- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
July 31, 1998
Dear Shareholder:
Domestic bonds provided investors with modest total returns during the
past six months, as interest rates generally fell. Supporting the bond market
was favorable inflation news and the belief that the Federal Reserve is unlikely
to raise short-term interest rates in the immediate future.
U.S. economic growth has slowed of late after a robust first quarter of
1998. We expect the fallout from the Asian fiscal crisis to quash any
significant rebound in U.S. growth for the remainder of the year. While we
expect that interest rates will be fairly stable in the near-term, our
longer-term outlook for the bond market remains optimistic, based on the
fundamentally favorable backdrop of low inflation, a currently high level of
real yields, and declining Treasury borrowing.
As you may know, the five investment management firms that comprised the
PNC Asset Management Group have consolidated under BlackRock, resulting in
BlackRock Inc., a $119 billion money management firm. We look forward to using
our global investment management expertise to present exciting investment
opportunities to closed-end fund shareholders in the future.
This report contains comments from your Trust's managers regarding the
markets and portfolio in addition to the Trust's financial statements and a
detailed portfolio listing. We thank you for your continued investment in the
Trust.
Sincerely,
/s/Laurence D. Fink /s/Ralph L. Schlosstein
- ------------------- -----------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
July 31, 1998
Dear Shareholder:
We are pleased to present the semi-annual report for The BlackRock New
York Insured Municipal 2008 Term Trust Inc. ("the Trust") for the six months
ended June 30, 1998. We would like to take this opportunity to review the
Trust's stock price and net asset value (NAV) performance, summarize
developments in the fixed income markets and discuss recent portfolio management
activity.
The Trust is a non-diversified closed-end bond fund whose investment
objective is to manage a portfolio of municipal debt securities that will return
$15 per share (an amount equal to the Trust's initial public offering price) to
investors on or about December 31, 2008, while providing high current income
exempt from regular federal and New York State and City income tax. The Trust
seeks to achieve this objective by investing in high credit quality ("AAA" or
insured to "AAA") New York tax-exempt general obligation and revenue bonds
issued by city, county and state municipalities.
The table below summarizes the changes in the Trust's stock price and net
asset value over the period:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------
6/30/98 12/31/97 CHANGE HIGH LOW
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STOCK PRICE $16.0625 $15.8750 1.18% $16.3750 $15.4375
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $16.47 $16.53 (0.36%) $16.75 $16.21
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
THE FIXED INCOME MARKETS
After an extremely strong first quarter of 1998, U.S. economic growth
slowed during the past three months. Despite the strong economic growth of the
past year, inflation stayed surprisingly subdued. One explanation for the
absence of inflation in the U.S. economy stems from the aftermath of the Asian
financial crisis. U.S. exports to Asia have slowed, while the strength of the
dollar caused cheap Asian imports to flood the U.S. market and exert downward
price pressure on domestic goods.
Yields of U.S. Treasury securities have remained in a fairly narrow range
during the period. For example, the yield of the 10-Year Treasury posted a net
decline of 29 basis points (0.29%), beginning 1998 at 5.74% and closing on June
30, 1998 at 5.45%. The past six months represented a continuation of strong
Treasury performance, which has been due to moderating economic growth, low
inflation and a "flight to quality" from investors seeking a safe haven in U.S.
Treasury securities. Continued expectations that the Asian crisis will slow
economic growth and force the Fed to leave the Federal funds rate unchanged
provided additional support to the bond market. With Treasury supply waning due
to a surplus in the federal budget and an increased foreign demand for
Treasuries due to their U.S. government backing and relatively attractive
yields, we anticipate a positive environment for Treasuries for the balance of
1998.
2
<PAGE>
New York State's economy remained strong over the past six months and the
State's fiscal year 1998 budget surplus is projected at $1.9 billion. Wall
Street's prosperity, fueled by the continued bull market, has resulted in
increased tax revenues that have contributed to the State's income growth. These
increased revenues have mitigated the impact of Governor Pataki's tax cuts;
further tax reductions have been proposed to make New York State more
economically competitive.
Municipal bonds underperformed the taxable domestic bond market during the
past six months, returning 2.69% (as measured by the LEHMAN BROTHERS MUNICIPAL
INDEX) versus the LEHMAN BROTHERS AGGREGATE INDEX'S 3.91% on a pre-tax basis.
