Edgar Filing: BLACKROCK CORPORATE HIGH YIELD FUND III, INC.

BlackRock Corporate High Yield III

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: 02/28/2013

Date of reporting period: 11/30/2012

Item 1 – Schedule of Investments

Consolidated Schedule of Investments November 30, 2012 (Unaudited)

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

(Percentages shown are based on Net Assets)


	Shares		Value
Common Stocks
Auto Components — 0.9%
Dana Holding Corp.		66,400	$	941,552
Delphi Automotive Plc (a)		45,708		1,553,601
				2,495,153
Biotechnology — 0.0%
Ironwood Pharmaceuticals, Inc. (a)		7,130		77,004
Capital Markets — 0.7%
American Capital Ltd. (a)		112,659		1,349,655
E*Trade Financial Corp. (a)		74,600		628,132
Uranium Participation Corp. (a)		35,440		181,597
				2,159,384
Chemicals — 0.2%
ADA-ES, Inc. (a)		1,820		29,757
Huntsman Corp.		28,000		460,320
				490,077
Commercial Banks — 0.5%
CIT Group, Inc. (a)		39,377		1,458,918
Communications Equipment — 0.4%
Loral Space & Communications Ltd.		12,778		1,087,025
Diversified Financial Services — 0.7%
Kcad Holdings I Ltd.		281,902,800		2,118,218
Diversified Telecommunication Services — 0.2%
Broadview Networks Holdings, Inc. (a)		33,638		225,035
Level 3 Communications, Inc. (a)		22,280		420,201
				645,236
Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)		70,784		212
Energy Equipment & Services — 0.9%
Laricina Energy Ltd. (a)		35,294		1,510,037
Osum Oil Sands Corp. (a)		82,000		1,031,862
				2,541,899
Health Care Providers & Services — 0.0%
Health Management Associates, Inc., Class A (a)		12,600		100,170
Hotels, Restaurants & Leisure — 0.0%
Travelport Worldwide Ltd.		76,940		10,002
Insurance — 0.7%
American International Group, Inc. (a)		61,659		2,042,763
Media — 1.5%
Belo Corp., Class A		23,782		171,231
Charter Communications, Inc., Class A (a)		58,545		4,147,913


	Shares		Value
Common Stocks
Media (concluded)
Clear Channel Outdoor Holdings, Inc., Class A (a)		9,964	$	64,766
				4,383,910
Metals & Mining — 0.1%
African Minerals Ltd. (a)		47,050		186,616
Oil, Gas & Consumable Fuels — 0.1%
African Petroleum Corp. Ltd. (a)		196,300		227,393
Paper & Forest Products — 0.4%
Ainsworth Lumber Co. Ltd. (a)		122,117		399,537
Ainsworth Lumber Co. Ltd. (a)(b)		140,415		459,404
Western Forest Products, Inc. (a)		158,023		182,943
Western Forest Products, Inc. (a)		45,762		52,978
				1,094,862
Semiconductors & Semiconductor Equipment — 0.3%
Spansion, Inc., Class A (a)		64,237		752,858
SunPower Corp.		271		1,246
				754,104
Software — 0.1%
Bankruptcy Management Solutions, Inc. (a)		501		10
HMH Holdings/EduMedia (a)		20,718		414,357
				414,367
Wireless Telecommunication Services — 0.2%
MetroPCS Communications, Inc. (a)		45,260		482,019
Total Common Stocks – 7.9%				22,769,332


	Par (000)
Corporate Bonds
Aerospace & Defense — 0.8%
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18	USD	230		246,675
7.13%, 3/15/21		295		318,969
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		846		922,140
Meccanica Holdings USA, Inc., 6.25%, 7/15/19 (b)		535		519,161
Spirit Aerosystems, Inc., 7.50%, 10/01/17		337		360,590
				2,367,535
Air Freight & Logistics — 0.4%
National Air Cargo Group, Inc.: Series 1, 12.38%, 9/02/15		575		579,256



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	1

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Air Freight & Logistics (concluded)
National Air Cargo Group, Inc. (concluded):
Series 2, 12.38%, 8/16/15	USD	582	$	586,228
				1,165,484
Airlines — 1.5%
American Airlines Pass- Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23		672		685,638
Continental Airlines, Inc. Pass-Through Trust:
Series 1997-4, Class B, 6.90%, 7/02/18 (c)		278		281,508
Series 2010-1, Class B, 6.00%, 7/12/20		444		453,924
Delta Air Lines Pass-Through Trust:
Series 2002-1, Class G-1, 6.72%, 7/02/24		611		671,907
Series 2009-1, Class B, 9.75%, 6/17/18		192		215,077
Series 2010-1, Class B, 6.38%, 7/02/17		500		520,000
US Airways Pass-Through Trust:
Series 2011-1, Class C, 10.88%, 10/22/14		566		587,419
Series 2012-1, Class A, 6.75%, 12/03/22 (d)		500		500,000
Series 2012-1, Class C, 9.13%, 10/01/15		450		468,000
				4,383,473
Auto Components — 2.0%
Continental Rubber of America Corp., 4.50%, 9/15/19 (b)		150		151,500
Dana Holding Corp., 6.75%, 2/15/21		450		481,500
Delphi Corp., 6.13%, 5/15/21		170		187,850
Icahn Enterprises LP:
4.00%, 8/15/13 (b)(e)(f)		255		256,607
8.00%, 1/15/18		2,805		2,980,312
IDQ Holdings, Inc., 11.50%, 4/01/17 (b)		380		410,400
Jaguar Land Rover Plc, 8.25%, 3/15/20	GBP	482		849,460
Titan International, Inc., 7.88%, 10/01/17	USD	465		489,413
				5,807,042
Beverages — 0.2%
Crown European Holdings SA:
7.13%, 8/15/18	EUR	138		197,424
7.13%, 8/15/18 (b)		198		283,260
				480,684


	Par (000)		Value
Corporate Bonds
Building Products — 0.9%
Building Materials Corp. of America (b):
7.00%, 2/15/20	USD	530	$	577,700
6.75%, 5/01/21		790		865,050
Grohe Holding GmbH, 8.75%, 12/15/17 (e)	EUR	100		134,282
Momentive Performance Materials, Inc., 8.88%, 10/15/20 (b)	USD	350		347,375
USG Corp., 9.75%, 1/15/18		610		680,150
				2,604,557
Capital Markets — 0.9%
E*Trade Financial Corp.:
12.50%, 11/30/17		1,070		1,204,124
1.74%, 8/31/19 (b)(f)(g)		244		217,160
Series A, 1.74%, 8/31/19 (f)(g)		7		6,230
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)		650		761,175
Nuveen Investments, Inc., 9.13%, 10/15/17 (b)		473		469,453
				2,658,142
Chemicals — 3.5%
Basell Finance Co. BV, 8.10%, 3/15/27 (b)		420		567,000
Celanese US Holdings LLC, 5.88%, 6/15/21		1,655		1,849,462
Ciech Group Financing AB, 9.50%, 11/30/19	EUR	160		216,674
Hexion US Finance Corp., 6.63%, 4/15/20	USD	60		59,850
Huntsman International LLC, 8.63%, 3/15/21		170		192,525
INEOS Finance Plc, 7.50%, 5/01/20 (b)		370		382,025
Kinove German Bondco GmbH, 10.00%, 6/15/18	EUR	342		482,595
Kraton Polymers LLC, 6.75%, 3/01/19	USD	125		129,063
LyondellBasell Industries NV, 5.75%, 4/15/24		2,610		3,132,000
Nexeo Solutions LLC, 8.38%, 3/01/18		185		175,750
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)		225		232,875
PolyOne Corp., 7.38%, 9/15/20		215		233,275
Rockwood Specialties Group, Inc., 4.63%, 10/15/20		385		393,663
TPC Group LLC, 8.25%, 10/01/17		335		371,850
Tronox Finance LLC, 6.38%, 8/15/20 (b)		1,760		1,733,600
				10,152,207



