Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (n-q)

CYE Blackrock Corporate High Yield Fund Iii, Inc.

CYE Blackrock Corporate High Yield Fund Iii, Inc.

Hot Features

Blackrock Corporate High Yield Fund Iii, Inc. News

Hot Features

Blackrock Corporate High Yield Fund Iii, Inc. News

Follow Feed

Options Flow

Monitor

Your Recent History

Trending Now

Toplists

Follow Feed

Options Flow

Monitor

Your Recent History

Market Data

News

Trading Tools

Markets

Discover

Company

Business

Popular

Get The App

Market Data

News

Trading Tools

Markets

Discover

Company

Business

Popular

Get The App

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 811-08497

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

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Corporate High Yield Fund III, 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: 02/28/2014

Date of reporting period: 05/31/2013


Item 1		–		Schedule of Investments


Consolidated Schedule of Investments May 31, 2013 (Unaudited)		BlackRock Corporate High Yield Fund III, Inc. (CYE)
		(Percentages shown are based on Net Assets)


Common Stocks	Shares		Value
Auto Components – 0.3%
Delphi Automotive Plc		8,900	$	434,409
The Goodyear Tire & Rubber Co.(a)		25,042		379,136
Lear Corp.		379		22,732

				836,277

Automobiles – 1.4%
General Motors Co.(a)		120,054		4,068,630

Biotechnology – 0.0%
Ironwood Pharmaceuticals, Inc.(a)		7,130		95,186

Capital Markets – 2.0%
American Capital Ltd.(a)		367,401		4,897,455
E*Trade Financial Corp.(a)		74,600		867,598
Uranium Participation Corp.(a)		35,440		173,312

				5,938,365

Chemicals – 0.4%
ADA-ES, Inc.(a)		1,820		67,977
CF Industries Holdings, Inc.		2,000		381,920
Huntsman Corp.		43,400		844,130

				1,294,027

Commercial Banks – 0.5%
CIT Group, Inc.(a)		33,467		1,542,159

Communications Equipment – 0.3%
Loral Space & Communications Ltd.		12,778		769,491

Diversified Financial Services – 1.0%
Bank of America Corp.		54,850		749,251
Citigroup, Inc.		8,495		441,655
Kcad Holdings I Ltd.		281,902,800		1,829,549

				3,020,455

Diversified Telecommunication Services – 0.2%
Broadview Networks Holdings, Inc.		33,638		211,916
Level 3 Communications, Inc.(a)		22,280		477,461

				689,377

Electrical Equipment – 0.0%
Medis Technologies Ltd.(a)		70,784		1

Energy Equipment & Services – 0.8%
Laricina Energy Ltd.(a)		35,294		1,188,362
Osum Oil Sands Corp.(a)		82,000		1,112,321

				2,300,683

Hotels, Restaurants & Leisure – 0.5%
Caesars Entertainment Corp.(a)		46,168		668,974
Travelport LLC		1,128,740		925,567

				1,594,541

Household Durables – 0.1%
MDC Holdings, Inc.		3,400		126,174
Meritage Homes Corp.(a)		3,300		156,288
PulteGroup, Inc.(a)		5,900		127,381

				409,843

Insurance – 1.0%
American International Group, Inc.(a)		67,504		3,001,228

Media – 0.4%
Belo Corp., Class A		23,782		266,834
Cablevision Systems Corp., Class A		44,005		665,356
Clear Channel Outdoor Holdings, Inc., Class A(a)		9,964		85,391

				1,017,581

Metals & Mining – 0.1%
African Minerals Ltd.(a)		47,050		180,001
Peninsula Energy Ltd.(a)		7,628,138		209,269

				389,270

Oil, Gas & Consumable Fuels – 0.0%
African Petroleum Corp. Ltd.(a)		196,300		35,695

Paper & Forest Products – 1.1%
Ainsworth Lumber Co. Ltd.(a)		489,913		1,790,953
Ainsworth Lumber Co. Ltd.(a)(b)		140,415		511,954
NewPage Corp.(a)		8,280		786,600
Western Forest Products, Inc.(a)		158,023		198,951
Western Forest Products, Inc.(a)		45,762		56,941

				3,345,399

Semiconductors & Semiconductor Equipment – 0.3%
Freescale Semiconductor Ltd.(a)		4,464		71,067
NXP Semiconductors NV(a)		9,532		294,062
Spansion, Inc., Class A(a)		32,493		445,154
SunPower Corp.(a)		271		5,231

				815,514

Software – 0.2%
Bankruptcy Management Solutions, Inc.(a)		501		–
HMH Holdings/EduMedia(a)		20,718		547,987

				547,987

Wireless Telecommunication Services – 0.5%
Crown Castle International Corp.(a)		10,597		755,037
SBA Communications Corp., Class A(a)		10,597		797,636
				1,552,673

Total Common Stocks – 11.1%				33,264,382


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		1


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


Corporate Bonds	Par (000)		Value
Aerospace & Defense – 0.8%
Bombardier, Inc.,
4.25%, 1/15/16(b)	USD	610	$	631,350
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18		160		174,400
7.13%, 3/15/21		260		285,350
Kratos Defense & Security Solutions, Inc.,
10.00%, 6/01/17		846		922,140
Meccanica Holdings USA, Inc.,
6.25%, 7/15/19(b)		324		340,298

				2,353,538

Air Freight & Logistics – 0.2%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15		356		356,449
Series 2, 12.38%, 8/16/15		360		361,074

				717,523

Airlines – 2.4%
Air Canada Pass-Through Trust, Series 2013-1, Class C,
6.63%, 5/15/18(b)		284		291,043
American Airlines Pass-Through Trust, Series 2011-2, Class A,
8.63%, 10/15/21		651		686,425
Continental Airlines Pass-Through Trust:
Series 1997-4, Class B, 6.90%, 1/02/17(c)		188		197,151
Series 2010-1, Class B, 6.00%, 1/12/19		408		424,256
Series 2012-3, Class C, 6.13%, 4/29/18		930		976,500
Delta Air Lines Pass-Through Trust:
Series 2002-1, Class G-1, 6.72%, 1/02/23		585		648,957
Series 2009-1, Class B, 9.75%, 12/17/16		185		210,874
Series 2010-1, Class B, 6.38%, 1/02/16		500		522,500
US Airways Group, Inc.,
6.13%, 6/01/18		330		321,338
US Airways Pass-Through Trust:
Series 2011-1, Class C, 10.88%, 10/22/14		461		495,975
Series 2012-1, Class C, 9.13%, 10/01/15		418		452,142
Series 2012-2, Class B, 6.75%, 6/03/21		300		327,750
Series 2012-2, Class C, 5.45%, 6/03/18(d)		750		738,750
Series 2013-1, Class B, 5.38%, 11/15/21		955		981,263

				7,274,924

Auto Components – 2.6%
Affinia Group, Inc.,
7.75%, 5/01/21(b)		681		708,240
Brighthouse Group Ltd.,
7.88%, 5/15/18	GBP	100		154,979
Continental Rubber of America Corp.,
4.50%, 9/15/19(b)	USD	150		155,625
Dana Holding Corp.,
6.75%, 2/15/21		450		483,750
Delphi Corp.,
6.13%, 5/15/21		75		82,781
GKN Holdings PLC,
5.38%, 9/19/22	GBP	200		321,724
Icahn Enterprises LP:
4.00%, 8/15/13(b)	USD	255		254,362
8.00%, 1/15/18		2,805		2,973,300
IDQ Holdings, Inc.,
11.50%, 4/01/17(b)		380		424,175
Jaguar Land Rover Plc,
8.25%, 3/15/20	GBP	482		827,556
Schaeffler Finance BV,
4.25%, 5/15/18	EUR	133		175,028
Servus Luxembourg Holdings SCA,
7.75%, 6/15/18		220		287,017
Titan International, Inc.:
7.88%, 10/01/17(b)	USD	495		529,650
7.88%, 10/01/17		465		497,550

				7,875,737

Beverages – 0.0%
Crown European Holdings SA,
7.13%, 8/15/18(b)	EUR	50		70,349

Building Products – 1.5%
American Builders & Contractors Supply Co., Inc.,
5.63%, 4/15/21(b)	USD	470		475,875
Builders FirstSource, Inc.,
7.63%, 6/01/21(b)		403		405,015
Building Materials Corp. of America(b):
7.00%, 2/15/20		530		567,100
6.75%, 5/01/21		790		855,175
Cemex SAB de CV,
5.88%, 3/25/19(b)		230		228,850
Momentive Performance Materials, Inc.,
8.88%, 10/15/20		760		818,900
Texas Industries, Inc.,
9.25%, 8/15/20		236		261,370
USG Corp.,
9.75%, 1/15/18		715		841,912

				4,454,197

Capital Markets – 0.3%
E*Trade Financial Corp.(e)(f):
0.00%, 8/31/19(b)		244		276,940
Series A, 0.00%, 8/31/19		7		7,945
Nuveen Investments, Inc.,
9.13%, 10/15/17(b)		473		496,650

				781,535


2		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


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


Corporate Bonds	Par (000)		Value
Chemicals – 2.2%
Axiall Corp.,
4.88%, 5/15/23(b)	USD	109	$	109,545
Basell Finance Co. BV,
8.10%, 3/15/27(b)		420		569,259
Celanese US Holdings LLC,
5.88%, 6/15/21		826		910,665
Eagle Spinco, Inc.,
4.63%, 2/15/21(b)		375		377,812
Huntsman International LLC,
8.63%, 3/15/21		170		189,975
INEOS Finance Plc,
7.50%, 5/01/20(b)		370		406,075
INEOS Group Holdings SA:
6.13%, 8/15/18(b)		300		295,500
6.50%, 8/15/18	EUR	298		377,642
Kraton Polymers LLC,
6.75%, 3/01/19	USD	125		130,938
LyondellBasell Industries NV,
5.00%, 4/15/19		208		234,777
Nexeo Solutions LLC,
8.38%, 3/01/18		90		90,450
Nufarm Australia Ltd.,
6.38%, 10/15/19(b)		225		230,625
Orion Engineered Carbons Bondco GmbH (FKA Kinove German Bondco GmbH),
10.00%, 6/15/18	EUR	342		493,411
PetroLogistics LP/PetroLogistics Finance Corp.,
6.25%, 4/01/20(b)	USD	172		173,290
PolyOne Corp.,
7.38%, 9/15/20		215		237,037
Rockwood Specialties Group, Inc.,
4.63%, 10/15/20		813		829,260
Tronox Finance LLC,
6.38%, 8/15/20(b)		249		244,642
US Coatings Acquisition, Inc./Flash Dutch 2 BV:
5.75%, 2/01/21	EUR	200		270,348
7.38%, 5/01/21(b)	USD	357		376,635

