000

Real Estate Investment Trusts (REITs) — 1.0%
iStar Financial, Inc., 5.65%, 9/15/11		1,500		1,500,000
Omega Healthcare Investors, Inc., 6.75%, 10/15/22 (b)		495		499,950
The Rouse Co. LP, 6.75%, 11/09/15		480		502,800

				2,502,750

Real Estate Management & Development — 1.9%
CB Richard Ellis Services Inc., 6.63%, 10/15/20		310		319,687
Forest City Enterprises, Inc., 7.63%, 6/01/15		1,325		1,285,250
Realogy Corp. (b):
11.50%, 4/15/17		725		772,125
7.88%, 2/15/19		2,440		2,449,150

				4,826,212

Road & Rail — 2.1%
Avis Budget Car Rental LLC:
9.63%, 3/15/18		475		530,813
8.25%, 1/15/19		710		753,487
Florida East Coast Railway Corp., 8.13%, 2/01/17 (b)		410		428,450
The Hertz Corp. (b):
7.50%, 10/15/18		595		629,956
6.75%, 4/15/19		410		418,200
7.38%, 1/15/21		455		475,475
Hertz Holdings Netherlands BV, 8.50%, 7/31/15 (b)	EUR	1,225		1,838,362
Syncreon Global Ireland Ltd., 9.50%, 5/01/18 (b)	USD	330		342,375

				5,417,118

Semiconductors & Semiconductor Equipment — 0.3%
Linear Technology Corp., Series A, 3.00%, 5/01/27 (e)		405		440,944
Spansion LLC, 7.88%, 11/15/17 (b)		260		265,200

				706,144

Specialty Retail — 1.6%
Asbury Automotive Group, Inc., 8.38%, 11/15/20 (b)		305		320,250
Claire’s Escrow Corp., 8.88%, 3/15/19 (b)(g)		295		296,106
Hillman Group, Inc., 10.88%, 6/01/18		490		539,000
Ltd. Brands, Inc., 8.50%, 6/15/19		745		853,025
PETCO Animal Supplies, Inc., 9.25%, 12/01/18 (b)		415		448,200
Sonic Automotive, Inc., 9.00%, 3/15/18		345		369,150
Toys ‘R’ US-Delaware, Inc., 7.38%, 9/01/16 (b)		390		410,963
United Auto Group, Inc., 7.75%, 12/15/16		950		980,875

				4,217,569

Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)		398		412,925

Wireless Telecommunication Services — 4.4%
Clearwire Communications LLC (b):
12.00%, 12/01/15		460		501,400
12.00%, 12/01/17		1,040		1,123,200
Cricket Communications, Inc.:
10.00%, 7/15/15		715		788,288
7.75%, 5/15/16		336		355,320


See Notes to Financial Statements.

	ANNUAL REPORT	FEBRUARY 28, 2011	19




Schedule of Investments (continued)	BlackRock Corporate High Yield Fund, Inc. (COY)
	(Percentages shown are based on Net Assets)


Corporate Bonds		Par (000)		Value

Wireless Telecommunication Services (concluded)
Digicel Group Ltd. (b):
8.88%, 1/15/15	USD		635	$	660,400
9.13%, 1/15/15 (c)			1,711		1,781,623
8.25%, 9/01/17			1,135		1,186,075
10.50%, 4/15/18			500		570,000
FiberTower Corp., 9.00%, 1/01/16 (c)			302		258,202
Intelsat Jackson Holdings SA, 7.25%, 10/15/20 (b)			320		328,800
iPCS, Inc., 2.43%, 5/01/13 (h)			760		750,500
MetroPCS Wireless, Inc.:
7.88%, 9/01/18			480		507,000
6.63%, 11/15/20			700		681,625
NII Holdings, Inc., 3.13%, 6/15/12 (e)			340		338,300
Sprint Capital Corp., 6.88%, 11/15/28			1,460		1,315,825
Syniverse Holdings, Inc., 9.13%, 1/15/19 (b)			240		259,200

					11,405,758

Total Corporate Bonds — 103.5%					266,877,299




Floating Rate Loan Interests (h)

