Edgar Filing: BLACKROCK DEBT STRATEGIES FUND, INC.

BlackRock Debt Strategies

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. (DSU)

Fund Address:		100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Debt Strategies Fund, Inc.,
55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 02/28/2013

Date of reporting period: 11/30/2012

Item 1 – Schedule of Investments

Consolidated Schedule of Investments November 30, 2012 (Unaudited)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Asset-Backed Securities
Anchorage Capital CLO Ltd., Series 2012-1A, Class B, 3.16%, 1/13/25 (a)(b)(c)	USD	1,500	$	1,417,500
Carlyle Global Market Strategies, Series 2012-4A, Class D, 4.81%, 1/20/25 (a)(b)(c)		600		580,092
CSAM Funding, Series 2A, Class B1, 7.05%, 10/15/16 (a)		625		650,812
Fraser Sullivan CLO Ltd., Series 2012-7A, Class C, 4.32%, 4/20/23 (a)(c)		765		720,393
Goldentree Loan Opportunities VI Ltd., Series 2012-6A, Class D, 4.53%, 4/17/22 (a)(c)		1,250		1,191,625
Highbridge Loan Management Ltd., Series 2012-1A, Class C, 5.71%, 9/20/22 (a)(c)		1,200		1,141,800
ING Investment Management (a)(c):
Series 2012-2A, Class D, 4.99%, 10/15/22		1,275		1,230,375
Series 2012-4A, Class C, 4.73%, 10/15/23		600		578,040
LCM LP (a)(c):
Series 9A, Class E, 4.54%, 7/14/22		1,000		854,700
Series 11A, Class D2, 4.27%, 4/19/22		1,300		1,235,000
Octagon Investment Partners Ltd., Series 2012-1A, Class C, 4.56%, 1/15/24 (a)(b)(c)		750		693,000
Symphony CLO Ltd. (a)(c):
Series 2012-9A, Class D, 4.58%, 4/16/22		1,075		1,024,475
Series 2012-10A, Class D, 5.61%, 7/23/23		1,200		1,203,000
West CLO Ltd., Series 2012-1A, Class C, 5.05%, 10/30/23 (a)(c)		1,145		1,107,673
Total Asset-Backed Securities – 2.9%				13,628,485



	Shares
Common Stocks (d)
Chemicals — 0.1%
GEO Specialty Chemicals, Inc.		339,340		156,097
Containers & Packaging — 0.1%
Smurfit Kappa Plc		36,342		426,590
Diversified Financial Services — 1.2%
Kcad Holdings I Ltd.		756,012,055		5,680,675
Electrical Equipment — 0.0%
Medis Technologies Ltd.		286,757		860


	Shares		Value
Common Stocks (d)
Hotels, Restaurants & Leisure — 0.0%
HRP PIK Corp., Class B		5,000	$	—
Metals & Mining — 0.1%
Euramax International		2,337		459,670
Paper & Forest Products — 0.5%
Ainsworth Lumber Co. Ltd. (a)		671,071		2,195,581
Western Forest Products, Inc. (a)		211,149		244,447
				2,440,028
Semiconductors & Semiconductor Equipment — 0.0%
SunPower Corp.		1,707		7,852
Software — 0.2%
Bankruptcy Management Solutions, Inc.		1,870		37
HMH Holdings/EduMedia		52,041		1,040,826
				1,040,863
Specialty Retail — 0.0%
Movie Gallery, Inc.		503,737		5
Total Common Stocks – 2.2%				10,212,640



	Par (000)
Corporate Bonds
Aerospace & Defense — 0.6%
Huntington Ingalls Industries, Inc., 7.13%, 3/15/21	USD	810	$	875,812
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		1,364		1,486,760
Meccanica Holdings USA, Inc., 6.25%, 7/15/19 (a)		405		393,010
				2,755,582
Airlines — 0.1%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23		381		388,368
Delta Air Lines Pass-Through Trust, Series 2009-1, Class B, 9.75%, 6/17/18		176		197,154
				585,522
Auto Components — 1.5%
Continental Rubber of America Corp., 4.50%, 9/15/19 (a)		150		151,500
Delphi Corp., 6.13%, 5/15/21		560		618,800
Icahn Enterprises LP:
7.75%, 1/15/16		220		229,350
8.00%, 1/15/18		4,035		4,287,188
Jaguar Land Rover Plc, 8.25%, 3/15/20	GBP	392		690,847



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	1

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Auto Components (concluded)
Titan International, Inc., 7.88%, 10/01/17	USD	940	$	989,350
Venture Holdings Co. LLC (d)(e):
12.00%, 7/01/49		4,450		1
Series B, 9.50%, 7/01/05		1,800		—
				6,967,036
Beverages — 0.2%
Crown European Holdings SA:
7.13%, 8/15/18 (a)	EUR	244		349,068
7.13%, 8/15/18		154		220,313
Refresco Group BV, 7.38%, 5/15/18		213		284,635
				854,016
Building Products — 0.7%
Building Materials Corp. of America (a):
7.00%, 2/15/20	USD	1,000		1,090,000
6.75%, 5/01/21		590		646,050
Momentive Performance Materials, Inc., 8.88%, 10/15/20 (a)		375		372,188
USG Corp., 9.75%, 1/15/18		980		1,092,700
				3,200,938
Capital Markets — 0.8%
E*Trade Financial Corp.:
12.50%, 11/30/17		1,765		1,986,243
1.74%, 8/31/19 (a)(f)(g)		593		527,770
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (a)		540		632,360
Nuveen Investments, Inc., 9.13%, 10/15/17 (a)		302		299,735
				3,446,108
Chemicals — 3.8%
Ashland, Inc., 4.75%, 8/15/22 (a)		475		488,063
Celanese US Holdings LLC:
5.88%, 6/15/21		1,415		1,581,262
4.63%, 11/15/22		260		268,450
Ciech Group Financing AB, 9.50%, 11/30/19	EUR	130		176,048
GEO Specialty Chemicals, Inc., 7.50%, 3/31/15 (a)(f)(h)	USD	4,171		5,046,652
Hexion US Finance Corp., 6.63%, 4/15/20		103		102,743
Huntsman International LLC:
4.88%, 11/15/20 (a)		803		794,970
8.63%, 3/15/21		735		832,387
INEOS Finance Plc, 7.50%, 5/01/20 (a)		295		304,588
LyondellBasell Industries NV:
6.00%, 11/15/21		930		1,110,187
5.75%, 4/15/24		1,775		2,130,000
NOVA Chemicals Corp., 8.63%, 11/01/19		570		649,800


	Par (000)		Value
Corporate Bonds
Chemicals (concluded)
Nufarm Australia Ltd., 6.38%, 10/15/19 (a)	USD	225	$	232,875
Orion Engineered Carbons Bondco GmbH, 9.63%, 6/15/18 (a)		800		866,000
Rockwood Specialties Group, Inc., 4.63%, 10/15/20		940		961,150
Tronox Finance LLC, 6.38%, 8/15/20 (a)		2,035		2,004,475
				17,549,650
Commercial Banks — 0.6%
CIT Group, Inc.:
5.00%, 5/15/17		620		649,450
6.63%, 4/01/18 (a)		160		179,200
5.50%, 2/15/19 (a)		1,430		1,522,950
5.00%, 8/15/22		390		408,902
				2,760,502
Commercial Services & Supplies — 1.6%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (a)		206		215,270
ARAMARK Holdings Corp., 8.63%, 5/01/16 (a)(h)		625		640,631
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (a)		714		753,557
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (a)		55		56,375
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (a)		265		267,650
Clean Harbors, Inc.:
5.25%, 8/01/20		427		438,742
5.13%, 6/01/21 (a)(b)		360		368,100
Covanta Holding Corp., 6.38%, 10/01/22		800		867,526
EC Finance Plc, 9.75%, 8/01/17	EUR	60		84,276
The Geo Group, Inc., 7.75%, 10/15/17	USD	850		918,000
HDTFS, Inc. (a):
5.88%, 10/15/20		145		149,713
6.25%, 10/15/22		425		440,406
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (a)		212		219,950
Mobile Mini, Inc., 7.88%, 12/01/20		640		695,200
Verisure Holding AB:
8.75%, 9/01/18	EUR	400		554,035
8.75%, 12/01/18		149		189,906
West Corp., 8.63%, 10/01/18	USD	315		325,237
				7,184,574
Communications Equipment — 0.5%
Avaya, Inc., 9.75%, 11/01/15		360		285,300
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20		850		928,625



