N-Q 1 c56184_nq.htm c56184_nq.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-05495

Name of Fund: BlackRock High Income Shares (HIS)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 08/31/2008

Date of reporting period: 09/01/2008 – 11/30/2008

Item 1 – Schedule of Investments

BlackRock High Income Shares  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
Industry Corporate Bonds   (000 )   Value
Aerospace & Defense - 0.8% DRS Technologies, Inc., 6.875%, 11/01/13 USD 170   $ 168,725
  DRS Technologies, Inc., 7.625%, 2/01/18   170     168,725
  Hawker Beechcraft Acquisitions Co. LLC, 8.50%, 4/01/15   40     18,800
  Hawker Beechcraft Acquisitions Co. LLC,          
  8.875%, 4/01/15 (a)   100     41,500
  Hexcel Corp., 6.75%, 2/01/15   135     102,600
  L-3 Communications Corp., 5.875%, 1/15/15   140     113,400
            613,750
Airlines - 0.3% American Airlines, Inc. Series 99-1, 7.324%, 4/15/11   280     246,400
Auto Components - 2.4% Allison Transmission, Inc., 11%, 11/01/15 (b)   335     164,150
  Allison Transmission, Inc., 11.25%, 11/01/15 (a)(b)   450     182,250
  The Goodyear Tire & Rubber Co., 7.857%, 8/15/11   690     503,700
  The Goodyear Tire & Rubber Co., 8.625%, 12/01/11   682     508,942
  Lear Corp., 8.75%, 12/01/16   370     79,550
  Meritor Automotive, Inc., 6.80%, 2/15/09   22     21,010
  Stanadyne Corp. Series 1, 10%, 8/15/14   525     351,750
            1,811,352
Automobiles - 0.7% Ford Capital BV, 9.50%, 6/01/10   1,330     478,800
  Ford Motor Co., 8.90%, 1/15/32   300     69,000
            547,800
Building Products - 1.4% CPG International I, Inc., 10.50%, 7/01/13   540     302,400
  Momentive Performance Materials, Inc., 11.50%, 12/01/16   805     213,325
  Ply Gem Industries, Inc., 11.75%, 6/15/13   895     530,288
            1,046,013
Capital Markets - 0.4% E*Trade Financial Corp., 12.50%, 11/30/17   425     278,375
Chemicals - 3.7% American Pacific Corp., 9%, 2/01/15   400     348,000
  Ames True Temper, Inc., 8.753%, 1/15/12 (c)   1,070     556,400
  Hexion U.S. Finance Corp., 6.649%, 11/15/14 (c)   425     208,250
  Hexion U.S. Finance Corp., 9.75%, 11/15/14   100     52,000
  Innophos, Inc., 8.875%, 8/15/14   1,170     994,500
  Key Plastics LLC, 11.75%, 3/15/13 (b)(d)(e)   205     10,250
  MacDermid, Inc., 9.50%, 4/15/17 (b)   755     407,700
  Terra Capital, Inc. Series B, 7%, 2/01/17   265     191,463
            2,768,563
Commercial Services & Casella Waste Systems, Inc., 9.75%, 2/01/13   400     348,000
Supplies - 3.6% DI Finance Series B, 9.50%, 2/15/13   904     768,400
  Sally Holdings LLC, 9.25%, 11/15/14   90     67,950
  Sally Holdings LLC, 10.50%, 11/15/16   394     228,520
  Waste Services, Inc., 9.50%, 4/15/14   800     608,000
  West Corp., 9.50%, 10/15/14   375     198,750
  West Corp., 11%, 10/15/16   1,195     513,850
            2,733,470
Communications Equipment - Nortel Networks Ltd., 9.003%, 7/15/11 (c)   555     180,375
0.2%            
Construction Materials - 1.5% Nortek, Inc., 10%, 12/01/13   1,580     1,106,000

