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 811-21972

Name of Fund: BlackRock Preferred and Equity Advantage Trust (BTZ)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Preferred and Equity Advantage Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

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

Date of fiscal year end: 10/31/2008

Date of reporting period: 05/01/2008 – 07/31/2008

Item 1 – Schedule of Investments

BlackRock Preferred and Equity Advantage Trust      
Schedule of Investments July 31, 2008 (Unaudited)   (Percentages shown are based on Net Assets)
Industry   Common Stocks     Shares       Value  
Aerospace & Defense -   General Dynamics Corp.     2,800     $   249,592  
0.4%   Honeywell International, Inc.     6,000       305,040  
    Lockheed Martin Corp.     13,500       1,408,455  
    Northrop Grumman Corp.     18,200       1,226,498  
              3,189,585  
Air Freight &   United Parcel Service, Inc. Class B     44,100       2,781,828  
Logistics - 0.3%              
Auto Components - 0.0%   Johnson Controls, Inc.     12,200       367,952  
 
Automobiles - 0.1%   General Motors Corp.     53,400       591,138  
Beverages - 0.5%   The Coca-Cola Co.     55,300       2,847,950  
    PepsiCo, Inc.     17,800       1,184,768  
              4,032,718  
Biotechnology - 0.5%   Amgen, Inc. (a)     22,500       1,409,175  
    Biogen Idec, Inc. (a)     8,200       572,032  
    Celgene Corp. (a)     7,400       558,626  
    Genzyme Corp. (a)     5,400       413,910  
    Gilead Sciences, Inc. (a)     23,200       1,252,336  
              4,206,079  
Capital Markets - 0.3%   The Goldman Sachs Group, Inc.     12,560       2,311,542  
    Lehman Brothers Holdings, Inc.     8,900       154,326  
    Morgan Stanley     9,700       382,956  
              2,848,824  
Chemicals - 0.4%   Air Products & Chemicals, Inc.     3,200       304,672  
    The Dow Chemical Co.     33,400       1,112,554  
    E.I. du Pont de Nemours & Co.     32,800       1,436,968  
    PPG Industries, Inc.     9,100       551,824  
              3,406,018  
Commercial Banks - 0.9%   Regions Financial Corp.     71,900       681,612  
    SunTrust Banks, Inc.     38,200       1,568,492  
    U.S. Bancorp     83,400       2,552,874  
    Wachovia Corp.     33,900       585,453  
    Wells Fargo & Co.     64,200       1,943,334  
              7,331,765  
Commercial Services &   Waste Management, Inc.     44,200       1,570,868  
Supplies - 0.2%              
Communications   Ciena Corp. (a)     11,500       237,705  
Equipment - 0.8%   Cisco Systems, Inc. (a)     87,800       1,930,722  
    Corning, Inc.     28,500       570,285  
    Motorola, Inc.     128,100       1,106,784  
    QUALCOMM, Inc.     48,200       2,667,388  
              6,512,884  
Computers &   Apple, Inc. (a)     24,600       3,910,170  
Peripherals - 1.0%   Dell, Inc. (a)     43,600       1,071,252  
    EMC Corp. (a)     36,900       553,869  
    Hewlett-Packard Co.     24,400       1,093,120  

