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 811-21286
Name of Fund: BlackRock Preferred Income Strategies Fund, Inc.
Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer (principal executive officer), BlackRock Preferred Income
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
Date of fiscal year end: 10/31/2007
Date of reporting period: 05/01/2007 - 07/31/2007
Item 1 - Schedule of Investments
BlackRock Preferred Income Strategies Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in U.S. dollars)
Preferred Securities
Face
Industry Amount Capital Trusts Value
-------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 2.0% $ 3,495,000 Deutsche Bank Capital Funding Trust VII, 5.628% (a)(b)(c) $ 3,348,899
13,535,000 State Street Capital Trust IV, 6.355% due 6/01/2067 (b) 13,484,244
--------------
16,833,143
-------------------------------------------------------------------------------------------------------------------------------
Commercial Banks - 18.6% 12,035,000 ABN AMRO North America Holding Preferred Capital Repackaging
Trust I, 6.523% due 12/29/2049 (a)(b)(c) 12,595,602
2,811,000 Abbey National Capital Trust I, 8.963% due 12/29/2049 (b)(c) 3,520,817
18,350,000 BB&T Capital Trust IV, 6.82% due 6/12/2077 (b) 17,767,167
2,000,000 Bank One Capital III, 8.75% due 9/01/2030 2,484,638
5,825,000 Barclays Bank Plc, 5.926% due 9/29/2049 (a)(b)(c) 5,563,784
16,455,000 Chase Capital II Series B, 5.856% due 2/01/2027 (b) 15,609,756
3,875,000 Dresdner Funding Trust I, 8.151% due 6/30/2031 (a) 4,440,382
3,630,000 First Empire Capital Trust II, 8.277% due 6/01/2027 3,783,603
2,000,000 HSBC America Capital Trust I, 7.808% due 12/15/2026 (a) 2,080,526
15,835,000 HSBC Capital Funding LP/Jersey Channel Islands, 10.176% due
12/29/2049 (a)(b)(c)(g) 22,099,453
7,300,000 HSBC Finance Capital Trust IX, 5.911% due 11/30/2035 (b) 7,037,894
12,275,000 Hubco Capital Trust II Series B, 7.65% due 6/15/2028 (a) 12,766,000
3,850,000 Huntington Capital III, 6.65% due 5/15/2037 (b) 3,619,393
2,000,000 Lloyds TSB Bank Plc, 6.90% (c) 1,955,000
18,470,000 Nationsbank Capital Trust III, 5.906% due 1/15/2027 (b) 17,765,573
13,180,000 RBS Capital Trust B, 6.80% (c) 12,685,750
2,000,000 Republic New York Corp., 7.53% due 12/04/2026 2,076,522
3,930,000 Royal Bank of Scotland Group Plc, 7.648%
due 8/31/2049 (b)(c) 4,334,271
4,175,000 SunTrust Preferred Capital I, 5.853% (b)(c) 4,104,217
--------------
156,290,348
-------------------------------------------------------------------------------------------------------------------------------
Consumer Finance - 2.1% 13,670,000 Capital One Capital III, 7.686% due 8/15/2036 12,916,555
4,630,000 MBNA Capital A, 8.278% due 12/01/2026 4,821,793
--------------
17,738,348
-------------------------------------------------------------------------------------------------------------------------------
Diversified Financial 15,000,000 AgFirst Farm Credit Bank, 8.393% due 12/15/2016 (b) 16,267,230
Services - 4.0% 9,000,000 Farm Credit Bank of Texas Series 1, 7.561% (b)(c) 9,768,060
8,375,000 JPM Chase Capital XXI, 6.558% due 5/15/2077 (b) 7,627,330
--------------
33,662,620
-------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 0.6% 5,000,000 SWEPCO Capital I, 5.25% due 10/01/2043 (b) 4,967,315
-------------------------------------------------------------------------------------------------------------------------------
Insurance - 10.4% 12,175,000 AON Corp., 8.205% due 1/01/2027 12,755,151
9,225,000 AXA, 8.60% due 12/15/2030 (Surplus Notes) 10,938,636
11,300,000 Ace Capital Trust II, 9.70% due 4/01/2030 14,168,516
15,000,000 Farmers Exchange Capital, 7.05% due 7/15/2028 (a) 14,021,880
10,000,000 GE Global Insurance Holding Corp., 7.75% due 6/15/2030 11,534,040
1,000,000 GenAmerica Capital I, 8.525% due 6/30/2027 (a) 1,042,630
3,000,000 Genworth Financial, Inc., 6.15% due 11/15/2066 (b) 2,737,062