1

BlackRock High Income Shares  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
Industry Corporate Bonds   (000 )   Value
Containers & Packaging - 6.9% Berry Plastics Holding Corp., 5.871%, 9/15/14 (c) USD 300   $ 141,000
  Crown Americas LLC, 7.75%, 11/15/15   255     230,775
  Crown European Holdings SA, 6.25%, 9/01/11 EUR 595     657,676
  Graphic Packaging International Corp., 9.50%, 8/15/13 USD 65     44,850
  Impress Holdings BV, 7.878%, 9/15/13 (b)(c)   775     466,937
  Jefferson Smurfit Corp. US, 7.50%, 6/01/13   1,000     290,000
  Owens-Brockway Glass Container, Inc., 8.25%, 5/15/13   2,600     2,444,000
  Owens-Brockway Glass Container, Inc., 6.75%, 12/01/14 EUR 50     48,279
  Pregis Corp., 12.375%, 10/15/13 USD 1,034     568,700
  Smurfit-Stone Container Enterprises, Inc., 8%, 3/15/17   1,140     302,100
            5,194,317
Diversified Financial Services - Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16 (b)   240     199,200
4.3% FCE Bank Plc, 7.125%, 1/16/12 EUR 1,100     768,654
  FCE Bank Plc Series JD, 6.142%, 9/30/09 (c)   125     115,933
  Ford Motor Credit Co. LLC, 8.625%, 11/01/10 USD 140     70,012
  Ford Motor Credit Co. LLC, 7.569%, 1/13/12 (c)   145     63,800
  Ford Motor Credit Co. LLC, 7.80%, 6/01/12   1,500     646,963
  GMAC LLC, 6.875%, 8/28/12   710     248,549
  GMAC LLC, 4.403%, 12/01/14 (c)   630     189,000
  GMAC LLC, 6.75%, 12/01/14   1,064     345,722
  GMAC LLC, 8%, 11/01/31   330     86,787
  Leucadia National Corp., 8.125%, 9/15/15   600     520,500
            3,255,120
Diversified Telecommunication Broadview Networks Holdings, Inc., 11.375%, 9/01/12   480     340,800
Services - 8.8% Cincinnati Bell, Inc., 7.25%, 7/15/13   2,085     1,709,700
  Qwest Capital Funding, Inc., 7%, 8/03/09   230     220,800
  Qwest Communications International, Inc., 7.50%, 2/15/14   910     591,500
  Qwest Communications International, Inc., Series B,          
  7.50%, 2/15/14   640     416,000
  Qwest Corp., 5.246%, 6/15/13 (c)   850     595,000
  Verizon Communications, Inc., 8.75%, 11/01/18   655     655,168
  Wind Acquisition Finance SA, 10.75%, 12/01/15 (b)   1,100     902,000
  Windstream Corp., 8.125%, 8/01/13   855     705,375
  Windstream Corp., 8.625%, 8/01/16   645     503,100
            6,639,443
Electric Utilities - 2.1% Edison Mission Energy, 7.50%, 6/15/13   35     28,525
  Elwood Energy LLC, 8.159%, 7/05/26   453     331,569
  Homer City Funding LLC Series B, 8.734%, 10/01/26   149     120,096
  NSG Holdings LLC, 7.75%, 12/15/25 (b)   565     440,700
  Salton Sea Funding Corp. Series E, 8.30%, 5/30/11   619     658,512
            1,579,402
Electrical Equipment - 0.3% Coleman Cable, Inc., 9.875%, 10/01/12   400     258,000
Electronic Equipment & Sanmina-SCI Corp., 8.125%, 3/01/16   590     265,500
Instruments - 0.4%            
Energy Equipment & Compagnie Generale de Geophysique-Veritas,          
Services - 1.9% 7.50%, 5/15/15   135     87,750

