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 811-08603
Name of Fund: BlackRock Debt Strategies Fund, Inc. (DSF)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock Debt Strategies Fund, Inc., 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: 02/29/2008
Date of reporting period: 09/01/2007 - 11/30/2007
Item 1 - Schedule of Investments
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Face
Industry Amount Corporate Bonds Value
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Aerospace & Defense - 3.7% USD 5,000,000 Alliant Techsystems, Inc., 3% due 8/15/2024 (a)(m) $ 8,093,750
800,000 Hawker Beechcraft Acquisition Co. LLC, 8.875%
due 4/01/2015 (g)(m) 790,000
7,500,000 L-3 Communications Corp., 3% due 8/01/2035 (a)(m) 9,309,375
7,170,000 Vought Aircraft Industries, Inc., 8% due 7/15/2011 6,954,900
-------------
25,148,025
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Auto Components - 2.0% 1,920,000 Allison Transmission, 11.25% due 11/01/2015 (g)(m) 1,824,000
4,500,000 The Goodyear Tire & Rubber Co., 8.663%
due 12/01/2009 (b) 4,522,500
2,000 The Goodyear Tire & Rubber Co., 8.625% due 12/01/2011 2,090
1,020,000 Lear Corp., 8.75% due 12/01/2016 938,400
9,350,000 Metaldyne Corp., 11% due 6/15/2012 6,311,250
4,450,000 Venture Holdings Co. LLC, 12% due 6/01/2009 (e) 0
1,800,000 Venture Holdings Co. LLC Series B, 9.50% due 7/01/2005 (n) 4,680
-------------
13,602,920
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Biotechnology - 0.7% 5,000,000 Angiotech Pharmaceuticals, Inc., 8.874% due 12/01/2013 (b) 4,750,000
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Building Products - 2.5% 7,500,000 CPG International I, Inc., 12.13% due 7/01/2012 (b) 7,312,500
1,300,000 CPG International I, Inc., 10.50% due 7/01/2013 1,248,000
5,900,000 Goodman Global Holding Co., Inc., 7.875% due 12/15/2012 6,047,500
2,270,000 Masonite International Corp., 11% due 4/06/2015 1,810,325
235,000 Momentive Performance Materials, Inc., 10.125%
due 12/01/2014 (g)(m) 215,613
-------------
16,633,938
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Capital Markets - 1.4% 10,000,000 E*Trade Financial Corp., 12.50% due 11/27/2017 9,714,286
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Chemicals - 5.9% 1,490,000 American Pacific Corp., 9% due 2/01/2015 1,508,625
3,550,000 ArCo Chemical Co., 9.80% due 2/01/2020 3,514,500
9,783,000 GEO Specialty Chemicals, Inc., 13.85% due 12/31/2009 (a) 8,070,975
3,100,000 Hexion U.S. Finance Corp., 9.369% due 11/15/2014 (b) 3,162,000
2,515,000 Ineos Group Holdings Plc, 8.50% due 2/15/2016 (m) 2,263,500
6,360,000 MacDermid, Inc., 9.50% due 4/15/2017 (m) 5,771,700
13,370,000 NOVA Chemicals Corp., 7.863% due 11/15/2013 (b) 12,835,200
2,500,000 PolyOne Corp., 6.89% due 9/22/2008 2,500,000
-------------
39,626,500
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Commercial Banks - 0.4% 1,500,000 Investcorp SA, 7.54% due 10/21/2008 1,503,079
35,000 Preferred Term Securities VI, Ltd., 6.06% due 7/03/2032 (d)(m) 1,347,500
-------------
2,850,579
-----------------------------------------------------------------------------------------------------------------------------------
Commercial Services & 1,090,000 PNA Intermediate Holding Corp., 11.869%
Supplies - 1.7% due 2/15/2013 (b)(g)(m) 1,002,800
3,043,000 Sally Holdings LLC, 10.50% due 11/15/2016 3,027,785
3,400,000 US Investigations Services, Inc., 10.50% due 11/01/2015 (m) 3,162,000
3,270,000 West Corp., 11% due 10/15/2016 3,270,000
920,000 The Yankee Candle Company, Inc., 9.75% due 2/15/2017 848,700
-------------
11,311,285
-----------------------------------------------------------------------------------------------------------------------------------
Computers & Peripherals - 0.4% 2,700,000 Viasystems, Inc., 10.50% due 1/15/2011 2,700,000
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Construction Materials - 0.7% 5,850,000 Nortek, Inc., 8.50% due 9/01/2014 4,738,500
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Containers & Packaging - 4.6% 665,000 Berry Plastics Holding Corp., 8.875% due 9/15/2014 641,725
375,000 Berry Plastics Holding Corp., 8.866% due 9/15/2014 (b) 360,000
1,100,000 Graham Packaging Co. LP, 9.875% due 10/15/2014 1,009,250
705,000 Graphic Packaging International Corp., 9.50% due 8/15/2013 697,950
6,215,000 Packaging Dynamics Finance Corp., 10% due 5/01/2016 (m) 5,655,650
13,625,000 Smurfit Kappa Funding Plc, 7.75% due 4/01/2015 12,943,750
1,600,000 Smurfit-Stone Container Enterprises, Inc., 8.375%
due 7/01/2012 1,564,000
2,600,000 Smurfit-Stone Container Enterprises, Inc., 8% due 3/15/2017 2,496,000
6,325,000 Wise Metals Group LLC, 10.25% due 5/15/2012 5,945,500
-------------
31,313,825
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Face
Industry Amount Corporate Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
Distributors - 0.3% USD 2,000,000 Buhrmann US, Inc., 7.875% due 3/01/2015 $ 1,885,000
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Diversified Consumer 3,875,000 NBC Acquisition Corp., 11% due 3/15/2013 (h) 3,487,500
Services - 0.5%
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Diversified Financial 5,743,690 Archimedes Funding III Ltd., 5.50% due 11/29/2011 (m) 3,101,593
Services - 1.0% 760,000 Ford Motor Credit Co. LLC, 5.80% due 1/12/2009 723,161
2,680,000 Ford Motor Credit Co. LLC, 7.993% due 1/13/2012 (b) 2,335,213
750,000 Ford Motor Credit Co. LLC, 9.693% due 4/15/2012 (b) 742,535
-------------
6,902,502
-----------------------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication 2,675,000 Qwest Corp., 8.241% due 6/15/2013 (b) 2,748,563
Services - 1.3% 6,000,000 Time Warner Telecom Holdings, Inc., 9.25% due 2/15/2014 6,135,000
-------------
8,883,563
-----------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 0.8% 5,380,000 NSG Holdings LLC, 7.75% due 12/15/2025 (j)(m) 5,312,750
-----------------------------------------------------------------------------------------------------------------------------------