				6,547,886

Commercial Banks – 0.8%
CIT Group, Inc.:
5.25%, 3/15/18		550		591,250
6.63%, 4/01/18(b)		235		264,375
5.50%, 2/15/19(b)		740		801,050
5.00%, 8/15/22		228		242,820
6.00%, 4/01/36		550		546,344

				2,445,839

Commercial Services & Supplies – 3.0%
ADS Waste Holdings, Inc.,
8.25%, 10/01/20(b)		279		299,227
ARAMARK Corp.,
5.75%, 3/15/20(b)		655		677,925
Aviation Capital Group Corp.,
6.75%, 4/06/21(b)		540		599,051
AWAS Aviation Capital Ltd.,
7.00%, 10/17/16(b)		96		100,309
Brickman Group Holdings, Inc.,
9.13%, 11/01/18(b)		25		27,063
Casella Waste Systems, Inc.,
7.75%, 2/15/19		54		51,840
Catalent Pharma Solutions, Inc.,
7.88%, 10/15/18(b)		622		631,330
Covanta Holding Corp.,
6.38%, 10/01/22		635		684,986
EC Finance Plc,
9.75%, 8/01/17	EUR	503		709,476
Mead Products LLC/ACCO Brands Corp.,
6.75%, 4/30/20(b)	USD	76		79,800
Mobile Mini, Inc.,
7.88%, 12/01/20		365		404,237
TransUnion LLC/TransUnion Financing Corp.,
11.38%, 6/15/18		65		73,450
UR Merger Sub Corp.:
5.75%, 7/15/18		257		274,348
7.38%, 5/15/20		440		482,900
8.25%, 2/01/21		468		518,310
7.63%, 4/15/22		2,277		2,521,777
6.13%, 6/15/23		190		199,025
Verisure Holding AB:
8.75%, 9/01/18	EUR	184		264,265
8.75%, 12/01/18		100		138,423
West Corp.,
8.63%, 10/01/18	USD	135		148,163

				8,885,905

Communications Equipment – 1.4%
Alcatel-Lucent USA, Inc.:
6.50%, 1/15/28		60		47,700
6.45%, 3/15/29		185		148,463
Avaya, Inc.(b):
7.00%, 4/01/19		275		256,437
10.50%, 3/01/21		999		839,160
CommScope Holding Co., Inc.,
6.63%, 6/01/20(b)(g)		480		474,000
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20		950		1,054,500
10.13%, 7/01/20		1,270		1,476,375

				4,296,635

Computers & Peripherals – 0.2%
EMC Corp., Series B,
1.75%, 12/01/13(f)		201		310,796
SanDisk Corp.,
1.50%, 8/15/17(f)		285		378,160

				688,956

Construction & Engineering – 0.4%
Boart Longyear Management Property Ltd.,
7.00%, 4/01/21(b)		200		198,000


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		3


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


Corporate Bonds	Par (000)		Value
Construction & Engineering (concluded)
H&E Equipment Services, Inc.,
7.00%, 9/01/22	USD	441	$	476,280
Safway Group Holding LLC/Safway Finance Corp.,
7.00%, 5/15/18(b)		234		235,170
Weekley Homes LLC,
6.00%, 2/01/23(b)		156		162,240

				1,071,690

Construction Materials – 2.9%
Buzzi Unicem SpA,
6.25%, 9/28/18	EUR	138		197,732
HD Supply, Inc.:
8.13%, 4/15/19	USD	3,228		3,583,080
11.00%, 4/15/20		1,515		1,819,894
7.50%, 7/15/20(b)		2,217		2,350,020
11.50%, 7/15/20		520		611,000
HeidelbergCement AG,
7.50%, 4/03/20	EUR	54		86,547

				8,648,273

Consumer Finance – 0.2%
Credit Acceptance Corp.,
9.13%, 2/01/17	USD	445		480,600
IVS F. SpA,
7.13%, 4/01/20	EUR	215		282,241

				762,841

Containers & Packaging – 2.0%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17		200		279,446
9.13%, 10/15/20(b)	USD	409		449,900
9.13%, 10/15/20(b)		395		432,525
7.00%, 11/15/20(b)		700		717,500
5.00%, 11/15/22	EUR	220		288,804
Ardagh Packaging Finance Plc/Ardagh MP Holdings USA, Inc.(b):
7.38%, 10/15/17		275		384,238
4.88%, 11/15/22	USD	292		291,270
Berry Plastics Corp.,
9.75%, 1/15/21		185		213,675
Beverage Packaging Holdings Luxembourg II SA,
8.00%, 12/15/16	EUR	706		917,623
Crown Americas LLC/Crown Americas Capital Corp. III,
6.25%, 2/01/21	USD	17		18,573
Crown Americas LLC/Crown Americas Capital Corp. IV,
4.50%, 1/15/23(b)		26		25,415
GCL Holdings SCA,
9.38%, 4/15/18(b)	EUR	267		374,796
Graphic Packaging International, Inc.,
7.88%, 10/01/18	USD	375		411,563
OI European Group BV,
4.88%, 3/31/21	EUR	305		414,263
Pactiv LLC,
7.95%, 12/15/25	USD	441		418,950
Tekni-Plex, Inc.,
9.75%, 6/01/19(b)		401		449,120

				6,087,661

Distributors – 0.5%
VWR Funding, Inc.,
7.25%, 9/15/17		1,374		1,463,310

Diversified Consumer Services – 2.1%
APX Group, Inc.(b):
6.38%, 12/01/19		987		984,532
8.75%, 12/01/20		597		605,955
Laureate Education, Inc.,
9.25%, 9/01/19(b)		1,250		1,400,000
Service Corp. International,
7.00%, 6/15/17		2,780		3,176,150
ServiceMaster Co.,
8.00%, 2/15/20		190		195,463

				6,362,100

Diversified Financial Services – 6.3%
Aircastle Ltd.:
6.75%, 4/15/17		375		412,500
6.25%, 12/01/19		326		352,895
Ally Financial, Inc.:
7.50%, 12/31/13		280		289,100
8.00%, 11/01/31		230		294,400
8.00%, 11/01/31(c)		3,650		4,708,500
CNG Holdings, Inc.,
9.38%, 5/15/20(b)		332		330,340
Co-Operative Group Ltd.(h):
5.63%, 7/08/20	GBP	170		259,589
6.25%, 7/08/26		100		153,232
DPL, Inc.:
6.50%, 10/15/16	USD	324		349,110
7.25%, 10/15/21		851		919,080
Gala Group Finance Plc,
8.88%, 9/01/18	GBP	600		980,012
General Motors Financial Co., Inc.:
2.75%, 5/15/16(b)	USD	527		526,210
3.25%, 5/15/18(b)		305		302,331
6.75%, 6/01/18		300		342,000
4.25%, 5/15/23(b)		86		83,850
GETCO Financing Escrow LLC,
8.25%, 6/15/18(b)		228		222,870
Jefferies Finance LLC/JFIN Co-Issuer Corp.,
7.38%, 4/01/20(b)		510		512,550
Jefferies LoanCore LLC/JLC Finance Corp.,
6.88%, 6/01/20(b)		684		685,710
Lehman Brothers Holdings, Inc.:
5.38%, 10/17/13	EUR	150		51,909
4.75%, 1/16/14(i)		760		263,004
1.00%, 2/05/14(i)		1,600		548,494
1.00%, 9/22/18	USD	175		43,750


4		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


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


Corporate Bonds	Par (000)		Value
Diversified Financial Services (concluded)
Lehman Brothers Holdings, Inc. (concluded):
1.00%, 12/31/49	USD	620	$	155,000
Leucadia National Corp.,
8.13%, 9/15/15		825		936,375
Reynolds Group Issuer, Inc.:
7.13%, 4/15/19		445		473,925
9.00%, 4/15/19		580		609,000
7.88%, 8/15/19		255		279,225
9.88%, 8/15/19		475		517,750
5.75%, 10/15/20		2,375		2,410,625
WMG Acquisition Corp.:
11.50%, 10/01/18		416		490,880
6.00%, 1/15/21(b)		298		314,390

				18,818,606

Diversified Telecommunication Services – 2.5%
Broadview Networks Holdings, Inc.,
10.50%, 11/15/17		518		528,497
CenturyLink, Inc., Series V,
5.63%, 4/01/20		744		769,110
Cequel Communications Holdings I LLC/Cequel Capital Corp.,
5.13%, 12/15/21(b)		425		417,031
Consolidated Communications Finance Co.,
10.88%, 6/01/20		345		398,475
Level 3 Communications, Inc.,
8.88%, 6/01/19		315		341,775
Level 3 Financing, Inc.:
8.13%, 7/01/19		1,180		1,277,350
7.00%, 6/01/20		434		456,785
8.63%, 7/15/20		845		929,500
OTE Plc,
7.25%, 2/12/15	EUR	101		136,263
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22		250		341,262
6.75%, 8/15/24		467		647,044
tw telecom holdings, Inc.,
5.38%, 10/01/22	USD	300		310,500
Windstream Corp.:
8.13%, 8/01/13		460		463,450
7.88%, 11/01/17		393		451,950
6.38%, 8/01/23		80		79,000

				7,547,992

Electric Utilities – 0.7%
Homer City Generation LP,
8.73%, 10/01/26(g)		225		239,063
Mirant Mid Atlantic Pass-Through Trust, Series B,
9.13%, 6/30/17		290		326,928
The Tokyo Electric Power Co., Inc.,
4.50%, 3/24/14	EUR	1,100		1,454,030