2

BlackRock High Income Shares  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
Industry Corporate Bonds   (000 )   Value
  Compagnie Generale de Geophysique-Veritas,          
  7.75%, 5/15/17 USD 220   $ 135,025
  North American Energy Partners, Inc., 8.75%, 12/01/11   1,560     1,170,000
            1,392,775
Food & Staples Retailing - 0.2% Rite Aid Corp., 7.50%, 3/01/17   275     156,750
Food Products - 0.6% Del Monte Corp., 8.625%, 12/15/12   475     429,875
Gas Utilities - 0.3% Targa Resources, Inc., 8.50%, 11/01/13   345     189,750
Health Care Equipment & Biomet, Inc., 10.375%, 10/15/17 (a)   120     94,800
Supplies - 3.2% Biomet, Inc., 11.625%, 10/15/17   120     90,000
  Catalent Pharma Solutions, Inc., 9.50%, 4/15/15 (a)   610     201,300
  DJO Finance LLC, 10.875%, 11/15/14   2,400     1,752,000
  Hologic, Inc., 2%, 12/15/37 (f)(g)   395     223,669
            2,361,769
Health Care Providers & Community Health Systems, Inc., 8.875%, 7/15/15   230     184,575
Services - 2.2% HCA, Inc., 9.25%, 11/15/16   105     85,312
  Tenet Healthcare Corp., 6.375%, 12/01/11   160     121,600
  Tenet Healthcare Corp., 6.50%, 6/01/12   1,770     1,292,100
            1,683,587
Hotels, Restaurants & American Real Estate Partners LP, 7.125%, 2/15/13   850     512,125
Leisure - 5.0% Caesars Entertainment, Inc., 7.875%, 3/15/10   500     260,000
  Gaylord Entertainment Co., 8%, 11/15/13   1,110     659,062
  Gaylord Entertainment Co., 6.75%, 11/15/14   450     243,000
  Great Canadian Gaming Corp., 7.25%, 2/15/15 (b)   1,390     959,100
  Greektown Holdings, LLC, 10.75%, 12/01/13 (b)(d)(e)   649     133,045
  Harrah's Operating Co., Inc., 10.75%, 2/01/18 (a)(b)   1,470     131,361
  MGM Mirage, 6%, 10/01/09   180     145,800
  Seneca Gaming Corp. Series B, 7.25%, 5/01/12   630     422,100
  Travelport LLC, 6.828%, 9/01/14 (c)   75     18,000
  Tropicana Entertainment LLC, 9.625%, 12/15/14 (d)(e)   215     7,525
  Virgin River Casino Corp., 9%, 1/15/12   585     175,500
  Wynn Las Vegas LLC, 6.625%, 12/01/14   100     70,750
            3,737,368
Household Durables - 0.6% Jarden Corp., 7.50%, 5/01/17   690     448,500
IT Services - 3.7% Alliance Data Systems Corp., 1.75%, 8/01/13 (b)(f)   180     127,350
  First Data Corp., 9.875%, 9/24/15   575     330,625
  iPayment, Inc., 9.75%, 5/15/14   335     227,800
  iPayment Investors LP, 12.75%, 7/15/14 (a)(b)   1,507     1,479,549
  SunGard Data Systems, Inc., 9.125%, 8/15/13   310     240,250
  SunGard Data Systems, Inc., 10.625%, 5/15/15 (b)   500     385,000
            2,790,574
Independent Power Producers & AES Red Oak LLC Series B, 9.20%, 11/30/29   1,250     900,000
Energy Traders - 3.3% Energy Future Holding Corp., 11.25%, 11/01/17 (a)(b)   1,600     852,000
  NRG Energy, Inc., 7.25%, 2/01/14   100     81,500
  NRG Energy, Inc., 7.375%, 2/01/16   465     377,813