6,066,000 ING Capital Funding Trust III, 8.439% (b)(c) 6,578,292
3,605,000 Oil Casualty Insurance Ltd., 8% due 9/15/2034 (a) 3,520,380
6,325,000 Principal Life Insurance Co., 8% due 3/01/2044 (Surplus Notes) 6,590,365
3,750,000 Zenith National Insurance Capital Trust I, 8.55% due
8/01/2028 (a) 3,656,250
--------------
87,543,202
-------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 1.2% 10,000,000 Dominion Resources Capital Trust I, 7.83% due 12/01/2027 10,303,550
-------------------------------------------------------------------------------------------------------------------------------
Road & Rail - 0.4% 3,750,000 BNSF Funding Trust I, 6.613% due 12/15/2055 (b) 3,282,892
-------------------------------------------------------------------------------------------------------------------------------
BlackRock Preferred Income Strategies Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in U.S. dollars)
Preferred Securities
Face
Industry Amount Capital Trusts Value
-------------------------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage $ 1,000,000 Astoria Capital Trust I, 9.75% due 11/01/2029 (a) $ 1,102,500
Finance - 0.6% 3,875,000 Webster Capital Trust IV, 7.65% due 6/15/2037 (b) 3,828,682
--------------
4,931,182
-------------------------------------------------------------------------------------------------------------------------------
Total Investments in Capital Trusts
(Cost - $341,842,550) - 39.9% 335,552,600
-------------------------------------------------------------------------------------------------------------------------------
Shares
Held Preferred Stocks
-------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 2.1% 7,600,000 Ameriprise Financial, Inc., 7.518% due 6/01/2066 (b) 7,693,480
393,800 Deutsche Bank Contingent Capital Trust II, 6.55% 9,608,720
--------------
17,302,200
-------------------------------------------------------------------------------------------------------------------------------
Commercial Banks - 11.5% 4,000,000 Barclays Bank Plc, 6.278% (b) 3,747,892
4,650 First Tennessee Bank NA, 3.90% (a)(b) 4,865,063
8,000,000 ICICI Bank Ltd., 7.25% (a)(b) 7,784,088
159,000 KeyCorp Capital IX, 6.75% 3,812,820
166,800 Provident Financial Group, Inc., 7.75% 4,295,100
20,000,000 Resona Preferred Global Securities Ltd., 7.191%
due 12/29/2049 (a)(b) 20,194,201
4,800,000 Royal Bank of Scotland Group Plc, 9.118% 5,217,029
23,000 SG Preferred Capital II, 6.302% (b) 23,948,750
599,000 Santander Finance Preferred SA Unipersonal, 6.50% (a) 14,993,749
250,000 Santander Finance Preferred SA Unipersonal, 6.80% (a) 6,328,125
48,000 Sovereign Bancorp, Inc. Series C, 7.30% (d) 1,300,800
--------------
96,487,616
-------------------------------------------------------------------------------------------------------------------------------
Diversified Financial 152,000 Cobank ACB, 7% (a) 7,721,296
Services - 2.7% 15,525,000 JPMorgan Chase Capital XXI Series U, 6.309% (b) 15,331,760
--------------
23,053,056
-------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 1.3% 14,000 Alabama Power Co., 5.83% 336,000
114,400 Entergy Arkansas, Inc., 6.45% 2,902,900
49,850 Entergy Louisiana LLC, 6.95% 5,018,100
80,000 Interstate Power & Light Co. Series B, 8.375% 2,508,000
--------------
10,765,000
-------------------------------------------------------------------------------------------------------------------------------
Insurance - 15.0% 400,000 ACE Ltd. Series C, 7.80% 10,184,000
25,825,000 AXA SA, 6.379% (a)(b) 22,068,909
165,000 Aspen Insurance Holdings Ltd., 7.401% (b) 3,882,665
140,000 Axis Capital Holdings Ltd., Series A, 7.25% 3,500,000
36,000 Axis Capital Holdings Ltd., Series B, 7.50% (b) 3,772,127
139,200 Endurance Specialty Holdings Ltd. Series A, 7.75% 3,621,984
6,930,000 Financial Security Assurance Holdings Ltd., 6.40% (a)(b) 6,084,263
7,500,000 Great West Life & Annuity Insurance Co., 7.153% (a)(b)(g) 7,585,950