				2,020,021

Electrical Equipment – 0.7%
Belden, Inc.:
5.50%, 9/01/22(b)	USD	370		380,175
5.50%, 4/15/23	EUR	120		158,309
General Cable Corp.,
5.75%, 10/01/22(b)	USD	610		628,300
Rexel SA,
5.13%, 6/15/20	EUR	259		351,952
Techem GmbH,
6.13%, 10/01/19		300		421,119
Trionista TopCo GmbH,
6.88%, 4/30/21		100		131,925

				2,071,780

Electronic Equipment, Instruments & Components – 0.1%
Jabil Circuit, Inc.,
8.25%, 3/15/18	USD	235		284,350

Energy Equipment & Services – 3.7%
Atwood Oceanics, Inc.,
6.50%, 2/01/20		140		149,975
Calfrac Holdings LP,
7.50%, 12/01/20(b)		335		345,050
CGG,
7.75%, 5/15/17		250		256,875
CGG (FKA Compagnie Générale de Géophysique, Veritas),
6.50%, 6/01/21		1,255		1,311,475
FTS International Services LLC/FTS International Bonds, Inc.,
8.13%, 11/15/18(b)		1,083		1,153,395
Genesis Energy LP,
5.75%, 2/15/21(b)		51		52,020
Gulfmark Offshore, Inc.,
6.38%, 3/15/22		155		161,200
Hornbeck Offshore Services, Inc.,
5.88%, 4/01/20		315		328,387
MEG Energy Corp.(b):
6.50%, 3/15/21		1,504		1,556,640
6.38%, 1/30/23		219		224,475
Oil States International, Inc.,
6.50%, 6/01/19		470		506,425
Peabody Energy Corp.:
6.00%, 11/15/18		674		721,180
6.25%, 11/15/21		731		763,895
7.88%, 11/01/26		375		401,250
4.75%, 12/15/41(f)		426		366,626
Precision Drilling Corp.:
6.63%, 11/15/20		75		80,250
6.50%, 12/15/21		295		316,388
Rain CII Carbon LLC/CII Carbon Corp.,
8.25%, 1/15/21(b)		234		250,380
Seadrill Ltd.,
5.63%, 9/15/17(b)		1,360		1,394,000
Tervita Corp.,
8.00%, 11/15/18(b)		372		385,020
Trionista Holdco GmbH,
5.00%, 4/30/20	EUR	306		405,678

				11,130,584

Food & Staples Retailing – 0.4%
Bakkavor Finance 2 Plc,
8.25%, 2/15/18	GBP	319		502,864


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		5


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


Corporate Bonds	Par (000)		Value
Food & Staples Retailing (concluded)
R&R Ice Cream PLC,
9.25%, 5/10/18(g)	EUR	100	$	131,275
Rite Aid Corp.,
9.25%, 3/15/20	USD	375		423,281
Zobele Holding SpA,
7.88%, 2/01/18	EUR	100		135,174

				1,192,594

Food Products – 0.6%
Darling International, Inc.,
8.50%, 12/15/18	USD	115		128,800
Del Monte Corp.,
7.63%, 2/15/19		61		63,211
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp.,
4.88%, 5/01/21(b)		392		393,470
Post Holdings, Inc.,
7.38%, 2/15/22		520		579,150
Smithfield Foods, Inc.,
6.63%, 8/15/22		477		542,588

				1,707,219

Health Care Equipment & Supplies – 2.4%
Biomet, Inc.(b):
6.50%, 8/01/20		2,029		2,135,523
6.50%, 10/01/20		2,161		2,188,012
DJO Finance LLC:
8.75%, 3/15/18		379		418,795
7.75%, 4/15/18		100		103,500
9.88%, 4/15/18		450		493,875
Fresenius Medical Care US Finance, Inc.,
5.75%, 2/15/21(b)		290		322,625
Fresenius US Finance II, Inc.,
9.00%, 7/15/15(b)		540		621,000
IDH Finance PLC,
6.00%, 12/01/18	GBP	103		157,281
Kinetic Concepts, Inc./KCI USA, Inc.,
12.50%, 11/01/19	USD	565		581,950
Teleflex, Inc.,
6.88%, 6/01/19		295		318,600

				7,341,161

Health Care Providers & Services – 7.3%
Aviv Healthcare Properties LP,
7.75%, 2/15/19		570		622,725
Care UK Health & Social Care Plc,
9.75%, 8/01/17	GBP	182		286,209
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18	USD	785		818,362
7.13%, 7/15/20		456		500,460
ConvaTec Healthcare E SA,
7.38%, 12/15/17(b)	EUR	494		687,022
Crown Newco 3 Plc,
7.00%, 2/15/18(b)	GBP	364		577,949
DaVita HealthCare Partners, Inc.,
5.75%, 8/15/22	USD	893		951,045
HCA Holdings, Inc.,
6.25%, 2/15/21		736		787,520
HCA, Inc.
8.50%, 4/15/19		135		147,150
6.50%, 2/15/20		2,724		3,071,310
7.88%, 2/15/20		275		299,750
7.25%, 9/15/20		2,750		3,025,000
5.88%, 3/15/22		580		636,550
4.75%, 5/01/23		392		391,020
Hologic, Inc.,
6.25%, 8/01/20		1,468		1,568,925
IASIS Healthcare LLC,
8.38%, 5/15/19		517		540,265
INC Research LLC,
11.50%, 7/15/19(b)		350		376,250
inVentiv Health, Inc.,
9.00%, 1/15/18(b)		630		670,950
Omnicare, Inc.:
7.75%, 6/01/20		1,005		1,113,037
3.75%, 4/01/42(f)		291		354,111
Symbion, Inc.,
8.00%, 6/15/16		345		364,838
Tenet Healthcare Corp.:
6.25%, 11/01/18		1,184		1,311,280
6.75%, 2/01/20		525		551,250
4.50%, 4/01/21(b)		472		463,740
4.38%, 10/01/21(b)		646		626,620
Vanguard Health Holding Co II LLC:
8.00%, 2/01/18		243		257,884
7.75%, 2/01/19		465		497,550
Voyage Care Bondco Plc,
6.50%, 8/01/18	GBP	230		359,072

				21,857,844

Health Care Technology – 0.9%
IMS Health, Inc.(b):
12.50%, 3/01/18	USD	2,225		2,611,594
6.00%, 11/01/20		143		151,222

				2,762,816

Hotels, Restaurants & Leisure – 2.5%
Carlson Wagonlit BV,
6.88%, 6/15/19(b)		325		342,062
Cirsa Funding Luxembourg SA,
8.75%, 5/15/18	EUR	480		633,537
Diamond Resorts Corp.,
12.00%, 8/15/18	USD	1,190		1,328,337
Enterprise Inns Plc,
6.50%, 12/06/18	GBP	324		501,639
Gategroup Finance Luxembourg SA,
6.75%, 3/01/19	EUR	376		498,480
Isle of Capri Casinos, Inc.:
7.75%, 3/15/19	USD	50		54,000
5.88%, 3/15/21		219		217,905
Little Traverse Bay Bands of Odawa Indians,
9.00%, 8/31/20(b)		300		291,000
MCE Finance Ltd.,
5.00%, 2/15/21(b)		677		677,000


6		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


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


Corporate Bonds	Par (000)		Value
Hotels, Restaurants & Leisure (concluded)
MTR Gaming Group, Inc.,
11.50%, 8/01/19(g)	USD	151	$	161,868
Regal Entertainment Group,
5.75%, 2/01/25		260		259,350
Sisal Holding Istituto di Pagamento SpA,
7.25%, 9/30/17	EUR	100		131,925
Six Flags Entertainment Corp.,
5.25%, 1/15/21(b)	USD	600		603,000
Station Casinos LLC,
7.50%, 3/01/21(b)		1,416		1,483,260
Travelport LLC(b):
6.40%, 3/01/16(j)		89		84,446
11.88%, 9/01/16		34		32,147
Tropicana Entertainment LLC,
9.63%, 12/15/14(a)(i)		305		–
The Unique Pub Finance Co. Plc, Series A3,
6.54%, 3/30/21	GBP	100		157,258
Wynn Las Vegas LLC,
5.38%, 3/15/22	USD	76		79,990

				7,537,204

Household Durables – 2.6%
Algeco Scotsman Global Finance Plc,
9.00%, 10/15/18	EUR	100		133,250
Ashton Woods USA LLC,
6.88%, 2/15/21(b)	USD	228		236,265
Beazer Homes USA, Inc.,
6.63%, 4/15/18		50		54,188
Brookfield Residential Properties, Inc.,
6.50%, 12/15/20(b)		410		438,700
Jarden Corp.,
7.50%, 1/15/20	EUR	305		426,948
K. Hovnanian Enterprises, Inc.,
7.25%, 10/15/20(b)	USD	950		1,052,125
Libbey Glass, Inc.,
6.88%, 5/15/20		549		594,293
PH Holding LLC,
9.75%, 12/31/17		345		355,350
Pulte Group, Inc.,
6.38%, 5/15/33		190		191,900
RPG Byty Sro,
6.75%, 5/01/20	EUR	190		238,309
The Ryland Group, Inc.,
6.63%, 5/01/20	USD	340		379,100
Spie BondCo 3 SCA,
11.00%, 8/15/19	EUR	303		425,822
Standard Pacific Corp.:
10.75%, 9/15/16	USD	1,290		1,593,150
8.38%, 1/15/21		970		1,164,000
Taylor Morrison Communities, Inc./Monarch Communities, Inc.,
5.25%, 4/15/21(b)		270		273,375
William Lyon Homes, Inc.,
8.50%, 11/15/20(b)		300		334,125

				7,890,900

Household Products – 0.8%
Ontex IV SA:
7.50%, 4/15/18(b)	EUR	150		204,711
7.50%, 4/15/18		100		136,474
9.00%, 4/15/19		213		289,997
Spectrum Brands Escrow Corp.(b):
6.38%, 11/15/20	USD	384		412,320
6.63%, 11/15/22		250		270,000
Spectrum Brands, Inc.:
9.50%, 6/15/18		950		1,050,937
6.75%, 3/15/20		96		103,200