Building Products — 0.2%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/30/17			500		515,312

Capital Markets — 0.1%
Marsico Parent Co., LLC, Term Loan, 5.31%, 12/15/14			375		304,745

Chemicals — 0.1%
PQ Corp. (FKA Niagara Acquisition, Inc.), Term Facility (First Lien), 3.52% – 3.56%, 7/30/14			404		397,208

Construction & Engineering — 0.7%
Safway Services, LLC, Last Out Term Loan, 15.63%, 12/18/17			1,750		1,750,000

Health Care Providers & Services — 0.7%
Harden Healthcare, Inc.:
Tranche A Additional Term Loan, 7.75%, 3/02/15			475		465,500
Tranche A Term Loan, 8.50%, 3/02/15			396		388,178
inVentiv Health, Inc. (FKA Ventive Health, Inc.), Term Loan B, 6.50%, 8/04/16			896		899,418

					1,753,096

Hotels, Restaurants & Leisure — 0.8%
Harrah’s Operating Co., Inc., Term Loan B-3, 3.30%, 1/28/15			400		371,389
Travelport LLC (FKA Travelport, Inc.), Loan, 8.31%, 3/27/12			1,915		1,709,399

					2,080,788

IT Services — 0.4%
First Data Corp.:
Initial Tranche B-1 Term Loan, 3.01%, 9/24/14			47		44,203
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14			378		358,339
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14			741		701,566

					1,104,108

Independent Power Producers & Energy Traders — 1.0%
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-1 Term Loan, 3.76% – 3.80%, 10/10/14			204		172,086
Initial Tranche B-2 Term Loan, 3.76% – 3.80%, 10/10/14			295		248,461
Initial Tranche B-3 Term Loan, 3.76% – 3.80%, 10/10/14			2,545		2,139,662

					2,560,209


Floating Rate Loan Interests (h)		Par (000)			Value

Media — 1.5%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14	USD		1,463		$	1,469,081
HMH Publishing Co., Ltd., Tranche A Term Loan, 6.01%, 6/12/14			869			825,359
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13			1,375			1,461,797

						3,756,237

Metals & Mining — 0.1%
Euramax International, Inc., Domestic Term Loan:
10.00%, 6/29/13			168			161,722
14.00%, 6/29/13			161			155,246

						316,968

Multiline Retail — 0.6%
Hema Holding BV, Mezzanine, 4.41%, 7/05/17	EUR		1,070			1,447,188

Oil, Gas & Consumable Fuels — 1.2%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15	USD		2,147			2,200,304
Turbo Beta Ltd., Dollar Facility, 14.50%, 3/15/18			2,245			920,278

						3,120,582

Paper & Forest Products — 0.4%
Verso Paper Finance Holdings LLC, 6.55% – 7.30%, 2/01/13 (c)			1,282			1,153,977

Real Estate Investment Trusts (REITs) — 0.1%
iStar Financial, Inc., Term Loan (Second Lien), 1.76%, 6/28/11			225			221,906

Real Estate Management & Development — 0.3%
Realogy Corp.:
Extended Synthetic Letter of Credit Loan, 0.11%, 10/10/16			124			119,338
Extended Term Loan B, 4.56%, 10/10/16			689			660,582
						779,920

Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 3.01% – 5.00%, 5/29/14			132			128,530
Michaels Stores, Inc., Term Loan B-1, 2.56% – 2.63%, 10/31/13			306			305,363

						433,893

Total Floating Rate Loan Interests — 8.4%						21,696,137




Other Interests (k)		Beneficial Interest (000)

Auto Components — 2.4%
Delphi Debtor-in-Possession Holding Co. LLP, Class B Membership Interests			—	(l)		6,337,403

Media — 0.0%
Adelphia Escrow			700			7
Adelphia Recovery Trust			878			88

						95

Total Other Interests — 2.4%						6,337,498


See Notes to Financial Statements.