The main forces behind municipal bond underperformance were increased municipal
bond supply (fueled by the lowest municipal interest rates since the 1960s) and
retail investor focus on the equity markets. We believe that municipals are
attractively valued versus Treasuries and our outlook for municipal securities
is favorable. The credit quality of most issuers remains strong, and we expect
that the attractive taxable equivalent yields offered by municipal securities
should bring investors back into the market.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is actively managed to diversify exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trust to
capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons. Additionally, the Trust emphasizes securities whose
maturity dates match the termination date of the Trust. We have continued to
minimize trading activity in the Trust during the period, as the market prices
of a significant portion of the portfolio's bonds are currently above the prices
at which they were bought. A bond sold at a gain would result in the Trust
realizing a capital gain, which may require a taxable distribution to
shareholders. Since one of the Trust's primary investment objectives is to pay
out tax-exempt income, we believe that waiting to restructure the portfolio in a
higher interest rate environment remains the most prudent strategy.
The following chart compares the Trust's current and December 31, 1997
asset composition:
- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
- --------------------------------------------------------------------------------
SECTOR JUNE 30, 1998 DECEMBER 31, 1997
- --------------------------------------------------------------------------------
Transportation 26% 26%
- --------------------------------------------------------------------------------
County, City and State 21% 21%
- --------------------------------------------------------------------------------
Water & Sewer 14% 14%
- --------------------------------------------------------------------------------
Lease Revenue 13% 13%
- --------------------------------------------------------------------------------
Hospital 10% 10%
- --------------------------------------------------------------------------------
Tax Revenue 6% 6%
- --------------------------------------------------------------------------------
Housing 5% 5%
- --------------------------------------------------------------------------------
Other 5% 5%
- --------------------------------------------------------------------------------
Additionally, the Trust employs leverage to enhance its income by paying
the Trust's preferred shareholders short-term municipal rates and investing the
proceeds in longer maturity issues which have higher yields. The Trust's ability
to pay high monthly income may be affected by the profitability of its leverage.
The Federal Reserve's neutral interest rate policy has allowed the Trust's
leverage costs to remain reasonable. At the present, we believe that leverage
will continue to positively contribute to the Trust's long-term income earning
ability.
3
<PAGE>
We look forward to managing the Trust to benefit from the opportunities
available in the fixed income markets and to meet its investment objectives. We
thank you for your investment in the BlackRock New York Insured Municipal 2008
Term Trust Inc. Please feel free to contact our marketing center at (800)
227-7BFM (7236) if you have specific questions which were not addressed in this
report.
Sincerely,
/s/Robert S. Kapito /s/Kevin Klingert
- ------------------- -----------------
Robert S. Kapito Kevin Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Financial Management, Inc. BlackRock Financial Management, Inc.
- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BLN
- --------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
- --------------------------------------------------------------------------------
Closing Stock Price as of 6/30/98: $16.0625
- --------------------------------------------------------------------------------
Net Asset Value as of 6/30/98: $16.47
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 6/30/98 ($16.0625)1: 5.32%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:2 $0.07125
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:2 $0.855
- --------------------------------------------------------------------------------
- -----------
1 Yield on Closing Stock Price is calculated by dividing the current annualized
distribution per share by the closing stock price per share.