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	2

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Commercial Banks — 0.7%
CIT Group, Inc.:
5.25%, 3/15/18	USD	550	$	583,687
5.50%, 2/15/19 (b)		530		564,450
5.00%, 8/15/22		480		503,264
6.00%, 4/01/36		550		498,721
				2,150,122
Commercial Services & Supplies — 2.2%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)		279		291,555
ARAMARK Holdings Corp., 8.63%, 5/01/16 (b)(h)		440		451,004
Aviation Capital Group Corp., 6.75%, 4/06/21 (b)		540		560,471
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)		102		107,407
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)		25		25,625
Casella Waste Systems, Inc., 7.75%, 2/15/19		333		320,513
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (b)		622		628,220
Clean Harbors, Inc.:
5.25%, 8/01/20		528		542,520
5.13%, 6/01/21 (b)(d)		225		230,063
Covanta Holding Corp., 6.38%, 10/01/22		635		688,599
EC Finance Plc, 9.75%, 8/01/17	EUR	503		706,511
HDTFS, Inc. (b):
5.88%, 10/15/20	USD	90		92,925
6.25%, 10/15/22		265		274,606
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (b)		76		78,850
Mobile Mini, Inc., 7.88%, 12/01/20		365		396,481
RSC Equipment Rental, Inc., 8.25%, 2/01/21		468		524,160
Verisure Holding AB:
8.75%, 9/01/18	EUR	184		254,856
8.75%, 12/01/18		100		127,454
West Corp., 8.63%, 10/01/18	USD	135		139,388
				6,441,208
Communications Equipment — 1.4%
Avaya, Inc., 9.75%, 11/01/15		780		618,150
Frontier Communications Corp., 6.25%, 1/15/13		900		904,500
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20		950		1,037,875
10.13%, 7/01/20		1,270		1,422,400
				3,982,925
Computers & Peripherals — 0.3%
EMC Corp., 1.75%, 12/01/13 (f)		135		211,950
NCR Corp., 5.00%, 7/15/22 (b)		280		283,500


	Par (000)		Value
Corporate Bonds
Computers & Peripherals (concluded)
SanDisk Corp., 1.50%, 8/15/17 (f)	USD	285	$	317,063
				812,513
Construction & Engineering — 0.2%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (b)		200		198,000
H&E Equipment Services, Inc., 7.00%, 9/01/22 (b)		330		348,150
				546,150
Construction Materials — 2.1%
Buzzi Unicem SpA, 6.25%, 9/28/18	EUR	138		188,611
HD Supply, Inc. (b):
8.13%, 4/15/19	USD	1,545		1,741,988
11.00%, 4/15/20		1,475		1,703,625
11.50%, 7/15/20		1,810		1,977,425
Xefin Lux SCA, 8.00%, 6/01/18 (b)	EUR	254		341,902
				5,953,551
Consumer Finance — 0.2%
Credit Acceptance Corp., 9.13%, 2/01/17	USD	445		486,163
Containers & Packaging — 1.6%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17	EUR	200		277,798
7.38%, 10/15/17 (b)		375		520,870
7.38%, 10/15/17 (b)	USD	200		217,750
9.13%, 10/15/20 (b)		395		424,625
9.13%, 10/15/20 (b)		409		441,720
Berry Plastics Corp.:
4.26%, 9/15/14 (e)		300		300,000
8.25%, 11/15/15		115		120,175
9.75%, 1/15/21		185		210,437
Beverage Packaging Holdings Luxembourg II SA, 8.00%, 12/15/16	EUR	706		922,780
GCL Holdings SCA, 9.38%, 4/15/18 (b)		267		367,648
Graphic Packaging International, Inc., 7.88%, 10/01/18	USD	375		414,375
OI European Group BV, 6.88%, 3/31/17	EUR	155		209,145
Tekni-Plex, Inc., 9.75%, 6/01/19 (b)	USD	180		194,400
				4,621,723
Distributors — 0.5%
VWR Funding, Inc., 7.25%, 9/15/17 (b)		1,374		1,418,655
Diversified Consumer Services — 2.0%
313 Group, Inc. (b):
6.38%, 12/01/19		627		617,595



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	3

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Diversified Consumer Services (concluded)
313 Group, Inc. (b) (concluded):
8.75%, 12/01/20	USD	597	$	586,552
Laureate Education, Inc., 9.25%, 9/01/19 (b)		1,250		1,275,000
Service Corp. International, 7.00%, 6/15/17		2,780		3,197,000
ServiceMaster Co., 8.00%, 2/15/20		190		193,325
				5,869,472
Diversified Financial Services — 5.2%
Aircastle Ltd.:
6.75%, 4/15/17		470		497,025
6.25%, 12/01/19 (b)		326		330,890
Ally Financial, Inc.:
7.50%, 12/31/13		280		296,450
8.00%, 11/01/31		2,608		3,312,160
Citigroup, Inc., 5.95% (e)(i)		250		254,375
CNG Holdings, Inc., 9.38%, 5/15/20 (b)		472		480,260
Co-Operative Group Ltd., 5.63%, 7/08/20 (j)	GBP	170		281,681
DPL, Inc., 7.25%, 10/15/21	USD	1,175		1,239,625
Gala Group Finance Plc, 8.88%, 9/01/18	GBP	600		982,919
General Motors Financial Co., Inc., 6.75%, 6/01/18	USD	300		338,202
Lehman Brothers Holdings, Inc. (a)(k):
5.38%, 10/17/12	EUR	150		45,883
4.75%, 1/16/14		760		232,476
1.00%, 2/05/14		1,600		484,221
1.00%, 9/22/18	USD	175		40,250
1.00%, 12/31/49		620		142,600
Leucadia National Corp., 8.13%, 9/15/15		825		932,250
Reynolds Group Issuer, Inc.:
7.75%, 10/15/16	EUR	209		281,329
7.13%, 4/15/19	USD	245		264,600
9.00%, 4/15/19		215		221,450
7.88%, 8/15/19		255		280,500
9.88%, 8/15/19		580		614,800
5.75%, 10/15/20 (b)		2,085		2,131,912
Serta Simmons Holdings LLC, 8.13%, 10/01/20 (b)		550		553,438
WMG Acquisition Corp.:
11.50%, 10/01/18		416		470,080
6.00%, 1/15/21 (b)		331		339,275
				15,048,651
Diversified Telecommunication Services — 2.4%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17		518		517,500
Cequel Communications Escrow 1 LLC/Cequel Communications Escrow Capital Corp., 6.38%, 9/15/20 (b)		475		488,063


	Par (000)		Value
Corporate Bonds
Diversified Telecommunication Services (concluded)
Consolidated Communications Finance Co., 10.88%, 6/01/20 (b)	USD	345	$	370,875
ITC Deltacom, Inc., 10.50%, 4/01/16		252		269,640
Level 3 Communications, Inc., 8.88%, 6/01/19 (b)		315		330,750
Level 3 Financing, Inc.:
8.13%, 7/01/19		1,180		1,262,600
7.00%, 6/01/20 (b)		434		441,595
8.63%, 7/15/20		845		918,937
OTE Plc, 7.25%, 2/12/15 (j)	EUR	101		121,504
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22		150		204,934
6.75%, 8/15/24		467		641,521
tw telecom holdings, Inc., 5.38%, 10/01/22 (b)	USD	300		310,500
Windstream Corp.:
8.13%, 8/01/13		460		478,400
7.88%, 11/01/17		393		435,248
				6,792,067
Electric Utilities — 0.7%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17		290		316,817
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR	1,300		1,707,040
				2,023,857
Electrical Equipment — 0.5%
Belden, Inc., 5.50%, 9/01/22 (b)	USD	370		374,625
General Cable Corp., 5.75%, 10/01/22 (b)		610		622,200
Techem GmbH, 6.13%, 10/01/19	EUR	300		412,600
				1,409,425
Electronic Equipment, Instruments & Components — 0.3%
Jabil Circuit, Inc., 8.25%, 3/15/18	USD	235		276,125
Micron Technology, Inc., Series C, 2.38%, 5/01/32 (b)(f)		261		241,099
NXP BV/NXP Funding LLC, 9.75%, 8/01/18 (b)		200		231,500
				748,724
Energy Equipment & Services — 3.7%
Atwood Oceanics, Inc., 6.50%, 2/01/20		140		149,450
Calfrac Holdings LP, 7.50%, 12/01/20 (b)		395		387,100
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17		250		260,000
6.50%, 6/01/21		1,255		1,317,750
Forbes Energy Services Ltd., 9.00%, 6/15/19		365		329,413