15,875,000 MetLife, Inc., 6.40% 14,196,282
493,000 MetLife, Inc., Series B, 6.50% 12,315,140
5,000,000 Oil Insurance Ltd., 7.558% (a)(b) 5,155,300
5,700,000 PartnerRe Finance II, 6.44% (b) 5,236,704
140,000 Prudential Plc, 6.50% (c) 3,424,400
660,000 RenaissanceRe Holding Ltd. Series D, 6.60% (c) 15,140,400
9,800 Zurich RegCaPS Funding Trust, 6.58% (a)(b)(c) 10,063,375
--------------
126,231,499
-------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 1.4% 8,400,000 Dominion Resources, Inc., 7.50% (b) 8,632,722
140,000 Pacific Gas & Electric Co. Series A, 6% (c) 3,444,000
--------------
12,076,722
-------------------------------------------------------------------------------------------------------------------------------
BlackRock Preferred Income Strategies Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in U.S. dollars)
Preferred Securities
Shares
Industry Held Preferred Stocks Value
-------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable 4,225,000 Enterprise Products Operating LP, 8.375% (b) $ 4,310,582
Fuels - 0.5%
-------------------------------------------------------------------------------------------------------------------------------
Real Estate Management & 4,000,000 Roslyn Real Estate Asset Corp. Series D, 9% (b)(c) 3,976,216
Development - 0.5%
-------------------------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance - 9.5% 264,650 Fannie Mae Series L, 5.125% (c) 11,419,648
1,210,000 Fannie Mae Series O, 7% (b)(c) 62,693,125
120,000 Freddie Mac Series Q, 3.85% (b)(c) 5,521,200
--------------
79,633,973
-------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication 2,423 Centaur Funding Corp., 9.08% (a) 2,784,178
Services - 0.3%
-------------------------------------------------------------------------------------------------------------------------------
Total Preferred Stocks
(Cost - $382,719,875) - 44.8% 376,621,042
-------------------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts
-------------------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts 251,400 Alexandria Real Estate Equities, Inc. Series C, 8.375% 6,398,130
(REITs) - 7.3% 200,000 CBL & Associates Properties, Inc. Series C, 7.75% 4,940,000
400,000 Developers Diversified Realty Corp., 8% 10,084,000
2,390 First Industrial Realty Trust, Inc., 6.236% (b) 2,405,684
4,000 Firstar Realty LLC, 8.875% (a) 5,123,750
50,000 Health Care Property Investors, Inc. Series F, 7.10% 1,207,500
172,800 Health Care REIT, Inc. Series F, 7.625% 4,271,409
50,000 Kimco Realty Corp. Series F, 6.65% 1,193,500
40,000 PS Business Parks, Inc. Series K, 7.95% 1,004,000
160,000 Public Storage, Inc. Series I, 7.25% 3,960,000
607,550 Regency Centers Corp. Series C, 7.45% 15,079,391
3,857 Sovereign Real Estate Investment Corp., 12% (a) 5,650,505
-------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Investment Trusts
(Cost - $61,348,035) - 7.3% 61,317,869
-------------------------------------------------------------------------------------------------------------------------------
Face
Amount Trust Preferreds
-------------------------------------------------------------------------------------------------------------------------------
Commercial Banks - 1.7% $ 2,790,000 National City Capital Trust II, 6.625% due 11/15/2066 2,567,799
2,000,000 SunTrust Capital VIII, 6.10% due 12/15/2036 (b) 1,764,244
2,500,000 Wachovia Capital Trust IV, 6.375% due 3/01/2067 2,305,367
8,470,000 Wachovia Capital Trust IX, 6.375% due 6/01/2067 7,833,056
--------------
14,470,466
-------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 0.2% 2,000,000 Corporate-Backed Trust Certificates, 8.375% due 11/15/2028 2,000,181
-------------------------------------------------------------------------------------------------------------------------------
Consumer Finance - 2.0% 16,702,000 Capital One Capital II, 7.50% due 6/15/2066 16,555,022