				2,467,639

Independent Power Producers & Energy Traders – 4.1%
The AES Corp.,
4.88%, 5/15/23		27		26,528
Calpine Corp.,
7.50%, 2/15/21(b)		44		47,740
Dynegy, Inc.,
5.88%, 6/01/23(b)		301		296,485
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17(b)		755		800,300
11.25%, 12/01/18(b)(g)		675		609,187
10.00%, 12/01/20(b)		1,830		2,074,762
10.00%, 12/01/20		2,541		2,893,564
12.25%, 3/01/22(b)(h)		1,246		1,418,882
GenOn REMA LLC:
Series B, 9.24%, 7/02/17		110		120,530
Series C, 9.68%, 7/02/26		409		445,810
Laredo Petroleum, Inc.:
9.50%, 2/15/19		485		549,262
7.38%, 5/01/22		370		407,000
NRG Energy, Inc.:
7.63%, 1/15/18		1,746		1,968,615
6.63%, 3/15/23(b)		55		58,163
QEP Resources, Inc.:
5.38%, 10/01/22		333		341,325
5.25%, 5/01/23		255		257,550

				12,315,703

Industrial Conglomerates – 0.2%
Sequa Corp.,
7.00%, 12/15/17(b)		580		580,000

Insurance – 0.7%
Alliant Holdings I, Inc.,
7.88%, 12/15/20(b)		1,120		1,173,200
CNO Financial Group, Inc.,
6.38%, 10/01/20(b)		225		243,844
MPL 2 Acquisition Canco, Inc.,
9.88%, 8/15/18(b)		664		683,920
TMF Group Holding B.V.,
9.88%, 12/01/19	EUR	100		137,123

				2,238,087

Internet Software & Services – 0.2%
Cerved Technologies SpA:
6.38%, 1/15/20		100		129,975
8.00%, 1/15/21		100		129,650
VeriSign, Inc.,
4.63%, 5/01/23(b)	USD	290		291,450

				551,075

IT Services – 4.0%
Ceridian Corp.:
11.25%, 11/15/15		125		128,750


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		7


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


Corporate Bonds	Par (000)		Value
IT Services (concluded)
Ceridian Corp. (concluded):
8.88%, 7/15/19(b)	USD	1,260	$	1,436,400
11.00%, 3/15/21(b)		1,501		1,714,892
Epicor Software Corp., 8.63%, 5/01/19		570		619,875
First Data Corp.:
7.38%, 6/15/19(b)		2,291		2,417,005
8.88%, 8/15/20(b)		535		591,175
6.75%, 11/01/20(b)		1,465		1,530,925
8.25%, 1/15/21(b)		117		124,020
12.63%, 1/15/21		284		310,270
10.63%, 6/15/21(b)		738		741,690
11.75%, 8/15/21(b)		395		382,163
SunGard Data Systems, Inc.:
7.38%, 11/15/18		550		585,750
6.63%, 11/01/19(b)		805		847,262
WEX, Inc., 4.75%, 2/01/23(b)		495		493,763

				11,923,940

Machinery – 0.7%
DH Services Luxembourg Sarl,
7.75%, 12/15/20(b)		93		100,208
The Manitowoc Co., Inc.,
5.88%, 10/15/22		475		505,281
Navistar International Corp.,
8.25%, 11/01/21		367		373,881
SPX Corp.,
6.88%, 9/01/17		175		194,688
Terex Corp.,
6.00%, 5/15/21		475		502,312
Trinseo Materials Operating SCA,
8.75%, 2/01/19(b)		413		411,451

				2,087,821

Media – 10.3%
Affinion Group, Inc.,
7.88%, 12/15/18		395		304,150
AMC Networks, Inc.:
7.75%, 7/15/21		225		254,813
4.75%, 12/15/22		359		358,103
Cablevision Systems Corp.,
5.88%, 9/15/22		560		554,400
CCO Holdings LLC,
5.25%, 9/30/22		600		600,000
CCO Holdings LLC/CCO Holdings Capital Corp.,
5.13%, 2/15/23		745		730,100
Cengage Learning Acquisitions, Inc.,
11.50%, 4/15/20(b)		542		436,310
Checkout Holding Corp.
0.00%, 11/15/15(b)(e)		453		357,870
Cinemark USA, Inc.,
5.13%, 12/15/22		254		257,810
Clear Channel Communications, Inc.:
9.00%, 12/15/19(b)		804		808,020
9.00%, 3/01/21		1,223		1,213,827
Clear Channel Worldwide Holdings, Inc.:
7.63%, 3/15/20		1,127		1,197,438
6.50%, 11/15/22(b)		621		652,050
6.50%, 11/15/22(b)		1,919		2,024,545
DISH DBS Corp.:
4.25%, 4/01/18(b)		530		516,750
5.13%, 5/01/20(b)		899		876,525
5.88%, 7/15/22		1,010		1,012,525
Harron Communications LP,
9.13%, 4/01/20(b)		320		356,000
Intelsat Jackson Holdings SA,
5.50%, 8/01/23(b)(d)		1,528		1,497,440
Intelsat Luxembourg SA(b):
6.75%, 6/01/18		1,265		1,318,762
7.75%, 6/01/21		432		454,140
Interactive Data Corp.,
10.25%, 8/01/18		1,345		1,509,762
The Interpublic Group of Cos., Inc.,
10.00%, 7/15/17		340		358,700
Kabel Deutschland Vertrieb und Service GmbH & Co. KG,
6.50%, 6/29/18(b)	EUR	128		177,105
Live Nation Entertainment, Inc.,
8.13%, 5/15/18(b)	USD	735		788,288
Lynx I Corp.:
5.38%, 4/15/21(b)		290		301,600
6.00%, 4/15/21	GBP	1,020		1,628,826
The McClatchy Co.,
9.00%, 12/15/22(b)	USD	552		596,160
NAI Entertainment Holdings LLC,
8.25%, 12/15/17(b)		558		602,640
Nara Cable Funding Ltd.,
8.88%, 12/01/18	EUR	200		275,547
Nielsen Finance LLC:
11.63%, 2/01/14		117		124,020
7.75%, 10/15/18		1,143		1,257,300
Odeon & UCI Finco Plc,
9.00%, 8/01/18(b)	GBP	207		338,497
ProQuest LLC,
9.00%, 10/15/18(b)	USD	181		183,263
ProtoStar I Ltd.,
18.00%, 10/15/13(a)(b)(f)(i)		850		425
Sirius XM Radio, Inc.(b):
4.25%, 5/15/20		517		506,660
4.63%, 5/15/23		253		242,880
Sterling Entertainment Corp.,
10.00%, 12/15/19		875		875,000
Unitymedia GmbH,
9.50%, 3/15/21	EUR	320		479,160
Unitymedia Hessen GmbH & Co. KG:
7.50%, 3/15/19		794		1,122,817
5.50%, 1/15/23(b)	USD	520		530,400
Univision Communications, Inc.(b):
8.50%, 5/15/21		289		312,843


8		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


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


Corporate Bonds	Par (000)		Value
Media (concluded)
Univision Communications, Inc.(b) (concluded):
6.75%, 9/15/22	USD	353	$	379,475
5.13%, 5/15/23		704		689,920
UPCB Finance II Ltd.:
6.38%, 7/01/20(b)	EUR	822		1,131,696
6.38%, 7/01/20		300		413,028
WaveDivision Escrow LLC/WaveDivision Escrow Corp.,
8.13%, 9/01/20(b)	USD	358		379,480

				30,987,070

Metals & Mining – 4.2%
ArcelorMittal:
9.50%, 2/15/15		315		349,650
4.25%, 8/05/15		395		407,838
4.25%, 3/01/16		125		129,688
5.00%, 2/25/17		419		435,760
6.13%, 6/01/18		418		443,080
Eco-Bat Finance Plc,
7.75%, 2/15/17	EUR	460		609,842
FMG Resources August 2006 Property Ltd.(b):
6.38%, 2/01/16	USD	438		446,658
6.00%, 4/01/17		480		486,000
Global Brass and Copper, Inc.,
9.50%, 6/01/19(b)		300		336,000
GoldCorp, Inc.,
2.00%, 8/01/14(f)		1,060		1,080,537
Kaiser Aluminum Corp.,
8.25%, 6/01/20		225		253,688
New Gold, Inc. (b):
7.00%, 4/15/20		150		159,000
6.25%, 11/15/22		300		309,000
New World Resources NV,
7.88%, 5/01/18	EUR	210		218,358
Newmont Mining Corp., Series A,
1.25%, 7/15/14(f)	USD	1,475		1,538,609
Novelis, Inc.,
8.75%, 12/15/20		3,065		3,425,137
Peninsula Energy Ltd.
11.00%, 12/14/14		600		600,000
Perstorp Holding AB,
8.75%, 5/15/17(b)		205		211,663
Steel Dynamics, Inc.,
6.38%, 8/15/22(b)		245		267,050
Taseko Mines Ltd.,
7.75%, 4/15/19		420		428,400
Vedanta Resources Plc,
8.25%, 6/07/21(b)		270		291,600
Walter Energy, Inc. (b):
9.88%, 12/15/20		132		140,910
8.50%, 4/15/21		102		102,510

				12,670,978

Multiline Retail – 0.4%
Dollar General Corp.,
4.13%, 7/15/17		792		859,527
Dufry Finance SCA,
5.50%, 10/15/20(b)		403		424,158