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	4

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Energy Equipment & Services (concluded)
FTS International Services LLC/FTS International Services, Inc., 8.13%, 11/15/18 (b)	USD	1,182	$	1,217,460
Gulfmark Offshore, Inc., 6.38%, 3/15/22 (b)		155		158,100
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20		315		322,875
Key Energy Services, Inc., 6.75%, 3/01/21		450		451,125
MEG Energy Corp. (b):
6.50%, 3/15/21		1,205		1,257,719
6.38%, 1/30/23		450		466,875
Oil States International, Inc., 6.50%, 6/01/19		320		340,000
Peabody Energy Corp.:
6.25%, 11/15/21		1,405		1,457,687
7.88%, 11/01/26		375		403,125
Precision Drilling Corp.:
6.63%, 11/15/20		75		79,125
6.50%, 12/15/21		295		308,275
Seadrill Ltd., 5.63%, 9/15/17 (b)		1,660		1,660,000
				10,566,079
Food & Staples Retailing — 0.3%
Bakkavor Finance 2 Plc, 8.25%, 2/15/18	GBP	327		512,115
Rite Aid Corp., 9.25%, 3/15/20	USD	375		382,500
				894,615
Food Products — 0.4%
Darling International, Inc., 8.50%, 12/15/18		115		131,819
Del Monte Corp., 7.63%, 2/15/19		61		62,677
Post Holdings, Inc., 7.38%, 2/15/22 (b)		520		555,750
Smithfield Foods, Inc., 6.63%, 8/15/22		477		505,620
				1,255,866
Health Care Equipment & Supplies — 2.1%
Biomet, Inc. (b):
6.50%, 8/01/20		1,523		1,591,535
6.50%, 10/01/20		2,161		2,139,390
DJO Finance LLC:
8.75%, 3/15/18 (b)		379		413,110
7.75%, 4/15/18		100		93,250
9.88%, 4/15/18 (b)		450		451,125
Fresenius Medical Care US Finance, Inc., 6.50%, 9/15/18 (b)		208		233,480
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)		540		622,350
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (b)		320		300,800


	Par (000)		Value
Corporate Bonds
Health Care Equipment & Supplies (concluded)
Teleflex, Inc., 6.88%, 6/01/19	USD	295	$	317,862
				6,162,902
Health Care Providers & Services — 7.8%
Aviv Healthcare Properties LP, 7.75%, 2/15/19		570		598,500
Care UK Health & Social Care Plc, 9.75%, 8/01/17	GBP	130		223,380
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18	USD	785		826,212
7.13%, 7/15/20		456		482,220
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (b)	EUR	494		693,870
Crown Newco 3 Plc:
7.00%, 2/15/18 (b)	GBP	364		612,342
7.00%, 2/15/18		100		168,226
DaVita HealthCare Partners, Inc., (FKA Davita, Inc.), 5.75%, 8/15/22	USD	893		933,185
HCA, Inc.:
8.50%, 4/15/19		135		151,538
6.50%, 2/15/20		2,045		2,295,512
7.88%, 2/15/20		95		106,756
7.25%, 9/15/20		2,410		2,687,150
5.88%, 3/15/22		220		239,250
4.75%, 5/01/23		730		737,300
Hologic, Inc., 6.25%, 8/01/20 (b)		1,897		2,015,562
IASIS Healthcare LLC, 8.38%, 5/15/19		1,538		1,453,410
INC Research LLC, 11.50%, 7/15/19 (b)		410		414,100
Omnicare, Inc., 7.75%, 6/01/20		1,005		1,111,781
PSS World Medical, Inc., 6.38%, 3/01/22		334		392,450
Symbion, Inc., 8.00%, 6/15/16		345		355,350
Tenet Healthcare Corp.:
10.00%, 5/01/18		839		956,460
6.25%, 11/01/18		330		363,000
8.88%, 7/01/19		2,624		2,938,880
6.75%, 2/01/20 (b)		525		532,219
4.75%, 6/01/20 (b)		761		766,708
Vanguard Health Holding Co. II LLC, 7.75%, 2/01/19 (b)		465		478,950
				22,534,311
Health Care Technology — 1.0%
IMS Health, Inc. (b):
12.50%, 3/01/18		2,225		2,631,062
6.00%, 11/01/20		143		147,648
				2,778,710
Hotels, Restaurants & Leisure — 4.5%
Affinity Gaming LLC/Affinity Gaming Finance Corp., 9.00%, 5/15/18 (b)		174		180,960



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	5

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Hotels, Restaurants & Leisure (concluded)
Caesars Entertainment Operating Co., Inc.:
11.25%, 6/01/17	USD	1,225	$	1,316,109
10.00%, 12/15/18		1,464		933,300
8.50%, 2/15/20 (b)		305		298,900
9.00%, 2/15/20 (b)		1,393		1,393,000
Carlson Wagonlit BV, 6.88%, 6/15/19 (b)		325		339,625
Cemex Finance LLC, 9.38%, 10/12/22 (b)		625		673,437
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18	EUR	480		596,172
Diamond Resorts Corp., 12.00%, 8/15/18	USD	1,190		1,285,200
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)		140		135,100
Enterprise Inns Plc, 6.50%, 12/06/18	GBP	324		477,154
Gategroup Finance Luxembourg SA, 6.75%, 3/01/19	EUR	265		360,155
Little Traverse Bay Bands of Odawa Indians, 9.00%, 8/31/20 (b)	USD	300		279,000
MGM Resorts International:
10.38%, 5/15/14		190		212,325
4.25%, 4/15/15 (f)		1,080		1,099,575
11.13%, 11/15/17		1,400		1,536,500
MTR Gaming Group, Inc., 11.50%, 8/01/19		151		158,288
Station Casinos LLC, 3.66%, 6/18/18		672		569,520
Travelport LLC:
5.04%, 9/01/14 (e)		180		126,900
9.88%, 9/01/14		40		31,400
9.00%, 3/01/16		120		84,600
6.31%, 12/01/16 (b)(e)(h)		426		315,224
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(k)		305		—
Wynn Las Vegas LLC, 5.38%, 3/15/22		620		657,200
				13,059,644
Household Durables — 2.3%
Algeco Scotsman Global Finance Plc, 9.00%, 10/15/18	EUR	100		133,957
Beazer Homes USA, Inc., 6.63%, 4/15/18 (b)	USD	50		53,250
Jarden Corp., 7.50%, 1/15/20	EUR	305		432,368
K Hovnanian Enterprises, Inc.:
6.00%, 12/01/17 (f)	USD	150		171,405
7.25%, 10/15/20 (b)		950		1,018,875
Libbey Glass, Inc., 6.88%, 5/15/20 (b)		610		652,700
PH Holding LLC, 9.75%, 12/31/17		345		338,100