Electronic Equipment & 2,675,000 Muzak Holdings, LLC, 13% due 3/15/2010 1,340,844
Instruments - 1.2% 5,520,000 NXP BV, 7.993% due 10/15/2013 (b) 5,216,400
1,507,000 NXP BV, 9.50% due 10/15/2015 1,371,370
-------------
7,928,614
-----------------------------------------------------------------------------------------------------------------------------------
Energy Equipment & 245,000 Compagnie Generale de Geophysique-Veritas, 7.50%
Services - 2.1% due 5/15/2015 246,838
8,000,000 Ocean RIG ASA, 9.24% due 4/04/2011 (b) 7,880,000
6,300,000 SemGroup LP, 8.75% due 11/15/2015 (m) 6,016,500
-------------
14,143,338
-----------------------------------------------------------------------------------------------------------------------------------
Food & Staples Retailing - 0.2% 1,910,000 Rite Aid Corp., 9.375% due 12/15/2015 (m) 1,652,150
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Gas Utilities - 0.5% 2,900,000 El Paso Performance-Linked Trust, 7.75% due 7/15/2011 (m) 3,036,970
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Health Care Equipment & 1,600,000 Biomet, Inc., 11.625% due 10/15/2017 (m) 1,578,000
Supplies - 2.7% 1,200,000 LVB Acquisition Merger Sub, Inc., 10% due 10/15/2017 (m) 1,213,500
1,200,000 LVB Acquisition Merger Sub, Inc., 10.375%
due 10/15/2017 (g)(m) 1,194,000
15,000,000 ReAble Therapeutics Finance LLC, 10.875%
due 11/15/2014 (m) 14,437,500
-------------
18,423,000
-----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & 3,575,000 Community Health Systems, Inc. Series WI, 8.875%
Services - 2.4% due 7/15/2015 3,610,750
2,990,000 Tenet Healthcare Corp., 6.50% due 6/01/2012 2,631,200
6,000,000 Tenet Healthcare Corp., 7.375% due 2/01/2013 5,280,000
930,000 Universal Hospital Services, Inc., 8.288%
due 6/01/2015 (b)(m) 916,050
1,000,000 Universal Hospital Services, Inc., 8.50% due 6/01/2015 (g)(m) 957,038
4,100,000 Vanguard Health Holding Co. I, LLC, 11.25%
due 10/01/2015 (h) 3,013,500
-------------
16,408,538
-----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & 1,250,000 Galaxy Entertainment Finance Co. Ltd., 9.875%
Leisure - 6.0% due 12/15/2012 (m) 1,312,500
6,193,353 HRP Myrtle Beach Holdings LLC, 14.50%
due 4/01/2014 (g)(m) 5,883,685
5,000,000 HRP Myrtle Beach Operations LLC, 9.894%
due 4/01/2012 (b)(m) 4,850,000
5,000,000 HRP Myrtle Beach Operations LLC, 12.50%
due 4/01/2013 (m) 4,750,000
2,560,000 Little Traverse Bay Bands of Odawa Indians, 10.25%
due 2/15/2014 (m) 2,585,600
2,700,000 Pinnacle Entertainment, Inc., 7.50% due 6/15/2015 (m) 2,497,500
1,370,000 Shingle Springs Tribal Gaming Authority, 9.375%
due 6/15/2015 (m) 1,342,600
1,015,000 Snoqualmie Entertainment Authority, 9.062%
due 2/01/2014 (b)(m) 969,325
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Face
Industry Amount Corporate Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
USD 3,400,000 Station Casinos, Inc., 7.75% due 8/15/2016 $ 3,196,000
2,600,000 Travelport LLC, 9.749% due 9/01/2014 (b) 2,548,000
3,265,000 Tropicana Entertainment LLC Series WI, 9.625%
due 12/15/2014 2,269,175
3,000,000 Tunica-Biloxi Gaming Authority, 9% due 11/15/2015 (m) 3,030,000
5,300,000 Universal City Florida Holding Co. I, 9.661%
due 5/01/2010 (b) 5,353,000
-------------
40,587,385
-----------------------------------------------------------------------------------------------------------------------------------
Household Durables - 0.5% 1,910,000 Jarden Corp., 7.50% due 5/01/2017 1,719,000
2,250,000 Stanley-Martin Communities LLC, 9.75% due 8/15/2015 1,496,250
-------------
3,215,250
-----------------------------------------------------------------------------------------------------------------------------------
IT Services - 0.7% 4,818,000 SunGard Data Systems, Inc., 10.25% due 8/15/2015 4,962,540
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Independent Power Producers & 3,200,000 Energy Future Holding Corp., 11.25% due 11/01/2017 (g)(m) 3,095,541
Energy Traders - 2.1% 9,000,000 Texas Competitive Electric Holdings Co. LLC, 10.25%
due 11/01/2015 (m) 8,662,500
2,400,000 Texas Competitive Electric Holdings Co. LLC, 10.50%
due 11/01/2016 (g)(m) 2,262,000
-------------
14,020,041
-----------------------------------------------------------------------------------------------------------------------------------
Insurance - 0.6% 2,500,000 Alliant Holdings I, Inc., 11% due 5/01/2015 (m) 2,375,000
1,630,000 USI Holdings Corp., 8.744% due 11/15/2014 (b)(m) 1,458,850
-------------
3,833,850
-----------------------------------------------------------------------------------------------------------------------------------
Leisure Equipment & 2,000,000 True Temper Sports, Inc., 8.375% due 9/15/2011 1,240,000
Products - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
Machinery - 1.7% 3,070,000 Esco Corp., 8.866% due 12/15/2013 (b)(m) 3,039,300
3,815,000 Invensys Plc, 9.875% due 3/15/2011 (m) 4,015,288
1,480,000 RBS Global, Inc., 9.50% due 8/01/2014 1,465,200
1,685,000 RBS Global, Inc., 8.875% due 9/01/2016 1,634,450
1,530,000 Titan International, Inc., 8% due 1/15/2012 (m) 1,530,000
-------------
11,684,238
-----------------------------------------------------------------------------------------------------------------------------------
Marine - 0.5% 1,447,000 Navios Maritime Holdings, Inc., 9.50% due 12/15/2014 1,486,793
1,760,000 Titan Petrochemicals Group Ltd., 8.50% due 3/18/2012 1,531,200
-------------
3,017,993
-----------------------------------------------------------------------------------------------------------------------------------
Media - 10.9% 280,000 Affinion Group, Inc., 10.125% due 10/15/2013 280,700
800,000 Affinion Group, Inc., 11.50% due 10/15/2015 798,000
5,950,000 Cablevision Systems Corp. Series B, 9.644%
due 4/01/2009 (b) 6,039,250
2,000,000 Cadmus Communications Corp., 8.375% due 6/15/2014 1,820,000
5,000,000 Canadian Satellite Radio Holdings, Inc., 12.75%
due 2/15/2014 4,912,500