1

BlackRock Preferred and Equity Advantage Trust      
Schedule of Investments July 31, 2008 (Unaudited)     (Percentages shown are based on Net Assets)  
Industry   Common Stocks     Shares       Value  
    International Business Machines Corp.     14,100     $   1,804,518  
    SanDisk Corp. (a)     23,600       332,760  
              8,765,689  
Consumer Finance -   Discover Financial Services, Inc.     14,850       217,553  
0.0 %              
Diversified Financial   Bank of America Corp.     89,300       2,937,970  
Services - 1.0%   CME Group, Inc.     2,651       954,705  
    Citigroup, Inc.     40,600       758,814  
    IntercontinentalExchange, Inc. (a)     9,500       948,100  
    JPMorgan Chase & Co.     71,300       2,896,919  
              8,496,508  
Diversified   AT&T Inc.     105,387       3,246,973  
Telecommunication   Embarq Corp.     10,300       471,431  
Services - 0.8%   Verizon Communications, Inc.     52,800       1,797,312  
    Windstream Corp.     83,800       998,896  
              6,514,612  
Electric Utilities -   American Electric Power Co., Inc.     7,100       280,450  
0.1%   FPL Group, Inc.     5,500       354,915  
    FirstEnergy Corp.     4,500       330,975  
              966,340  
Electrical Equipment -   Emerson Electric Co.     29,300       1,426,910  
0.3%   Rockwell Automation, Inc.     18,100       805,631  
              2,232,541  
Electronic Equipment &   Tyco Electronics Ltd.     17,100       566,694  
Instruments - 0.1%              
Energy Equipment &   Baker Hughes, Inc.     5,600       464,296  
Services - 0.8%   National Oilwell Varco, Inc. (a)     23,400       1,839,942  
    Schlumberger Ltd.     9,800       995,680  
    Smith International, Inc.     23,518       1,749,269  
    Transocean, Inc.     10,263       1,396,076  
              6,445,263  
Food & Staples   SYSCO Corp.     68,300       1,936,988  
Retailing - 0.8%   Wal-Mart Stores, Inc.     70,800       4,150,296  
    Walgreen Co.     20,900       717,706  
              6,804,990  
Food Products - 0.2%   Kraft Foods, Inc.     30,046       956,064  
    Sara Lee Corp.     73,900       1,009,474  
              1,965,538  
Health Care   Baxter International, Inc.     6,300       432,243  
Equipment &   Becton Dickinson & Co.     13,100       1,112,321  
Supplies - 0.4%   Boston Scientific Corp. (a)     19,400       230,666  
    Covidien Ltd.     17,100       842,004  
    Zimmer Holdings, Inc. (a)     7,400       509,934  
              3,127,168  
Health Care Providers &   Aetna, Inc.     7,800       319,878  
Services - 0.4%   Express Scripts, Inc. (a)     12,900       909,966  
    Medco Health Solutions, Inc. (a)     14,200       704,036  

2

BlackRock Preferred and Equity Advantage Trust      
Schedule of Investments July 31, 2008 (Unaudited)     (Percentages shown are based on Net Assets)  
Industry   Common Stocks     Shares       Value  
    UnitedHealth Group, Inc.     25,000     $   702,000  
    WellPoint, Inc. (a)     14,600       765,770  
              3,401,650  
Hotels, Restaurants &   Carnival Corp.     18,900       698,166  
Leisure - 0.4%   McDonald's Corp.     48,800       2,917,752  
              3,615,918  
Household Durables -   Fortune Brands, Inc.     12,300       704,913  
0.4%   The Stanley Works     33,900       1,507,872  
    Whirlpool Corp.     16,700       1,264,190  
              3,476,975  
Household Products -   The Procter & Gamble Co.     57,200       3,745,456  
0.4%              
IT Services - 0.1%   Automatic Data Processing, Inc.     22,000       939,620  
    Cognizant Technology Solutions Corp. (a)     10,900       305,963  
              1,245,583  
Industrial   3M Co.     35,100       2,470,689  
Conglomerates - 1.1%   General Electric Co.     229,300       6,486,897  
    Textron, Inc.     7,400       321,678  
              9,279,264  
Insurance - 0.7%   The Allstate Corp.     12,300       568,506  
    American International Group, Inc. (b)     19,100       497,555  
    Hartford Financial Services Group, Inc.     11,300       716,307  
    Lincoln National Corp.     23,900       1,140,030  
    Marsh & McLennan Cos., Inc.     42,500       1,200,625  
    The Travelers Cos., Inc.     46,800       2,064,816  
              6,187,839  
Internet & Catalog   Amazon.com, Inc. (a)     12,000       916,080  
Retail - 0.1%              
Internet Software &   eBay, Inc. (a)     48,900       1,230,813  
Services - 0.4%   Google, Inc. Class A (a)     3,840       1,819,200  
    Yahoo! Inc. (a)     6,800       135,252  
              3,185,265  
Leisure Equipment &   Eastman Kodak Co.     35,600       521,184  
Products - 0.2%   Mattel, Inc.     50,700       1,016,535  
              1,537,719  
Life Sciences Tools &   Thermo Fisher Scientific, Inc. (a)     8,600       520,472  
Services - 0.1%              
Machinery - 0.4%   Caterpillar, Inc.     23,600       1,640,672  
    Cummins, Inc.     19,800       1,313,532  
    Deere & Co.     9,300       652,488  
              3,606,692  
Media - 0.2%   CBS Corp. Class B     47,700       780,372  
    The DIRECTV Group, Inc. (a)     25,000       675,500  
              1,455,872  
Metals & Mining - 0.3%   Alcoa, Inc.     16,900       570,375  
    Allegheny Technologies, Inc.     12,300       581,667  
    Freeport-McMoRan Copper & Gold, Inc. Class B     14,500       1,402,875  
              2,554,917  