	Par (000)		Value
Corporate Bonds
Household Durables (concluded)
Pulte Group, Inc., 6.38%, 5/15/33	USD	190	$	186,200
The Ryland Group, Inc., 6.63%, 5/01/20		340		378,250
Spie BondCo 3 SCA, 11.00%, 8/15/19	EUR	303		419,681
Standard Pacific Corp.:
10.75%, 9/15/16	USD	1,290		1,580,250
8.38%, 1/15/21		970		1,110,650
William Lyon Homes, Inc., 8.50%, 11/15/20 (b)		300		304,500
				6,780,186
Household Products — 0.9%
Ontex IV SA:
7.50%, 4/15/18	EUR	104		142,020
7.50%, 4/15/18 (b)		150		204,837
9.00%, 4/15/19		213		282,558
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20	USD	384		398,400
6.63%, 11/15/22		250		261,875
Spectrum Brands Holdings, Inc., 9.50%, 6/15/18		950		1,081,812
Spectrum Brands, Inc., 6.75%, 3/15/20 (b)		96		100,080
				2,471,582
Independent Power Producers & Energy Traders — 3.1%
The AES Corp., 7.38%, 7/01/21		275		304,563
Calpine Corp. (b):
7.25%, 10/15/17		162		173,340
7.50%, 2/15/21		90		99,450
7.88%, 1/15/23		401		447,115
Energy Future Holdings Corp., 10.00%, 1/15/20		1,440		1,530,000
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (b)		755		773,875
10.00%, 12/01/20		2,391		2,665,965
GenOn REMA LLC:
9.24%, 7/02/17		242		263,892
Series C 9.68%, 7/02/26		305		326,350
Laredo Petroleum, Inc.:
9.50%, 2/15/19		485		543,200
7.38%, 5/01/22		370		400,525
NRG Energy, Inc., 6.63%, 3/15/23 (b)		660		683,100
QEP Resources, Inc.:
5.38%, 10/01/22		333		351,315
5.25%, 5/01/23		255		267,750
				8,830,440
Industrial Conglomerates — 2.1%
Sequa Corp. (b):
11.75%, 12/01/15		2,170		2,245,950



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	6

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Industrial Conglomerates (concluded)
Sequa Corp. (b) (concluded):
13.50%, 12/01/15	USD	3,664	$	3,810,571
				6,056,521
Insurance — 0.9%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (b)		1,570		1,620,044
CNO Financial Group, Inc., 6.38%, 10/01/20 (b)		225		235,125
Genworth Financial, Inc., 7.63%, 9/24/21		430		464,493
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)		260		242,450
TMF Group Holding B.V., 9.88%, 12/01/19	EUR	100		131,843
				2,693,955
IT Services — 3.0%
Ceridian Corp., 8.88%, 7/15/19 (b)	USD	1,480		1,583,600
Epicor Software Corp., 8.63%, 5/01/19		570		594,225
First Data Corp.:
7.38%, 6/15/19 (b)		1,580		1,623,450
8.88%, 8/15/20 (b)		535		585,825
6.75%, 11/01/20 (b)		1,485		1,496,137
8.25%, 1/15/21 (b)		236		235,410
12.63%, 1/15/21		1,129		1,188,272
SunGard Data Systems, Inc.:
7.38%, 11/15/18		550		586,438
6.63%, 11/01/19 (b)		805		821,100
				8,714,457
Machinery — 1.5%
The Manitowoc Co., Inc., 5.88%, 10/15/22		475		475,000
SPX Corp., 6.88%, 9/01/17		175		196,000
Terex Corp., 6.00%, 5/15/21		535		555,062
UR Merger Sub Corp.:
5.75%, 7/15/18 (b)		257		276,918
7.38%, 5/15/20 (b)		440		480,700
7.63%, 4/15/22 (b)		1,997		2,211,677
6.13%, 6/15/23		190		195,225
				4,390,582
Media — 10.2%
Affinion Group, Inc., 7.88%, 12/15/18		815		652,000
AMC Networks, Inc., 7.75%, 7/15/21		225		255,375
Cablevision Systems Corp., 5.88%, 9/15/22		490		480,200
CCO Holdings LLC:
6.50%, 4/30/21		308		332,255
5.25%, 9/30/22		1,080		1,088,100


	Par (000)		Value
Corporate Bonds
Media (continued)
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (b)	USD	1,065	$	883,950
Checkout Holding Corp., 13.99%, 11/15/15 (b)(g)		670		448,900
Cinemark USA, Inc., 8.63%, 6/15/19		220		243,100
Clear Channel Communications, Inc., 9.00%, 12/15/19 (b)		766		694,188
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22 (b)		621		617,895
6.50%, 11/15/22 (b)		1,679		1,687,395
Series B, 7.63%, 3/15/20		1,127		1,104,460
Cox Enterprises, Inc.:
Loan Close 2, 12.00%, 8/15/18		688		687,919
Loan Close 3, 4.00%, 8/15/18		786		786,488
Shares Loan, 12.00%, 8/15/18		811		811,144
DISH DBS Corp., 5.88%, 7/15/22		1,010		1,081,963
Harron Communications LP, 9.13%, 4/01/20 (b)		320		348,000
Intelsat Jackson Holdings SA (b):
7.25%, 10/15/20		700		745,500
6.63%, 12/15/22		170		170,000
Intelsat Luxembourg SA:
11.25%, 2/04/17		620		657,200
11.50%, 2/04/17		1,200		1,273,500
Interactive Data Corp., 10.25%, 8/01/18		1,345		1,506,400
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17		340		373,575
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (b)	EUR	345		483,064
Lamar Media Corp., 5.88%, 2/01/22	USD	140		148,925
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)		735		793,800
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)		558		616,590
Nara Cable Funding Ltd., 8.88%, 12/01/18	EUR	200		252,307
Nielsen Finance LLC:
11.63%, 2/01/14	USD	117		130,309
7.75%, 10/15/18		1,513		1,686,995
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (b)	GBP	207		340,765
ProQuest LLC, 9.00%, 10/15/18 (b)	USD	500		460,000
ProtoStar I Ltd., 18.00%, 10/15/13 (a)(b)(k)		850		425
Truven Health Analytics, Inc., 10.63%, 6/01/20 (b)		510		545,700



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	7

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Media (concluded)
Unitymedia GmbH:
9.63%, 12/01/19	EUR	168	$	244,187
9.63%, 12/01/19 (b)		570		828,492
9.50%, 3/15/21		320		476,563
Unitymedia Hessen GmbH & Co. KG:
8.13%, 12/01/17 (b)	USD	666		722,610
7.50%, 3/15/19	EUR	794		1,132,132
5.50%, 1/15/23 (b)(d)	USD	520		520,000
Univision Communications, Inc., 6.75%, 9/15/22 (b)		120		121,200
UPC Holding BV, 9.88%, 4/15/18 (b)		400		447,500
UPCB Finance II Ltd.:
6.38%, 7/01/20	EUR	300		406,747
6.38%, 7/01/20 (b)		822		1,114,488
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (b)	USD	300		307,500
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)	EUR	388		555,327
				29,265,133
Metals & Mining — 4.1%
ArcelorMittal:
9.50%, 2/15/15	USD	315		350,864
4.25%, 8/05/15		485		489,948
4.25%, 3/01/16		125		125,545
Eco-Bat Finance Plc, 7.75%, 2/15/17	EUR	460		613,210
FMG Resources August 2006 Property Ltd. (b):
7.00%, 11/01/15	USD	205		209,100
6.38%, 2/01/16		438		441,184
6.88%, 4/01/22		75		73,125
Global Brass and Copper, Inc., 9.50%, 6/01/19 (b)		300		322,500
GoldCorp, Inc., 2.00%, 8/01/14 (f)		1,060		1,199,788
Kaiser Aluminum Corp., 8.25%, 6/01/20		225		246,375
New Gold, Inc. (b):
7.00%, 4/15/20		150		159,375
6.25%, 11/15/22		300		306,750
New World Resources NV, 7.88%, 5/01/18	EUR	210		279,261
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (f)	USD	1,475		1,783,828
Novelis, Inc., 8.75%, 12/15/20		3,065		3,432,800
Perstorp Holding AB, 8.75%, 5/15/17 (b)		205		206,025
Schmolz + Bickenbach Luxembourg SA, 9.88%, 5/15/19	EUR	315		334,089
Steel Dynamics, Inc., 6.38%, 8/15/22 (b)	USD	245		256,025