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	2

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Communications Equipment (concluded)
Zayo Group LLC/Zayo Capital, Inc. (concluded):
10.13%, 7/01/20	USD	1,020	$	1,142,400
				2,356,325
Construction Materials — 0.9%
Buzzi Unicem SpA, 6.25%, 9/28/18	EUR	106		144,875
HD Supply, Inc. (a):
8.13%, 4/15/19	USD	2,080		2,345,200
11.50%, 7/15/20		1,375		1,502,188
				3,992,263
Consumer Finance — 0.1%
Ford Motor Credit Co. LLC:
7.00%, 4/15/15		280		311,070
6.63%, 8/15/17		148		172,357
				483,427
Containers & Packaging — 1.2%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17	EUR	100		138,899
7.38%, 10/15/17 (a)	USD	206		224,282
7.38%, 10/15/17 (a)	EUR	385		534,760
7.38%, 10/15/17		100		138,899
9.13%, 10/15/20 (a)	USD	300		322,500
Ball Corp., 6.75%, 9/15/20		625		684,375
Berry Plastics Corp.:
4.26%, 9/15/14 (c)		495		495,000
8.25%, 11/15/15		655		684,475
9.75%, 1/15/21		210		238,875
Beverage Packaging Holdings Luxembourg II SA, 8.00%, 12/15/16	EUR	1,243		1,624,668
Smurfit Kappa Acquisitions, 7.75%, 11/15/19		390		559,940
				5,646,673
Distributors — 0.1%
VWR Funding, Inc., 7.25%, 9/15/17 (a)	USD	615		634,988
Diversified Consumer Services — 0.5%
313 Group, Inc. (a):
6.38%, 12/01/19		403		396,955
8.75%, 12/01/20		410		402,825
Laureate Education, Inc., 9.25%, 9/01/19 (a)		1,025		1,045,500
ServiceMaster Co., 8.00%, 2/15/20		235		239,113
				2,084,393
Diversified Financial Services — 3.8%
Aircastle Ltd., 6.25%, 12/01/19 (a)		261		264,915
Ally Financial, Inc.:
7.50%, 12/31/13		90		95,287


	Par (000)		Value
Corporate Bonds
Diversified Financial Services (concluded)
Ally Financial, Inc. (concluded):
8.30%, 2/12/15	USD	1,330	$	1,486,275
7.50%, 9/15/20		1,990		2,397,950
8.00%, 11/01/31		3,075		3,905,250
Archemedes Funding III Ltd., 5.50%, 11/29/13		1,829		—
CNG Holdings, Inc., 9.38%, 5/15/20 (a)		490		498,575
Co-Operative Group Ltd., 5.63%, 7/08/20 (i)	GBP	240		397,667
DPL, Inc., 7.25%, 10/15/21	USD	180		189,900
Gala Group Finance Plc, 8.88%, 9/01/18	GBP	400		655,280
Reynolds Group Issuer, Inc.:
7.75%, 10/15/16	EUR	350		471,125
7.13%, 4/15/19	USD	1,070		1,155,600
9.00%, 4/15/19		195		200,850
9.88%, 8/15/19		1,450		1,537,000
5.75%, 10/15/20 (a)		3,640		3,721,900
6.88%, 2/15/21		515		554,912
WMG Acquisition Corp., 6.00%, 1/15/21 (a)		186		190,650
				17,723,136
Diversified Telecommunication Services — 1.7%
ITC Deltacom, Inc., 10.50%, 4/01/16		912		975,840
Level 3 Communications, Inc., 8.88%, 6/01/19 (a)		520		546,000
Level 3 Financing, Inc.:
4.47%, 2/15/15 (c)		2,420		2,413,950
8.13%, 7/01/19		2,902		3,105,140
7.00%, 6/01/20 (a)		340		345,950
OTE Plc, 7.25%, 2/12/15 (i)	EUR	104		125,113
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22		119		162,581
6.75%, 8/15/24		222		304,963
				7,979,537
Electric Utilities — 0.1%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17	USD	475		518,845
Electrical Equipment — 0.1%
Belden, Inc., 5.50%, 9/01/22 (a)		360		364,500
Techem GmbH, 6.13%, 10/01/19	EUR	200		275,066
				639,566
Electronic Equipment, Instruments & Components — 0.0%
Muzak Holdings LLC, 13.00%, 3/15/10 (d)(e)	USD	2,675		—
Energy Equipment & Services — 2.8%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)		1,680		1,646,400



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	3

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Energy Equipment & Services (concluded)
Compagnie Générale de Géophysique, Veritas, 6.50%, 6/01/21	USD	2,100	$	2,205,000
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (a)		850		875,500
Gulfmark Offshore, Inc., 6.38%, 3/15/22 (a)		130		132,600
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20		265		271,625
Key Energy Services, Inc., 6.75%, 3/01/21		740		741,850
MEG Energy Corp. (a):
6.50%, 3/15/21		950		991,562
6.38%, 1/30/23		315		326,813
Oil States International, Inc., 6.50%, 6/01/19		475		504,688
Peabody Energy Corp., 6.25%, 11/15/21		2,045		2,121,687
Precision Drilling Corp.:
6.63%, 11/15/20		125		131,875
6.50%, 12/15/21		840		877,800
Seadrill Ltd., 5.63%, 9/15/17 (a)		2,175		2,175,000
				13,002,400
Food & Staples Retailing — 0.2%
Bakkavor Finance 2 Plc, 8.25%, 2/15/18	GBP	300		469,831
Rite Aid Corp., 9.25%, 3/15/20	USD	435		443,700
				913,531
Food Products — 0.4%
Constellation Brands, Inc., 6.00%, 5/01/22		460		526,125
Post Holdings, Inc., 7.38%, 2/15/22 (a)		545		582,469
Smithfield Foods, Inc., 6.63%, 8/15/22		554		587,240
				1,695,834
Health Care Equipment & Supplies — 1.0%
Biomet, Inc. (a):
6.50%, 8/01/20		1,211		1,265,495
6.50%, 10/01/20		1,443		1,428,570
DJO Finance LLC:
8.75%, 3/15/18 (a)		295		321,550
7.75%, 4/15/18		770		718,025
9.88%, 4/15/18 (a)		350		350,875
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (a)		145		136,300
Teleflex, Inc., 6.88%, 6/01/19		475		511,813
				4,732,628
Health Care Providers & Services — 3.7%
Aviv Healthcare Properties LP, 7.75%, 2/15/19		700		735,000


	Par (000)		Value
Corporate Bonds
Health Care Providers & Services (concluded)
Care UK Health & Social Care Plc, 9.75%, 8/01/17	GBP	65	$	111,690
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18	USD	345		363,113
7.13%, 7/15/20		333		352,148
Crown Newco 3 Plc:
7.00%, 2/15/18	GBP	194		326,358
7.00%, 2/15/18 (a)		108		181,684
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22	USD	661		690,745
HCA, Inc.:
6.50%, 2/15/20		1,900		2,132,750
7.88%, 2/15/20		1,210		1,359,737
5.88%, 3/15/22		1,905		2,071,687
4.75%, 5/01/23		1,000		1,010,000
Hologic, Inc., 6.25%, 8/01/20 (a)		977		1,038,062
IASIS Healthcare LLC, 8.38%, 5/15/19		1,243		1,174,635
Omnicare, Inc., 7.75%, 6/01/20		1,310		1,449,187
Tenet Healthcare Corp.:
8.88%, 7/01/19		2,305		2,581,600
6.75%, 2/01/20 (a)		340		344,675
4.75%, 6/01/20 (a)		523		526,923
Vanguard Health Holding Co. II LLC, 7.75%, 2/01/19 (a)		565		581,950
				17,031,944
Health Care Technology — 0.8%
IMS Health, Inc., 12.50%, 3/01/18 (a)		3,205		3,789,913
Hotels, Restaurants & Leisure — 2.5%
Affinity Gaming LLC/Affinity Gaming Finance Corp., 9.00%, 5/15/18 (a)		141		146,640
Caesars Entertainment Operating Co., Inc.:
11.25%, 6/01/17		770		827,268
10.00%, 12/15/18		310		197,625
Caesars Operating Escrow LLC (a):
8.50%, 2/15/20		880		862,400
9.00%, 2/15/20		1,133		1,133,000
Carlson Wagonlit BV, 6.88%, 6/15/19 (a)		260		271,700
Choice Hotels International, Inc., 5.75%, 7/01/22		170		186,150
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18	EUR	2,469		3,066,562
Diamond Resorts Corp., 12.00%, 8/15/18	USD	1,040		1,123,200
Gategroup Finance Luxembourg SA, 6.75%, 3/01/19	EUR	235		319,383
HRP Myrtle Beach Holdings LLC, 14.50%, 4/01/14 (a)(d)(e)	USD	6,892		1