3

BlackRock High Income Shares  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
Industry Corporate Bonds   (000 )      Value
  Texas Competitive Electric Holdings Co. LLC, 10.50%,          
  11/01/16(a)(b) USD 430   $ 232,200
            2,443,513
Industrial Conglomerates - 1.5% Sequa Corp., 11.75%, 12/01/15 (b)   1,150     506,000
  Sequa Corp., 13.50%, 12/01/15 (a)(b)   1,499     638,922
            1,144,922
Insurance - 0.9% Alliant Holdings I, Inc., 11%, 5/01/15 (b)   800     570,000
  USI Holdings Corp., 6.024%, 11/15/14 (b)(c)   310     127,488
            697,488
Machinery - 2.6% AGY Holding Corp., 11%, 11/15/14   890     534,000
  Accuride Corp., 8.50%, 2/01/15   340     122,400
  RBS Global, Inc., 8.875%, 9/01/16   295     182,900
  Sunstate Equipment Co. LLC, 10.50%, 4/01/13 (b)   1,720     980,400
  Terex Corp., 7.375%, 1/15/14   175     138,250
            1,957,950
Marine - 0.2% Navios Maritime Holdings, Inc., 9.50%, 12/15/14   254     152,400
Media - 14.0% Affinion Group, Inc., 10.125%, 10/15/13   1,045     715,825
  CMP Susquehanna Corp., 9.875%, 5/15/14 (b)   865     153,537
  CSC Holdings, Inc. Series B, 8.125%, 7/15/09   165     158,400
  Cablevision Systems Corp. Series B, 8.334%, 4/01/09 (c)   750     733,125
  Charter Communications Holdings II, LLC, 10.25%, 9/15/10   2,345     1,190,087
  Charter Communications Holdings II, LLC, Series B,          
  10.25%, 9/15/10   515     244,625
  Charter Communications Operating, LLC,          
  8.375%, 4/30/14 (b)   500     340,000
  DirecTV Holdings LLC, 8.375%, 3/15/13   300     276,000
  DirecTV Holdings LLC, 7.625%, 5/15/16   640     545,600
  EchoStar DBS Corp., 7%, 10/01/13   192     144,000
  Harland Clarke Holdings Corp., 6.899%, 5/15/15 (c)   160     65,600
  Harland Clarke Holdings Corp., 9.50%, 5/15/15   190     83,600
  Intelsat Corp., 9.25%, 6/15/16 (b)   240     200,400
  Local Insight Regatta Holdings, Inc., 11%, 12/01/17   304     142,880
  Network Communications, Inc., 10.75%, 12/01/13   830     273,900
  Nielsen Finance LLC, 10%, 8/01/14   1,780     1,281,600
  ProtoStar I Ltd., 10.50%, 10/15/12 (b)(c)(f)   1,393     1,044,444
  R.H. Donnelley Corp., 11.75%, 5/15/15 (b)   45     11,925
  Rainbow National Services LLC, 10.375%, 9/01/14 (b)   1,813     1,568,245
  Sinclair Broadcast Group, Inc. Class A, 4.875%,          
  7/15/18 (b)(f)(g)   225     120,375
  TL Acquisitions, Inc., 10.50%, 1/15/15 (b)   1,875     1,012,500
  Virgin Media, Inc., 6.50%, 11/15/16 (b)(f)   550     228,938
            10,535,606
Metals & Mining - 3.5% AK Steel Corp., 7.75%, 6/15/12   215     151,037
  Aleris International, Inc., 9%, 12/15/14 (a)   200     12,000
  Aleris International, Inc., 10%, 12/15/16   680     71,400
  FMG Finance Property Ltd., 10%, 9/01/13 (b)   240     134,400
  FMG Finance Property Ltd., 10.625%, 9/01/16 (b)   735     415,275
  Freeport-McMoRan Copper & Gold, Inc., 7.084%, 4/01/15 (c)   395     237,000

4

BlackRock High Income Shares  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
Industry Corporate Bonds   (000 )   Value
  Freeport-McMoRan Copper & Gold, Inc., 8.375%, 4/01/17 USD 1,000   $ 710,000
  Newmont Mining Corp., 1.625%, 7/15/17 (f)   270     233,213
  Ryerson, Inc., 10.568%, 11/01/14 (b)(c)   180     118,800
  Ryerson, Inc., 12%, 11/01/15 (b)   100     62,000
  Steel Dynamics, Inc., 7.375%, 11/01/12   430     318,200
  Vedanta Resources Plc, 9.50%, 7/18/18 (b)   295     150,450
            2,613,775
Multiline Retail - 0.1% Neiman Marcus Group, Inc., 9%, 10/15/15 (a)   110     46,750
Oil, Gas & Consumable Fuels - Atlas Energy Resources LLC, 10.75%, 2/01/18 (b)   575     362,250
8.3% Berry Petroleum Co., 8.25%, 11/01/16   275     173,250
  Chaparral Energy, Inc., 8.50%, 12/01/15   100     37,000
  Chesapeake Energy Corp., 6.375%, 6/15/15   350     245,000
  Chesapeake Energy Corp., 6.625%, 1/15/16   235     163,912
  Chesapeake Energy Corp., 7.25%, 12/15/18   605     423,500
  Chesapeake Energy Corp., 2.25%, 12/15/38 (f)   375     178,125
  Compton Petroleum Finance Corp., 7.625%, 12/01/13   245     100,450
  Connacher Oil and Gas Ltd., 10.25%, 12/15/15 (b)   605     314,600
  Corral Finans AB, 6.253%, 4/15/10 (a)(b)   936     586,971
  Denbury Resources, Inc., 7.50%, 12/15/15   75     51,375
  EXCO Resources, Inc., 7.25%, 1/15/11   1,115     858,550
  Encore Acquisition Co., 6%, 7/15/15   130     85,800
  Forest Oil Corp., 7.25%, 6/15/19 (b)   1,035     708,975
  OPTI Canada, Inc., 8.25%, 12/15/14   980     382,200
  PetroHawk Energy Corp., 7.875%, 6/01/15 (b)   300     211,500
  Sabine Pass LNG LP, 7.50%, 11/30/16   210     144,900
  SandRidge Energy, Inc., 8%, 6/01/18 (b)   455     291,200
  Whiting Petroleum Corp., 7.25%, 5/01/12   150     114,000
  Whiting Petroleum Corp., 7.25%, 5/01/13   1,155     820,050
            6,253,608
Paper & Forest Products - 2.0% Abitibi-Consolidated, Inc., 8.85%, 8/01/30   80     14,400
  Bowater, Inc., 9%, 8/01/09   270     117,450
  Bowater, Inc., 4.996%, 3/15/10 (c)   350     115,500
  Domtar Corp., 7.875%, 10/15/11   100     81,500
  Domtar Corp., 7.125%, 8/15/15   160     108,800
  NewPage Corp., 10%, 5/01/12   1,260     680,400
  Norske Skog Canada Ltd., 7.375%, 3/01/14   175     78,750
  Verso Paper Holdings LLC Series B, 6.943%, 8/01/14 (c)   130     70,200
  Verso Paper Holdings LLC Series B, 9.125%, 8/01/14   465     223,200
            1,490,200
Pharmaceuticals - 0.5% Angiotech Pharmaceuticals, Inc., 5.953%, 12/01/13 (c)   630     359,100
Professional Services - 0.3% FTI Consulting, Inc., 7.75%, 10/01/16   275     236,500
Real Estate Management & Realogy Corp., 10.50%, 4/15/14   1,125     196,875
Development - 0.4% Realogy Corp., 12.375%, 4/15/15   674     107,840
            304,715
Semiconductors & Spansion, Inc., 5.328%, 6/01/13 (b)(c)   550     115,500
Semiconductor Equipment -            
0.2%            