3

BlackRock Preferred and Equity Advantage Trust      
Schedule of Investments July 31, 2008 (Unaudited)     (Percentages shown are based on Net Assets)  
Industry     Common Stocks     Shares       Value  
Multi-Utilities - 0.6%     Ameren Corp.     4,800     $   197,232  
    Consolidated Edison, Inc.     23,100       917,070  
    Dominion Resources, Inc.     7,200       318,096  
    Public Service Enterprise Group, Inc.     43,700       1,826,660  
    Xcel Energy, Inc.     91,100       1,827,466  
              5,086,524  
Oil, Gas & Consumable     Anadarko Petroleum Corp.     16,600       961,306  
Fuels - 2.6%     Apache Corp.     6,100       684,237  
    Chevron Corp.     54,900       4,642,344  
    ConocoPhillips     29,500       2,407,790  
    Devon Energy Corp.     5,900       559,851  
    EOG Resources, Inc.     2,500       251,325  
    Exxon Mobil Corp.     91,300       7,343,259  
    Hess Corp.     15,100       1,531,140  
    Spectra Energy Corp.     66,800       1,814,956  
    Valero Energy Corp.     11,200       374,192  
    XTO Energy, Inc.     35,800       1,690,834  
              22,261,234  
Paper & Forest     International Paper Co.     37,000       1,025,640  
Products - 0.2%     MeadWestvaco Corp.     13,300       356,573  
    Weyerhaeuser Co.     14,400       769,824  
              2,152,037  
Pharmaceuticals - 1.8%     Abbott Laboratories     16,900       952,146  
    Bristol-Myers Squibb Co.     79,400       1,676,928  
    Eli Lilly & Co.     34,200       1,611,162  
    Johnson & Johnson     63,400       4,340,998  
    Merck & Co., Inc.     67,600       2,224,040  
    Pfizer, Inc. (b)     204,000       3,808,680  
    Schering-Plough Corp.     42,900       904,332  
    Wyeth     8,000       324,160  
              15,842,446  
Real Estate Investment     Equity Residential     5,200       224,484  
Trusts (REITs) - 0.4%     Plum Creek Timber Co., Inc.     34,600       1,685,712  
    Vornado Realty Trust     14,100       1,340,487  
              3,250,683  
Semiconductors &     Applied Materials, Inc.     17,400       301,368  
Semiconductor     Intel Corp.     110,300       2,447,557  
Equipment - 0.7%     Linear Technology Corp.     29,200       906,660  
    Microchip Technology, Inc.     31,300       999,409  
    National Semiconductor Corp.     31,500       659,925  
    Nvidia Corp. (a)     61,350       701,844  
    Texas Instruments, Inc.     17,100       416,898  
              6,433,661  
Software - 0.8%     Autodesk, Inc. (a)     37,100       1,183,119  
    Electronic Arts, Inc. (a)     10,000       431,800  
    Microsoft Corp.     151,400       3,894,008  
    Oracle Corp. (a)     69,300       1,492,029  
              7,000,956  