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	4

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Hotels, Restaurants & Leisure (concluded)
HRP Myrtle Beach Operations LLC (a)(d)(e):
12.50%, 4/01/13	USD	5,000	$	1
0.00%, 12/31/49		5,000		1
Little Traverse Bay Bands of Odawa Indians, 9.00%, 8/31/20 (a)		609		566,370
Station Casinos LLC, 3.66%, 6/18/18		310		262,725
Travelport LLC:
5.04%, 9/01/14 (c)		1,770		1,247,850
9.88%, 9/01/14		390		306,150
Tropicana Entertainment LLC, 9.63%, 12/15/14 (d)(e)		530		—
The Unique Pub Finance Co. Plc, Series A3, 6.54%, 3/30/21	GBP	100		151,403
Wynn Las Vegas LLC, 5.38%, 3/15/22	USD	888		941,280
				11,609,709
Household Durables — 1.1%
Algeco Scotsman Global Finance Plc, 9.00%, 10/15/18	EUR	380		509,036
Beazer Homes USA, Inc., 6.63%, 4/15/18 (a)	USD	640		681,600
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (a)		1,505		1,614,112
Libbey Glass, Inc., 6.88%, 5/15/20 (a)		175		187,250
Spie BondCo 3 SCA, 11.00%, 8/15/19	EUR	244		337,961
Standard Pacific Corp., 8.38%, 1/15/21	USD	1,685		1,929,325
				5,259,284
Household Products — 0.2%
Ontex IV SA, 9.00%, 4/15/19	EUR	217		287,864
Spectrum Brands Escrow Corp. (a):
6.38%, 11/15/20	USD	175		181,562
6.63%, 11/15/22		200		209,500
				678,926
Independent Power Producers & Energy Traders — 3.5%
The AES Corp.:
7.75%, 10/15/15		300		336,750
9.75%, 4/15/16		1,305		1,552,950
7.38%, 7/01/21		130		143,975
Calpine Corp. (a):
7.25%, 10/15/17		818		875,260
7.50%, 2/15/21		315		348,075
Energy Future Holdings Corp., 10.00%, 1/15/20		1,875		1,992,188
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (a)		715		732,875
10.00%, 12/01/20		6,060		6,756,900


	Par (000)		Value
Corporate Bonds
Independent Power Producers & Energy Traders (concluded)
GenOn REMA LLC:
Series B, 9.24%, 7/02/17	USD	392	$	428,347
Series C, 9.68%, 7/02/26		460		492,200
Laredo Petroleum, Inc.:
9.50%, 2/15/19		1,210		1,355,200
7.38%, 5/01/22		360		389,700
NRG Energy, Inc., 6.63%, 3/15/23 (a)		560		579,600
QEP Resources, Inc., 5.38%, 10/01/22		335		353,425
				16,337,445
Industrial Conglomerates — 1.5%
Sequa Corp. (a):
11.75%, 12/01/15		2,850		2,949,750
13.50%, 12/01/15		4,023		4,183,759
				7,133,509
Insurance — 0.3%
CNO Financial Group, Inc., 6.38%, 10/01/20 (a)		215		224,675
Genworth Financial, Inc., 7.63%, 9/24/21		700		756,150
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)		415		386,988
TMF Group Holding B.V., 9.88%, 12/01/19 (b)	EUR	100		131,843
				1,499,656
IT Services — 1.2%
Ceridian Corp., 8.88%, 7/15/19 (a)	USD	980		1,048,600
Epicor Software Corp., 8.63%, 5/01/19		720		750,600
First Data Corp.:
7.38%, 6/15/19 (a)		835		857,962
6.75%, 11/01/20 (a)		870		876,525
8.25%, 1/15/21 (a)		402		400,995
12.63%, 1/15/21		764		804,110
SunGard Data Systems, Inc., 6.63%, 11/01/19 (a)		740		754,800
				5,493,592
Machinery — 1.1%
Terex Corp., 6.00%, 5/15/21		855		887,062
UR Merger Sub Corp. (a):
5.75%, 7/15/18		877		944,967
7.38%, 5/15/20		565		617,263
7.63%, 4/15/22		2,328		2,578,260
				5,027,552
Media — 4.6%
AMC Networks, Inc., 7.75%, 7/15/21		605		686,675
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (a)		815		676,450



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	5

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Media (concluded)
Checkout Holding Corp., 13.99%, 11/15/15 (a)(g)	USD	1,090	$	730,300
Cinemark USA, Inc., 8.63%, 6/15/19		410		453,050
Clear Channel Communications, Inc., 9.00%, 12/15/19 (a)		1,028		931,625
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22 (a)		684		680,580
6.50%, 11/15/22 (a)		1,846		1,855,230
Series B, 7.63%, 3/15/20		1,100		1,078,000
DISH DBS Corp., 5.88%, 7/15/22		1,265		1,355,131
Intelsat Jackson Holdings SA, 7.25%, 10/15/20 (a)		1,160		1,235,400
Intelsat Luxembourg SA:
11.25%, 2/04/17		250		265,000
11.50%, 2/04/17 (h)		1,190		1,262,887
Interactive Data Corp., 10.25%, 8/01/18		1,545		1,730,400
Lamar Media Corp., 5.88%, 2/01/22		480		510,600
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (a)		920		1,016,600
Nara Cable Funding Ltd., 8.88%, 12/01/18	EUR	200		252,307
Nielsen Finance LLC, 7.75%, 10/15/18	USD	871		971,165
ProQuest LLC, 9.00%, 10/15/18 (a)		415		381,800
Unitymedia Hessen GmbH & Co. KG:
8.13%, 12/01/17 (a)		2,730		2,962,050
7.50%, 3/15/19		1,040		1,139,375
5.50%, 1/15/23 (a)(b)		830		830,000
				21,004,625
Metals & Mining — 1.8%
ArcelorMittal, 9.50%, 2/15/15		870		969,053
Eco-Bat Finance Plc, 7.75%, 2/15/17	EUR	305		406,585
FMG Resources August 2006 Property Ltd. (a):
6.38%, 2/01/16	USD	445		448,338
6.88%, 4/01/22		110		107,250
Global Brass and Copper, Inc., 9.50%, 6/01/19 (a)		485		521,375
Kaiser Aluminum Corp., 8.25%, 6/01/20		360		394,200
New Gold, Inc. (a):
7.00%, 4/15/20		120		127,500
6.25%, 11/15/22		485		495,912
Novelis, Inc., 8.75%, 12/15/20		3,625		4,060,000
Perstorp Holding AB, 8.75%, 5/15/17 (a)		205		206,025
RathGibson, Inc., 11.25%, 2/15/14 (d)(e)		4,440		—


	Par (000)		Value
Corporate Bonds
Metals & Mining (concluded)
Schmolz & Bickenbach Luxembourg SA, 9.88%, 5/15/19	EUR	260	$	275,756
Steel Dynamics, Inc., 6.38%, 8/15/22 (a)	USD	390		407,550
				8,419,544
Multiline Retail — 0.2%
Dollar General Corp., 4.13%, 7/15/17		241		253,050
Dufry Finance SCA, 5.50%, 10/15/20 (a)		618		634,995
				888,045
Oil, Gas & Consumable Fuels — 7.0%
Access Midstream Partners LP, 6.13%, 7/15/22		785		832,100
Berry Petroleum Co., 6.38%, 9/15/22		340		350,200
CCS, Inc., 11.00%, 11/15/15 (a)		920		931,500
Chaparral Energy, Inc., 7.63%, 11/15/22		215		220,913
Chesapeake Energy Corp.:
7.25%, 12/15/18		45		48,375
6.63%, 8/15/20		500		523,750
6.88%, 11/15/20		285		300,675
6.13%, 2/15/21		435		440,437
Concho Resources, Inc., 5.50%, 10/01/22		395		407,838
CONSOL Energy, Inc.:
8.25%, 4/01/20		1,885		2,012,237
6.38%, 3/01/21		440		443,300
Crosstex Energy LP, 7.13%, 6/01/22 (a)		370		377,400
Denbury Resources, Inc., 8.25%, 2/15/20		50		56,500
Energy XXI Gulf Coast, Inc., 7.75%, 6/15/19		1,300		1,397,500
EP Energy LLC/Everest Acquisition Finance, Inc., 6.88%, 5/01/19		440		476,300
Halcon Resources Corp., 8.88%, 5/15/21 (a)		370		382,950
Hilcorp Energy I LP, 7.63%, 4/15/21 (a)		734		794,555
Holly Energy Partners LP, 6.50%, 3/01/20 (a)		150		157,500
Kodiak Oil & Gas Corp., 8.13%, 12/01/19		605		659,450
Linn Energy LLC:
6.25%, 11/01/19 (a)		1,915		1,922,181
8.63%, 4/15/20		360		393,300
7.75%, 2/01/21		930		981,150
MarkWest Energy Partners LP, 5.50%, 2/15/23		275		289,438
Newfield Exploration Co.:
5.75%, 1/30/22		255		277,313