5

BlackRock High Income Shares  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
Industry Corporate Bonds   (000 )      Value
Software - 0.1% BMS Holdings, Inc., 10.595%, 2/15/12 (a)(b)(c) USD 198   $ 75,180
Specialty Retail - 3.9% Asbury Automotive Group, Inc., 7.625%, 3/15/17   240     96,000
  AutoNation, Inc., 6.753%, 4/15/13 (c)   190     120,650
  AutoNation, Inc., 7%, 4/15/14   360     234,000
  General Nutrition Centers, Inc., 7.584%, 3/15/14 (a)(c)   800     456,000
  General Nutrition Centers, Inc., 10.75%, 3/15/15   990     569,250
  Group 1 Automotive, Inc., 2.25%, 6/15/36 (f)(g)   470     203,863
  Lazy Days' R.V. Center, Inc., 11.75%, 5/15/12   2,275     352,625
  Michaels Stores, Inc., 10%, 11/01/14   580     182,700
  Michaels Stores, Inc., 11.375%, 11/01/16   480     105,600
  Rent-A-Center, Inc. Series B, 7.50%, 5/01/10   367     341,310
  United Auto Group, Inc., 7.75%, 12/15/16   710     259,150
            2,921,148
Textiles, Apparel & Luxury Quiksilver, Inc., 6.875%, 4/15/15   350     129,500
Goods - 0.2%            
Thrifts & Mortgage Finance - Residential Capital LLC, 8.50%, 5/15/10 (b)   370     107,300
0.1%            
Wireless Telecommunication American Tower Corp., 7.125%, 10/15/12   1,000     937,500
Services - 10.5% Centennial Communications Corp., 9.633%, 1/01/13 (c)   650     607,750
  Centennial Communications Corp., 8.125%, 2/01/14   645     638,550
  Cricket Communications, Inc., 9.375%, 11/01/14   540     428,625
  Cricket Communications, Inc., 10%, 7/15/15 (b)   420     342,300
  Digicel Group Ltd., 8.875%, 1/15/15 (b)   690     355,350
  Digicel Group Ltd., 9.125%, 1/15/15 (a)(b)   1,320     666,600
  FiberTower Corp., 9%, 11/15/12 (f)   300     90,375
  iPCS, Inc., 5.318%, 5/01/13 (c)   330     231,000
  MetroPCS Wireless, Inc., 9.25%, 11/01/14   1,335     1,094,700
  Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (b)   1,980     1,435,500
  Sprint Capital Corp., 7.625%, 1/30/11   1,195     860,400
  Verizon Wireless Capital LLC, 8.50%, 11/15/18 (b)   190     191,708
            7,880,358
  Total Corporate Bonds - 108.1%         81,180,341
  Floating Rate Loan Interests          
Auto Components - 1.6% Allison Transmission, Inc. Term Loan,          
  4.38% - 5.57%, 8/07/14   1,049     624,737
  Dana Corp. Term Advance, 7.25% - 8.02%, 1/31/15   823     488,272
  Delphi Automotive Systems Initial Tranche C,          
  8.50%, 12/31/08   136     33,580
  Delphi Automotive Systems Subsequent Tranche C Term          
  Loan, 8.50%, 12/31/08   164     40,420
            1,187,009
Automobiles - 0.4% Ford Motor Co. Term Loan, 4.43%, 12/16/13   424     169,442
  General Motors Corp. Term Secured Loan, 5.795%,          
  11/29/13   373     143,644
            313,086