	Par (000)		Value
Corporate Bonds
Metals & Mining (concluded)
Taseko Mines Ltd., 7.75%, 4/15/19	USD	420	$	399,000
Vedanta Resources Plc, 8.25%, 6/07/21 (b)		270		291,600
Walter Energy, Inc., 9.88%, 12/15/20 (b)		265		275,600
				11,795,992
Multiline Retail — 0.4%
Dollar General Corp., 4.13%, 7/15/17		792		831,600
Dufry Finance SCA, 5.50%, 10/15/20 (b)		403		414,083
				1,245,683
Oil, Gas & Consumable Fuels — 9.9%
Access Midstream Partners LP, 6.13%, 7/15/22		275		291,500
Alpha Appalachia Holdings, Inc., 3.25%, 8/01/15 (f)		803		759,337
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (b)		680		720,800
Berry Petroleum Co., 6.38%, 9/15/22		410		422,300
BreitBurn Energy Partners LP, 7.88%, 4/15/22 (b)		255		262,013
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20		240		243,600
CCS, Inc., 11.00%, 11/15/15 (b)		570		577,125
Chaparral Energy, Inc., 7.63%, 11/15/22		220		226,050
Chesapeake Energy Corp.:
7.25%, 12/15/18		15		16,125
6.63%, 8/15/20		180		188,550
6.88%, 11/15/20		175		184,625
6.13%, 2/15/21		595		602,437
Concho Resources, Inc.:
7.00%, 1/15/21		160		176,400
6.50%, 1/15/22		110		119,900
5.50%, 10/01/22		475		490,437
Continental Resources, Inc., 7.13%, 4/01/21		370		417,175
Copano Energy LLC, 7.13%, 4/01/21		240		252,900
Crosstex Energy LP, 7.13%, 6/01/22 (b)		150		153,000
Crown Oil Partners IV LP, 15.00%, 3/07/15		603		636,508
CVR Refining LLC/Coffeyville Finance, Inc., 6.50%, 11/01/22 (b)		385		379,225
Denbury Resources, Inc., 8.25%, 2/15/20		1,167		1,318,710
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17		555		625,762
7.75%, 6/15/19		900		967,500



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	8

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Oil, Gas & Consumable Fuels (continued)
EP Energy LLC/Everest Acquisition Finance, Inc.:
6.88%, 5/01/19	USD	345	$	373,463
7.75%, 9/01/22		215		223,063
EV Energy Partners LP, 8.00%, 4/15/19		150		157,500
Halcon Resources Corp., 8.88%, 5/15/21 (b)		230		238,050
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)		260		281,450
Holly Energy Partners LP, 6.50%, 3/01/20 (b)		155		162,750
Kodiak Oil & Gas Corp., 8.13%, 12/01/19		350		381,500
Linn Energy LLC:
6.50%, 5/15/19		95		96,425
6.25%, 11/01/19 (b)		1,305		1,309,894
8.63%, 4/15/20		225		245,813
7.75%, 2/01/21		200		211,000
MarkWest Energy Partners LP, 5.50%, 2/15/23		225		236,813
Newfield Exploration Co., 6.88%, 2/01/20		780		839,475
Northern Oil and Gas, Inc., 8.00%, 6/01/20		310		319,300
Oasis Petroleum, Inc.:
7.25%, 2/01/19		265		282,225
6.50%, 11/01/21		290		305,225
Offshore Group Investments Ltd., 11.50%, 8/01/15		692		761,200
OGX Petroleo e Gas Participacoes SA (b):
8.50%, 6/01/18		562		488,940
8.38%, 4/01/22		300		244,500
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)		295		309,750
PDC Energy, Inc., 7.75%, 10/15/22 (b)		210		212,100
PetroBakken Energy Ltd., 8.63%, 2/01/20 (b)		1,195		1,195,000
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)		575		603,750
Plains Exploration & Production Co., 6.88%, 2/15/23		1,155		1,189,650
Range Resources Corp.:
8.00%, 5/15/19		345		379,500
5.75%, 6/01/21		985		1,046,562
5.00%, 8/15/22		435		453,487
Regency Energy Partners LP, 5.50%, 4/15/23		370		388,500
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16		1,520		1,641,600
6.50%, 11/01/20 (b)		325		325,000
SandRidge Energy, Inc.:
7.50%, 3/15/21		940		979,950


	Par (000)		Value
Corporate Bonds
Oil, Gas & Consumable Fuels (concluded)
SandRidge Energy, Inc. (concluded):
8.13%, 10/15/22	USD	255	$	272,850
7.50%, 2/15/23		545		566,800
SESI LLC:
6.38%, 5/01/19		325		346,125
7.13%, 12/15/21		235		261,438
SM Energy Co.:
6.63%, 2/15/19		130		137,475
6.50%, 11/15/21		265		279,575
6.50%, 1/01/23		390		411,450
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (b)		155		161,200
Vanguard Natural Resources, 7.88%, 4/01/20		270		276,075
				28,628,402
Paper & Forest Products — 1.2%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (b)		355		365,650
Boise Paper Holdings LLC:
9.00%, 11/01/17		60		65,400
8.00%, 4/01/20		125		135,938
Clearwater Paper Corp.:
10.63%, 6/15/16		390		428,025
7.13%, 11/01/18		585		634,725
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)		345		361,387
NewPage Corp., 11.38%, 12/31/14 (a)(k)		2,070		993,600
Sappi Papier Holding GmbH (b):
8.38%, 6/15/19		200		212,000
6.63%, 4/15/21		140		134,400
				3,331,125
Pharmaceuticals — 0.9%
Capsugel Finance Co. SCA:
9.88%, 8/01/19	EUR	100		146,962
9.88%, 8/01/19 (b)		200		293,924
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)	USD	185		208,125
Mylan, Inc., 6.00%, 11/15/18 (b)		120		132,300
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16		434		457,870
6.88%, 12/01/18		270		291,938
6.38%, 10/15/20		405		430,313
6.75%, 8/15/21		490		525,525
				2,486,957
Professional Services — 0.0%
FTI Consulting, Inc., 6.75%, 10/01/20		43		45,688



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	9

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Real Estate Investment Trusts (REITs) — 0.6%
Felcor Lodging LP, 6.75%, 6/01/19	USD	1,023	$	1,076,707
The Rouse Co. LP, 6.75%, 11/09/15		520		546,650
				1,623,357
Real Estate Management & Development — 2.5%
CBRE Services, Inc., 6.63%, 10/15/20		335		365,988
Crescent Resources LLC/Crescent Ventures, Inc., 10.25%, 8/15/17 (b)		710		738,400
Forest City Enterprises, Inc., 7.63%, 6/01/15		426		427,065
IVG Immobilien AG, 8.00% (a)(e)(i)(k)	EUR	300		202,886
Mattamy Group Corp., 6.50%, 11/15/20 (b)	USD	275		275,000
Realogy Corp.:
11.50%, 4/15/17		400		433,000
12.00%, 4/15/17		100		108,000
7.88%, 2/15/19 (b)		2,065		2,188,900
7.63%, 1/15/20 (b)		505		563,075
9.00%, 1/15/20 (b)		335		371,850
Shea Homes LP, 8.63%, 5/15/19		1,250		1,375,000
The Unique Pub Finance Co. Plc, Series A3, 6.54%, 3/30/21	GBP	100		151,403
				7,200,567
Road & Rail — 0.8%
The Hertz Corp.:
7.50%, 10/15/18	USD	550		602,250
6.75%, 4/15/19 (b)		290		313,200
7.38%, 1/15/21		415		451,312
Hertz Holdings Netherlands BV:
8.50%, 7/31/15	EUR	88		124,177
8.50%, 7/31/15 (b)		546		770,459
				2,261,398
Semiconductors & Semiconductor Equipment — 0.2%
Spansion LLC, 7.88%, 11/15/17	USD	580		582,900
Software — 0.9%
Infor US, Inc., 9.38%, 4/01/19		1,530		1,705,950
Nuance Communications, Inc., 5.38%, 8/15/20 (b)		500		515,000
Sophia LP, 9.75%, 1/15/19 (b)		442		470,730
				2,691,680
Specialty Retail — 3.1%
Asbury Automotive Group, Inc., 8.38%, 11/15/20		365		406,063
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)		869		924,399
House of Fraser Funding Plc:
8.88%, 8/15/18 (b)	GBP	285		461,179
8.88%, 8/15/18		221		357,616