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	6

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Oil, Gas & Consumable Fuels (concluded)
Newfield Exploration Co. (concluded):
5.63%, 7/01/24	USD	1,000	$	1,070,000
Northern Oil and Gas, Inc., 8.00%, 6/01/20		505		520,150
Oasis Petroleum, Inc.:
7.25%, 2/01/19		270		287,550
6.50%, 11/01/21		290		305,225
Offshore Group Investments Ltd., 11.50%, 8/01/15		739		812,900
OGX Petroleo e Gas Participacoes SA (a):
8.50%, 6/01/18		503		437,610
8.38%, 4/01/22		365		297,475
PDC Energy, Inc., 7.75%, 10/15/22 (a)		335		338,350
PetroBakken Energy Ltd., 8.63%, 2/01/20 (a)		1,240		1,240,000
Pioneer Natural Resources Co., 7.20%, 1/15/28		1,080		1,395,763
Plains Exploration & Production Co., 6.88%, 2/15/23		880		906,400
Range Resources Corp.:
5.75%, 6/01/21		1,230		1,306,875
5.00%, 8/15/22		547		570,247
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16		2,905		3,137,400
6.50%, 11/01/20 (a)		525		525,000
SandRidge Energy, Inc.:
7.50%, 3/15/21		530		552,525
8.13%, 10/15/22		205		219,350
7.50%, 2/15/23		1,190		1,237,600
SESI LLC:
6.38%, 5/01/19		530		564,450
7.13%, 12/15/21		525		584,062
SM Energy Co.:
6.50%, 11/15/21		425		448,375
6.50%, 1/01/23		200		211,000
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (a)		125		130,000
Titan Petrochemicals Group Ltd., 8.50%, 3/18/49 (d)(e)		1,760		440,000
				32,215,169
Paper & Forest Products — 0.6%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (a)		575		592,250
Clearwater Paper Corp., 10.63%, 6/15/16		640		702,400
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (a)		280		293,300
NewPage Corp., 11.38%, 12/31/14 (d)(e)		2,280		1,094,400


	Par (000)		Value
Corporate Bonds
Paper & Forest Products (concluded)
Sappi Papier Holding GmbH, 8.38%, 6/15/19 (a)	USD	200	$	212,000
				2,894,350
Pharmaceuticals — 0.4%
Mylan, Inc., 6.00%, 11/15/18 (a)		60		66,150
Valeant Pharmaceuticals International (a):
6.50%, 7/15/16		466		491,630
6.38%, 10/15/20		650		690,625
7.25%, 7/15/22		660		720,225
				1,968,630
Professional Services — 0.1%
Truven Health Analytics, Inc., 10.63%, 6/01/20 (a)		380		406,600
Real Estate Investment Trusts (REITs) — 0.3%
Felcor Lodging LP, 6.75%, 6/01/19		1,325		1,394,563
Real Estate Management & Development — 1.3%
Mattamy Group Corp., 6.50%, 11/15/20 (a)		440		440,000
Realogy Corp.:
11.50%, 4/15/17		275		297,687
12.00%, 4/15/17		160		172,800
7.88%, 2/15/19 (a)		1,760		1,865,600
7.63%, 1/15/20 (a)		1,190		1,326,850
9.00%, 1/15/20 (a)		310		344,100
Shea Homes LP, 8.63%, 5/15/19		1,240		1,364,000
				5,811,037
Road & Rail — 0.8%
The Hertz Corp.:
7.50%, 10/15/18		1,490		1,631,550
6.75%, 4/15/19		265		286,200
6.75%, 4/15/19 (a)		285		307,800
7.38%, 1/15/21		1,280		1,392,000
				3,617,550
Software — 0.7%
Infor US, Inc., 9.38%, 4/01/19		2,420		2,698,300
Nuance Communications, Inc., 5.38%, 8/15/20 (a)		695		715,850
				3,414,150
Specialty Retail — 0.7%
Claire’s Stores, Inc., 9.00%, 3/15/19 (a)		734		780,792
Michaels Stores, Inc., 7.75%, 11/01/18 (a)		223		241,676
Party City Holdings, Inc., 8.88%, 8/01/20 (a)		422		447,320
Penske Automotive Group, Inc., 5.75%, 10/01/22 (a)		495		503,663
QVC, Inc., 5.13%, 7/02/22 (a)		260		275,509



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	7

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Specialty Retail (concluded)
Sally Holdings LLC:
6.88%, 11/15/19	USD	650	$	723,125
5.75%, 6/01/22		300		324,750
				3,296,835
Textiles, Apparel & Luxury Goods — 0.2%
Levi Strauss & Co., 6.88%, 5/01/22		265		277,919
PVH Corp., 7.75%, 11/15/23		410		477,503
				755,422
Trading Companies & Distributors — 0.5%
Doric Nimrod Air Finance Alpha Ltd. (a):
Series 2012-1 6.50%, 5/30/21		940		960,868
Series 2012-1 5.13%, 11/30/24		1,190		1,234,625
				2,195,493
Transportation Infrastructure — 0.1%
Aguila 3 SA, 7.88%, 1/31/18 (a)		353		374,180
Wireless Telecommunication Services — 3.3%
Cricket Communications, Inc., 7.75%, 5/15/16		3,050		3,225,375
Crown Castle International Corp., 5.25%, 1/15/23 (a)		510		532,950
Digicel Group Ltd. (a):
8.25%, 9/01/17		810		868,725
8.25%, 9/30/20		995		1,057,187
MetroPCS Wireless, Inc., 6.63%, 11/15/20		690		729,675
Sprint Capital Corp., 6.88%, 11/15/28		1,650		1,699,500
Sprint Nextel Corp. (a):
9.00%, 11/15/18		4,260		5,250,450
7.00%, 3/01/20		1,770		2,048,775
				15,412,637
Total Corporate Bonds – 61.8%				285,637,834



Floating Rate Loan Interests (c)
Aerospace & Defense — 0.3%
TransDigm, Inc.:
Add On Term Loan B2, 4.00%, 2/14/17		262		263,460
Term Loan B, 4.00%, 2/14/17		1,190		1,193,918
				1,457,378
Airlines — 0.4%
Delta Air Lines, Inc., Term Loan B, 5.50%, 4/20/17		1,857		1,865,036


	Par (000)		Value
Floating Rate Loan Interests (c)
Airlines (concluded)
US Airways Group, Inc., Term Loan, 2.71%, 3/21/14	USD	100	$	97,775
				1,962,811
Auto Components — 2.1%
Autoparts Holdings Ltd.:
First Lien Term Loan, 6.50%, 7/28/17		1,386		1,378,211
Second Lien Term Loan, 10.50%, 1/29/18		1,800		1,679,994
Federal-Mogul Corp.:
Term Loan B, 2.15%, 12/29/14		1,512		1,403,644
Term Loan C, 2.15%, 12/28/15		247		229,536
FleetPride Corp., First Lien Term Loan, 5.25%, 11/20/19		650		648,785
The Goodyear Tire & Rubber Co., Second Lien Term Loan, 4.75%, 4/30/19		2,170		2,180,850
Schaeffler AG, Term Loan B, 4.11%, 1/27/15	EUR	860		1,096,104
Transtar Holding Co., First Lien Term Loan, 5.50%, 10/02/18	USD	910		914,550
				9,531,674
Biotechnology — 0.2%
Grifols, Inc., Term Loan B, 4.50%, 6/01/17		1,029		1,039,181
Building Products — 0.9%
Armstrong World Industries, Inc., Term Loan B, 4.00%, 3/09/18		1,108		1,116,010
CPG International, Inc., Term Loan, 5.75%, 9/18/19		1,445		1,452,225
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/19/19		1,430		1,437,150
				4,005,385
Capital Markets — 1.1%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16		1,025		1,037,812
HarbourVest Partners LLC, Term Loan B, 4.75%, 11/21/17		685		685,856
Nuveen Investments, Inc.:
Extended First Lien Term Loan, 5.81% - 5.86%, 5/13/17		418		418,227
Extended Term Loan, 5.81% - 5.86%, 5/12/17		1,202		1,201,937
Incremental Term Loan, 7.25%, 5/13/17		405		407,025
Second Lien Term Loan, 8.25%, 2/28/19		1,230		1,248,450
				4,999,307



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	8

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Floating Rate Loan Interests (c)
Chemicals — 2.7%
American Rock Salt Holdings LLC, Term Loan, 5.50%, 4/25/17	USD	2,236	$	2,207,531
Chemtura Corp., Exit Term Loan B, 5.50%, 8/27/16		1,300		1,315,444
Evergreen Acqco 1 LP, Term Loan, 5.00%, 7/09/19		618		618,914
General Chemical Corp., Term Loan, 5.00% - 5.75%, 10/06/15		938		937,717
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18		2,185		2,209,725
MacDermid, Inc., Tranche C Term Loan, 2.30%, 4/11/14	EUR	609		785,234
Nexeo Solutions LLC, Term Loan B, 5.00%, 9/08/17	USD	1,690		1,657,113
PolyOne Corp., Term Loan, 5.00%, 12/20/17		655		657,834
Styron Sarl LLC, Term Loan B, 8.00%, 8/02/17		584		559,038
Tronox Pigments (Netherlands) BV:
Delayed Draw Term Loan, 4.25%, 2/08/18		207		208,432
Term Loan B, 4.25%, 2/08/18		760		764,251
Univar, Inc., Term Loan B, 5.00%, 6/30/17		666		661,749
				12,582,982
Commercial Banks — 0.3%
Everest Acquisition LLC, Term Loan B1, 5.00%, 5/24/18		1,190		1,200,912
Commercial Services & Supplies — 2.9%
ACCO Brands Corp., Term Loan B, 4.25%, 4/30/19		1,013		1,020,849
ADS Waste Holdings, Inc., Term Loan B, 5.25%, 10/09/19		2,015		2,036,157
Altegrity, Inc.:
Term Loan, 2.96%, 2/21/15		680		630,700
Tranche D Term Loan, 7.75%, 2/20/15		1,287		1,286,083
AWAS Finance Luxembourg 2012 SA, Term Loan, 4.75%, 7/16/18		436		441,291
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16		779		789,125
Delos Aircraft, Inc., Term Loan B2, 4.75%, 4/12/16		975		985,364
Garda World Security Corp., Term Loan B, 4.50%, 10/24/19		585		590,850
KAR Auction Services, Inc., Term Loan B, 5.00%, 5/19/17		2,368		2,382,418
Progressive Waste Solutions Ltd., Term Loan B, 3.50%, 10/24/19		555		559,163
Protection One, Inc., Term Loan, 5.75%, 3/21/19		955		960,769