6

BlackRock High Income Shares  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
Industry Floating Rate Loan Interests   (000 )   Value
Building Products - 2.9% Building Material Corp. of America Term Loan Advance,          
  6.50% - 6.625%, 2/22/14 USD 249   $ 153,293
  CPG International, I Inc. Term Loan B, 7.20%, 2/28/11   1,496     1,466,307
  Stile Acquisition (Masonite International) Canadian Term Loan,          
  5.50%, 4/06/13   492     285,054
  Stile Acquisition (Masonite International) U.S. Term Loan B, 5%,          
  4/06/13   499     288,679
            2,193,333
Chemicals - 0.9% PQ Corp. Second Lien Term Loan, 9.97%, 5/29/15   1,500     712,500
Health Care Providers & Community Health Systems, Inc. Term Loan B,          
Services - 1.4% 4.018% - 4.446%, 7/25/14   713     522,534
  Rotech Healthcare, Inc. Term Loan, 9.135%, 9/26/11 (a)   827     537,306
            1,059,840
Hotels, Restaurants & Leisure - Travelport, Inc. Term Loan, 8.936%, 3/20/12 (a)   1,880     488,896
0.7%            
Independent Power Producers & Calpine Corp. First Priority Term Loan, 6.645%, 3/29/14   299     209,366
Energy Traders - 2.1% Texas Competitive Electric Holdings Co. LLC (TXU) Initial          
  Tranche Term Loan B-2, 5.268% - 7.262%, 10/10/14   547     369,599
  Texas Competitive Electric Holdings Co. LLC (TXU) Initial          
  Tranche Term Loan B-3, 5.267% - 7.262%, 10/10/14   1,485     1,002,004
            1,580,969
Machinery - 0.9% Navistar International Transportation Corp. Revolving Credit,          
  4.686% - 7.126%, 1/19/12   245     132,300
  Navistar International Transportation Corp. Term Loan,          
  4.682%, 1/19/12   680     367,200
  Rexnord Corp. Loan, 9.181%, 3/01/13 (a)   190     148,463
            647,963
Media - 3.9% Cengage (Thomson Learning, Inc.) Tranche 1 Incremental Term          
  Loan 2, 7.50%, 7/05/14   748     628,425
  HMH Publishing (Education Media), Mezzanine, 13.016%,          
  11/14/14   2,616     1,569,532
  HMH Publishing (Education Media), Tranche A, 7.516%,          
  11/14/14   1,098     692,045
            2,890,002
Multiline Retail - 0.3% Dollar General Term Loan B1, 5.75% - 6.17%, 7/03/14   295     226,486
Oil, Gas & Consumable Fuels - Turbo Beta Limited Dollar Facility, 2.50% - 14.50%,          
1.3% 3/15/18(h)   1,009     988,596
Paper & Forest Products - 0.6% Georgia-Pacific LLC First Lien Term Loan B,          
  2.76% - 5.262%, 12/22/12   155     118,919
  Verso Paper Holdings LLC Term Loan, 10.012%, 2/01/13   421     320,753
            439,672
  Total Floating Rate Loan Interests - 17.0%         12,728,352
  Common Stocks   Shares      
Containers & Packaging - 0.1% Owens-Illinois, Inc. (e)   4,745     95,944
Machinery - 0.0% Goss Holdings Inc. Class B (e)(h)   64,467     1
  Total Common Stocks - 0.1%         95,945