	Par (000)		Value
Corporate Bonds
Specialty Retail (concluded)
Limited Brands, Inc.:
8.50%, 6/15/19	USD	785	$	957,700
5.63%, 2/15/22		160		172,800
Michaels Stores, Inc., 7.75%, 11/01/18 (b)		234		253,598
Party City Holdings, Inc., 8.88%, 8/01/20 (b)		1,013		1,073,780
Penske Automotive Group, Inc., 5.75%, 10/01/22 (b)		540		549,450
Phones4u Finance Plc, 9.50%, 4/01/18 (b)	GBP	400		660,086
QVC, Inc. (b):
7.13%, 4/15/17	USD	230		242,124
7.50%, 10/01/19		625		688,339
7.38%, 10/15/20		290		321,493
5.13%, 7/02/22		429		454,589
Sally Holdings LLC:
6.88%, 11/15/19		545		606,312
5.75%, 6/01/22		512		554,240
Sonic Automotive, Inc., 9.00%, 3/15/18		370		406,537
				9,090,305
Textiles, Apparel & Luxury Goods — 0.2%
Levi Strauss & Co., 6.88%, 5/01/22		440		461,450
Trading Companies & Distributors — 0.8%
Air Lease Corp., 4.50%, 1/15/16 (b)		590		594,425
Ashtead Capital, Inc., 6.50%, 7/15/22 (b)		490		521,850
Doric Nimrod Air Finance Alpha Ltd., Series 2012-1 (b):
Class A, 5.13%, 11/30/24		635		658,812
Class B, 6.50%, 5/30/21		575		587,765
				2,362,852
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)		431		456,860
Wireless Telecommunication Services — 3.7%
Cricket Communications, Inc.:
7.75%, 5/15/16		110		116,325
7.75%, 10/15/20		215		221,988
Crown Castle International Corp., 5.25%, 1/15/23 (b)		640		668,800
Digicel Group Ltd. (b):
8.25%, 9/01/17		1,180		1,265,550
8.25%, 9/30/20		945		1,004,062
MetroPCS Wireless, Inc., 6.63%, 11/15/20		760		803,700
NII Capital Corp., 7.63%, 4/01/21		341		235,290
Sprint Capital Corp., 6.88%, 11/15/28		1,702		1,753,060



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	10

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Corporate Bonds
Wireless Telecommunication Services (concluded)
Sprint Nextel Corp. (b):
9.00%, 11/15/18	USD	2,280	$	2,810,100
7.00%, 3/01/20		1,495		1,730,462
				10,609,337
Total Corporate Bonds – 103.8%				299,253,866


Floating Rate Loan Interests (e)
Airlines — 0.1%
Delta Air Lines, Inc., Term Loan B, 5.50%, 4/20/17		395		396,628
Auto Components — 0.8%
Federal-Mogul Corp., Term Loan B, 2.15%, 12/29/14		943		874,911
Schaeffler AG:
Term Loan B, 4.11%, 1/27/15	EUR	745		949,532
Term Loan C2, 6.00%, 1/27/17	USD	395		399,815
				2,224,258
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/19/19		425		427,125
Capital Markets — 0.6%
American Capital Holdings, Term Loan, 5.50%, 8/22/16		941		952,762
Nuveen Investments, Inc.:
Incremental Term Loan, 7.25%, 5/13/17		480		482,400
Second Lien Term Loan, 8.25%, 2/28/19		415		421,225
				1,856,387
Chemicals — 0.7%
ADS Waste Holdings, Inc., Term Loan B, 5.25%, 10/09/19		450		454,725
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18		1,144		1,157,295
Styron Sarl LLC, Term Loan B, 8.00%, 8/02/17		393		375,931
				1,987,951
Commercial Services & Supplies — 0.3%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16		441		446,585
Delos Aircraft, Inc., Term Loan B2, 4.75%, 4/12/16		550		555,846
				1,002,431


	Par (000)		Value
Floating Rate Loan Interests (e)
Communications Equipment — 0.7%
Avaya, Inc., Term Loan B1, 3.06%, 10/24/14	USD	253	$	238,306
Zayo Group LLC, Term Loan B, 5.25%, 7/02/19		1,819		1,829,925
				2,068,231
Construction & Engineering — 0.7%
Safway Services LLC, Mezzanine Loan, 15.63%, 12/16/17		2,000		2,000,000
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 7.25%, 10/12/17		1,112		1,141,063
Consumer Finance — 2.2%
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17		2,280		2,285,700
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17		4,001		3,951,988
				6,237,688
Diversified Consumer Services — 0.1%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18		144		142,600
Diversified Financial Services — 0.5%
Residential Capital LLC:
DIP Term Loan A1, 5.00%, 11/18/13		1,255		1,255,527
DIP Term Loan A2, 6.75%, 11/18/13		185		185,925
				1,441,452
Diversified Telecommunication Services — 0.5%
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16		330		330,000
2019 Term Loan B, 5.25%, 8/01/19		270		271,687
Term Loan, 4.75%, 8/01/19		850		854,250
				1,455,937
Energy Equipment & Services — 1.7%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16		1,727		1,782,087
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16		2,787		2,901,008
Tervita Corp., Incremental Term Loan, 6.50%, 11/14/14		273		272,711
				4,955,806
Food & Staples Retailing — 0.0%
US Foods, Inc. (FKA U.S. Foodservice, Inc.), Extended Term Loan B, 5.75%, 3/31/17		74		72,776



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	11

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Floating Rate Loan Interests (e)
Food Products — 0.1%
Advance Pierre Foods, Inc., Second Lien Term Loan, 5.75%, 7/10/17	USD	215	$	216,989
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19		384		388,610
Hupah Finance, Inc., Term Loan B, 6.25% - 7.25%, 1/21/19		761		767,835
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18		284		286,420
				1,442,865
Health Care Providers & Services — 0.5%
Genesis Healthcare Corp., Term Loan B, 10.75%, 9/25/17		190		182,875
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15		374		362,247
Term Loan A, 8.50%, 3/02/15		354		347,292
inVentiv Health, Inc., Combined Term Loan, 6.50%, 8/04/16		682		642,566
				1,534,980
Hotels, Restaurants & Leisure — 2.4%
Caesars Entertainment Operating Co., Inc.:
Extended Term Loan B6, 5.46%, 1/26/18		139		124,531
Incremental Term Loan B3, 3.22%, 1/28/15		75		72,656
Incremental Term Loan B4, 9.50%, 10/31/16		341		347,930
Term Loan B1, 3.21%, 1/28/15		540		523,125
Term Loan B2, 3.21%, 1/28/15		430		416,563
Harrah’s Property Co., Mezzanine Term Loan, 3.20%, 2/13/13		4,448		3,734,788
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/24/20		515		515,000
Sabre, Inc., Non-Extended Initial Term Loan, 2.21%, 9/30/14		24		23,470
Station Casinos, Inc., Term Loan B, 5.50%, 9/07/19		1,035		1,037,587
Travelport LLC:
Extended Tranche A Term Loan, 6.31%, 12/01/16		196		58,844
Extended Tranche B Term Loan, 13.81%, 12/01/16		645		48,341
				6,902,835