-------------------------------------------------------------------------------------------------------------------------------
Diversified Financial 7,625,000 Citigroup Capital XVII, 6.35% due 3/15/2067 6,944,003
Services - 0.8%
-------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 1.2% 1,250,000 Georgia Power Co. Series O, 1.475% due 4/15/2033 1,139,094
1,250,000 HECO Capital Trust III, 6.50% due 3/18/2034 1,220,020
1,250,000 National Rural Utilities Cooperative Finance Corp., 6.75%
due 2/15/2043 1,131,578
5,835,000 PPL Energy Supply LLC, 7% due 7/15/2046 5,851,338
950,000 Virginia Power Capital Trust II, 1.844% due 7/30/2042 947,701
--------------
10,289,731
-------------------------------------------------------------------------------------------------------------------------------
Gas Utilities - 0.7% 5,750,000 Southwest Gas Capital II, 7.70% due 9/15/2043 5,874,418
-------------------------------------------------------------------------------------------------------------------------------
Insurance - 2.6% 11,000,000 ABN AMRO North America Capital Funding Trust II, 5.415%
(a)(b)(c) 10,024,266
7,375,000 Berkley W. R. Capital Trust, 6.75% due 7/26/2045 6,999,304
5,000,000 Lincoln National Capital VI Series F, 6.75% due 9/11/2052 4,888,818
--------------
21,912,388
-------------------------------------------------------------------------------------------------------------------------------
BlackRock Preferred Income Strategies Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in U.S. dollars)
Preferred Securities
Face
Industry Amount Trust Preferreds Value
-------------------------------------------------------------------------------------------------------------------------------
Media - 2.6% $ 23,375,000 Comcast Corp., 6.625% due 5/15/2056 $ 21,722,921
-------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 0.1% 397,425 PSEG Funding Trust II, 8.75% due 12/31/2032 399,004
-------------------------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage 11,137,500 Countrywide Financial Corp., 1.50% due 4/01/2033 8,901,738
Finance - 1.7% 6,000,000 Dime Community Capital I, 7% due 4/14/2034 5,640,000
--------------
14,541,738
-------------------------------------------------------------------------------------------------------------------------------
Total Trust Preferreds
(Cost - $122,004,029) - 13.6% 114,709,872
-------------------------------------------------------------------------------------------------------------------------------
Total Preferred Securities
(Cost - $907,914,489) - 105.6% 888,201,383
-------------------------------------------------------------------------------------------------------------------------------
Corporate Bonds
-------------------------------------------------------------------------------------------------------------------------------
Automobiles - 2.4% 16,000,000 DaimlerChrysler NA Holding Corp., 8.50% due 1/18/2031 19,801,856
-------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 1.6% 7,750,000 Credit Suisse Guernsey Ltd., 5.86% (b)(c) 7,301,841
6,400,000 Lehman Brothers Holdings Capital Trust V, 6.19% (b)(c) 6,180,160
--------------
13,482,001
-------------------------------------------------------------------------------------------------------------------------------
Commercial Banks - 12.3% 23,425,000 BNP Paribas, 7.195% (a)(b)(c) 22,372,163
8,575,000 BOI Capital Funding No. 3, 6.107% (a)(b)(c) 7,697,263
30,000,000 Credit Agricole SA, 6.637% (a)(b)(c) 28,077,510
5,000,000 HBOS Plc, 6.657% (a)(b)(c) 4,540,750
21,250,000 Societe Generale, 5.922% (a)(b)(c) 20,416,299
13,550,000 Standard Chartered Bank, 7.014% (a)(b)(c) 12,211,937
8,500,000 Woori Bank, 6.208% due 5/02/2067 (a)(b) 7,989,762
--------------
103,305,684
-------------------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication 25,500,000 France Telecom SA, 8.50% due 3/01/2031 31,948,440