	Par (000)		Value
Floating Rate Loan Interests (c)
Commercial Services & Supplies (concluded)
West Corp., Term Loan B6, 5.75%, 6/29/18	USD	1,596	$	1,619,940
				13,302,709
Communications Equipment — 2.2%
Avaya, Inc.:
Extended Term Loan B3, 4.81%, 10/26/17		353		308,646
Term Loan B1, 3.06%, 10/24/14		1,593		1,500,636
CommScope, Inc., Term Loan, 4.25%, 1/12/18		1,478		1,483,972
Telesat Canada, Term Loan A, 4.39%, 3/28/17	CAD	2,630		2,541,702
Zayo Group LLC, Term Loan B, 5.25%, 7/02/19	USD	4,080		4,104,702
				9,939,658
Construction & Engineering — 0.9%
BakerCorp International, Inc., Term Loan B, 5.00%, 6/01/18		1,186		1,191,733
Safway Services LLC, First Out Term Loan, 9.00%, 12/16/17		2,750		2,750,000
				3,941,733
Construction Materials — 1.0%
HD Supply, Inc., Senior Debt B, 7.25%, 10/12/17		4,618		4,738,227
Consumer Finance — 0.3%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17		1,635		1,614,971
Containers & Packaging — 0.1%
Sealed Air Corp., Term Loan, 4.00%, 10/03/18		690		695,175
Diversified Consumer Services — 1.8%
Coinmach Service Corp., Term Loan B, 3.21%, 11/20/14		4,079		3,946,735
Education Management LLC, Term Loan C3, 8.25%, 3/29/18		869		748,270
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18		1,294		1,282,075
ServiceMaster Co.:
Non-Extended Delayed Draw, 2.71%, 7/24/14		152		151,149
Non-Extended Term Loan, 2.71%, 7/24/14		1,524		1,517,861
Weight Watchers International, Inc., Term Loan F, 4.00%, 3/15/19		885		889,035
				8,535,125
Diversified Financial Services — 1.1%
Residential Capital LLC, DIP Term Loan A1, 5.00%, 11/18/13		2,035		2,035,855



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	9

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Floating Rate Loan Interests (c)
Diversified Financial Services (concluded)
Reynolds Group Holdings Inc., Dollar Term Loan, 4.75%, 9/20/18	USD	2,545	$	2,562,637
WMG Acquisition Corp., Term Loan, 5.25%, 10/25/18		660		664,745
				5,263,237
Diversified Telecommunication Services — 2.6%
Consolidated Communications, Inc., Term Loan B3, 5.25%, 11/29/18		1,565		1,559,131
Hawaiian Telcom Communications, Inc., Term Loan B, 7.00%, 2/28/17		2,025		2,059,182
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16		135		135,000
2019 Term Loan B, 5.25%, 8/01/19		110		110,688
Term Loan, 4.75%, 8/01/19		6,725		6,758,625
US Telepacific Corp., Term Loan B, 5.75%, 2/23/17		1,486		1,466,671
				12,089,297
Electronic Equipment, Instruments & Components — 0.4%
CDW LLC, Extended Term Loan, 4.00%, 7/14/17		831		820,247
Sensata Technologies Finance Co. LLC, Term Loan, 4.00%, 5/11/18		915		916,851
				1,737,098
Energy Equipment & Services — 1.8%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16		1,421		1,466,673
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16		2,294		2,387,555
MEG Energy Corp., Term Loan B, 4.00%, 3/16/18		2,970		2,982,623
Tervita Corp., Term Loan B, 3.21%, 11/14/14		1,352		1,325,967
				8,162,818
Food & Staples Retailing — 1.4%
Alliance Boots Holdings Ltd., Term Loan B1, 3.49%, 7/09/15	GBP	3,000		4,661,057
Pilot Travel Centers LLC, Term Loan B2, 4.25%, 8/07/19	USD	860		864,300
US Foods, Inc., Extended Term Loan B, 5.75%, 3/31/17		969		953,484
				6,478,841


	Par (000)		Value
Floating Rate Loan Interests (c)
Food Products — 1.1%
Advance Pierre Foods, Inc., Second Lien Term Loan, 5.75%, 7/10/17	USD	970	$	978,972
Del Monte Foods Co., Term Loan, 4.50%, 3/08/18		1,401		1,401,591
Pinnacle Foods Finance LLC, Term Loan E, 4.75%, 10/17/18		1,373		1,378,897
Solvest Ltd. (Dole):
Term Loan B-2, 5.00% - 6.00%, 7/06/18		399		400,007
Term Loan C-2, 5.00% - 6.00%, 7/06/18		714		715,804
				4,875,271
Health Care Equipment & Supplies — 3.2%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19		2,145		2,171,433
Biomet, Inc., Extended Term Loan B, 3.96%, 7/25/17		200		201,138
BSN Medical Acquisition Holding GmbH, Term Loan B, 5.00%, 10/18/19		1,360		1,362,720
DJO Finance LLC:
Extended Term Loan B2, 5.21%, 11/01/16		757		757,928
Term Loan B3, 6.25%, 9/15/17		2,328		2,336,612
Hologic, Inc., Term Loan B, 4.50%, 8/01/19		3,037		3,066,485
Hupah Finance, Inc., Term Loan B, 6.25% - 7.25%, 1/21/19		1,259		1,269,688
Immucor, Inc., Term Loan B1, 5.75%, 8/17/18		1,505		1,519,245
Kinetic Concepts, Inc., Term Loan B1, 7.00%, 5/04/18		1,300		1,309,003
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18		753		758,761
				14,753,013
Health Care Providers & Services — 3.3%
Ardent Medical Services, Inc., Term Loan, 6.75%, 5/23/18		510		512,550
CHG Buyer Corp., First Lien Term Loan, 5.00%, 11/22/19		795		793,012
ConvaTec, Inc., Term Loan, 5.00%, 12/22/16		1,766		1,775,280
DaVita, Inc.:
Term Loan B, 4.50%, 10/20/16		1,965		1,974,825
Term Loan B2, 4.00%, 11/01/19		1,115		1,117,185
Emergency Medical Services Corp., Term Loan, 5.25%, 5/25/18		689		695,031
Genesis Healthcare Corp., Term Loan B, 10.75%, 9/25/17		605		582,312



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	10

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Floating Rate Loan Interests (c)
Health Care Providers & Services (concluded)
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15	USD	1,887	$	1,828,485
Term Loan A, 8.50%, 3/02/15		567		555,667
HCA, Inc., Extended Term Loan B3, 3.46%, 5/01/18		1,035		1,035,590
inVentiv Health, Inc.:
Combined Term Loan, 6.50%, 8/04/16		410		386,603
Incremental Term Loan B-3, 6.75%, 5/15/18		1,010		984,925
Medpace, Inc., Term Loan, 6.50% - 7.25%, 6/16/17		1,845		1,752,417
Sheridan Holdings, Inc., First Lien Term Loan, 6.00%, 6/29/18		344		346,395
US Renal Care, Inc., First Lien Term Loan, 6.25%, 7/02/19		908		916,802
				15,257,079
Health Care Technology — 0.7%
IMS Health, Inc., Term Loan B, 4.50%, 8/25/17		2,654		2,673,765
MedAssets, Inc., Term Loan, 5.00%, 11/16/16		786		786,443
				3,460,208
Hotels, Restaurants & Leisure — 4.3%
Alpha D2 Ltd., Extended Term Loan B2, 6.00%, 4/30/19		1,179		1,192,744
Caesars Entertainment Operating Co., Inc.:
Extended Term Loan B6, 5.46%, 1/26/18		415		371,503
Incremental Term Loan B4, 9.50%, 10/31/16		711		724,929
Term Loan B1, 3.21%, 1/28/15		2,675		2,591,406
Term Loan B2, 3.21%, 1/28/15		1,460		1,414,375
Dunkin’ Brands, Inc., Term Loan B2, 4.00%, 11/23/17		3,035		3,049,271
Golden Living, Term Loan, 5.00%, 5/04/18		242		232,141
Harrah’s Property Co., Mezzanine Term Loan, 3.20%, 2/13/13		2,308		1,937,415
OSI Restaurant Partners, LLC, Term Loan B, 4.75%, 10/24/19		1,070		1,079,363
Sabre, Inc., Non-Extended Initial Term Loan, 2.21%, 9/30/14		138		137,299
SeaWorld Parks & Entertainment, Inc., Term Loan B, 4.00%, 8/17/17		1,420		1,429,357
Six Flags Theme Parks, Inc., Term Loan B, 4.25%, 12/20/18		790		792,820