4

BlackRock Preferred and Equity Advantage Trust      
Schedule of Investments July 31, 2008 (Unaudited)     (Percentages shown are based on Net Assets)  
Industry     Common Stocks     Shares     Value  
Specialty Retail - 0.3%     Home Depot, Inc.     44,500   $   1,060,435  
    Staples, Inc.     83,800     1,885,500  
              2,945,935  
Textiles, Apparel &     VF Corp.     24,100     1,725,078  
Luxury Goods - 0.2%                
Thrifts & Mortgage     Fannie Mae     19,700     226,550  
Finance - 0.0%     Freddie Mac     12,100     98,857  
    Washington Mutual, Inc.     600     3,198  
              328,605  
Tobacco - 0.5%     Philip Morris International, Inc.     11,200     578,480  
    Reynolds American, Inc.     32,500     1,814,475  
    UST, Inc.     33,300     1,751,913  
              4,144,868  
Wireless     Sprint Nextel Corp.     84,700     689,458  
Telecommunication                
Services - 0.1%                
    Total Common Stocks - 23.3%           199,533,742  
    Exchange-Traded Fund            
    UltraShort Real Estate ProShares     133,750     12,371,875  
    Total Exchange-Traded Fund - 1.4%           12,371,875  
    Preferred Securities            
        Par      
    Capital Trusts     (000)      
Capital Markets - 2.6%     State Street Capital Trust III, 8.25% (c)(d)   $ 3,100     3,123,994  
    State Street Capital Trust IV, 3.776%, 6/01/67 (d)     25,245     18,802,299  
              21,926,293  
Commercial Banks - 6.1%     Abbey National Capital Trust I, 8.963% (c)(d)     2,375     2,581,706  
    BB&T Capital Trust IV, 6.82%, 6/12/77 (d)     15,300     11,676,654  
    Barclays Bank Plc, 5.926% (c)(d)(e)     3,500     2,766,491  
    HSBC Capital Funding LP/Jersey Channel Islands, 10.176% (c)(d)(e)     7,000     8,309,714  
    Huntington Capital III, 6.65%, 5/15/37 (d)     3,250     1,728,480  
    Regions Financing Trust II, 6.625%, 5/15/47 (d)     4,445     2,452,293  
    SMFG Preferred Capital USD 3 Ltd., 9.50% (c)(d)(e)     3,850     3,842,303  
    Wachovia Corp. Series K, 7.98% (c)(d)     14,600     11,219,370  
    Wells Fargo Capital XIII Series GMTN, 7.70% (c)(d)     8,600     8,148,319  
              52,725,330  
Diversified Financial     Bank of America Corp. Series M, 8.125% (c)(d)     11,900     11,069,499  
Services - 4.3%     Citigroup, Inc., 8.40% (c)(d)     18,250     15,626,380  
    JPMorgan Chase Capital XXIII, 3.804%, 5/15/77 (d)     13,800     10,520,982  
              37,216,861  
Insurance - 4.7%     AON Corp., 8.205%, 1/01/27     18,273     16,440,127  
    Ace Capital Trust II, 9.70%, 4/01/30     17,000     18,027,412  
    Mangrove Bay Pass-Through Trust, 6.102%, 7/15/33 (d)(e)     10,000     5,545,200  
              40,012,739  
Thrifts & Mortgage     Webster Capital Trust IV, 7.65%, 6/15/37 (d)     3,225     2,112,678  
Finance - 0.3%                
    Total Capital Trusts - 18.0%           153,993,901  

5

BlackRock Preferred and Equity Advantage Trust      
Schedule of Investments July 31, 2008 (Unaudited)     (Percentages shown are based on Net Assets)  

Industry     Preferred Stocks     Shares     Value  
Commercial Banks - 6.1%     HSBC USA, Inc. Series H, 6.50%     977,766   $   19,447,766  
    KeyCorp Capital IX, 6.75%     9,082,500     5,232,845  
    Royal Bank of Scotland Group Plc Series L, 5.75%     92,200     1,477,966  
    Royal Bank of Scotland Group Plc Series M, 6.40%     15,000     262,500  
    Royal Bank of Scotland Group Plc Series S, 6.60%     10,000     177,600  
    Santander Finance Preferred SA Unipersonal, 6.50%     322,000     6,178,375  
    Santander Finance Preferred SA Unipersonal, 6.80%     628,000     13,227,250  
    Wachovia Corp. Series J, 8%     328,200     6,294,876  
              52,299,178  
Diversified Financial     Bank of America Corp. Series H, 8.20%     125,000     3,031,250  
Services - 3.0%     Citigroup, Inc. Series AA, 8.125%     390,000     8,014,500  
    Citigroup, Inc. Series T, 6.50% (f)     90,000     3,981,600  
    Cobank ACB, 7% (e)     150,000     7,022,700  
    ING Groep NV, 6.125%     200,000     3,654,000  
    ING Groep NV, 7.05%     5,800     121,046  
              25,825,096  
Electric Utilities - 3.2%     Alabama Power Co., 6.50%     100,000     2,450,000  
    Entergy Louisiana LLC, 6.95%     40,000     4,162,680  
    Interstate Power & Light Co. Series B, 8.375%     785,000     20,881,000  
              27,493,680  
Insurance - 6.7%     Aegon NV, 6.50%     400,000     6,824,000  
    Arch Capital Group Ltd. Series A, 8%     100,000     2,300,000  
    Arch Capital Group Ltd. Series B, 7.875%     160,000     3,640,000  
    Aspen Insurance Holdings Ltd., 7.401% (d)     655,000     11,626,250  
    Axis Capital Holdings Ltd. Series B, 7.50% (d)     180,000     14,484,384  
    Endurance Specialty Holdings Ltd. Series A, 7.75%     369,000     7,564,500  
    PartnerRe Ltd. Series C, 6.75%     265,600     5,402,304  
    RenaissanceRe Holding Ltd. Series D, 6.60%     285,000     5,415,000  
              57,256,438  
Real Estate Investment     BRE Properties, Inc. Series D, 6.75%     30,000     589,500  
Trusts (REITs) - 1.7%     iStar Financial, Inc. Series I, 7.50%     55,000     627,000  
    Public Storage Series F, 6.45%     30,000     575,400  
    Public Storage Series M, 6.625%     55,000     1,095,050  
    Sovereign Real Estate Investment Corp., 12% (e)     10,000     9,100,000  
    Weingarten Realty Investors Series F, 6.50%     140,000     2,744,000  
              14,730,950  
Thrifts & Mortgage     Fannie Mae Series R, 7.625%     65,000     1,110,850  
Finance - 0.8%     Freddie Mac Series Q, 3.85% (d)     235,000     6,227,500  
              7,338,350  
Wireless     Centaur Funding Corp., 9.08% (e)     10,000     9,943,750  
Telecommunication                
Services - 1.2%                
    Total Preferred Stocks - 22.7%           194,887,442  
        Par      
    Trust Preferred     (000)      
Capital Markets - 0.4%     Credit Suisse Guernsey Ltd., 7.90% (c)   $ 250     244,098  
    Deutsche Bank Contingent Capital Trust V, 8.05% (c)     3,375     3,317,625  
              3,561,723  