	Par (000)		Value
Floating Rate Loan Interests (e)
Industrial Conglomerates — 0.1%
Sequa Corp.:
Incremental Term Loan, 6.25%, 12/03/14	USD	178	$	177,781
Term Loan, 3.46% - 3.61%, 12/03/14		121		120,925
				298,706
IT Services — 0.3%
Ceridian Corp., Extended Term Loan, 5.96%, 5/09/17		68		68,074
First Data Corp., 2018 Term Loan B, 4.21%, 3/23/18		785		746,927
				815,001
Leisure Equipment & Products — 0.2%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13		650		648,824
Machinery — 0.2%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18		591		595,215
Media — 3.6%
Affinion Group, Inc., Term Loan B, 6.50%, 7/16/15		39		36,347
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14		322		245,568
Tranche 1 Incremental, 7.50%, 7/03/14		1,676		1,355,162
Cequel Communications LLC, Term Loan B, 4.00%, 2/14/19		288		288,341
Clear Channel Communications, Inc.:
Term Loan B, 3.86%, 1/29/16		1,278		1,036,757
Term Loan C, 3.86%, 1/29/16		428		338,743
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18		434		438,035
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19		412		413,443
Intelsat Jackson Holdings SA, Tranche B Term Loan, 4.50%, 4/02/18		5,460		5,473,159
Interactive Data Corp., Term Loan B, 4.50%, 2/12/18		409		411,110
Univision Communications, Inc., Extended Term Loan, 4.46%, 3/31/17		268		261,413
				10,298,078
Metals & Mining — 0.2%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18		429		428,925



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	12

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Par (000)		Value
Floating Rate Loan Interests (e)
Oil, Gas & Consumable Fuels — 1.2%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17	USD	1,440	$	1,414,800
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15		921		920,626
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18		235		236,469
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17		985		970,225
				3,542,120
Paper & Forest Products — 0.5%
NewPage Corp., DIP Term Loan, 8.75%, 3/07/13		600		599,628
Verso Paper Finance Holdings LLC, Term Loan, 6.56% - 7.31%, 2/01/13 (h)		1,562		780,930
				1,380,558
Pharmaceuticals — 0.5%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17		983		982,196
Pharmaceutical Product Development, Inc., Term Loan B, 6.25%, 12/05/18		312		316,868
				1,299,064
Professional Services — 0.1%
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19		374		373,969
Real Estate Investment Trusts (REITs) — 0.3%
iStar Financial, Inc., Term Loan, 5.75%, 9/28/17		789		789,411
Real Estate Management & Development — 0.4%
Realogy Corp.:
Extended Letter of Credit Loan, 4.46%, 10/10/16		103		103,110
Extended Term Loan, 4.46%, 10/10/16		737		735,137
Stockbridge SBE Holdings LLC, Term Loan B, 13.00%, 5/02/17		185		182,688
				1,020,935
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 10.75%, 9/29/17		300		299,250
Software — 0.4%
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18		1,232		1,243,308
Textiles, Apparel & Luxury Goods — 0.4%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18		1,134		1,111,614


	Par (000)			Value
Floating Rate Loan Interests (e)
Wireless Telecommunication Services — 1.2%
Vodafone Americas Finance 2, Inc. (h):
Term Loan, 6.88%, 8/11/15	USD	1,938		$	1,976,937
Term Loan B, 6.25%, 7/11/16		1,341			1,377,492
					3,354,429
Total Floating Rate Loan Interests – 22.6%					65,007,409



	Beneficial Interest (000)
Other Interests (l)
Auto Components — 0.0%
Lear Corp. Escrow		460			4,887
Chemicals — 0.0%
Wellman Holdings, Inc., Litigation Trust Certificate		2,830			28
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc. (a)		575			6
Media — 0.0%
Adelphia Escrow (a)		750			8
Adelphia Recovery Trust (a)		941			94
					102
Total Other Interests – 0.0%					5,023


Preferred Securities
Capital Trusts – 0.2%		Par (000	)
Insurance — 0.2%
Genworth Financial, Inc., 6.15%, 11/15/66 (e)		865			581,712


	Shares
Preferred Stocks
Auto Components — 0.7%
Dana Holding Corp., 4.00% (b)(f)		17,830			2,156,316
Diversified Financial Services — 1.3%
Ally Financial, Inc., 7.00% (b)		3,733			3,634,542



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	13

Consolidated Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)


	Shares		Value
Preferred Securities
Preferred Stocks
Real Estate Investment Trusts (REITs) — 0.1%
MPG Office Trust, Inc., Series A, 7.63% (a)		8,994	$	179,700
Thrifts & Mortgage Finance — 0.1%
Fannie Mae, Series O, 7.00% (a)		30,000		81,000
Freddie Mac, Series Z, 8.38% (a)		75,961		123,057
				204,057
Total Preferred Stocks – 2.2%				6,174,615


Trust Preferreds – 1.0%
Diversified Financial Services — 1.0%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (b)		115,590		2,999,380
Total Preferred Securities – 3.4%				9,755,707


Warrants (m)
Containers & Packaging — 0.0%
MDP Acquisitions Plc (Expires 10/10/13)		700		42,587
Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)		32,042		1
Media — 0.0%
New Vision Holdings LLC, (Expires 9/30/14)		22		67,341
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%				109,929
Total Long-Term Investments (Cost – $389,290,461) – 137.7%				396,901,266


	Shares		Value
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (n)(o)		1,690,937	$	1,690,937
Total Short-Term Securities (Cost – $1,690,937) – 0.6%				1,690,937



	Contracts
Options Purchased
Over-the-Counter Call Options — 0.0%
Marsico Parent Superholdco LLC, Strike Price USD 942.86, Expires 12/21/19, Broker Goldman Sachs Group, Inc.		19		—
Total Options Purchased (Cost – $18,578) – 0.0%				—
Total Investments *(Cost - $390,999,976) – 138.3%**				398,592,203
Liabilities in Excess of Other Assets – (38.3)%				(110,429,601)
Net Assets – 100.0%			$	288,162,602

*	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	$	391,959,665
Gross unrealized appreciation	$	20,894,964
Gross unrealized depreciation		(14,262,342)
Net unrealized appreciation	$	6,632,622

(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
Citigroup, Inc.	$	500,000		—
Goldman Sachs & Co.	$	230,063	$	5,063
JPMorgan Chase & Co.	$	520,000		—

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

(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.

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



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	14

Consolidated Schedule of Investments (continued)

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

(j)	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.

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

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

(m)	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.

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

(o)	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

—

1,690,937

694


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:


AUD		Australian Dollar
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



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	15

Consolidated Schedule of Investments (continued)

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

•	Financial futures contracts sold as of November 30, 2012 were as follows:

Contracts

Issue

Exchange

Expiration

Notional
Value

Unrealized
Depreciation

S&P 500 E-Mini Index

Chicago Mercantile

December 2012

4,172,480

(53,372)

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


Currency Purchased			Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
EUR	365,000	USD		472,278	Royal Bank of Scotland Group Plc	12/21/12	$	2,512
GBP	110,000	USD		177,478	Bank of New York Mellon Corp.	1/16/13		(1,255)
GBP	110,000	USD		176,157	Citigroup, Inc.	1/16/13		66
USD	204,294	AUD		201,000	UBS AG	1/16/13		(4,769)
USD	2,883,042	CAD		2,819,500	UBS AG	1/16/13		47,237
USD	175,751	GBP		110,000	Citigroup, Inc.	1/16/13		(472)
USD	173,921	GBP		108,000	Citigroup, Inc.	1/16/13		902
USD	5,136,304	GBP		3,204,500	Goldman Sachs Group, Inc.	1/16/13		2,615
USD	175,279	GBP		110,000	JPMorgan Chase & Co.	1/16/13		(944)
USD	152,888	GBP		96,000	Royal Bank of Scotland Group Plc	1/16/13		(907)
USD	285,832	GBP		180,000	UBS AG	1/16/13		(2,532)
USD	225,809	GBP		142,000	UBS AG	1/16/13		(1,679)
EUR	28,000	USD		36,239	Bank of New York Mellon Corp.	1/23/13		195
EUR	286,000	USD		371,762	Citigroup, Inc.	1/23/13		388
EUR	212,000	USD		271,479	Citigroup, Inc.	1/23/13		4,380
EUR	730,000	USD		942,702	Citigroup, Inc.	1/23/13		7,191
EUR	53,000	USD		67,383	UBS AG	1/23/13		1,582
USD	63,848	EUR		50,000	Goldman Sachs Group, Inc.	1/23/13		(1,213)
USD	389,499	EUR		300,000	UBS AG	1/23/13		(868)
USD	22,102,369	EUR		16,854,000	UBS AG	1/23/13		171,546
Total							$	223,975