	Par (000)		Value
Floating Rate Loan Interests (c)
Hotels, Restaurants & Leisure (concluded)
Station Casinos, Inc.:
2011 Term Loan B2, 4.21%, 6/17/16	USD	1,670	$	1,599,726
Term Loan B, 5.50%, 9/07/19		1,540		1,543,850
Wendy’s International, Inc., Term Loan B, 4.75%, 5/15/19		1,785		1,800,244
				19,896,443
Household Products — 0.8%
Prestige Brands, Inc., Term Loan, 5.25% - 6.25%, 1/31/19		1,135		1,147,637
Spectrum Brands, Inc.:
Term Loan, 5.00%, 11/06/19		1,705		1,715,656
Term Loan, 5.00%, 11/06/19	CAD	760		765,088
				3,628,381
Independent Power Producers & Energy Traders — 0.5%
The AES Corp., Term Loan, 4.25%, 6/01/18	USD	1,387		1,399,078
Calpine Corp., Term Loan, 4.50%, 4/02/18		758		762,814
GenOn Energy, Inc., Term Loan B, 6.50%, 12/01/17		294		295,162
				2,457,054
Industrial Conglomerates — 0.6%
Sequa Corp.:
Incremental Term Loan, 6.25%, 12/03/14		551		550,149
Term Loan, 3.46% - 3.61%, 12/03/14		2,226		2,218,143
				2,768,292
Insurance — 0.8%
Asurion LLC, First Lien Term Loan, 5.50%, 5/24/18		1,067		1,075,206
CNO Financial Group, Inc.:
Term Loan B-1, 4.25%, 9/28/16		740		741,850
Term Loan B-2, 5.00%, 9/20/18		1,000		1,005,000
Cunningham Lindsey Group, Inc., Term Loan B, 5.00%, 10/29/19		660		661,650
				3,483,706
Internet Software & Services — 0.2%
Web.com Group, Inc., Term Loan B, 11.00%, 10/27/17		1,120		1,113,364
IT Services — 3.6%
Ceridian Corp., Extended Term Loan, 5.96%, 5/09/17		1,798		1,792,540
First Data Corp.:
2018 Add-on Term Loan, 5.21%, 9/24/18		1,840		1,799,980
Extended 2018 Term Loan B, 4.21%, 3/23/18		6,888		6,554,026



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	11

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Floating Rate Loan Interests (c)
IT Services (concluded)
Genpact International, Inc., Term Loan B, 4.25%, 8/30/19	USD	980	$	987,350
InfoGroup, Inc., Term Loan, 5.75%, 5/25/18		732		645,873
iPayment, Inc., Term Loan B, 5.75%, 5/08/17		1,028		1,022,007
NeuStar, Inc., Term Loan B, 5.00%, 11/08/18		745		750,109
TransUnion LLC, Term Loan B, 5.50%, 2/12/18		3,204		3,247,154
				16,799,039
Leisure Equipment & Products — 0.8%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13		1,373		1,371,746
EB Sports Corp., Term Loan, 11.50%, 12/31/15		1,837		1,827,536
FGI Operating Company LLC, Term Loan, 5.50% - 6.50%, 4/19/19		679		683,704
				3,882,986
Machinery — 1.3%
Intelligrated, Inc., First Lien Term Loan, 6.75%, 7/30/18		800		807,000
Rexnord Corp., Term Loan B, 4.50%, 4/02/18		1,024		1,032,281
Terex Corp.:
Term Loan B, 4.50%, 4/28/17		2,026		2,043,501
Term Loan B, 5.00%, 4/28/17	EUR	218		282,552
Wabash National Corp., Term Loan B, 6.00%, 5/02/19	USD	1,935		1,954,628
				6,119,962
Media — 8.2%
Affinion Group, Inc., Term Loan B, 6.50%, 7/16/15		348		320,599
AMC Networks, Inc., Term Loan B, 4.00%, 12/31/18		1,404		1,407,198
Capsugel Holdings US, Inc., Term Loan B, 4.75%, 8/01/18		1,388		1,398,496
Cengage Learning Acquisitions, Inc., Tranche 1 Incremental, 7.50%, 7/03/14		1,244		1,005,747
Charter Communications Operating LLC:
Extended Term Loan C, 3.46%, 9/06/16		2,044		2,052,552
Term Loan D, 4.00%, 5/15/19		796		802,098
Clear Channel Communications, Inc.:
Term Loan A, 3.61%, 7/30/14		1,079		1,053,098
Term Loan B, 3.86%, 1/29/16		1,083		878,806
Term Loan C, 3.86%, 1/29/16		637		504,311
Cumulus Media, Inc., First Lien Term Loan, 5.75%, 9/17/18		1,488		1,493,125
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18		893		901,244


	Par (000)		Value
Floating Rate Loan Interests (c)
Media (concluded)
Foxco Acquisition Sub LLC, Term Loan B, 5.50%, 7/14/17	USD	1,245	$	1,259,006
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19		1,290		1,294,476
Gray Television, Inc., Term Loan B, 4.75%, 10/15/19		1,330		1,333,086
Houghton Mifflin Harcourt Publishing Co., DIP Term Loan B, 7.25%, 6/01/18		1,517		1,487,027
Hubbard Broadcasting, Term Loan B, 5.25%, 4/28/17		936		937,180
Intelsat Jackson Holdings Ltd., Term Loan B-1, 4.50%, 4/02/18		7,241		7,257,507
Interactive Data Corp., Term Loan B, 4.50%, 2/12/18		1,683		1,691,819
Kabel Deutschland GmbH, Term Loan F, 4.25%, 2/01/19		2,265		2,278,024
Lavena Holding 4 GmbH:
Term Loan B, 2.95%, 3/06/15	EUR	304		369,760
Term Loan C, 3.32%, 3/04/16		608		743,473
Nielsen Finance LLC, Class C Term Loan, 3.46%, 5/02/16	USD	400		401,662
Sinclair Television Group, Inc., Term Loan B, 4.00%, 10/28/16		2,036		2,039,717
Univision Communications, Inc., Extended Term Loan, 4.46%, 3/31/17		2,124		2,073,152
UPC Broadband Holding BV, Term Loan U, 4.11%, 12/29/17	EUR	196		254,380
UPC Financing Partnership, Term Loan T, 3.71%, 12/30/16	USD	255		253,671
WC Luxco Sarl, Term Loan B-3, 4.25%, 3/15/18		501		503,687
Weather Channel, Term Loan B, 4.25%, 2/13/17		1,000		1,008,014
WideOpenWest Finance LLC, First Lien Term Loan, 6.25%, 7/17/18		653		660,347
				37,663,262
Metals & Mining — 2.8%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18		918		917,700
FMG Resources August 2006 Property Ltd., Term Loan, 5.25%, 10/18/17		3,340		3,348,350
Metals USA, Inc., Term Loan, 1.00%, 11/15/19		820		811,800
Novelis, Inc.:
Incremental Term Loan B-2, 4.00%, 3/10/17		1,121		1,123,743
Term Loan, 4.00%, 3/10/17		2,072		2,078,176
SunCoke Energy, Inc., Term Loan B, 4.00%, 7/26/18		1,580		1,576,054



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	12

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Floating Rate Loan Interests (c)
Metals & Mining (concluded)
Walter Energy, Inc., Term Loan B, 5.75%, 4/02/18	USD	1,925	$	1,929,598
Windsor Financing LLC, Term Loan B, 5.00%, 10/31/19		1,160		1,148,400
				12,933,821
Multiline Retail — 1.7%
99¢ Only Stores, Term Loan, 5.25%, 1/11/19		1,489		1,502,912
BJ’s Wholesale Club, Inc.:
First Lien Term Loan, 5.75%, 9/26/19		740		748,221
Second Lien Term Loan, 9.75%, 3/26/20		510		523,260
HEMA Holding BV:
Second Lien Term Loan, 5.11%, 1/05/17	EUR	2,900		3,394,438
Term Loan B, 2.11%, 7/06/15		357		435,304
Term Loan C, 2.86%, 7/05/16		357		437,628
The Neiman Marcus Group, Inc., Extended Term Loan, 4.75%, 5/16/18	USD	750		749,843
				7,791,606
Oil, Gas & Consumable Fuels — 2.1%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17		1,920		1,886,400
Gibson Energy ULC, Term Loan B, 4.75%, 6/15/18		1,307		1,321,077
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15		1,774		1,774,443
Plains Exploration & Production, 7-Year Term Loan B, 4.00%, 9/13/19		1,605		1,611,019
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18		525		528,281
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17		2,440		2,403,400
				9,524,620
Paper & Forest Products — 0.8%
NewPage Corp., DIP Term Loan, 8.75%, 3/07/13		1,050		1,049,349
Verso Paper Finance Holdings LLC, Term Loan, 6.56% - 7.31%, 2/01/13 (h)		4,904		2,452,000
				3,501,349
Pharmaceuticals — 2.7%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17		1,769		1,767,952
Par Pharmaceutical Cos., Inc., Term Loan B, 5.00%, 9/30/19		3,070		3,059,777