3,750,000 Charter Communications Holdings LLC, 10% due 4/01/2009 3,412,500
1,319,000 Charter Communications Holdings LLC, 11.125%
due 1/15/2011 1,035,415
1,978,000 Charter Communications Holdings LLC, 10% due 5/15/2011 1,523,060
8,605,000 Intelsat Bermuda Ltd., 10.829% due 6/15/2013 (b) 8,830,881
2,880,000 Intelsat Bermuda Ltd., 8.886% due 1/15/2015 (b) 2,883,600
10,350,000 Intelsat Intermediate Holding Co. Ltd., 9.25%
due 2/01/2015 (h) 8,487,000
4,125,000 Liberty Media Corp., 0.75% due 3/30/2023 (a) 4,377,656
3,875,000 Mediacom LLC, 9.50% due 1/15/2013 3,603,750
750,000 NTL Cable Plc, 8.75% due 4/15/2014 746,250
580,000 Network Communications, Inc., 10.75% due 12/01/2013 580,000
2,800,000 Paxson Communications Corp., 8.493% due 1/15/2012 (b)(m) 2,751,000
3,235,000 Sinclair Broadcast Group, Inc. Class A, 4.875%
due 7/15/2018 (a)(h) 3,008,550
5,795,000 Sirius Satellite Radio, Inc., 9.625% due 8/01/2013 5,606,663
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Face
Industry Amount Corporate Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
USD 5,230,000 TL Acquisitions, Inc., 10.50% due 1/15/2015 (m) $ 5,099,250
2,850,000 Windstream Regatta Holdings, Inc., 11% due 12/01/2017 (m) 2,878,500
2,800,000 XM Satellite Radio, Inc., 9.411% due 5/01/2013 (b) 2,730,000
2,535,000 Young Broadcasting, Inc., 10% due 3/01/2011 2,028,000
-------------
73,432,525
-----------------------------------------------------------------------------------------------------------------------------------
Metals & Mining - 3.9% 2,735,000 Aleris International, Inc., 9% due 12/15/2014 (g) 2,236,681
10,360,000 Freeport-McMoRan Copper & Gold, Inc., 8.394%
due 4/01/2015 (b) 10,541,300
2,854,000 Indalex Holding Corp. Series B, 11.50% due 2/01/2014 2,604,275
4,550,000 RathGibson, Inc., 11.25% due 2/15/2014 4,663,750
6,720,000 Ryerson, Inc., 12.574% due 11/01/2014 (b)(m) 6,468,000
-------------
26,514,006
-----------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 1.0% 4,142,000 CenterPoint Energy, Inc. Series B, 3.75% due 5/15/2023 (a) 6,611,668
-----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable 480,000 Berry Petroleum Co., 8.25% due 11/01/2016 486,000
Fuels - 0.8% 3,000,000 Chaparral Energy, Inc., 8.50% due 12/01/2015 2,655,000
2,445,000 Compton Petroleum Finance Corp., 7.625% due 12/01/2013 2,286,075
-------------
5,427,075
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Paper & Forest Products - 6.5% 6,500,000 Abitibi-Consolidated, Inc., 8.491% due 6/15/2011 (b) 5,143,125
9,725,000 Ainsworth Lumber Co. Ltd., 8.948% due 10/01/2010 (b) 6,807,500
8,000,000 Ainsworth Lumber Co. Ltd., 9.198% due 4/01/2013 (b) 5,660,000
7,600,000 Bowater, Inc., 7.991% due 3/15/2010 (b) 6,688,000
3,775,000 Domtar Corp., 7.125% due 8/15/2015 3,642,875
8,000,000 NewPage Corp., 11.161% due 5/01/2012 (b) 8,400,000
3,325,000 NewPage Corp., 12% due 5/01/2013 3,474,625
4,400,000 Verso Paper Holdings LLC Series B, 8.661%
due 8/01/2014 (b) 4,312,000
-------------
44,128,125
-----------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 1.2% 3,525,000 Elan Finance Plc, 7.75% due 11/15/2011 3,454,500
4,825,000 Elan Finance Plc, 8.869% due 11/15/2011 (b) 4,728,500
-------------
8,183,000
-----------------------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts 3,500,000 RAIT Financial Trust, 6.875% due 4/15/2027 (a)(m) 2,170,000
-----------------------------------------------------------------------------------------------------------------------------------
Real Estate Management & 4,770,000 Realogy Corp., 10.50% due 4/15/2014 (m) 3,589,425
Development - 1.8% 7,540,000 Realogy Corp., 11% due 4/15/2014 (g)(m) 5,259,150
4,615,000 Realogy Corp., 12.375% due 4/15/2015 (m) 3,022,825
-------------
11,871,400
-----------------------------------------------------------------------------------------------------------------------------------
Road & Rail - 0.6% 1,250,000 Atlantic Express Transportation Corp., 12.455%
due 4/15/2012 (b) 1,050,000
513,000 Britannia Bulk Plc, 11% due 12/01/2011 531,596
5,060,000 St. Acquisition Corp., 12.619% due 5/15/2015 (b)(m) 2,681,800
-------------
4,263,396
-----------------------------------------------------------------------------------------------------------------------------------
Semiconductors & Semiconductor 3,000,000 Amkor Technology, Inc., 7.125% due 3/15/2011 2,865,000
Equipment - 2.4% 210,000 Amkor Technology, Inc., 7.75% due 5/15/2013 197,400
2,645,000 Amkor Technology, Inc., 9.25% due 6/01/2016 2,651,613
5,470,000 Freescale Semiconductor, Inc., 8.866% due 12/15/2014 (b) 4,881,975
3,180,000 Freescale Semiconductor, Inc., 9.125% due 12/15/2014 (g) 2,774,550
3,370,000 Spansion, Inc., 8.249% due 6/01/2013 (b)(m) 3,066,700
-------------
16,437,238
-----------------------------------------------------------------------------------------------------------------------------------
Software - 0.4% 2,416,832 BMS Holdings, Inc., 12.40% due 2/15/2012 (b)(m) 2,243,694
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Specialty Retail - 4.3% 2,040,000 Buffets, Inc., 12.50% due 11/01/2014 974,100
5,560,000 General Nutrition Centers, Inc., 10.009% due 3/15/2014 (b) 5,282,000
4,480,000 General Nutrition Centers, Inc., 10.75% due 3/15/2015 4,323,200
3,790,000 Michaels Stores, Inc., 10% due 11/01/2014 3,733,150
8,660,000 Michaels Stores, Inc., 11.375% due 11/01/2016 8,248,650
28,700,000 Movie Gallery, Inc., 11% due 5/01/2012 (e) 4,879,000
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Face
Industry Amount Corporate Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
USD 1,380,000 United Auto Group, Inc., 7.75% due 12/15/2016 $ 1,311,000
-------------
28,751,100
-----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication 1,905,000 Centennial Communications Corp., 10.981%
Services - 3.5% due 1/01/2013 (b) 1,947,863
2,760,000 Cricket Communications, Inc., 9.375% due 11/01/2014 2,566,800
920,000 Cricket Communications, Inc., 9.375% due 11/01/2014 (m) 855,600