Services - 3.8%
-------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 3.9% 16,575,000 Duke Energy Field Services LLC, 8.125% due 8/16/2030 19,488,703
5,925,000 PPL Capital Funding, 6.70% due 3/30/2067 (b) 5,556,231
7,825,000 Virginia Electric and Power Co. Series A, 6% due 5/15/2037 7,483,947
--------------
32,528,881
-------------------------------------------------------------------------------------------------------------------------------
Gas Utilities - 1.7% 14,400,000 Southern Union Co., 7.20% due 11/01/2066 (b) 14,474,779
-------------------------------------------------------------------------------------------------------------------------------
Insurance - 19.4% 12,775,000 The Allstate Corp., 6.50% due 5/15/2057 (b) 11,790,405
10,450,000 The Allstate Corp. Series B, 6.125% due 5/15/2037 (b) 9,897,832
12,395,000 American International Group, Inc., 6.25% due 3/15/2087 11,417,753
17,700,000 Chubb Corp., 6.375% due 3/29/2067 (b) 17,044,215
14,280,000 Everest Reinsurance Holdings, Inc., 6.60% due 5/01/2067 (b) 13,234,189
10,150,000 Liberty Mutual Group, Inc., 7% due 3/15/2037 (a)(b) 9,210,496
5,025,000 Lincoln National Corp., 6.05% due 4/20/2067 (b) 4,700,671
15,475,000 Nationwide Life Global Funding I, 6.75% due 5/15/2037 13,481,774
11,650,000 The Progressive Corp., 6.70% due 6/15/2037 (b) 11,167,806
6,575,000 QBE Capital Funding II LP, 6.797% (a)(b)(c) 6,139,209
3,000,000 Reinsurance Group of America, 6.75% due 12/15/2065 (b) 2,916,996
630,732 START 2004-1, 5.417% due 4/21/2011 630,338
8,875,000 Swiss Re Capital I LP, 6.854% (a)(b)(c) 8,834,175
22,850,000 The Travelers Cos., Inc., 6.25% due 3/15/2067 (b) 21,474,384
5,725,000 XL Capital Ltd. Series E, 6.50% (b)(c) 5,108,990
17,110,000 ZFS Finance USA Trust I, 6.50% due 5/09/2037 (a)(b) 16,022,882
--------------
163,072,115
-------------------------------------------------------------------------------------------------------------------------------
Media - 0.8% 1,000,000 Time Warner, Inc., 7.625% due 4/15/2031 (g) 1,067,297
5,000,000 Time Warner, Inc., 7.70% due 5/01/2032 5,385,780
--------------
6,453,077
-------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 0.2% 1,825,000 Puget Sound Energy, Inc. Series A, 6.974% due 6/01/2067 (b) 1,837,465
-------------------------------------------------------------------------------------------------------------------------------
BlackRock Preferred Income Strategies Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in U.S. dollars)
Preferred Securities
Face
Industry Amount Corporate Bonds Value
-------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable $ 8,300,000 TransCanada PipeLines Ltd., 6.35% due 5/15/2067 (b) $ 7,768,601
Fuels - 0.9%
-------------------------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage 11,150,000 Northern Rock Plc, 6.594% due 6/29/2049 (a)(b)(c) 10,888,421
Finance - 1.3%
-------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication 8,400,000 AT&T Wireless Services, Inc., 8.75% due 3/01/2031 10,395,647
Services - 2.9% 12,795,000 Sprint Capital Corp., 8.75% due 3/15/2032 14,060,515
--------------
24,456,162
-------------------------------------------------------------------------------------------------------------------------------
Total Corporate Bonds 430,017,482
(Cost - $446,918,570) - 51.2%
-------------------------------------------------------------------------------------------------------------------------------
Beneficial
Interest Short-Term Securities
-------------------------------------------------------------------------------------------------------------------------------
$ 66,669,936 BlackRock Liquidity Series, LLC 66,669,936
Cash Sweep Series, 5.33% (e)(f)
-------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities 66,669,936
(Cost - $66,669,936) - 7.9%
-------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $1,421,502,995*) - 164.7% 1,384,888,801