6

BlackRock Preferred and Equity Advantage Trust      
Schedule of Investments July 31, 2008 (Unaudited)     (Percentages shown are based on Net Assets)  
        Par      
Industry   Trust Preferred     (000)     Value  
Commercial Banks -   Citizens Funding Trust I, 7.50%, 9/15/66   $ 5,250   $   2,492,851  
0.3 %              
Diversified Financial   ING Groep NV, 7.20% (c)     5,325     4,494,319  
Services - 0.6%   ING Groep NV, 7.375% (c)     1,000     854,193  
              5,348,512  
Diversified   AT&T Inc., 6.375%, 2/15/56     750     748,672  
Telecommunication              
Services - 0.1%              
Electric Utilities - 0.9%   PPL Energy Supply LLC, 7%, 7/15/46     7,200     7,250,087  
Insurance - 0.4%   W.R. Berkley Capital Trust II, 6.75%, 7/26/45     4,268     3,550,422  
Media - 1.9%   Comcast Corp., 6.625%, 5/15/56     19,500     16,454,489  
Oil, Gas & Consumable   Nexen, Inc., 7.35%, 11/01/43     3,000     2,809,215  
Fuels - 0.3%              
Thrifts & Mortgage   Countrywide Capital V, 7%, 11/01/66     1,250     804,523  
Finance - 1.4%   Countrywide Financial Corp., 6.75%, 4/01/33     18,125     11,500,263  
              12,304,786  
    Total Trust Preferred - 6.3%           54,520,757  
    Total Preferred Securities - 47.0%           403,402,100  
    Corporate Bonds            
Building Products -   C8 Capital SPV Ltd., 6.64% (c)(d)(e)     3,160     2,885,586  
0.3%              
Capital Markets - 1.0%   Credit Suisse Guernsey Ltd., 5.86% (c)(d)     7,000     5,692,113  
    Lehman Brothers Holdings, Inc., 4.476%, 9/15/22 (d)     1,075     989,841  
    Lehman Brothers Holdings, Inc., 6.875%, 7/17/37     1,875     1,553,844  
              8,235,798  
Commercial Banks -   BNP Paribas, 7.195% (c)(d)(e)     20,100     17,278,965  
18.2%   Bank of Ireland Capital Funding II, LP, 5.571% (c)(d)(e)     6,685     4,478,068  
    Bank of Ireland Capital Funding III, LP, 6.107% (c)(d)(e)     30,000     21,086,910  
    Barclays Bank Plc, 6.86% (c)(d)(e)     11,500     9,731,656  
    Commonwealth Bank of Australia, 6.024% (c)(d)(e)     20,000     16,984,940  
    Credit Agricole SA, 6.637% (c)(d)(e)     27,495     21,707,248  
    HBOS Plc, 6.657% (c)(d)(e)     10,000     6,344,580  
    Kazkommerts Finance 2 BV, 9.20% (c)(d)     1,000     662,700  
    Lloyds TSB Group Plc, 6.267% (c)(d)(e)     12,500     9,836,125  
    Mizuho Capital Investment 1 Ltd., 6.686% (c)(d)(e)     21,000     17,680,761  
    Royal Bank of Scotland Group Plc, 7.648% (c)(d)     3,130     2,810,696  
    Royal Bank of Scotland Group Plc Series MTN, 7.64%, 3/31/49 (c)(d)     6,100     5,095,452  
    SMFG Preferred Capital USD 1 Ltd., 6.078% (c)(d)(e)     10,000     8,154,200  
    Shinsei Finance II (Cayman) Ltd., 7.16% (c)(d)(e)     1,005     639,746  
    Societe Generale, 5.922% (c)(d)(e)     11,850     9,886,751  
    Standard Chartered Bank, 7.014% (c)(d)(e)     5,125     4,305,871  
              156,684,669  
Diversified Financial   Bank of America Corp. Series K, 8% (c)(d)     20,605     19,008,112  
Services - 5.4%   C10 Capital SPV Ltd., 6.722% (c)(d)(e)     5,000     4,551,350  
    ING Groep NV, 5.775% (c)(d)     10,000     8,302,530  
    JPMorgan Chase Capital XXI Series U, 3.741% (d)     12,875     9,275,613  