3,560,000 Digicel Group Ltd., 8.875% due 1/15/2015 (m) 3,186,200
7,748,000 Digicel Group Ltd., 9.125% due 1/15/2015 (g)(m) 6,934,460
2,150,000 FiberTower Corp., 9% due 11/15/2012 (a)(m) 2,096,250
1,250,000 iPCS, Inc., 7.036% due 5/01/2013 (b) 1,162,500
1,310,000 MetroPCS Wireless, Inc., 9.25% due 11/01/2014 1,241,225
2,600,000 Nordic Telephone Co. Holdings ApS, 8.875%
due 5/01/2016 (m) 2,639,000
620,000 Orascom Telecom Finance SCA, 7.875% due 2/08/2014 570,400
755,000 Orascom Telecom Finance SCA, 7.875% due 2/08/2014 (m) 694,600
-------------
23,894,898
-----------------------------------------------------------------------------------------------------------------------------------
Total Corporate Bonds (Cost - $633,453,876) - 86.9% 586,943,205
-----------------------------------------------------------------------------------------------------------------------------------
Floating Rate Loan Interests**
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Aerospace & Defense - 0.2% 39,007 Hawker Beechcraft Acquisition Co. LLC Letter of Credit,
6.198% due 3/31/2014 37,264
458,688 Hawker Beechcraft Acquisition Co. LLC Term Loan B,
6.819% - 7.36% due 3/31/2014 438,191
1,142,294 IAP Worldwide Services Inc. Term Loan, 11.50%
due 12/31/2012 1,024,637
-------------
1,500,092
-----------------------------------------------------------------------------------------------------------------------------------
Airlines - 0.8% 2,000,000 Delta Air Lines, Inc. First Lien Term Loan, 7.36%
due 5/15/2012 1,892,500
2,000,000 US Airways Group, Inc. Term Loan B, 7.283% due 3/22/2014 1,863,334
1,492,500 United Air Lines, Inc. Term Loan B, 6.688% - 7.125%
due 1/30/2014 1,417,045
-------------
5,172,879
-----------------------------------------------------------------------------------------------------------------------------------
Auto Components - 1.1% 1,000,000 Delphi Automotive Systems Term Loan, 7.438%
due 12/31/2007 995,208
2,000,000 The Goodyear Tire & Rubber Co. First Lien Term Loan,
6.43% due 4/30/2014 1,910,000
1,685,185 Intermet Corp. Letter of Credit, 10.70% due 11/08/2010 1,592,500
1,162,530 Intermet Corp. Term Loan B, 10.36% due 11/08/2010 1,098,591
86,538 Metaldyne Corp. Letter of Credit, 5.17% - 9.625%
due 1/15/2012 77,885
588,462 Metaldyne Corp. Term Loan B, 8.999% due 1/15/2014 529,615
997,500 TRW Automotive, Inc. Term Loan B, 6.875% due 12/31/2013 969,713
-------------
7,173,512
-----------------------------------------------------------------------------------------------------------------------------------
Beverages - 0.3% EUR 1,500,000 Culligan International Second Lien Term Loan, 8.844%
due 4/24/2013 1,788,457
USD 2,500 Culligan International Term Loan B, 7.379% due 4/24/2012 2,238
-------------
1,790,695
-----------------------------------------------------------------------------------------------------------------------------------
Biotechnology - 0.2% 1,500,000 Talecris Biotherapeutics, Inc. First Lien Term Loan, 9.08%
due 11/13/2014 1,483,125
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Chemicals - 1.7% 400,000 Arizona Chemical Second Lien Term Loan, 10.57%
due 2/28/2014 342,667
2,000,000 Flint Group Term Loan, 7.393% due 12/20/2014 1,883,750
1,995,000 Huish Detergents, Inc. First Lien Term Loan, 7.32%
due 4/15/2014 1,774,126
1,500,000 Huish Detergents, Inc. Second Lien Term Loan, 9.76%
due 10/15/2014 1,235,000
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Face
Industry Amount Floating Rate Loan Interests** Value
-----------------------------------------------------------------------------------------------------------------------------------
USD 1,636,016 Huntsman ICI Holdings Term Loan B, 6.533% due 8/16/2012 $ 1,602,160
620,000 Rockwood Specialties Group, Inc. Tranche D Term Loan,
6.46% due 12/10/2012 594,770
10,000,000 Wellman, Inc. Second Lien Term Loan, 11.661%
due 2/10/2010 4,375,000
-------------
11,807,473
-----------------------------------------------------------------------------------------------------------------------------------
Commercial Services & 533,316 Aramark Corp. Letter of Credit, 5.198% due 1/30/2014 508,517
Supplies - 5.9% 7,461,994 Aramark Corp. Term Loan B, 7.198% due 1/30/2014 7,115,012
2,531,839 Euramax International Plc First Lien Term Loan, 8.375%
due 6/29/2012 2,270,217
6,000,000 Euramax International Plc Second Lien Term Loan, 13.36%
due 6/29/2013 5,145,000
1,496,250 Jason, Inc. Term Loan B, 7.158% due 4/30/2010 1,421,438
1,369,100 John Maneely Co. Term Loan B, 8.125% - 8.619%
due 12/15/2013 1,220,944
3,019,996 NES Rentals Holdings, Inc. Term Loan C, 11.875%
due 7/12/2013 2,838,796
250,000 RiskMetrics Group, Inc. Second Lien Term Loan, 10.698%
due 6/15/2014 242,500
746,250 RiskMetrics Group, Inc. Term Loan, 7.448% due 1/15/2014 727,594
8,670,000 Service Master Bridge Loan, 9.59% due 6/19/2008 7,835,513
7,000,359 Waste Services, Inc. Term Loan D, 6.92% due 3/31/2011 6,807,849
3,970,056 West Corp. Term Loan, 7.128% - 7.88% due 10/31/2013 3,781,479
-------------
39,914,859
-----------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 0.1% 997,500 SafeNet, Inc. First Lien Term Loan, 7.748% due 5/11/2015 917,700
-----------------------------------------------------------------------------------------------------------------------------------
Computers & Peripherals - 0.4% 418,691 Intergraph Corp. Term Loan, 7.506% due 5/15/2014 403,513
1,000,000 Intergraph Corp. Term Loan, 11.062% due 11/15/2014 963,750
1,500,000 Reynolds and Reynolds Co. Third Lien Term Loan,
12.698% due 10/31/2014 1,488,750
-------------
2,856,013
-----------------------------------------------------------------------------------------------------------------------------------
Construction Materials - 0.3% 1,962,500 Headwaters, Inc. Term Loan B-1, 6.79% due 4/30/2011 1,910,631
-----------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 1.6% 2,232,996 Anchor Glass Container Corp. Term Loan B, 7.003% -
7.791% due 5/03/2013 2,166,006