				1,283,685

Oil, Gas & Consumable Fuels – 9.5%
Access Midstream Partners LP:
5.88%, 4/15/21		68		72,080
6.13%, 7/15/22		275		294,250
4.88%, 5/15/23		445		439,437
Alpha Appalachia Holdings, Inc.,
3.25%, 8/01/15(f)		880		871,200
Athlon Holdings LP/Athlon Finance Corp.,
7.38%, 4/15/21(b)		191		198,640
Aurora USA Oil & Gas, Inc.(b):
9.88%, 2/15/17		680		746,300
7.50%, 4/01/20		330		336,600
Bonanza Creek Energy, Inc.,
6.75%, 4/15/21(b)		86		89,870
BreitBurn Energy Partners LP,
7.88%, 4/15/22		255		276,675
Carrizo Oil & Gas, Inc.,
7.50%, 9/15/20		240		259,200
Chaparral Energy, Inc.,
7.63%, 11/15/22		220		237,600
Chesapeake Energy Corp.:
7.25%, 12/15/18		120		138,300
6.63%, 8/15/20		84		93,450
6.88%, 11/15/20		271		304,875
6.13%, 2/15/21		78		85,020
Concho Resources, Inc.:
7.00%, 1/15/21		160		174,000
6.50%, 1/15/22		297		320,760
5.50%, 10/01/22		365		376,862
5.50%, 4/01/23		74		75,665
CONSOL Energy, Inc.,
8.25%, 4/01/20		315		348,075
Continental Resources, Inc.,
7.13%, 4/01/21		370		415,325
Crosstex Energy LP,
8.88%, 2/15/18		150		161,250
Crown Oil Partners IV LP,
15.00%, 3/07/15		615		642,581
CrownRock LP/CrownRock Finance, Inc.,
7.13%, 4/15/21(b)		342		352,260
CVR Refining LLC/Coffeyville Finance, Inc.,
6.50%, 11/01/22(b)		385		398,475
Denbury Resources, Inc.,
4.63%, 7/15/23		771		745,942
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17		465		516,150
7.75%, 6/15/19		540		577,800
EP Energy LLC/EP Energy Finance, Inc.,
9.38%, 5/01/20		215		243,756


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		9


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


Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
EP Energy LLC/Everest Acquisition Finance, Inc.,
6.88%, 5/01/19	USD	345	$	372,600
EV Energy Partners LP,
8.00%, 4/15/19		150		154,125
Halcon Resources Corp.,
8.88%, 5/15/21		415		422,262
Hilcorp Energy I LP,
7.63%, 4/15/21(b)		260		286,000
Holly Energy Partners LP,
6.50%, 3/01/20		155		164,688
Kodiak Oil & Gas Corp.,
8.13%, 12/01/19		350		393,750
LBC Tank Terminals Holding Netherlands BV,
6.88%, 5/15/23(b)		200		207,750
Legacy Reserves LP/Legacy Reserves Finance Corp.,
6.63%, 12/01/21(b)		153		149,558
Lightstream Resources Ltd. (FKA PetroBakken Energy Ltd.),
8.63%, 2/01/20(b)		421		431,525
Linn Energy LLC:
6.50%, 5/15/19		43		43,753
6.25%, 11/01/19(b)		1,192		1,200,940
8.63%, 4/15/20		110		120,450
7.75%, 2/01/21		155		164,300
MarkWest Energy Partners LP:
6.25%, 6/15/22		109		117,720
5.50%, 2/15/23		209		218,405
4.50%, 7/15/23		305		296,613
Memorial Production Partners LP,
7.63%, 5/01/21(b)		199		199,995
Newfield Exploration Co.,
6.88%, 2/01/20		780		834,600
Northern Oil and Gas, Inc.,
8.00%, 6/01/20		310		322,400
Oasis Petroleum, Inc.:
7.25%, 2/01/19		205		220,888
6.50%, 11/01/21		290		313,200
Offshore Group Investment Ltd.,
7.13%, 4/01/23(b)		422		435,715
Pacific Drilling SA,
5.38%, 6/01/20(b)		406		401,940
PBF Holding Co. LLC,
8.25%, 2/15/20		220		243,100
PDC Energy, Inc.,
7.75%, 10/15/22(b)		210		228,900
Penn Virginia Corp.,
8.50%, 5/01/20(b)		126		126,000
Petrobras Global Finance BV,
3.00%, 1/15/19		349		340,402
Petroleum Geo-Services ASA,
7.38%, 12/15/18(b)		775		860,250
Plains Exploration & Production Co.,
6.88%, 2/15/23		538		608,612
Range Resources Corp.:
8.00%, 5/15/19		345		376,050
6.75%, 8/01/20		120		129,900
5.75%, 6/01/21		981		1,037,407
5.00%, 8/15/22		319		323,785
5.00%, 3/15/23(b)		157		158,570
Regency Energy Partners LP,
6.88%, 12/01/18		393		421,492
Rosetta Resources, Inc.,
5.63%, 5/01/21		266		266,665
Sabine Pass Liquefaction LLC(b):
5.63%, 2/01/21		1,292		1,296,845
5.63%, 4/15/23		337		337,000
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16		1,730		1,928,950
6.50%, 11/01/20(b)		325		340,438
SandRidge Energy, Inc.:
8.75%, 1/15/20		30		32,250
7.50%, 2/15/23		356		366,680
SESI LLC,
6.38%, 5/01/19		325		351,000
Seven Generations Energy Ltd.,
8.25%, 5/15/20(b)		100		104,000
SM Energy Co.:
6.63%, 2/15/19		130		139,425
6.50%, 11/15/21		265		289,513
6.50%, 1/01/23		390		429,000
Tesoro Logistics LP/Tesoro Logistics Finance Corp.,
5.88%, 10/01/20(b)		155		161,588
Vanguard Natural Resources LLC,
7.88%, 4/01/20		270		288,900

				28,452,297

Paper & Forest Products – 0.7%
Ainsworth Lumber Co. Ltd.,
7.50%, 12/15/17(b)		355		383,400
Boise Paper Holdings LLC:
9.00%, 11/01/17		60		63,900
8.00%, 4/01/20		125		138,750
Clearwater Paper Corp.:
7.13%, 11/01/18		585		633,262
4.50%, 2/01/23(b)		45		44,438
NewPage Corp.,
11.38%, 12/31/14(a)(i)		1,909		–
Sappi Papier Holding GmbH(b):
8.38%, 6/15/19		200		220,500
6.63%, 4/15/21		140		142,800
Unifrax I LLC,
7.50%, 2/15/19(b)		260		270,400
WEPA Hygieneprodukte GmbH,
6.50%, 5/15/20	EUR	100		135,941

				2,033,391

Pharmaceuticals – 1.8%
Capsugel Finance Co. SCA:
9.88%, 8/01/19(b)		200		294,393
9.88%, 8/01/19		100		147,197


10		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


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


Corporate Bonds	Par (000)		Value
Pharmaceuticals (concluded)
Elan Corp. Plc,
6.25%, 6/15/21(b)	USD	1,540	$	1,547,700
Jaguar Holding Co. II/Jaguar Merger Sub, Inc.,
9.50%, 12/01/19(b)		414		472,477
Valeant Pharmaceuticals International(b):
6.50%, 7/15/16		434		449,190
6.88%, 12/01/18		908		969,290
6.38%, 10/15/20		271		284,550
6.75%, 8/15/21		455		484,575
Warner Chilcott Co. LLC,
7.75%, 9/15/18		615		678,422

				5,327,794

Professional Services – 0.2%
La Financiere Atalian SA,
7.25%, 1/15/20	EUR	120		156,750
Truven Health Analytics, Inc.,
10.63%, 6/01/20(b)	USD	510		576,300

				733,050

Real Estate Investment Trusts (REITs) – 0.7%
Cantor Commercial Real Estate Co. LP,
7.75%, 2/15/18(b)		283		292,905
Felcor Lodging LP:
6.75%, 6/01/19		1,023		1,092,052
5.63%, 3/01/23		258		262,515
Host Hotels & Resorts LP,
2.50%, 10/15/29(b)(f)		120		169,125
iStar Financial, Inc.,
4.88%, 7/01/18		409		405,933

				2,222,530

Real Estate Management & Development – 2.4%
CBRE Services, Inc.,
6.63%, 10/15/20		335		361,800
Country Garden Holdings Co. Ltd.,
7.50%, 1/10/23(b)		200		203,500
Crescent Resources LLC/Crescent Ventures, Inc.,
10.25%, 8/15/17(b)		860		958,900
IVG Finance BV,
1.75%, 3/29/17	EUR	400		311,940
Realogy Corp.(b):
3.38%, 5/01/16	USD	339		336,458
7.88%, 2/15/19		2,355		2,584,612
7.63%, 1/15/20		505		571,912
9.00%, 1/15/20		335		389,438
Shea Homes LP,
8.63%, 5/15/19		1,405		1,594,675

				7,313,235

Road & Rail – 0.6%
The Hertz Corp.:
7.50%, 10/15/18		550		598,125
6.75%, 4/15/19		290		315,012
5.88%, 10/15/20		65		68,575
7.38%, 1/15/21		440		486,200
6.25%, 10/15/22		265		287,856
Watco Cos. LLC/Watco Finance Corp.,
6.38%, 4/01/23(b)		143		150,508

				1,906,276

Semiconductors & Semiconductor Equipment – 0.5%
NXP BV/NXP Funding LLC(b):
3.75%, 6/01/18		430		423,550
9.75%, 8/01/18		100		113,000
5.75%, 2/15/21		335		351,750
Spansion LLC,
7.88%, 11/15/17		580		603,200

				1,491,500

Software – 1.4%
IAC/InterActiveCorp,
4.75%, 12/15/22(b)		421		413,632
Igloo Holdings Corp.,
8.25%, 12/15/17(b)(g)		295		303,113
Infor US, Inc.,
9.38%, 4/01/19		1,750		1,973,125
Interface Security Systems Holdings, Inc.,
9.25%, 1/15/18(b)		149		155,705
Nuance Communications, Inc.,
5.38%, 8/15/20(b)		940		951,750
Sophia LP/Sophia Finance, Inc.,
9.75%, 1/15/19(b)		442		492,830