7

BlackRock Preferred and Equity Advantage Trust      
Schedule of Investments July 31, 2008 (Unaudited)     (Percentages shown are based on Net Assets)  
        Par      
Industry     Corporate Bonds     (000 )     Value  
    JPMorgan Chase Capital XXV, 6.80%, 10/01/37   $ 5,650   $ 4,773,922  
    Stan IV Ltd., 4.821%, 7/20/11 (d)(g)     283     268,850  
              46,180,377  
Electric Utilities - 0.4%     PPL Capital Funding, 6.70%, 3/30/67 (d)     3,900     3,319,817  
Gas Utilities - 0.5%     Southern Union Co., 7.20%, 11/01/66 (d)     5,000     4,061,690  
Insurance - 21.0%     AXA SA, 6.463% (c)(d)(e)     12,000     9,642,240  
    The Allstate Corp., 6.50%, 5/15/57 (d)     8,675     7,470,129  
    The Allstate Corp. Series B, 6.125%, 5/15/67 (d)     8,725     7,842,641  
    American International Group, Inc., 8.175%, 5/15/58 (d)(e)     13,400     12,005,315  
    American International Group, Inc., 6.25%, 3/15/87     10,225     7,762,104  
    Chubb Corp., 6.375%, 3/29/67 (d)     15,300     13,957,425  
    Everest Reinsurance Holdings, Inc., 6.60%, 5/01/67 (d)     12,025     8,196,072  
    Liberty Mutual Group, Inc., 7%, 3/15/37 (d)(e)     11,600     9,427,192  
    Liberty Mutual Group, Inc., 10.75%, 6/15/88 (d)(e)     6,200     5,704,000  
    Lincoln National Corp., 7%, 5/17/66 (d)     3,750     3,291,941  
    Lincoln National Corp., 6.05%, 4/20/67 (d)     4,225     3,399,279  
    MetLife, Inc., 6.40%, 12/15/66     4,550     3,868,647  
    Nationwide Life Global Funding I, 6.75%, 5/15/67     8,025     5,797,830  
    Progressive Corp., 6.70%, 6/15/37 (d)     19,675     16,702,304  
    QBE Capital Funding II LP, 6.797% (c)(d)(e)     7,105     5,850,847  
    Reinsurance Group of America, 6.75%, 12/15/65 (d)     15,000     11,533,650  
    Swiss Re Capital I LP, 6.854% (c)(d)(e)     27,475     23,554,675  
    The Travelers Cos., Inc., 6.25%, 3/15/67 (d)     9,000     7,594,290  
    White Mountains Re Group Ltd., 7.506% (c)(d)(e)     4,400     3,339,068  
    ZFS Finance (USA) Trust IV, 5.875%, 5/09/32 (d)(e)     2,050     1,878,886  
    ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (d)(e)     13,220     11,328,786  
              180,147,321  
Metals & Mining - 0.4%     Aleris International, Inc., 10%, 12/15/16     5,000     3,450,000  
Multi-Utilities - 0.2%     Puget Sound Energy, Inc. Series A, 6.974%, 6/01/67 (d)     1,575     1,368,281  
Oil, Gas & Consumable     Conoco Funding Co., 6.35%, 10/15/11     4,800     5,083,051  
Fuels - 2.1%     Enterprise Products Operating LP, 8.375%, 8/01/66 (d)     4,500     4,396,572  
    Plains All American Pipeline LP, 6.50%, 5/01/18 (e)     2,515     2,486,110  
    TransCanada PipeLines Ltd., 6.35%, 5/15/67 (d)     7,325     6,190,013  
              18,155,746  
Paper & Forest     International Paper Co., 8.70%, 6/15/38     3,100     3,112,360  
Products - 0.4%                
Thrifts & Mortgage     Washington Mutual Preferred Funding Delaware, 6.534% (c)(d)(e)     1,600     480,480  
Finance - 0.0%                
    Total Corporate Bonds - 49.9%           428,082,125  
    Total Long-Term Investments (Cost - $1,258,857,716) - 121.6%           1,043,389,842  
    Short-Term Securities     Shares      
    SSgA Money Market Fund, 2.26%, 12/31/30     288,720,000     288,720,000  
    Total Short-Term Securities (Cost - $288,720,000) - 33.7%           288,720,000  
    Options Purchased     Contracts      
Call Options     Abbott Laboratories, expiring August 2008 at $52.5     30     12,300  
    Anadarko Petroleum Corp., expiring August 2008 at $60     60     11,550  
    Bank of America Corp., expiring August 2008 at $45     150     225  