8,681,054 Berry Plastics Corp. Term Loan B, 11.61% due 6/15/2014 7,378,896
750,000 Consolidated Container Co. LLC Second Lien Term Loan,
10.82% - 10.86% due 10/15/2014 532,500
493,759 Graham Packaging Co. LP Term Loan B, 7.50% - 8%
due 4/15/2011 472,621
-------------
10,550,023
-----------------------------------------------------------------------------------------------------------------------------------
Distributors - 0.2% 1,736,875 Keystone Automotive Operations, Inc. Term Loan B,
8.206% - 8.626% due 1/15/2012 1,574,767
-----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial 4,000,000 J.G. Wentworth Manufacturing Term Loan B, 7.45%
Services - 0.6% due 4/15/2014 3,730,000
-----------------------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication 992,500 Kentucky Data Link, Inc. Term Loan B, 7.072%
Services - 0.9% due 2/28/2015 962,725
250,783 Transaction Network Services Term Loan B, 7.541%
due 5/15/2014 245,768
3,161,871 Winstar Communications Debtor In Possession, 6.366%
due 12/31/2006 (n) 4,927,248
-------------
6,135,741
-----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.4% 4,000,000 Generac Power Systems, Inc. Second Lien Term Loan, 11.23%
due 5/15/2014 2,846,668
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Face
Industry Amount Floating Rate Loan Interests** Value
------------------------------------------------------------------------------------------------------------------------------------
Electronic Equipment USD 1,500,000 CoCreate Software, Inc. Second Lien Term Loan, 12.003%
& Instruments - 0.2% due 5/30/2014 $ 1,440,000
-----------------------------------------------------------------------------------------------------------------------------------
Energy Equipment & 2,946,346 Dresser, Inc. First Lien Term Loan, 7.322% due 5/15/2014 2,813,761
Services - 1.0% 2,500,000 Dresser, Inc. Second Lien Term Loan, 11.129% due 5/15/2015 2,368,750
214,286 MEG Energy Corp. Delayed Draw Term Loan, 7.23%
due 4/02/2008 206,072
1,231,250 MEG Energy Corp. Term Loan B, 7.20% due 4/03/2013 1,193,081
-------------
6,581,664
-----------------------------------------------------------------------------------------------------------------------------------
Food & Staples Retailing - 1.3% 1,000,000 Bolthouse Farms, Inc. Second Lien Term Loan, 10.698%
due 12/01/2013 982,500
1,000,000 DS Waters LP Term Loan B, 9.128% due 11/15/2012 960,000
323,981 Dole Food Co., Inc. Letter of Credit, 5.16% due 4/12/2013 303,813
718,024 Dole Food Co., Inc. Term Loan B, 6.938% - 8.75%
due 4/12/2013 673,327
2,393,412 Dole Food Co., Inc. Term Loan C, 6.938% - 8.75%
due 4/04/2013 2,244,422
967,874 Eight O'Clock Coffee Second Lien Term Loan, 8.125%
due 7/21/2012 929,159
496,250 McJunkin Corp. Term Loan B, 7.448% due 1/30/2014 490,047
995,000 Sturm Foods, Inc. First Lien Term Loan, 7.563%
due 1/30/2014 (g) 890,525
1,250,000 Sturm Foods, Inc. Second Lien Term Loan, 11.063%
due 6/30/2014 1,081,250
-------------
8,555,043
-----------------------------------------------------------------------------------------------------------------------------------
Food Products - 0.3% 1,937,500 Jetro Holdings, Inc. Term Loan, 7.74% due 5/11/2014 1,860,000
-----------------------------------------------------------------------------------------------------------------------------------
Health Care Equipment & 4,000,000 Biomet, Inc. Term Loan B, 8.203% due 12/28/2014 3,944,544
Supplies - 1.1% 3,500,000 ReAble Therapeutics Finance LLC Term Loan, 8.002%
due 5/14/2014 3,454,063
-------------
7,398,607
-----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & 486,773 CCS Medical First Lien Term Loan, 8.57% due 10/31/2012 472,170
Services - 0.5% 3,238,764 Rotech Healthcare, Inc. Term Loan B, 11.36% due 9/26/2011 3,044,438
-------------
3,516,608
-----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & 1,500,000 Golden Nugget, Inc. Term Loan Second Lien,
Leisure - 2.7% 7.94% - 8.84% due 11/30/2014 1,391,250
750,000 Green Valley Ranch Gaming LLC Term Loan, 8.331%
due 8/30/2014 682,500
3,192,000 Las Vegas Sands LLC Term Loan B, 7.11% due 5/04/2014 3,011,725
75,188 OSI Restaurant Partners, Inc. Revolving Credit, 5.523%
due 5/15/2014 68,421
922,500 OSI Restaurant Partners, Inc. Term Loan B, 7.125%
due 5/15/2014 839,475
6,000,000 QCE LLC Second Lien Term Loan, 10.948% due 11/05/2013 5,661,666
1,000,535 Tropicana Opco Term Loan B, 7.61% due 12/15/2011 964,422
2,500,000 Venetian Macau US Finance Co. LLC Delay Draw Term
Loan, 7.45% due 5/25/2012 2,387,500
3,500,000 Venetian Macau US Finance Co. LLC Term Loan B, 7.45%
due 5/25/2013 3,342,500
-------------
18,349,459
-----------------------------------------------------------------------------------------------------------------------------------
Household Durables - 0.4% 3,000,000 American Residential Services Second Lien Term Loan,
12% due 4/17/2015 2,947,293
-----------------------------------------------------------------------------------------------------------------------------------
Household Products - 0.6% 281,917 Spectrum Brands, Inc. Letter of Credit, 4.566% due 4/15/2013 271,909
4,146,058 Spectrum Brands, Inc. Term Loan B-1, 8.665% - 9.249%
due 4/15/2013 3,998,873
-------------
4,270,782
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Face
Industry Amount Floating Rate Loan Interests** Value
------------------------------------------------------------------------------------------------------------------------------------
IT Services - 1.1% USD 3,686,354 Activant Solutions Term Loan B, 6.94% - 7.50%
due 5/02/2013 $ 3,455,957
1,000,000 Audio Visual Services Corp. Second Lien Term Loan,
10.33% due 9/15/2014 955,000
2,000,000 First Data Corp. Term Loan B, 7.96% due 9/24/2014 1,892,250
891,972 RedPrairie Corp. Term Loan, 8.063% - 8.50% due 7/31/2012 869,673
297,750 RedPrairie Corp. Term Loan, 8.75% due 7/31/2012 290,306
-------------
7,463,186
-----------------------------------------------------------------------------------------------------------------------------------