Other Assets Less Liabilities - 0.8% 6,548,714
Preferred Stock, at Redemption Value - (65.5%) (550,817,847)
--------------
Net Assets Applicable to Common Stock - 100.0% $ 840,619,668
==============
* The cost and unrealized appreciation (depreciation) of investments as July
31, 2007, as computed for federal income tax purposes, were as follows:
Aggregate cost $ 1,419,757,306
===============
Gross unrealized appreciation $ 14,826,097
Gross unrealized depreciation (49,694,602)
---------------
Net unrealized depreciation $ (34,868,505)
===============
(a) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(b) Floating rate security.
(c) The security is a perpetual bond and has no stated maturity date.
(d) Depositary receipts.
(e) 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:
--------------------------------------------------------------------------
Affiliate Net Interest
Activity Income
--------------------------------------------------------------------------
BlackRock Liquidity Series, LLC $46,128,435 $3,035,423
Cash Sweep Series
--------------------------------------------------------------------------
(f) Represents the current yield as of July 31, 2007.
(g) All or a portion of security held as collateral in connection with open
financial futures contracts.
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 Preferred Income Strategies Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in U.S. dollars)
Preferred Securities
o Financial futures contracts sold as of July 31, 2007 were as follows:
---------------------------------------------------------------------------------------------------------
Number of Expiration Face Unrealized
Contracts Issue Date Value Depreciation
---------------------------------------------------------------------------------------------------------
7,135 10-Year
U.S. Treasury Notes September 2007 $ 753,989,669 $ (12,465,409)
1,554 30-Year
U.S. Treasury Notes September 2007 $ 166,491,277 $ (4,545,848)
---------------------------------------------------------------------------------------------------------
Total Unrealized Depreciation $ (17,011,257)
=============
o Swaps outstanding as of July 31, 2007 were as follows:
-------------------------------------------------------------------------------------
Notional Unrealized
Amount Appreciation
(Depreciation)
-------------------------------------------------------------------------------------
Sold credit default protection on a basket of
preferred securities and receive 2.03%
Broker, Lehman Brothers Special Finance
Expires September 2007 $ 36,000,000 $ 172,512
Pay a fixed rate of 5.132% and receive a floating
rate based on 3-month LIBOR
Broker, JPMorgan Chase
Expires September 2016 $ 125,000,000 3,145,305
Receive a fixed rate of 5.813% and pay a floating
rate based on 3-month USD LIBOR
Broker, Goldman Sachs
Expires June 2017 $ 125,000,000 2,888,896
Pay a fixed rate of 5.53% and receive a floating
rate based on 3-month USD LIBOR
Broker, Citibank N.A.
Expires July 2017 $ 193,900,000 (317,608)
Receive a fixed rate of 5.55125% and pay a floating
rate based on 3-month USD LIBOR
Broker, Credit Suisse First Boston
Expires August 2017 $ 58,300,000 176,008
-------------------------------------------------------------------------------------
Total $ 6,065,113
============
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
(17 CFR 270.30a-3(d)) 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 Preferred Income Strategies Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Preferred Income Strategies Fund, Inc.
Date: September 20, 2007
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/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Preferred Income Strategies Fund, Inc.
Date: September 20, 2007
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock Preferred Income Strategies Fund, Inc.
Date: September 20, 2007