8

BlackRock Preferred and Equity Advantage Trust      
Schedule of Investments July 31, 2008 (Unaudited)     (Percentages shown are based on Net Assets)  
    Options Purchased     Contracts       Value  
    Caterpillar, Inc., expiring August 2008 at $85     80     $   120  
    Cisco Systems, Inc., expiring August 2008 at $26     80       320  
    The Coca-Cola Co., expiring August 2008 at $62.5     90       450  
    ConocoPhillips, expiring August 2008 at $85     80       7,640  
    Corning, Inc., expiring August 2008 at $25     70       350  
    Cummins, Inc., expiring August 2008 at $75     50       2,500  
    Exxon Mobil Corp., expiring August 2008 at $95     60       120  
    Freeport-McMoRan Copper & Gold, Inc. Class B, expiring              
    August 2008 at $95     40       22,900  
    Gilead Sciences, Inc., expiring August 2008 at $55     50       4,500  
    Hewlett-Packard Co., expiring August 2008 at $45     90       6,750  
    JPMorgan Chase & Co., expiring August 2008 at $42.5     150       13,275  
    National Oilwell Varco, Inc., expiring August 2008 at $60     70       131,950  
    Oracle Corp., expiring August 2008 at $24     120       600  
    Reynolds American, Inc., expiring August 2008 at $60     70       875  
    Schlumberger Ltd., expiring August 2008 at $90     30       35,700  
    Staples, Inc., expiring August 2008 at $25     70       700  
    XTO Energy, Inc., expiring August 2008 at $70     120       360  
    Total Options Purchased (Cost - $468,733) - 0.0%           253,185  
    Total Investments Before Options Written              
    (Cost - $1,548,046,449*) - 155.3%           1,332,363,027  
    Options Written              
Call Options     Abbott Laboratories, expiring August 2008 at $55     60       (12,000 )  
    Freeport-McMoRan Copper & Gold, Inc. Class B,              
    expiring August 2008 at $110     80       (8,400 )  
    JPMorgan Chase & Co., expiring August 2008 at $45     300       (7,800 )  
    National Oilwell Varco, Inc., expiring August 2008 at $70     140       (132,300 )  
    S&P 500 Listed Option, expiring August 2008 at $126     270       (707,400 )  
    S&P 500 Listed Option, expiring September 2008 at $132     720       (1,191,600 )  
    Schlumberger Ltd., expiring August 2008 at $100     60       (24,600 )  
    Total Options Written              
    (Premiums Received - $2,092,078) - (0.3)%           (2,084,100 )  
    Total Investments, Net of Options Written              
    (Cost - $1,545,954,371) - 155.0%           1,330,278,927  
    Liabilities in Excess of Other Assets - (28.1)%           (241,029,206 )  
    Preferred Shares, at Redemption Value - (26.9)%           (231,121,283 )  
    Net Assets Applicable to Common Shares - 100.0%         $   858,128,438  

* The cost and unrealized appreciation (depreciation) of investments as of July 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost     $   1,548,265,726  
Gross unrealized appreciation     $   7,713,963  
Gross unrealized depreciation       (223,616,662 )  
Net unrealized depreciation     $   (215,902,699 )  

(a) Non-income producing security.