Independent Power Producers & 4,000,000 TXU Corp. Term Loan 3, 8.622% due 10/10/2014 3,930,908
Energy Traders - 0.9% 2,000,000 TXU Corp. Term Loan B 2, 8.396% due 10/14/2029 1,962,500
-------------
5,893,408
-----------------------------------------------------------------------------------------------------------------------------------
Insurance - 0.3% 1,000,000 Alliant Insurance Services Term Loan B, 7.72%
due 10/23/2014 957,500
997,500 USI Holdings Corp. Term Loan B, 7.95% due 5/15/2014 950,119
-------------
1,907,619
-----------------------------------------------------------------------------------------------------------------------------------
Machinery - 1.7% 995,000 Harrington Holdings, Inc. Term Loan, 7.448% due 1/15/2014 957,688
997,500 Maxim Crane Term Loan B, 6.793% - 8.50% due 6/14/2014 922,688
1,866,667 Navistar International Transportation Corp.
Revolving Credit, 5.17% - 8.234% due 6/30/2012 1,806,000
5,133,333 Navistar International Transportation Corp. Term Loan,
8.234% due 6/30/2012 4,966,500
1,975,000 OshKosh Truck Corp. Term Loan B, 7.11% due 11/30/2013 1,903,631
1,128,739 Rexnord Corp. Payment In Kind Term Loan, 12.58%
due 3/02/2013 993,290
-------------
11,549,797
-----------------------------------------------------------------------------------------------------------------------------------
Media - 8.9% 4,000,000 Affinion Group, Inc. Term Loan, 11.678% due 3/01/2012 3,800,000
9,318,269 Cequel Communications LLC Second Lien Term Loan,
10.911% due 5/04/2014 8,747,525
1,589,824 Cequel Communications LLC Term Loan B, 7.36% - 7.61%
due 11/05/2013 1,484,679
13,500,000 Charter Communications, Inc. Term Loan B, 6.999%
due 4/30/2014 12,562,790
973,460 ClientLogic Holding Corp. Term Loan B, 7.253% - 7.698%
due 1/30/2014 878,548
4,030,137 Easton-Bell Sports Inc. Term Loan B, 10.82% due 5/01/2012 3,862,213
6,500,000 Ellis Communications Term Loan, 10% due 12/30/2011 6,467,500
591,667 GateHouse Media Operating, Inc. Delay Draw Term Loan,
7.07% - 7.25% due 9/15/2014 524,893
2,000,000 GateHouse Media Operating, Inc. Term Loan B, 7.07%
due 9/15/2014 1,774,286
6,750,000 Insight Midwest Holdings LLC Delay Draw Term Loan,
7.36% due 4/03/2014 6,513,750
1,250,000 Insight Midwest Holdings LLC Term Loan B, 7.36%
due 4/06/2014 1,206,250
997,500 Local TV LLC Term Loan, 7.31% due 5/15/2013 937,650
446,250 Multicultural Radio Broadcasting Inc. Term Loan, 8.47%
due 12/15/2012 437,325
994,997 NEP Supershooters, LP Term Loan B, 7.448% due 2/13/2014 944,003
1,000,000 Penton Media Term Loan, 9.984% due 2/15/2014 880,000
EUR 432,414 ProSiebenSat.1 Media AG Term Loan B, 7.075%
due 6/30/2015 576,720
864,827 ProSiebenSat.1 Media AG Term Loan B, 7.325%
due 6/30/2016 1,124,974
USD 963,550 Riverdeep Group Ltd. Bridge Loan, 11.938% due 12/21/2007 (n) 953,914
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Face
Industry Amount Floating Rate Loan Interests** Value
------------------------------------------------------------------------------------------------------------------------------------
USD 2,118,731 Riverdeep Group Ltd. Term Loan B, 7.941% - 7.948%
due 12/21/2013 $ 2,099,752
4,832,215 Univision Communications, Inc. Delay Draw Term Loan,
7.072% - 7.21% due 9/30/2014 4,425,502
-------------
60,202,274
-----------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 0.5% 497,500 Brand Energy & Infrastructure Services, Inc. Term Loan
B, 7.313% - 7.50% due 2/15/2014 470,967
457,793 Coleto Creek Letter of Credit, 7.948% due 7/31/2013 437,193
31,847 Coleto Creek Term Loan B, 5.098% due 7/31/2013 30,400
750,000 Energy Transfer Equity LP Term Loan B, 6.648%
due 11/01/2012 727,500
750,000 NE Energy Second Lien Term Loan, 9.75% due 10/31/2014 686,250
997,500 USPF Holdings Term Loan, 7.082% - 7.569% due 4/15/2014 945,131
-------------
3,297,441
-----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable 783,125 Big West Oil & Gas Term Loan B, 7.448% due 5/15/2014 751,800
Fuels - 3.1% 372,159 Carrizo Oil & Gas, Inc. Second Lien Term Loan, 10.11%
due 7/21/2010 369,368
6,400,000 Frontier Drilling Term Loan B, 8.99% due 6/21/2013 6,240,000
1,995,000 Petroleum Geo-Services ASA Term Loan B, 6.95%
due 6/30/2015 1,933,488
2,000,000 SandRidge Energy, Inc. Term Loan B, 8.854% due 3/01/2014 1,990,000
8,000,000 Scorpion Drilling Ltd. Second Lien Term Loan, 12.406%
due 5/05/2015 8,360,000
184,018 Western Refining Co. LP Delay Draw Term Loan, 6.559%
due 3/15/2014 176,504
1,205,357 Western Refining Co. LP Term Loan B, 6.559%
due 3/15/2014 1,156,139
-------------
20,977,299
-----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 1.2% 8,195,000 Verso Paper Holdings LLC Term Loan B, 11.606%
due 2/01/2013 7,815,981
-----------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 0.4% 2,992,500 Pharmaceutical Technologies & Services (PTS) Term
Loan, 7.448% due 4/15/2014 2,841,005
-----------------------------------------------------------------------------------------------------------------------------------
Real Estate Management & 4,000,000 Enclave First Lien Term Loan, 6.14% due 3/01/2012 3,825,920
Development - 1.2% 4,000,000 Georgian Towers Term Loan, 6.14% due 3/01/2012 3,602,800
441,748 Yellowstone Club Term Loan B, 7.184% due 10/15/2010 400,886
-------------
7,829,606
-----------------------------------------------------------------------------------------------------------------------------------
Road & Rail - 0.6% 4,418,605 Swift Transportation Co., Inc. Term Loan B, 7.938%
due 5/15/2014 3,740,627
-----------------------------------------------------------------------------------------------------------------------------------
Software - 1.1% 8,000,000 Aspect Software Second Lien Term Loan, 12.313%
due 7/05/2012 7,520,000
-----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 0.7% 1,995,000 ADESA, Inc. Term Loan B, 7.61% due 10/30/2013 1,883,494
1,480,589 Burlington Coat Factory Warehouse Corp. Term Loan