				4,290,155

Specialty Retail – 2.6%
Asbury Automotive Group, Inc.,
8.38%, 11/15/20		365		408,800
Claire’s Stores, Inc.(b):
9.00%, 3/15/191		869		977,625
7.75%, 6/01/20		332		336,150
CST Brands, Inc.,
5.00%, 5/01/23(b)		188		189,880
House of Fraser Funding Plc:
8.88%, 8/15/18(b)	GBP	285		458,794
8.88%, 8/15/18		221		355,766
Limited Brands, Inc.,
8.50%, 6/15/19	USD	785		964,569
Michaels Stores, Inc.,
7.75%, 11/01/18		234		253,890
New Academy Finance Co.,
8.00%, 6/15/18(b)(g)		216		222,480
Party City Holdings, Inc.,
8.88%, 8/01/20(b)		1,013		1,137,092
Penske Automotive Group, Inc.,
5.75%, 10/01/22(b)		317		334,039
QVC, Inc.(b):
7.50%, 10/01/19		625		688,165
7.38%, 10/15/20		290		320,445
Sally Holdings LLC:
6.88%, 11/15/19		545		604,269


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		11


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


Corporate Bonds	Par (000)		Value
Specialty Retail (concluded)
Sally Holdings LLC (concluded):
5.75%, 6/01/22	USD	512	$	538,880

				7,790,844

Textiles, Apparel & Luxury Goods – 0.4%
Levi Strauss & Co.,
6.88%, 5/01/22		440		487,850
Phillips-Van Heusen Corp.,
4.50%, 12/15/22		253		252,367
SIWF Merger Sub, Inc./Springs Industries, Inc.,
6.25%, 6/01/21(b)(d)		502		499,490

				1,239,707

Thrifts & Mortgage Finance – 0.0%
Radian Group, Inc.,
2.25%, 3/01/19(f)		70		98,000

Trading Companies & Distributors – 0.8%
Air Lease Corp.,
4.50%, 1/15/16		590		604,750
Ashtead Capital, Inc.,
6.50%, 7/15/22(b)		490		529,200
Doric Nimrod Air Finance Alpha Ltd.(b):
Series 2012-1, Class A, 5.13%, 11/30/24		616		655,769
Series 2012-1, Class B, 6.50%, 5/30/21		520		540,635

				2,330,354

Transportation Infrastructure – 0.2%
Aguila 3 SA,
7.88%, 1/31/18(b)		431		463,864

Wireless Telecommunication Services – 4.3%
Cricket Communications, Inc.,
7.75%, 10/15/20		594		592,515
Crown Castle International Corp.,
5.25%, 1/15/23		1,126		1,140,075
Digicel Group Ltd.,
8.25%, 9/30/20(b)		425		452,625
Digicel Ltd.,
6.00%, 4/15/21(b)		1,875		1,865,625
MetroPCS Wireless, Inc.,
6.63%, 11/15/20		508		543,560
NII Capital Corp.,
7.63%, 4/01/21		341		283,883
Phones4u Finance Plc:
9.50%, 4/01/18	GBP	100		157,835
9.50%, 4/01/18(b)		400		631,341
Softbank Corp.,
4.50%, 4/15/20(b)	USD	785		796,549
Sprint Capital Corp.,
6.88%, 11/15/28		1,247		1,247,000
Sprint Nextel Corp.(b):
9.00%, 11/15/18		2,745		3,328,312
7.00%, 3/01/20		1,705		1,918,125
				12,957,445

Total Corporate Bonds – 106.0%				318,708,410

Floating Rate Loan Interests(j)
Airlines – 1.0%
Delta Air Lines, Inc., Term Loan B,
5.00%, 4/20/17		393		397,092
Northwest Airlines, Inc.:
Term Loan, 2.30%, 3/10/17		642		593,997
Term Loan, 2.30%, 3/10/17		643		594,820
Term Loan, 1.68%, 9/10/18		535		472,729
Term Loan, 1.68%, 9/10/18		544		481,098
Term Loan, 1.68%, 9/10/18		539		477,042

				3,016,778

Auto Components – 1.1%
Federal-Mogul Corp.:
Term Loan B, 2.13%, 12/29/14		1,862		1,821,593
Term Loan C, 2.13%, 12/28/15		902		881,647
Schaeffler AG, Term Loan C,
4.25%, 1/27/17		580		587,006

				3,290,246

Building Products – 0.1%
Wilsonart International Holdings LLC, Term Loan B,
4.00%, 10/31/19		424		424,043

Capital Markets – 0.7%
American Capital Holdings, Inc., Term Loan,
5.50%, 8/22/16		941		952,762
Knight Capital Group, Inc., Term Loan B,
5.25%, 11/10/17		360		356,400
Nuveen Investments, Inc.:
Incremental Term Loan, 4.19%, 5/13/17		480		481,301
Second Lien Term Loan, 6.50%, 2/28/19		415		416,038

				2,206,501

Chemicals – 0.4%
INEOS US Finance LLC, 6 Year Term Loan,
4.00%, 5/04/18		379		378,547
US Coatings Acquisition, Inc.:
Term Loan, 4.75%, 2/03/20		705		710,026

				1,088,573


12		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


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


Floating Rate Loan Interests(j)	Par (000)		Value
Commercial Services & Supplies – 0.3%
AWAS Finance Luxembourg Sarl, Term Loan B,
3.50%, 6/10/16	USD	420	$	422,469
Catalent Pharma Solutions, Inc., Term Loan,
6.50%, 12/29/17		260		262,925
Spin Holdco, Inc., Term Loan B,
4.25%, 11/15/19		260		261,300

				946,694

Communications Equipment – 1.4%
Alcatel-Lucent USA, Inc.:
Term Loan C, 7.25%, 1/30/19		1,406		1,420,244
Term Loan D, 7.50%, 1/30/19	EUR	549		721,097
Avaya, Inc., Term Loan B5,
8.00%, 3/30/18	USD	126		120,106
Zayo Group, LLC, Term Loan B,
4.50%, 7/02/19		1,810		1,809,696

				4,071,143

Construction Materials – 0.4%
HD Supply, Inc., Senior Debt B,
4.50%, 10/12/17		1,082		1,089,555

Consumer Finance – 0.7%
Springleaf Financial Funding Co., Term Loan,
5.50%, 5/10/17		2,171		2,177,616

Containers & Packaging – 0.1%
Tekni-Plex, Inc., Term Loan B,
5.50%, 8/25/19		265		263,675

Diversified Consumer Services – 0.2%
Laureate Education, Inc., Extended Term Loan,
5.25%, 6/18/18		143		143,593
ServiceMaster Co., Term Loan,
4.25%, 1/31/17		464		463,749

				607,342

Diversified Telecommunication Services – 0.8%
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16		328		331,223
2019 Term Loan B, 5.25%, 8/01/19		270		273,545
Term Loan, 4.75%, 8/01/19		1,750		1,762,583

				2,367,351

Energy Equipment & Services – 0.2%
Dynegy Holdings, Inc., Term Loan B2,
4.00%, 4/23/20		595		596,362

Food & Staples Retailing – 0.3%
JC Penney Corp., Inc., First Lien Term Loan,
6.00%, 4/30/18		730		739,585
Rite Aid Corp., Second Lien Term Loan,
5.75%, 8/21/20		110		113,414

				852,999

Food Products – 0.1%
Advance Pierre Foods, Inc., Term Loan,
5.75%, 7/10/17		214		215,736

Health Care Equipment & Supplies – 0.5%
Bausch & Lomb, Inc., Term Loan B,
4.00%, 5/17/19		382		382,511
Capital Safety North America Holding, Inc., Term Loan,
4.50%, 1/21/19		757		758,788
LHP Hospital Group, Inc., Term Loan,
9.00%, 7/03/18		283		288,520

				1,429,819

Health Care Providers & Services – 0.2%
Genesis HealthCare Corp., Term Loan B,
10.00% – 10.75%, 9/25/17		237		244,286
inVentiv Health, Inc., Combined Term Loan,
7.50%, 8/04/16		368		363,550

				607,836

Hotels, Restaurants & Leisure – 3.1%
Harrah’s Property Co., Mezzanine Term Loan,
3.69%, 2/13/14		7,233		6,600,478
MGM Resorts International, Term Loan B,
3.50%, 12/20/19		1,177		1,179,498
Station Casinos, Inc., Term Loan B,
5.00%, 3/01/20		1,005		1,014,296
Travelport LLC:
Second Lien PIK Term Loan 2, 8.38%, 12/01/16		441		437,593
Second Lien Term Loan 1, 9.50%, 1/29/16		106		110,325

				9,342,190

Industrial Conglomerates – 0.2%
Sequa Corp., Term Loan B,
5.25%, 6/19/17		580		585,714

Insurance – 0.1%
Alliant Holdings I, Inc., Term Loan B,
5.00%, 12/20/19		339		340,846

IT Services – 0.3%
Ceridian Corp., Extended Term Loan,
5.94%, 5/09/17		68		68,580
First Data Corp., Extended 2018 Term Loan B,
4.20%, 3/23/18		785		781,405

				849,985

Life Sciences Tools & Services – 0.1%
Patheon, Inc., Term Loan,
7.25%, 12/06/18		204		206,525


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		13


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


Floating Rate Loan Interests(j)	Par (000)		Value
Machinery – 0.6%
Rexnord LLC, Term Loan B,
3.75%, 4/02/18	USD	494	$	499,067
Silver II US Holdings LLC, Term Loan,
4.00%, 12/13/19		1,436		1,436,427

				1,935,494

Media – 3.4%
Cengage Learning Acquisitions, Inc.:
Non Extended Term Loan, 2.70%, 7/03/14		321		251,884
Tranche 1 Incremental, 7.50%, 7/03/14		1,602		1,258,615
Clear Channel Communications, Inc.:
Term Loan B, 3.84%, 1/29/16		336		311,832
Term Loan C, 3.84%, 1/29/16		100		92,617
Term Loan D, 3.84%, 1/30/19		1,287		1,201,406
EMI Music Publishing Ltd., Term Loan B,
4.25%, 6/29/18		433		435,396
Getty Images, Inc., Term Loan B,
4.75%, 10/18/19		411		413,038
Intelsat Jackson Holdings SA, Term Loan B1,
4.25%, 4/02/18		5,433		5,465,352
Interactive Data Corp., Term Loan B,
3.75%, 2/11/18		409		409,986
Univision Communications, Inc., Converted Extended Term Loan,
4.50%, 3/02/20		248		247,153
Virgin Media Investment Holdings, Term Loan B,
3.50%, 2/14/20		120		119,768