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


Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Republic of Hungary	1.00%	Deutsche Bank AG	12/20/15	$	300	$	(7,954)
Israel (State of)	1.00%	Deutsche Bank AG	3/20/17	$	225		(7,528)
Israel Government Bond	1.00%	Deutsche Bank AG	3/20/17	$	675		(22,986)
K Hovnanian Enterprises, Inc.	5.00%	Credit Suisse Securities (USA) LLC	9/20/17	$	75		(426)
K Hovnanian Enterprises, Inc.	5.00%	Deutsche Bank AG	9/20/17	$	30		(135)
K Hovnanian Enterprises, Inc.	5.00%	JPMorgan Chase & Co.	9/20/17	$	30		(170)
Beazer Homes USA, Inc.	5.00%	JPMorgan Chase & Co.	12/20/17	$	75		422
Total						$	(38,777)



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	16

Consolidated Schedule of Investments (continued)

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

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


Issuer	Receive Fixed Rate	Counterparty	Expiration Date	Issuer Credit Rating¹	Notional Amount (000)²		Unrealized Appreciation
Air Lease Corp.	5.00%	Goldman Sachs International	2/14/13	NR	$	500	$	4,246
CIT Group, Inc.	5.00%	Deutsche Bank AG	9/20/15	BB-	$	3,400		456,210
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	12/20/15	B-	$	274		8,599
ARAMARK Corp.	5.00%	Goldman Sachs International	3/20/16	B+	$	500		36,340
ARAMARK Corp.	5.00%	Goldman Sachs International	6/20/16	B+	$	300		21,897
ARAMARK Corp.	5.00%	Goldman Sachs International	6/20/16	B+	$	300		23,451
ARAMARK Corp.	5.00%	Credit Suisse Securities (USA) LLC	9/20/16	B+	$	125		13,195
ARAMARK Corp.	5.00%	Deutsche Bank AG	3/20/17	B+	$	200		11,922
Crown Castle International Corp.	7.25%	Deutsche Bank AG	3/20/17	B+	$	470		66,068
Ford Motor Co.	5.00%	Deutsche Bank AG	3/20/17	BB+	$	1,500		114,925
CCO Holdings LLC	8.00%	Deutsche Bank AG	9/20/17	BB-	$	1,600		336,960
Level 3 Communications, Inc.	5.00%	Goldman Sachs International	6/20/19	B-	$	1,000		52,307
Total							$	1,146,120

¹Using Standard & Poor’s rating.

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



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	17

Consolidated Schedule of Investments (continued)

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

•

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.

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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:

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

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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)

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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:
Common Stocks	$	15,260,190	$	2,209,623	$	5,299,519	$	22,769,332
Corporate Bonds		—		294,031,298		5,222,568		299,253,866
Floating Rate Loan Interests		—		51,406,737		13,600,672		65,007,409
Other Interests		94		—		4,929		5,023
Preferred Securities		3,383,137		6,372,570		—		9,755,707
Warrants		—		109,928		1		109,929
Short-Term Securities		1,690,937		—		—		1,690,937
Total	$	20,334,358	$	354,130,156	$	24,127,689	$	398,592,203

		Level 1		Level 2		Level 3		Total
Derivative Financial Instruments ¹
Assets:
Credit contracts		—	$	282,636	$	863,484	$	1,146,120
Foreign currency exchange contracts		—		238,614		—		238,614
Liabilities:
Credit contracts		—		(38,777)		—		(38,777)
Equity contracts	$	(53,372)		—		—		(53,372)
Foreign currency exchange contracts		—		(14,639)		—		(14,639)
Total	$	(53,372)	$	467,834	$	863,484	$	1,277,946

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.



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	18

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 November 30, 2012, such assets and liabilities are categorized within the disclosure hierarchy as follows:


		Level 1		Level 2	Level 3		Total
Assets:
Cash	$	26,996		—	—	$	26,996
Cash pledged as collateral for financial futures contracts		248,000		—	—		248,000
Cash pledged as collateral for swaps		100,000		—	—		100,000
Foreign currency at value		16,807		—	—		16,807
Liabilities:
Cash received as collateral for swaps		—	$	(1,000,000)	—		(1,000,000)
Loans payable		—		(115,000,000)	—		(115,000,000)
Total	$	391,803	$	(116,000,000)	—	$	(115,608,197)

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

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Fund had a significant amount of Level 3 investments and derivative financial instruments 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		Preferred Securities		Warrants		Total
Assets/Liabilities:
Opening Balance, as of February 29, 2012	$	4,322,217	$	4,458,734	$	9,295,244	$	4,642	$	352,582	$	1	$	18,433,420
Transfers into Level 3¹		—		—		1,249,640		—		—		—		1,249,640
Transfers out of Level 3¹		(38,470)		—		(130,528)		—		—		—		(168,998)
Accrued discounts/premiums		—		702		130,907		—		—		—		131,609
Net realized gain (loss)		(937,908)		—		(371,234)		—		(87,104)		(177,871)		(1,574,117)
Net change in unrealized appreciation/depreciation²		799,475		(233,692)		271,612		287		110,561		177,871		1,126,114
Purchases		1,154,217		1,121,399		4,581,222		—		—		—		6,856,838
Sales		(12)		(124,575)		(1,426,191)		—		(376,039)		—		(1,926,817)
Closing Balance, as of November 30, 2012	$	5,299,519	$	5,222,568	$	13,600,672	$	4,929		—	$	1	$	24,127,689

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 $(402,578).



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	19

Consolidated Schedule of Investments (continued)

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

The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used in determining fair value:


	Credit Contracts
Assets:
Opening Balance, as of August 31, 2012	$	237,861
Transfers into Level 3³		—
Transfers out of Level 3³		—
Accrued discounts/premiums		—
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation⁴		625,623
Purchases		—
Issues⁵		—
Sales		—
Settlements⁶		—
Closing Balance, as of November 30, 2012	$	863,484

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

⁴	The change in unrealized appreciation/depreciation on derivative financial instruments still held as of November 30, 2012 was $625,623.

⁵	Issues represent upfront cash received on certain derivative financial instruments.

⁶	Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

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 and derivative financial instruments as of November 30, 2012. The table does not include Level 3 investments and derivative financial instruments 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 and derivative financial instruments. The value of Level 3 investments and derivative financial instruments derived using prices from prior transactions and/or third party pricing information is $12,010,509.

Value

Valuation Techniques

Unobservable

Inputs¹

Range of
Unobservable Inputs
Utilized

Weighted Average of
Unobservable Inputs²

Assets:

Common Stocks

4,885,152

Market Comparable Companies

EBITDA Multiple

6.7x

Forward EBITDA Multiple

5.4x

Restructure Terms³

N/A

—

Cost

N/A⁴

—

Corporate Bonds

4,605,043

Market Comparable Companies

Yield

9.67% – 12.1%

10.6%

EBITDA Multiple

6.0x

Discounted Cashflow

Yield

12.0%

Restructure Terms³

N/A

—

Floating Rate Loan interests

3,490,469

Market Comparable Companies

Illiquidity Discount

50%

Yield

9.64%

Cost

N/A⁴

—

Total

12,980,664

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

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

³	Investment is valued based on the company’s financial restructuring plan.



BLACKROCK CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	20

Consolidated Schedule of Investments (concluded)

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

⁴	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 CORPORATE HIGH YIELD FUND III, INC.	NOVEMBER 30, 2012	21

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 Corporate High Yield Fund III, Inc.

By:		/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of BlackRock Corporate High Yield Fund III, 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 Corporate High Yield Fund III, Inc.

Date:		January 23, 2013


By:		/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of BlackRock Corporate High Yield Fund III, Inc.

Date:		January 23, 2013