(b) All or a portion of the security has been pledged as collateral in connection with open financial futures contracts.

9

Schedule of Investments July 31, 2008 (Unaudited)
BlackRock Preferred and Equity Advantage Trust

(c) Security is perpetual in nature and has no stated maturity date. In certain instances, a final maturity date may be extended and/or the final payment may be deferred at the issuer's option for a specified time without default.

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

(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. Unless otherwise indicated, these securities are considered to be liquid.

(f) Convertible security.

(g) Security is fair valued.

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

•     Financial futures contracts purchased as of July 31, 2008 were as follows:

        Expiration           Unrealized  
      Contracts     Issue     Date     Face Value     Appreciation  
370     S & P EMINI     September 2008     $23,178,656   $ 262,727  
1,363     10-Year U.S. Treasury Bond     September 2008     $154,295,051     2,215,683  
    Total                 $ 2,478,410  
 
•      Financial futures contracts sold as of July 31, 2008 were as follows:              
        Expiration           Unrealized  
      Contracts     Issue     Date     Face Value     Depreciation  
1,950     5-Year U.S. Treasury Bond     September 2008     $214,224,559   $ (2,880,520 )  
2,856     30-Year U.S. Treasury Bond     September 2008     $325,065,029     (4,802,971 )  
    Total                 $ (7,683,491 )  
 
•       Swaps outstanding as of July 31, 2008 were as follows:              
            Notional        
            Amount     Unrealized  
            (000 )     Depreciation  
    Bought credit default protection on American Express              
    Company and pay 2.11%                  
    Broker, Deutsche Bank AG London                  
    Expires March 2013         6,000   $ (9,498 )  
 
    Bought credit default protection on Lehman Brothers              
    Holdings, Inc. and pay 4.95%                  
    Broker, Deutsche Bank AG London                  
    Expires March 2013         3,000     (158,274 )  
 
    Bought credit default protection on Dow Jones CDX              
    North America Investment Grade High Volatilit Index              
    10. V1 and pay 3.50%                  
    Broker, Lehman Brothers Special Financing                  
    Expires June 2013         6,033     (276 )  

10

BlackRock Preferred and Equity Advantage Trust                
Schedule of Investments July 31, 2008 (Unaudited)                
      Notional        
      Amount       Unrealized  
      (000)     Depreciation  
          Bought credit default protection on Kimco Realty Corp.                
          and pay 2.40%                
          Broker, Goldman Sachs & Co.                
          Expires March 2018     $   5,000   $ (77,655 )  
 
          Bought credit default protection on Mack-Cali Realty,                
          L.P. and pay 3.10%                
          Broker, Goldman Sachs & Co.                
          Expires March 2018     $   3,000     (140,160 )  
 
          Bought credit default protection on ERP Operating                
          Limited Partnership and pay 2.35%                
          Broker, Goldman Sachs & Co.                
          Expires March 2018     $   5,000     (131,610 )  
          Total           $ (517,473 )  

11

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 – Exhibit
 
  Certifications – Attached hereto  
 
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  
 
  BlackRock Preferred and Equity Advantage Trust  
 
  By:  
/s/ Donald C. Burke
    Donald C. Burke  
    Chief Executive Officer of  
    BlackRock Preferred and Equity Advantage Trust  
 
  Date: September 19, 2008  
 
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.  
 
  By:  
/s/ Donald C. Burke
    Donald C. Burke  
    Chief Executive Officer (principal executive officer) of  
    BlackRock Preferred and Equity Advantage Trust  
 
  Date: September 19, 2008  
 
  By:  
/s/ Neal J. Andrews
    Neal J. Andrews  
    Chief Financial Officer (principal financial officer) of  
    BlackRock Preferred and Equity Advantage Trust  
 
  Date: September 19, 2008  

BlackRock Credit Allocat... (NYSE:BTZ)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more BlackRock Credit Allocat... Charts.
BlackRock Credit Allocat... (NYSE:BTZ)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more BlackRock Credit Allocat... Charts.