				10,207,047

Metals & Mining – 1.1%
Constellium Holdco BV, Term Loan B,
6.25%, 3/25/20		890		904,463
FMG America Finance, Inc., Term Loan,
5.25%, 10/18/17		2,269		2,278,922

				3,183,385

Oil, Gas & Consumable Fuels – 1.5%
Chesapeake Energy Corp., Unsecured Term Loan,
5.75%, 12/01/17		2,225		2,279,357
Obsidian Natural Gas Trust, Term Loan,
7.00%, 11/02/15		760		764,165
Samson Investment Co., Second Lien Term Loan,
6.00%, 9/25/18		235		236,234
Vantage Drilling Co.:
Term Loan, 6.25%, 10/26/17		876		883,905
Term Loan B, 5.75%, 3/28/19		370		374,318

				4,537,979

Pharmaceuticals – 0.7%
Aptalis Pharma, Inc., Term Loan B,
5.50%, 2/10/17		978		980,354
Par Pharmaceutical, Term Loan B,
4.25%, 9/30/19		726		727,074
Pharmaceutical Product Development, Inc., Term Loan B,
4.25%, 12/05/18		311		312,840

				2,020,268

Professional Services – 0.1%
Truven Health Analytics, Inc., Term Loan B,
4.50%, 6/01/19		372		372,809

Real Estate Investment Trusts (REITs) – 0.2%
iStar Financial, Inc., Term Loan,
4.50%, 9/28/17		714		721,161

Real Estate Management & Development – 0.2%
Realogy Corp.:
Extended Letter of Credit, 4.45%, 10/10/16		93		93,692
Extended Term Loan, 4.50%, 3/05/20		660		665,914

				759,606

Road & Rail – 0.1%
Genesee & Wyoming, Inc., Term Loan A,
2.19%, 9/29/17		280		280,706

Software – 0.6%
GCA Services Group, Inc., Second Lien Term Loan,
9.25%, 10/22/20		60		60,900
Infor US, Inc., Term Loan B2,
5.25% – 6.25%, 4/05/18		1,226		1,237,398
Kronos, Inc., Second Lien Term Loan,
9.75%, 4/30/20		515		538,175

				1,836,473

Specialty Retail – 0.2%
David’s Bridal, Inc., Term Loan B,
5.00%, 10/11/19		544		546,807

Textiles, Apparel & Luxury Goods – 0.5%
Ascend Performance Materials LLC, Term Loan B,
6.75%, 4/10/18		1,129		1,134,243
PVH Corp., Term Loan B,
3.25%, 2/13/20		440		441,870

				1,576,113

Thrifts & Mortgage Finance – 0.2%
Ocwen Financial Corp., Term Loan,
5.00%, 2/15/18		610		617,119

Wireless Telecommunication Services – 1.1%
Vodafone Americas Finance 2, Inc.(g):
PIK Term Loan, 6.88%, 8/11/15		1,938		1,962,400


14		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


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


Floating Rate Loan Interests(j)	Par (000)		Value
Wireless Telecommunication Services (concluded)
Vodafone Americas Finance 2, Inc.(g) (concluded):
Term Loan B, 6.25%, 7/11/16	USD	1,341	$	1,374,141
				3,336,541

Total Floating Rate Loan Interests – 22.8%				68,509,037


Investment Companies	Shares
Exchange-Traded Fund – 0.8%
iShares iBoxx $ High Yield Corporate Bond Fund(a)(l)		26,548		2,466,840


Municipal Bonds	Par (000)
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co., Project:
5.00%, 12/01/19	USD	340		350,261
5.50%, 12/01/22		110		114,546
5.25%, 12/01/25		75		77,197

Total Municipal Bonds – 0.2%				542,004


Other Interests(m)	Beneficial Interest (000)
Auto Components – 0.0%
Lear Corp. Escrow		460		4,600

Chemicals – 0.0%
Wellman Holdings, Inc., Litigation Trust Certificate		2,830		28

Hotels, Restaurants & Leisure – 0.0%
Buffets, Inc.		575		6

Media – 0.0%
Adelphia Preferred Escrow(a)		750		7
Adelphia Recovery Trust		941		7,525
				7,532

Total Other Interests – 0.0%				12,166


Preferred Securities	Par (000)
Capital Trusts
Media – 0.0%
NBCUniversal Enterprise, Inc., 5.25%(b)(k)		100		99,921


Preferred Stocks	Shares
Auto Components – 1.5%
Dana Holding Corp.,
4.00%(b)(f)		28,400		4,524,475


Trust Preferreds
Diversified Financial Services – 1.2%
GMAC Capital Trust I, Series 2,
8.13%, 2/15/40(j)		139,870		3,709,134

Total Preferred Securities – 2.7%				8,333,530


Warrants(n)
Containers & Packaging – 0.0%
MDP Acquisitions Plc (Issued/Exercisable 12/31/02, 3 Shares for 1 Warrant, Expires 10/01/13, Strike Price EUR 0.001)		700		60,641

Health Care Providers & Services – 0.0%
HealthSouth Corp. (Expires 1/16/14)		32,042		–

Media – 0.0%
New Vision Holdings LLC:
(Expires 9/30/14)		3		6,294
(Expires 9/30/14)		19		29,086

				35,380

Metals & Mining – 0.0%
Peninsula Energy Ltd. (Expires 12/31/15)		3,966,632		45,555


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		15


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


Warrants(n)	Shares		Value
Real Estate Investment Trusts (REITs) – 0.0%
Pepper Residential Securities Trust (Expires 12/31/15)		2,343,076	$	14,352

Software – 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)		334		–
HMH Holdings/EduMedia (Issued/Exercisable 3/09/10, 19 Shares for 1 Warrant, Expires 6/22/19, Strike Price $42.27)		1,164		–
				–

Total Warrants – 0.0%				155,928

Total Long-Term Investments (Cost – $419,928,919*) – 143.6%				431,992,297


Short-Term Securities
Money Market Funds – 1.0%
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.05% (l)(o)		3,035,581		3,035,581

Total Short-Term Securities (Cost – $3,035,581) – 1.0%				3,035,581


Options Purchased
(Cost – $18,578) – 0.0%				–

Total Investments Before Options Written (Cost – $422,983,078) – 144.6%				435,027,878


Options Written
(Premiums Received – $106,920) – (0.0)%				(117,546	)

Total Investments, Net of Options Written – 144.6%				434,910,332
Liabilities in Excess of Other Assets – (44.6)%				(134,125,508	)

Net Assets – 100.0%			$	300,784,824

*	As of May 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


Tax cost	$	424,482,891

Gross unrealized appreciation	$	23,847,963
Gross unrealized depreciation		(13,302,976	)

Net unrealized appreciation	$	10,544,987

Notes to Consolidated Schedule of Investments

(a)	Non-income producing security.

(b)	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.

(c)	All or a portion of security has been pledged as collateral in connection with swaps.

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


Counterparty	Value		Unrealized Appreciation (Depreciation)
Credit Suisse Group AG	$	1,497,440	$	(26,355	)
JP Morgan Chase & Co	$	499,490	$	(1,072	)
Goldman Sachs Group, Inc	$	738,750	$	(11,250	)

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

(f)	Convertible security.

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

(h)	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.

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

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

(k)	Security is perpetual in nature and has no stated maturity date.


16		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund III, Inc. (CYE)

(l)	Investments in issuers considered to be an affiliate of the Fund during the period ended May 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at February 28, 2013		Net Activity		Shares Held at May 31, 2013		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		2,103,451		932,130		3,035,581	$	258

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

(n)	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.

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

Portfolio Abbreviations


To simplify the listings of portfolio holdings in the Consolidated Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:	AUD	Australian Dollar
	CAD	Canadian Dollar
	EBITDA	Earnings Before Interest, Taxes, Depreciation and Amortization
	EUR	Euro
	FKA	Formerly Known As
	GBP	British Pound
	PIK	Payment-in-Kind
	RB	Revenue Bonds
	USD	US Dollar

•	Foreign currency exchange contracts as of May 31, 2013 were as follows:


Currency Purchased		Currency Sold			Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	526,923		AUD	506,097	UBS AG		7/17/13	$	44,050
USD	4,442,951		CAD	4,535,000	Barclays Plc		7/17/13		73,222
USD	8,233,293		GBP	5,378,000	Barclays Plc		7/17/13		64,332
USD	151,867		GBP	101,000	Citigroup, Inc.		7/17/13		(1,548	)
USD	302,738		GBP	195,000	Deutsche Bank AG		7/17/13		6,541
USD	155,338		GBP	100,000	Goldman Sachs Group, Inc.		7/17/13		3,442
EUR	628,000		USD	809,925	Citigroup, Inc.		7/23/13		6,540
USD	891,422		EUR	681,000	Bank of America Corp.		7/23/13		6,050
USD	20,161,023		EUR	15,445,000	Barclays Plc		7/23/13		80,906
USD	560,122		EUR	425,000	BNP Paribas SA		7/23/13		7,578
USD	129,777		EUR	100,000	Goldman Sachs Group, Inc.		7/23/13		(234	)
USD	13,099		EUR	10,000	Goldman Sachs Group, Inc.		7/23/13		98
USD	173,225		EUR	133,000	Goldman Sachs Group, Inc.		7/23/13		312

Total								$	291,289


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		17


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund III, Inc. (CYE)

•

Over-the-counter options purchased as of May 31, 2013 were as follows:

Description

Counterparty

Put/
Call

Strike
Price

Expiration
Date

Contracts

Market
Value

Marsico Parent Superholdco LLC

Goldman Sachs Group, Inc.