B, 7.32% due 4/15/2013 1,334,998
1,491,250 Claire's Stores Term Loan B, 8.11% due 5/24/2014 1,308,107
-------------
4,526,599
-----------------------------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury 995,000 David's Bridal, Inc. Term Loan B, 6.899% due 1/30/2014 904,206
Goods - 0.2% 743,868 Renfro Corp. Term Loan B, 8.61% - 8.76% due 9/30/2013 706,675
-------------
1,610,881
-----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication 4,750,000 Centennial Cellular Operating Co. Term Loan,
Services - 1.0% 7.198% - 7.541% due 2/09/2011 4,607,500
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Face
Industry Amount Floating Rate Loan Interests** Value
-----------------------------------------------------------------------------------------------------------------------------------
USD 1,995,000 IPC Systems First Lien Term Loan, 7.448% due 5/25/2014 $ 1,765,575
609,626 NG Wireless Term Loan, 7.559% due 7/31/2014 600,481
-------------
6,973,556
-----------------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Loan Interests
(Cost - $326,917,159) - 45.7% 308,432,913
-----------------------------------------------------------------------------------------------------------------------------------
Shares
Held Common Stocks
-----------------------------------------------------------------------------------------------------------------------------------
Airlines - 0.6% 221,600 Delta Air Lines, Inc. (d) 4,378,816
-----------------------------------------------------------------------------------------------------------------------------------
Building Products - 0.1% 144,858 Neenah Enterprises Inc. 543,218
-----------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 0.3% 484,043 E*Trade Financial Corp. (d) 2,226,598
-----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 0.1% 339,340 GEO Specialty Chemicals, Inc. (d) 339,340
403 GenTek Inc. (d) 12,090
-------------
351,430
-----------------------------------------------------------------------------------------------------------------------------------
Commercial Services & 90,876 Outsourcing Solutions Inc. (d) 2,635,397
Supplies - 0.4%
-----------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 0.8% 150,354 Loral Space & Communications Ltd. (d) 5,148,121
-----------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 0.4% 36,342 Smurfit Kappa Plc (d) 632,682
1,428,423 Viskase Cos., Inc. (d) 2,142,635
-------------
2,775,317
-----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.5% 286,757 Medis Technologies Ltd. (d) 3,661,887
-----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & 5,000 HRP PIK Corp. Class B (m) 50
Leisure - 0.1% 27,787 Lodgian, Inc. (d) 318,439
-------------
318,489
-----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 0.0% 211,149 Western Forest Products, Inc. (d) 295,623
-----------------------------------------------------------------------------------------------------------------------------------
Semiconductors & 55,172 Cypress Semiconductor Corp. 1,832,814
Semiconductor Equipment - 0.3%
-----------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost - $26,350,165) - 3.6% 24,167,710
-----------------------------------------------------------------------------------------------------------------------------------
Preferred Stocks
-----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable 179 EXCO Resources, Inc., 7% (a) 1,969,000
Fuels - 1.5% 737 EXCO Resources, Inc., 11% 8,107,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Preferred Stocks (Cost - $9,160,000) - 1.5% 10,076,000
-----------------------------------------------------------------------------------------------------------------------------------
Warrants (k)
-----------------------------------------------------------------------------------------------------------------------------------
Building Products - 0.1% 130,548 Neenah Enterprises Inc. (expires 9/30/2013) 783,287
-----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 0.0% 471 GenTek Inc. Tranche B (expires 11/10/2008) 14,314
231 GenTek Inc. Tranche C (expires 11/10/2010) 6,979
-------------
21,293
-----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & 126,761 HealthSouth Corp. (expires 1/16/2014) 101,409
Services - 0.0%
-----------------------------------------------------------------------------------------------------------------------------------
Media - 0.0% 15,000 Sirius Satellite Radio, Inc. (expires 5/15/2009) 6,750
-----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication 1,325 American Tower Corp. (expires 8/01/2008) 845,350
Services - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
Total Warrants (Cost - $870,754) - 0.3% 1,758,089
-----------------------------------------------------------------------------------------------------------------------------------
Rights
-----------------------------------------------------------------------------------------------------------------------------------
Household Durables - 0.0% 28,675 Medis Tech Rights (l) 0
-----------------------------------------------------------------------------------------------------------------------------------
Total Rights (Cost - $0) - 0.0% 0
-----------------------------------------------------------------------------------------------------------------------------------
Beneficial
Interest Other Interests (f)
-----------------------------------------------------------------------------------------------------------------------------------
Airlines - 0.1% USD 5,505,000 Delta Air Lines, Inc. Default 8.33% Escrow 371,588
4,200,000 Delta Air Lines, Inc. Default 10% Escrow 273,000
-------------
644,588
-----------------------------------------------------------------------------------------------------------------------------------
Auto Components - 0.0% 3,614,601 Cambridge Industries, Inc. (Litigation Trust Certificates) 36
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
Beneficial