	Par (000)		Value
Floating Rate Loan Interests (c)
Pharmaceuticals (concluded)
Pharmaceutical Product Development, Inc., Term Loan B, 6.25%, 12/05/18	USD	2,483	$	2,518,583
Quintiles Transnational Corp., Term Loan B, 5.00%, 6/08/18		770		771,983
RPI Finance Trust, Incremental Tranche 2, 4.00%, 11/09/18		323		324,727
Valeant Pharmaceuticals International, Inc.:
Series C Tranche B, 4.25%, 9/27/19		1,185		1,188,555
Series D Tranche B, 3.61%, 2/13/19		1,568		1,574,018
Warner Chilcott Corp.:
Incremental Term Loan B-1, 4.25%, 3/15/18		277		278,225
Term Loan B-1, 4.25%, 3/15/18		729		732,636
Term Loan B-2, 4.25%, 3/15/18		364		366,318
				12,582,774
Professional Services — 1.1%
Booz Allen Hamilton, Inc., Term Loan B, 4.50%, 7/31/19		1,140		1,148,790
Emdeon, Inc., Term Loan B1, 5.00%, 11/02/18		2,577		2,607,963
ON Assignment, Inc., Term Loan B, 5.00%, 5/15/19		412		413,948
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/06/19		1,057		1,057,086
				5,227,787
Real Estate Investment Trusts (REITs) — 0.6%
iStar Financial, Inc., Term Loan, 5.75%, 9/28/17		2,623		2,623,971
Real Estate Management & Development — 1.0%
Realogy Corp.:
Extended Letter of Credit Loan, 4.46%, 10/10/16		387		385,862
Extended Term Loan, 4.46%, 10/10/16		4,131		4,123,706
Stockbridge SBE Holdings LLC, Term Loan B, 13.00%, 5/02/17		300		296,250
				4,805,818
Road & Rail — 0.2%
Road Infrastructure Investment LLC, Term Loan B, 6.25%, 3/30/18		821		818,823
Semiconductors & Semiconductor Equipment — 0.4%
Freescale Semiconductor, Inc., Extended Term Loan B, 4.46%, 12/01/16		1,098		1,064,328



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	13

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


	Par (000)		Value
Floating Rate Loan Interests (c)
Semiconductors & Semiconductor Equipment (concluded)
NXP BV, Term Loan A-2, 5.50%, 3/03/17	USD	950	$	965,172
				2,029,500
Software — 2.3%
Blackboard, Inc., Term Loan B, 7.50%, 10/04/18		273		274,496
GCA Services Group, Inc.:
Second Lien Term Loan, 9.25%, 11/01/20		685		678,150
Term Loan B, 5.25%, 11/01/19		790		786,706
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18		3,621		3,654,419
Kronos, Inc., Second Lien Term Loan, 4/24/20		1,245		1,245,000
Sophia LP, Term Loan B, 6.25%, 7/19/18		1,177		1,190,794
SS&C Technologies, Inc.:
Term Loan B-1, 5.00%, 6/07/19		1,509		1,524,921
Term Loan B-2, 5.00%, 6/07/19		156		157,750
WaveDivision Holdings LLC, Term Loan B, 5.50%, 8/09/19		1,240		1,255,500
				10,767,736
Specialty Retail — 4.1%
Academy Ltd., Term Loan, 4.75%, 8/03/18		2,076		2,080,939
Bass Pro Group LLC, Term Loan, 6.25%, 11/30/19		1,110		1,109,800
Burlington Coat Factory Warehouse Corp., Term Loan B1, 5.50%, 2/23/17		519		522,634
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19		1,635		1,626,825
Equinox Fitness Clubs, First Lien Term Loan, 5.75%, 11/16/19		805		802,988
The Gymboree Corp., Initial Term Loan, 5.00%, 2/23/18		203		196,168
Harbor Freight Tools USA, Inc., Term Loan B, 5.50%, 11/14/17		808		812,685
Jo-Ann Stores, Inc., Term Loan, 4.75%, 3/16/18		772		771,845
Leslie’s Poolmart, Inc., Term Loan B, 5.25%, 10/28/19		1,237		1,240,494
Michaels Stores, Inc.:
Extended Term Loan B3, 4.87% - 4.94%, 7/29/16		980		989,306
Term Loan B2, 4.88% - 4.94%, 7/29/16		862		869,990
Party City Holdings Inc., Term Loan B, 5.75%, 7/26/19		1,735		1,750,181
PETCO Animal Supplies, Inc., Term Loan, 4.50%, 11/24/17		2,555		2,566,646


	Par (000)		Value
Floating Rate Loan Interests (c)
Specialty Retail (concluded)
Things Remembered, Inc., Term Loan B, 8.00%, 5/24/18	USD	1,100	$	1,078,000
Toys ‘R’ Us Delaware, Inc.:
Incremental Term Loan B2, 5.25%, 5/25/18		686		668,997
Term Loan, 6.00%, 9/01/16		469		461,689
Term Loan B3, 5.25%, 5/25/18		234		228,127
The Yankee Candle Co., Inc., Term Loan B, 5.25%, 4/02/19		1,060		1,069,170
				18,846,484
Textiles, Apparel & Luxury Goods — 0.6%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18		1,652		1,619,216
Wolverine Worldwide, Inc., Term Loan B, 4.00%, 7/31/19		938		943,137
				2,562,353
Thrifts & Mortgage Finance — 0.2%
Insight Global, Inc., First Lien Term Loan, 6.00%, 10/31/19		810		805,950
Wireless Telecommunication Services — 1.8%
Cricket Communications, Inc., Term Loan, 4.75%, 10/10/19		820		823,591
MetroPCS Wireless, Inc., Term Loan B-3, 4.00%, 3/16/18		1,252		1,253,174
Vodafone Americas Finance 2, Inc., Term Loan, 6.88%, 8/11/15 (h)		6,091		6,213,229
				8,289,994
Total Floating Rate Loan Interests – 76.3%				352,549,165



	Beneficial Interest (000)
Other Interests (j)
Auto Components — 0.0%
Intermet Liquidating Trust Class A (d)		833,142		1
Chemicals — 0.0%
Wellman Holdings, Inc., Litigation Trust Certificate (d)		10,000,000		100
Diversified Financial Services — 0.3%
JG Wentworth LLC Preferred Equity Interests (d)		539		1,454,714
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc. (d)		1,440,000		14



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	14

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Other Interests (j)	Beneficial Interest (000)		Value
Household Durables — 0.7%
Stanley Martin, Class B Membership Units	USD	2,789	$	3,111,750
Media — 0.0%
Adelphia Escrow (d)		7,500,000		75
Adelphia Preferred Escrow (d)		5,000		—
Adelphia Recovery Trust (d)		9,406,019		941
Adelphia Recovery Trust Series ACC-6B INT (d)		500,000		2,500
				3,516
Specialty Retail — 0.0%
Movie Gallery, Inc. Default Escrow (d)		21,700,000		217
Total Other Interests – 1.0%				4,570,312



Warrants (k)

Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)		126,761		1
Media — 0.1%
Charter Communications, Inc. (Issued/Exercisable 11/30/09, 1 Share for 1 Warrant, Expires 11/30/14, Strike Price $51.28)		12,661		288,038
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)		1,247		—
HMH Holdings/ EduMedia (Issued/Exercisable 3/09/10, 19 Shares for 1 Warrant, Expires 6/22/19, Strike Price $42.27)		2,067		—
				—
Total Warrants – 0.1%				288,039
Total Long-Term Investments (Cost – $707,084,936) – 144.3%				666,886,475


Short-Term Securities	Benefitcial Interest (000)		Value
Bank of New York Cash Reserves, 0.01%	USD	559	$	559,065

	Shares
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (l)(m)		4,060,712		4,060,712
Total Short-Term Securities (Cost – $4,619,777) – 1.0%				4,619,777
*Total Investments (Cost – $711,704,713) –145.3%**				671,506,252
Liabilities in Excess of Other Assets – (45.3)%				(209,460,280)
Net Assets – 100.0%			$	462,045,972

*	As of November 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


		Tax cost		$ 707,140,180
		Gross unrealized appreciation		$ 23,845,796
		Gross unrealized depreciation		(59,479,724)
		Net unrealized depreciation		$ (35,633,928)

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

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



Counterparty	Value		Unrealized Appreciation

JPMorgan Chase &Co.	$	1,417,500	$	—
Wells Fargo & Co.	$	580,092	$	9,342
Goldman Sachs & Co.	$	368,100	$	8,100
Deutsche Bank AG	$	693,000	$	—
Goldman Sachs & Co.	$	131,843	$	1,788
JPMorgan Chase &Co.	$	830,000	$	—

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

(d)	Non-income producing security.

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

(f)	Convertible security.

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

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



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	15

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

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

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

(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 of the warrants, if any.