7

BlackRock High Income Shares  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
  Preferred Securities            
      Par        
  Capital Trusts   (000 )          Value  
Diversified Financial Citigroup, Inc. Series E, 8.40% (c)(i) USD 1,510   $ 891,580  
Services - 1.9% JPMorgan Chase & Co., 7.90% (c)(i)   670     524,503  
  Total Capital Trusts - 1.9%         1,416,083  
  Preferred Stocks   Shares        
Containers & Packaging - 0.2% Smurfit-Stone Container Corp., 7% (a)(f)   30,000     139,686  
Independent Power Producers & NTG Energy, Inc., 4% (f)   500     600,000  
Energy Traders - 0.8%              
Media - 0.1% Emmis Communications Corp. Class A, 6.25% (f)   10,300     41,200  
Wireless Telecommunication Crown Castle International Corp., 6.25% (f)   10,000     332,500  
Services - 0.4%              
  Total Preferred Stocks - 1.5%         1,113,386  
  Total Preferred Securities - 3.4%         2,529,469  
      Beneficial        
      Interest        
  Other Interests (j)   (000)        
Health Care Providers & Critical Care Systems International, Inc. (h) USD 5     1,592  
Services - 0.0%              
  Total Other Interests - 0.0%         1,592  
  Total Investments            
  (Cost - $154,276,180*) - 128.6%         96,535,699  
  Liabilities in Excess of Other Assets - (28.6)%         (21,444,210 )
  Net Assets - 100.0%       $ 75,091,489  

*     

The cost and unrealized appreciation (depreciation) of investments as of November 30, 2008, as computed for federal income tax purposes, were as follows:
  Aggregate cost $ 154,371,532  
  Gross unrealized appreciation $ 144,218  
  Gross unrealized depreciation   (57,980,051 )
  Net unrealized depreciation $ (57,835,833 )
(a) Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(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) Variable rate security. Rate shown is as of report date.
(d) Issuer filed for bankruptcy and/or is in default of interest payments. (e) Non-income producing security.
(f) Convertible security.
(g) Represents a step bond. Rate shown reflects the effective yield at time of purchase. (h) Security is fair valued.
(i) Security is perpetual in nature and has no stated maturity date.
(j) Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
   
• For Trust compliance purposes, the Trust's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine industry sub-classification for reporting ease.

8

BlackRock High Income Shares
Schedule of Investments November 30, 2008 (Unaudited)
• Foreign currency exchange contracts as of November 30, 2008 were as follows:
                    Unrealized  
  Currency   Currency   Settlement     Appreciation  
  Purchased   Sold   Date      (Depreciation)  
  USD 1,176,112   EUR 931,500   12/10/08   $ (7,049 )
  USD 509,708   EUR 395,000   1/21/09     8,087  
  Total               $ 1,038  

• Currency Abbreviations:
  EUR Euro
  USD U.S. Dollar
   
•

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements.
 
 

Various inputs are used in determining the fair value of investments, which are as follows:
 
  •

Level 1 - price quotations in active markets/exchanges for identical securities
 
  •

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

Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust's own assumption used in determining the fair value of investments)
 
    The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust's policy regarding valuation of investments and other significant accounting policies, please refer to the Trust's most recent financial statements as contained in its annual report.
   

 
  The following table summarizes the inputs used as of November 30, 2008 in determining the fair valuation of the Trust's investments:
  Valuation   Investments in     Other Financial
  Inputs   Securities     Instruments*
  Level 1 $ 95,944     -
  Level 2   90,003,350   $ 1,038
  Level 3   6,436,405     -
  Total $ 96,535,699   $ 1,038
  * Other financial instruments are foreign currency exchange contracts.

 

  The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:
      Investments in  
      Securities  
  Balance, as of September 1, 2008 $ 984,930  
  Accrued discounts/premiums   -  
  Realized gain (loss)   275  
  Change in unrealized appreciation (depreciation)   (2,088,037 )
  Net purchases (sales)   17,314  
  Net transfers in/out of Level 3   7,521,923  
  Balance, as of November 30, 2008 $ 6,436,405  

9

Item 2 – Controls and Procedures

2 (a) – The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
 
2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
 
Item 3 – Exhibits

Certifications – Attached hereto

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

BlackRock High Income Shares
   
By:
/s/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer of
  BlackRock High Income Shares
   
Date: January 20, 2009

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

By:
/s/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer (principal executive officer) of
  BlackRock High Income Shares
   
Date: January 20, 2009
   
By:
/s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock High Income Shares
   
Date: January 20, 2009