Industry Interest Other Interests (f) Value
------------------------------------------------------------------------------------------------------------------------------------
Media - 0.0% USD 7,500,000 Adelphia Escrow $ 750
5,000 Adelphia Preferred Escrow 1
9,406,019 Adelphia Recovery Trust 941
500,000 Adelphia Recovery Trust Series ACC-6B INT 50
-------------
1,742
-----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 0.0% 18 Cellu Tissue Holdings, Inc. 1-Year Escrow 0
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Interests (Cost - $30,801) - 0.1% 646,366
-----------------------------------------------------------------------------------------------------------------------------------
Short-Term Securities
-----------------------------------------------------------------------------------------------------------------------------------
USD 10,054,508 BlackRock Liquidity Series, LLC
Cash Sweep Series, 4.75% (c)(i) 10,054,508
-----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost - $10,054,508) - 1.5% 10,054,508
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $1,006,837,263*) - 139.6% 942,078,791
Liabilities in Excess of Other Assets - (39.6%) (266,779,831)
-------------
Net Assets - 100.0% $ 675,298,960
=============
* The cost and unrealized appreciation (depreciation) of investments as of
November 30, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 1,008,168,610
===============
Gross unrealized appreciation $ 23,291,167
Gross unrealized depreciation (89,380,986)
---------------
Net unrealized depreciation $ (66,089,819)
===============
** Floating rate loan interests in which the Fund invests generally pay
interest at rates that are periodically determined by reference to a base
lending rate plus a premium. The base lending rates are generally (i) the
lending rate offered by one or more European banks, such as LIBOR (London
InterBank Offered Rate), (ii) the prime rate offered by one or more U.S.
banks or (iii) the certificate of deposit rate.
(a) Convertible security.
(b) Floating rate security.
(c) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Interest
Affiliate Activity Income
--------------------------------------------------------------------------
BlackRock Liquidity Series, LLC
Cash Sweep Series $ 8,139,758 $ 261,670
--------------------------------------------------------------------------
(d) Non-income producing security.
(e) Non-income producing security; issuer filed for bankruptcy or is in
default of interest payments.
(f) Other interests represent beneficial interest in liquidation trusts and
other reorganization entities and are non-income producing.
(g) Represents a pay-in-kind security which may pay interest/dividends in
additional face/shares.
(h) Represents a step bond; the interest rate shown reflects the effective
yield at the time of purchase.
(i) Represents the current yield as of November 30, 2007.
(j) Subject to principal paydowns.
(k) 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.
(l) The rights may be exercised until January 7, 2008.
(m) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(n) As a result of bankruptcy proceedings, the company did not repay the
principal amount of the security upon maturity. The security is non-income
producing.
o 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 ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report, which may combine industry sub-classifications for reporting
ease. Industries are shown as a percent of net assets.
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments as of November 30, 2007 (Unaudited) (in U.S. dollars)
o Forward foreign exchange contracts as of November 30, 2007 were as
follows:
--------------------------------------------------------------------------
Foreign Settlement Unrealized
Currency Sold Date Depreciation
--------------------------------------------------------------------------
EUR 3,247,500 January 2008 $ (153,970)
--------------------------------------------------------------------------
Total Unrealized Depreciation on Forward
Foreign Exchange Contracts (USD
Commitment - $4,601,708) $ (153,970)
==========
o Swaps outstanding as of November 30, 2007 were as follows:
---------------------------------------------------------------------------------------------
Unrealized
Notional Appreciation
Amount (Depreciation)
---------------------------------------------------------------------------------------------
Sold credit default protection on Novelis Inc.
and receive 1.40%
Broker, JPMorgan Chase
Expires January 2008 USD 4,000,000 $ 3,428
Sold credit default protection on Ford Motor
Company and receive 3.80%
Broker, Lehman Brothers Special Finance
Expires March 2010 USD 10,000,000 (371,620)
Sold credit default protection on BAA Ferovial
Junior Term Loan and receive 2.00%
Broker, Deutsche Bank AG London
Expires June 2012 USD 900,000 (54,003)
Bought credit default protection on Frontier
Drilling and pay 3.45%
Broker, Lehman Brothers Special Finance
Expires September 2012 USD 2,250,000 54,920
Bought credit default protection on Frontier
Drilling ASA and pay 4.00%
Broker, Lehman Brothers Special Finance
Expires September 2012 USD 2,500,000 16,760
---------------------------------------------------------------------------------------------
Total $(350,515)
=========
o Currency Abbreviations:
EUR Euro
USD U.S. Dollar
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 and 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 Debt Strategies Fund, Inc.
By: /s/ Donald C. Burke
--------------------------------
Donald C. Burke,
Chief Executive Officer of
BlackRock Debt Strategies Fund, Inc.
Date: January 16, 2008
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 Debt Strategies Fund, Inc.
Date: January 16, 2008
By: /s/ Neal J. Andrews
--------------------------------
Neal J. Andrews,
Chief Financial Officer (principal financial officer) of
BlackRock Debt Strategies Fund, Inc.
Date: January 16, 2008