(l)	Investments in issuers considered to be an affiliate of the Fund during the period ended November 30, 2012, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate

Shares

Held at

February

29, 2012

Net
Activity

Shares

Held at

November 30,

2012

Income

BlackRock Liquidity Funds, TempFund, Institutional Class

—

4,060,712

2,385

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

Portfolio Abbreviations

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


CAD		Canadian Dollar
DIP		Debtor-In-Possession
EBITDA		Earnings Before Interest Taxes Depreciation and Amortization
EUR		Euro
FKA		Formerly Known As
GBP		British Pound
USD		US Dollar

• Foreign currency exchange contracts as of November 30, 2012 were as follows:


	Currency Purchased		Currency Sold	Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
CAD	534,000	USD	545,617	Citigroup, Inc.	1/16/13	$	(8,529)
CAD	355,000	USD	357,206	Goldman Sachs Group, Inc.	1/16/13		(153)
CAD	397,000	USD	400,176	Royal Bank of Scotland Plc	1/16/13		(880)
CAD	524,000	USD	523,300	UBS AG	1/16/13		3,730
USD	1,378,073	CAD	1,375,000	Citigroup, Inc.	1/16/13		(4,878)
USD	348,484	CAD	342,000	Citigroup, Inc.	1/16/13		4,507
USD	357,539	CAD	355,000	Goldman Sachs Group, Inc.	1/16/13		486
USD	2,856,968	CAD	2,794,000	UBS AG	1/16/13		46,810
USD	6,575,655	GBP	4,102,500	Goldman Sachs Group, Inc.	1/16/13		3,348
USD	152,888	GBP	96,000	Royal Bank of Scotland Plc	1/16/13		(907)
USD	166,618	GBP	104,000	Royal Bank of Scotland Plc	1/16/13		7
USD	227,078	GBP	143,000	UBS AG	1/16/13		(2,012)
USD	109,724	GBP	69,000	UBS AG	1/16/13		(816)
EUR	860,000	USD	1,110,128	Citigroup, Inc.	1/23/13		8,924
EUR	840,000	USD	1,099,139	Deutsche Bank AG	1/23/13		(6,111)
EUR	1,240,000	USD	1,610,574	Deutsche Bank AG	1/23/13		2,943
USD	923,895	EUR	710,000	Citigroup, Inc.	1/23/13		26
USD	1,090,598	EUR	840,000	UBS AG	1/23/13		(2,430)
USD	20,863,094	EUR	15,909,000	UBS AG	1/23/13		161,927
Total						$	205,992



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	16

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)

—

Credit default swaps - sold protection outstanding as of November 30, 2012 were as follows:

Issuer

Receive
Fixed
Rate

Counterparty

Expiration

Date

Credit
Rating¹

Notional
Amount
(000)²

Unrealized
Appreciation

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

442

13,899

¹Using Standard & Poor’s ratings.

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

—

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

—

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

—

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

—

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

—

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund's policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund's policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund's most recent financial statements as contained in its semi-annual report.

The following tables summarize the Fund's investments and derivative financial instruments categorized in the disclosure hierarchy as of November 30, 2012:


		Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities		—	$	2,110,500	$	11,517,985	$	13,628,485
Common Stocks	$	2,448,740		886,260		6,877,640		10,212,640
Corporate Bonds		—		280,024,808		5,613,026		285,637,834
Floating Rate Loan Interests		—		308,613,361		43,935,804		352,549,165
Other Interests		3,441		—		4,566,871		4,570,312
Warrants		288,038		—		1		288,039
Short-Term Securities		4,619,777		—		—		4,619,777
Unfunded Loan Commitment		—		701		—		701
Total	$	7,359,996	$	591,635,630	$	72,511,327	$	671,506,953



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	17

Consolidated Schedule of Investments (continued)

BlackRock Debt Strategies Fund, Inc. (DSU)


	Level 1		Level 2	Level 3		Total
Derivative Financial Instruments ¹
Assets:
Credit contracts	—	$	13,899	—	$	13,899
Foreign currency exchange contracts	—		232,708	—		232,708
Liabilities
Foreign currency exchange contracts	—		(26,716)	—		(26,716)
Total	—	$	219,891	—	$	219,891

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

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of November 30, 2012, such assets and liabilities are categorized within the disclosure hierarchy as follows:


		Level 1		Level 2	Level 3		Total
Assets:
Foreign currency at value	$	5,108		—	—	$	5,108
Liabilities:
Bank overdraft		—	$	(113,455)	—		(113,455)
Loans payable		—		(186,000,000)	—		(186,000,000)
Total	$	5,108	$	(186,113,455)	—	$	(186,108,347)

There were no transfers between Level 1 and Level 2 during the period ended November 30, 2012.



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	18

Consolidated Schedule of Investments (concluded)

BlackRock Debt Strategies Fund, Inc. (DSU)

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



	Asset-Backed Securities		Common Stocks		Corporate Bonds		Floating Rate Loan Interests		Other Interests		Warrants		Total


Assets:
Opening Balance, as of February 29, 2012		$4,989,143		$5,458,062		$ 9,604,936		$ 28,186,100		$3,410,858		$ 2		$ 51,649,101
Transfers into Level 3¹		—		—		—		2,919,113		—		—		2,919,113
Transfers out of Level 3¹		—		(677,817)		—		(2,040,680)		—		—		(2,718,497)
Accrued discounts/premiums		72,388		—		288,007		210,933		—		—		571,328
Net realized gain (loss)		136,043		(2,511,903)		780,970		(940,305)		50,000		(433,874)		(2,919,069)
Net change in unrealized appreciation/depreciation²		720,645		2,437,771		(1,035,456)		903,394		1,106,013		433,873		4,566,240
Purchases		10,385,399		2,171,548		80,169		20,756,588		—		—		33,393,704
Sales		(4,785,633)		(21)		(4,105,600)		(6,059,339)		—		—		(14,950,593)

Closing Balance, as of November 30, 2012		$11,517,985		$6,877,640		$5,613,026		$43,935,804		$4,566,871		$ 1		$72,511,327

¹ Transfers into and transfers out of Level 3 represent the values as of the beginning of the reporting period.

² The change in unrealized appreciation/depreciation on investments still held as of November 30, 2012 was $1,282,757.

The following table summarizes the valuation techniques used and unobservable inputs developed by the BlackRock Global Valuation Methodologies Committee (“Global Valuation Committee”) to determine the value of certain of the Fund’s Level 3 investments as of November 30, 2012. The table does not include Level 3 investments with values derived utilizing transaction prices from recent prior transactions or third party pricing information without adjustment for which such inputs are also unobservable. A significant change in third party pricing information could result in a significantly lower or higher value of such Level 3 investments. The value of Level 3 investments derived using prices from prior transactions and/or third party pricing information is $49,852,001.

Value

Valuation Techniques

Unobservable

Inputs¹

Range of

Unobservable

Inputs

Utilized

Weighted Average of

Unobservable
Inputs²

Assets:

Common Stocks

$5,836,772

Market Comparable Companies

EBITDA Multiple

5.0 – 6.70x

6.65x

Forward EBITDA Multiple

5.4x

Other Interests

3,111,750

Market Comparable Companies

Tangible Book Value Multiple

1.70x

Corporate Bonds

5,046,652

Market Comparable Companies

EBITDA Multiple

5.0x

Floating Rate Loan Interests.

8,664,152

Market Comparable Companies

Illiquidity Discount

50%

Yield

9.64%

Cost

N/A³

Total

$22,659,326

¹ A change to the unobservable input may result in a significant change to the value of the investment as follows:


Unobservable Input	Impact to Value if Input Increases	Impact to Value if Input Decreases
EBITDA Multiple	Increase	Decrease
Forward EBITDA Multiple	Increase	Decrease
Illiquidity Discount	Decrease	Increase
Yield	Decrease	Increase
Tangible Book Value Multiple	Increase	Decrease

²	Unobservable inputs are weighted based on the value of the investments included in the range.

The Fund fair values certain of its Level 3 investments using prior transaction prices (acquisition cost), although the transaction may not have occurred during the current reporting period. In such cases, these investments are generally privately held investments. There may not be a secondary market, and/or there are a limited number of investors. The determination to fair value such investments at cost is based upon factors consistent with the principles of fair value measurement that are reasonably available to the Global Valuation Committee, or its delegate. Valuations are reviewed utilizing available market information to determine if the carrying value should be adjusted. Such market data may include, but is not limited to, observations of the trading multiples of public companies considered comparable to the private companies being valued, financial or operational information released by the company, and/or news or corporate events that affect the investment. Valuations may be adjusted to account for company-specific issues, the lack of liquidity inherent in a nonpublic investment and the fact that comparable public companies are not identical to the investments being fair valued by the Fund.



BLACKROCK DEBT STRATEGIES FUND, INC.	NOVEMBER 30, 2012	19


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 Debt Strategies Fund, Inc.


By:		/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Debt Strategies Fund, Inc.

Date:		January 23, 2013

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


By:		/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Debt Strategies Fund, Inc.

Date:		January 23, 2013

By:		/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of
		BlackRock Debt Strategies Fund, Inc.

Date:		January 23, 2013