Call

USD

942.86

12/14/19

–

•

Over-the-counter credit default swaptions written as of May 31, 2013 were as follows:

Description

Counterparty

Put/
Call

Strike
Price

Pay/
Receive
Floating
Rate
Index

Floating

Rate

Index

Credit
Rating ¹

Expiration
Date

Notional Amount
(000) ²

Market
Value

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Call

USD103.50

Receive

Dow Jones CDX North America High Yield, Series 19, Version 1

B+

6/19/13

USD

(4,400)

(117,228

)

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Put

USD97.50

Pay

Dow JonesCDX NorthAmericaHigh Yield, Series 19, Version 1

B+

6/19/13

USD

(4,400)

(318

)

Total

(117,546

)

•

Credit default swaps - sold protection outstanding as of May 31, 2013 were as follows:


Issuer	Receive Fixed Rate			Counterparty	Expiration Date		Credit Rating ³	Notional Amount (000) ²			Unrealized Appreciation (Depreciation)
Caesars Entertainment Operating Co., Inc.		5.00	%	JPMorgan Chase & Co.		12/20/15	CCC-		USD	76	$	3,967
Caesars Entertainment Operating Co., Inc.		5.00	%	JPMorgan Chase & Co.		12/20/15	CCC-		USD	274		25,940
ARAMARK Corp.		5.00	%	Goldman Sachs Group, Inc.		3/20/16	B-		USD	500		39,834
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		3/20/16	CCC-		USD	110		534
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		3/20/16	CCC-		USD	110		534
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		3/20/16	CCC-		USD	324		(2,416	)
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		3/20/16	CCC-		USD	76		(1,490	)
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		3/20/16	CCC-		USD	367		(24,080	)


18		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund III, Inc. (CYE)

•

Credit default swaps - sold protection outstanding as of May 31, 2013 were as follows (concluded):


Issuer	Receive Fixed Rate			Counterparty	Expiration Date		Credit Rating ³	Notional Amount (000) ²			Unrealized Appreciation (Depreciation)
Caesars Entertainment Operating Co., Inc.		5.00	%	JPMorgan Chase & Co.		3/20/16	CCC-		USD	44	$	(1,441	)
ARAMARK Corp.		5.00	%	Goldman Sachs Group, Inc.		6/20/16	B-		USD	300		26,727
ARAMARK Corp.		5.00	%	Goldman Sachs Group, Inc.		6/20/16	B-		USD	300		25,391
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		6/20/16	CCC-		USD	225		(4,321	)
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		6/20/16	CCC-		USD	430		(11,958	)
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		6/20/16	CCC-		USD	767		(18,512	)
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		6/20/16	CCC-		USD	124		(8,595	)
ARAMARK Corp.		5.00	%	Credit Suisse AG		9/20/16	B-		USD	125		14,249
ARAMARK Corp.		5.00	%	Deutsche Bank AG		3/20/17	B-		USD	200		15,972
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		3/20/17	CCC-		USD	202		(13,040	)
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		3/20/17	CCC-		USD	242		(6,740	)
Caesars Entertainment Operating Co., Inc.		5.00	%	Goldman Sachs Group, Inc.		3/20/17	CCC-		USD	141		(6,445	)
Crown Castle International Corp.		7.25	%	Deutsche Bank AG		3/20/17	B-		USD	470		94,792
CCO Holdings LLC		8.00	%	Deutsche Bank AG		9/20/17	BB-		USD	1,600		370,931
Level 3 Communications, Inc.		5.00	%	Goldman Sachs Group, Inc.		6/20/19	CCC+		USD	1,000		124,281

Total											$	644,114

¹	Using Standard & Poor’s (“S&P”) rating of the underlying securities of the indexes.

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

³	Using S&P’s rating of the issuer.

•

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.


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		19


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund III, Inc. (CYE)

•

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 or 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 fair value hierarchy classification 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, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of May 31, 2013:


	Level 1		Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks	$	25,760,855	$	2,374,778		$	5,128,749	$	33,264,382
Corporate Bonds		–		315,226,530			3,481,880		318,708,410
Floating Rate Loan Interests		–		58,744,215			9,764,822		68,509,037
Investment Companies		2,466,840		–			–		2,466,840
Municipal Bonds		–		542,004			–		542,004
Other Interests		7,525		–			4,641		12,166
Preferred Securities		3,709,134		4,624,396			–		8,333,530
Warrants		45,555		60,641			49,732		155,928
Short-Term Securities		3,035,581		–			–		3,035,581

Total	$	35,025,490	$	381,572,564		$	18,429,824	$	435,027,878


	Level 1		Level 2			Level 3		Total
Derivative Financial Instruments ¹
Assets:
Credit contracts		–	$	743,152			–	$	743,152
Foreign currency exchange contracts		–		293,071			–		293,071
Liabilities:
Credit contracts		–		(216,584	)		–		(216,584	)
Foreign currency exchange contracts		–		(1,782	)		–		(1,782	)

Total		–	$	817,857			–	$	817,857

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


20		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


Consolidated Schedule of Investments (continued)		BlackRock Corporate High Yield Fund III, Inc. (CYE)

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of May 31, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:


	Level 1		Level 2			Level 3		Total
Assets:
Foreign currency at value	$	136,364		–				$	136,364
Cash pledged as collateral for swaps		170,000		–			–		170,000
Liabilities:
Bank overdraft			$	(43,902	)				(43,902	)
Loan payable		–		(127,000,000	)		–		(127,000,000	)
Cash received as collateral for swaps		–		(500,000	)		–		(500,000	)

Total	$	306,364	$	(127,543,902	)		–	$	(127,237,538	)

There were no transfers between Level 1 and Level 2 during the period ended May 31, 2013.

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:


	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests			Warrants			Total
Assets/Liabilities:
Opening Balance, as of February 28, 2013	$	5,113,705		$	4,368,858		$	14,775,855		$	11,542		$	75,505		$	24,345,465
Transfers into Level 3 ¹		–			–			652,125			–			–			652,125
Transfers out of Level 3 ²		(770	)		(505,856	)		(2,678,827	)		–			–			(3,185,453	)
Accrued discounts/ premiums		–			1,413			5,403			–			–			6,816
Net realized gain (loss)		–			(3,221	)		181,046			–			1,121			178,946
Net change in unrealized appreciation/depreciation ³		15,814			14,122			(49,106	)		(6,901	)		(26,894	)		(52,965	)
Purchases		–			6,085			1,045,303			–			–			1,051,388
Sales		–			(399,521	)		(4,166,977	)		–			–			(4,566,498	)

Closing Balance, as of May 31, 2013	$	5,128,749		$	3,481,880		$	9,764,822		$	4,641		$	49,732		$	18,429,824

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

Transfers into and transfers out of Level 3 represent the values as of the beginning of the reporting period. As of February 28, 2013, the Fund used significant unobservable inputs in determining the value of certain investments. As of May 31, 2013, the Fund used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $3,185,453 transferred from Level 3 to Level 2 in the disclosure hierarchy.

³	The change in unrealized appreciation/depreciation on investments still held as of May 31, 2013 was $(37,236).


		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013		21


Consolidated Schedule of Investments (concluded)		BlackRock Corporate High Yield Fund III, Inc. (CYE)

The following table summarizes the valuation techniques used and unobservable inputs utilized 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 May 31, 2013. The table does not include Level 3 investments with values based upon unadjusted third party pricing information. Level 3 investments valued using third party pricing information was $10,844,079. A significant change in such third party pricing information could result in a significantly lower or higher value of such Level 3 investments.


	Value		Valuation Techniques	Unobservable Inputs ¹	Range of Unobservable Inputs Utilized
Assets:
Common Stocks ²	$	211,916	Market Comparable Companies	Forecasted EBITDA Multiple	3.50x
		2,300,683	Market Comparable Companies	Enterprise Value/Oil Barrel Multiple	CAD ³ 0.37x - 0.47x
		1,829,549	Market Comparable Companies	Offshore EBITDA Multiple	8.75x
			Market Comparable Companies	Onshore EBITDA Multiple	4.75x
Corporate Bonds ⁴		875,000	Market Comparable Companies	Last 12 Months EBITDA Multiple	10.00x
		600,000	Cost ⁵	N/A	–
		1,076,285	Market Comparable Companies	Yield	12.10%
		642,581	Discounted Cashflow	Yield	12.00%
Warrants		35,379	Estimated Recovery Value	Recovery Rate	$1.36 - $1.63
		14,352	Black-Scholes	Implied Volatility	75%

Total	$	7,585,745

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
Forecasted EBITDA Multiple	Increase	Decrease
Enterprise Value/Oil Barrel Multiple	Increase	Decrease
Offshore EBITDA Multiple	Increase	Decrease
Onshore EBITDA Multiple	Increase	Decrease
Yield	Decrease	Increase
Last 12 Months EBITDA Multiple	Increase	Decrease
Recovery Rate	Increase	Decrease
Implied Volatility	Increase	Decrease

For the period ended May 31, 2013, the valuation technique for certain investments classified as common stocks changed to a market approach. The investment was previously valued using the company’s financial restructuring plan. Market information became available for this investment, therefore, the market approach is considered to be a more relevant measure of fair value for this investment.

³	Canadian Dollar.

⁴

For the period ended May 31, 2013, the valuation technique for certain investments classified as corporate bonds changed to a market approach. The investment was previously valued using acquisition cost. Market information became available for this investment which is considered to be a more relevant measure of fair value for this investment.

⁵

The Fund fair values certain of its Level 3 investments using acquisition cost, although the transaction may not have occurred during the current reporting period. 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.


22		BLACKROCK CORPORATE HIGH YIELD FUND III, INC.		MAY 31, 2013


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.

Date: July 25, 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.

Date: July 25, 2013

Date: July 25, 2013

Blackrock Corporate High Yield Fund Iii, Inc. (NYSE:CYE)
Historical Stock Chart
From May 2024 to Jun 2024

Click Here for more Blackrock Corporate High Yield Fund Iii, Inc. Charts.

Blackrock Corporate High Yield Fund Iii, Inc. (NYSE:CYE)
Historical Stock Chart
From Jun 2023 to Jun 2024

BlackRock Corporate High Yield Fund III, Inc.

/s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Corporate High Yield Fund III, Inc.