20	ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments (continued)	BlackRock Corporate High Yield Fund, Inc. (COY)
	(Percentages shown are based on Net Assets)


Preferred Stocks	Shares		Value

Auto Components — 0.1%
Dana Holding Corp., 4.00% (b)(e)		2,000	$	328,250

Automobiles — 0.8%
General Motors Co., 4.75%		42,950		2,185,296

Household Durables — 0.1%
Beazer Homes USA, Inc., 7.50% (e)		5,000		124,750

Media — 0.0%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)(h)		34,982		—

Professional Services — 0.1%
Nielsen Holdings NV, 6.25% (a)(e)		4,084		225,386

Total Preferred Stocks — 1.1%				2,863,682




Warrants (m)

Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)		29,930		1

Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)		39,975		—
New Vision Holdings LLC (Expires 9/30/14)		14,965		150

				150

Oil, Gas & Consumable Fuels — 0.0%
Turbo Cayman Ltd. (No Expiration)		1		—

Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		312		3
HMH Holdings/EduMedia (Expires 3/09/17)		9,997		—

				3

Total Warrants — 0.0%				154

Total Long-Term Investments (Cost — $298,164,834) — 121.1%				312,440,582




Short-Term Securities

BlackRock Liquidity Funds, TempCash, Institutional Class, 0.18% (n)(o)		1,721,866		1,721,866

Total Short-Term Securities (Cost — $1,721,866) — 0.7%				1,721,866




Options Purchased	Contracts

Over-the-Counter Call Options — 0.0%
Marsico Parent Superholdco LLC, Strike Price USD 942.86, Expires 12/01/19, Broker Goldman Sachs Bank USA		17		—

Total Options Purchased (Cost — $16,622) — 0.0%				—

*Total Investments (Cost — $299,903,322) — 121.8%**				314,162,448
Liabilities in Excess of Other Assets — (21.8)%				(56,253,222	)

Net Assets — 100.0%			$	257,909,226


*	The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes were as follows:


Aggregate cost	$	300,995,917

Gross unrealized appreciation	$	24,446,935
Gross unrealized depreciation		(11,280,404	)

Net unrealized appreciation	$	13,166,531


(a)	Non-income producing security.

(b)	Security exempt from registration under Rule 144A of the Securities Act of 1933.

	These securities may be resold in transactions exempt from registration to qualified institutional investors.

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

(d)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.

(e)	Convertible security.

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

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



Counterparty	Value		Unrealized Appreciation (Depreciation)

Bank of America	$	122,100	$	2,100
Credit Suisse International	$	237,600	$	6,134
Credit Suisse International	$	296,106	$	1,106
Sterne Agee	$	50,875	$	(125	)


(h)	Variable rate security. Rate shown is as of report date.

(i)	Issuer filed for bankruptcy and/or is in default of interest payments.

(j)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

(k)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.

(l)	Amount is less than $1,000.

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

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



Affiliate	Shares Held at February 28, 2010		Net Activity			Shares Held at February 28, 2011		Income

BlackRock Liquidity Funds, TempCash, Institutional Class		4,931,674		(3,209,808	)		1,721,866	$	4,563


(o)	Represents the current yield as of report date.


See Notes to Financial Statements.

	ANNUAL REPORT	FEBRUARY 28, 2011	21




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


•	For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

•	Foreign currency exchange contracts as of February 28, 2011 were as follows:



Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)

USD	191,626	CAD	190,000	Citibank NA	4/14/11	$	(3,745	)
USD	715,231	GBP	454,000	Citibank NA	4/14/11		(22,506	)
USD	776,207	GBP	483,000	Deutsche Bank AG	4/14/11		(8,655	)
USD	87,672	GBP	54,500	Citibank NA	4/14/11		889
USD	238,419	GBP	148,500	UBS AG	4/14/11		(2,889	)
USD	13,138,284	EUR	9,600,500	Citibank NA	4/27/11		(100,425	)
USD	411,903	EUR	305,000	Deutsche Bank AG	4/27/11		(8,680	)
USD	1,362,593	EUR	995,000	Royal Bank of Scotland	4/27/11		(9,473	)

Total						$	(155,484	)


•	Financial futures contracts sold as of February 28, 2011 were as follows:



Contracts	Issue	Exchange	Expiration		Notional Value		Unrealized Depreciation

93	S&P 500 Index Emini	Chicago Mercantile		March 2011	$	5,914,686	$	(251,679	)


•	Credit default swaps on single-name issues — buy protection outstanding as of February 28, 2011 were as follows:



Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation

iStar Financial, Inc.	5.00%	Morgan Stanley Capital Services, Inc.	9/20/11	$	1,500	$	(112,324	)
K. Hovnanian Enterprises, Inc.	5.00%	Goldman Sachs International	12/20/11	$	475		(21,660	)
K. Hovnanian Enterprises, Inc.	5.00%	Goldman Sachs Bank USA	12/20/13	$	925		(78,682	)
Louisiana-Pacific Corp.	5.00%	JPMorgan Chase Bank NA	3/20/14	$	500		(114,192	)
Harrah’s Operating Company, Inc.	5.00%	Deutsche Bank AG	12/20/15	$	1,200		(167,414	)
Republic of Hungary	1.00%	Deutsche Bank AG	12/20/15	$	280		(5,076	)
Israel (State of)	1.00%	Deutsche Bank AG	3/20/16	$	625		(2,402	)
iStar Financial, Inc.	5.00%	Deutsche Bank AG	12/20/16	$	250		(49,627	)

Total						$	(551,377	)


•	Credit default swaps on single-name issues — sold protection outstanding as of February 28, 2011 were as follows:



Issuer	Receive Fixed Rate	Counterparty	Expiration Date	Issuer Credit Rating¹	Notional Amount (000)²		Unrealized Appreciation (Depreciation)

iStar Financial, Inc.	5.00%	Deutsche Bank AG	9/20/11	CCC–	$	250	$	26,749
MBIA Insurance Corp.	5.00%	Citibank NA	3/20/12	B–	$	55		5,218
MBIA Insurance Corp.	5.00%	Deutsche Bank AG	3/20/12	B–	$	110		9,861
Texas Competitive Electric Holdings Co. LLC	5.00%	Goldman Sachs International	9/20/12	D	$	475		(47,954	)
MBIA Insurance Corp.	5.00%	Deutsche Bank AG	12/20/12	B–	$	595		62,089
Advanced Micro Devices, Inc.	5.00%	JPMorgan Chase Bank NA	3/20/15	B+	$	550		66,903
Realogy Corp.	5.00%	JPMorgan Chase Bank NA	9/20/15	CC	$	125		19,128
Assured Guaranty Ltd.	5.00%	Deutsche Bank AG	12/20/15	A+	$	60		469
D.R. Horton, Inc.	1.00%	JPMorgan Chase Bank NA	12/20/15	BB–	$	275		8,461
M.D.C. Holdings, Inc.	1.00%	Deutsche Bank AG	12/20/15	BBB–	$	315		3,022
M.D.C. Holdings, Inc.	1.00%	JPMorgan Chase Bank NA	12/20/15	BBB–	$	315		1,707
M.D.C. Holdings, Inc.	1.00%	Morgan Stanley Capital Services, Inc.	12/20/15	BBB–	$	500		2,282
Realogy Corp.	5.00%	JPMorgan Chase Bank NA	12/20/15	CC	$	700		39,469
ARAMARK Corp.	5.00%	Goldman Sachs International	3/20/16	B	$	500		(906	)
Chesapeake Energy Corp.	5.00%	Credit Suisse International	3/20/16	BB	$	250		4,687
Chesapeake Energy Corp.	5.00%	Goldman Sachs International	3/20/16	BB	$	250		2,781
Chesapeake Energy Corp.	5.00%	JPMorgan Chase Bank NA	3/20/16	BB	$	250		4,687
Realogy Corp.	5.00%	JPMorgan Chase Bank NA	3/20/16	CC	$	125		525
General Motors Co.	5.00%	Deutsche Bank AG	3/20/21	BB–	$	400		(1,002	)

Total							$	208,176


	¹	Using S&P’s rating.

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


See Notes to Financial Statements.

22	ANNUAL REPORT	FEBRUARY 28, 2011




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


•	Credit default swaps on traded indexes — sold protection outstanding as of February 28, 2011 were as follows:



Index	Receive Fixed Rate		Counterparty		Expiration Date		Credit Rating¹		Notional Amount (000)²		Unrealized Depreciation

Dow Jones CDX North America High Yield Index Series 10, 10 – 15%		0.00%		Deutsche Bank AG		6/20/11		CCC	$	664	$	(5,119	)

Dow Jones CDX North America High Yield Index Series 9, 10 – 15%		0.00%		Deutsche Bank AG		12/20/12		CCC	$	479		(18,542	)

Dow Jones CDX North America High Yield Index Series 15		5.00%		Credit Suisse International		12/20/15		B	$	1,825		(5,830	)

Total											$	(29,491	)


	¹	Using S&P’s rating.

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


•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivatives and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of February 28, 2011 in determining the fair valuation of the Fund’s investments and derivatives:



Valuation Inputs	Level 1		Level 2		Level 3			Total

Assets:
Investments in Securities:
Long-Term Investments:
Common Stocks	$	14,114,299	$	139,367	$	412,146		$	14,665,812
Corporate Bonds		—		261,794,251		5,083,048			266,877,299
Floating Rate Loan Interests		—		14,817,901		6,878,236			21,696,137
Other Interest		88		6,337,403		7			6,337,498
Preferred Stocks		2,310,046		553,636		—			2,863,682
Warrants		—		—		154			154
Short-Term Securities		1,721,866		—		—			1,721,866
Liabilities:
Unfunded Loan Commitments		—		—		(11,592	)		(11,592	)

Total	$	18,146,299	$	283,642,558	$	12,361,999		$	314,150,856



	Derivative Financial Instruments¹

Valuation Inputs	Level 1			Level 2			Level 3		Total

Assets:
Credit contracts		—		$	258,038			—	$	258,038
Foreign currency exchange contracts		—			889			—		889
Liabilities:
Credit contract		—			(630,730	)		—		(630,730	)
Equity contracts	$	(251,679	)		—					(251,679	)
Foreign currency exchange contracts		—			(156,373	)		—		(156,373	)

Total	$	(251,679	)	$	(528,176	)		—	$	(779,855	)


	¹	Derivative financial instruments are financial futures contracts, swaps, foreign currency exchange contracts and options. Financial futures contracts, swaps and foreign currency exchange contracts are shown at the unrealized appreciation/ depreciation on the instrument and options are shown at value.


See Notes to Financial Statements.

	ANNUAL REPORT	FEBRUARY 28, 2011	23




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

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



	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests			Warrants		Unfunded Loan Commitments (Liabilities)			Total

Assets/Liabilities:
Balance, as of February 28, 2010	$	75,096		$	3,961,360		$	19,218,811		$	4,212,670		$	150	$	(51,643	)	$	27,416,444
Accrued discounts/premiums		—			27,601			259,504			—			—		—			287,105
Net realized gain (loss)		—			3,474			304,406			1,359,868			—		—			1,667,748
Net change in unrealized appreciation/depreciation²		(759,245	)		(774,415	)		401,353			1,659,864			—		40,051			567,608
Purchases		1,186,185			2,332,077			3,657,874			1,297,125			4		—			8,473,265
Sales		—			(98,716	)		(12,548,447	)		(2,191,925	)		—		—			(14,839,088	)
Transfers in³		—			32			—			—			—		—			32
Transfers out³		(89,890	)		(368,365	)		(4,415,265	)		(6,337,595	)		—		—			(11,211,115	)

Balance, as of February 28, 2011	$	412,146		$	5,083,048		$	6,878,236		$	7		$	154	$	(11,592	)	$	12,361,999


	²	Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in the unrealized appreciation/depreciation on the securities still held on February 28, 2011 was $(1,980,476).

	³	The Fund’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.


See Notes to Financial Statements.

24	ANNUAL REPORT	FEBRUARY 28, 2011




Schedule of Investments February 28, 2011	BlackRock Corporate High Yield Fund III, Inc. (CYE)
	(Percentages shown are based on Net Assets)


Common Stocks	Shares	Value

Capital Markets — 0.2%
E*Trade Financial Corp. (a)