2 Distribution is not constant and is subject to change.
4
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
PORTFOLIO OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS++ (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--143.7%
NEW YORK--140.8%
<S> <C> <C> <C>
AAA $ 1,075 Babylon, G.O., Ser. A, 5.875%, 1/15/09, AMBAC ..................... 01/04 at 102 $ 1,160,946
AAA 785 Erie Cnty., Ser. B, 5.70%, 5/15/08, MBIA .......................... 05/04 at 102 847,486
Met. Trans. Auth. Rev., MBIA,
AAA 2,500 Commuter Fac., Ser. A, 6.10%, 7/01/08 .......................... No Opt. Call 2,828,675
AAA 26,075 Ser. K, 6.00%, 7/01/08 ......................................... No Opt. Call 29,182,879
Mt. Sinai Union Free Sch. Dist. Rev., AMBAC,
AAA 935 6.00%, 2/15/08 ................................................. No Opt. Call 1,048,415
AAA 930 6.10%, 2/15/09 ................................................. No Opt. Call 1,051,532
AAA 1,075 6.10%, 2/15/10 ................................................. No Opt. Call 1,220,490
AAA 10,500 Mun. Asst. Corp., City of New York, Ser. A, 6.00%, 7/01/08, FGIC .. 07/01 at 100 10,959,270
AAA 2,060 Nassau Cnty. G.O., Ser. N, 6.125%, 10/15/02+, AMBAC ............... N/A 2,272,129
New York City, G.O.,
AAA 10,000 Ser. B, 6.25%, 10/01/08, FSA ................................... 10/02 at 101.5 10,827,400
AAA 5,500 Ser. C, 6.00%, 8/01/09, AMBAC .................................. 08/02 at 101.5 5,848,480
AAA 4,120 Ser. C-1, 6.25%, 8/01/02+, FSA ................................. N/A 4,506,003
AAA 4,950 Ser. C-1, 6.375%, 8/01/02+, MBIA ............................... N/A 5,436,733
AAA 50 Ser. C-1, 6.375%, 8/01/08, MBIA ................................ 08/02 at 101.5 54,245
AAA 95 Ser. C-1, 6.25%, 8/01/10, FSA .................................. 08/02 at 101.5 102,076
AAA 3,000 Ser. D, 5.75%, 8/15/07, MBIA ................................... 08/03 at 101.5 3,199,950
AAA 6,895 Ser. E, 6.20%, 8/01/08, MBIA ................................... No Opt. Call 7,779,077
New York City Hlth. & Hosp. Corp. Rev.,
AAA 6,000 5.60%, 2/15/08, CONNIE LEE ..................................... 02/03 at 102 6,369,600
AAA 2,750 Ser. A, 6.00%, 2/15/07, CAPMAC ................................. 02/03 at 102 2,969,532
New York City Mun. Wtr. Fin. Auth. Rev., Wtr. & Swr. Sys., Ser. A,
AAA 11,500 Zero Coupon, 6/15/09, MBIA ..................................... No Opt. Call 6,932,545
AAA 11,560 6.15%, 6/15/07, FGIC ........................................... 06/02 at 101.5 12,447,808
AAA 1,710 6.00%, 6/15/08, FGIC ........................................... No Opt. Call 1,910,121
AAA 2,000 5.50%, 6/15/11, AMBAC .......................................... 06/02 at 101.5 2,095,860
New York St., G.O., AMBAC,
AAA 4,030 6.75%, 8/01/07 ................................................. 08/01 at 102 4,374,323
AAA 1,000 5.50%, 6/15/09 ................................................. 06/03 at 102 1,054,720
New York St. Dorm. Auth. Rev.,
AAA 1,185 City Univ., 6.125%, 7/01/04+, AMBAC ............................ N/A 1,323,100
AAA 1,965 City Univ., 6.125%, 7/01/08, AMBAC ............................. 07/04 at 102 2,153,129
AAA 5,375 New York Univ., 6.25%, 7/01/09, FGIC ........................... 07/01 at 102 5,752,594
AAA 1,600 St. Univ. Ed. Fac., 5.50%, 5/15/07, FGIC ....................... No Opt. Call 1,717,360
AAA 2,500 St. Univ. Ed. Fac., Ser. A, 5.50%, 5/15/08, AMBAC .............. No Opt. Call 2,689,875
AAA 6,000 St. Univ. Ed. Fac., Ser. A, 5.50%, 5/15/08, CONNIE LEE ......... No Opt. Call 6,460,620
AAA 5,000 St. Univ. Ed. Fac., Ser. A, 5.50%, 5/15/08, FGIC ............... No Opt. Call 5,379,750
AAA 5,000 St. Univ. Ed. Fac., Ser. A, 5.50%, 5/15/09, AMBAC .............. No Opt. Call 5,387,950
AAA 1,800 Union Coll., 5.75%, 7/01/10, FGIC .............................. 07/02 at 102 1,890,558
AAA 500 W K Nursing Home, 5.65%, 8/01/09, FHA .......................... 08/06 at 102 533,800
AAA 5,000 New York St. Environ. Fac. Corp., P.C.R., Ser. D, 6.60%, 5/15/08 .. 11/04 at 102 5,694,500
New York St. Hsg. Fin. Agcy. Rev.,
AAA 1,985 Hsg. Proj. Mtge., Ser A., 5.80%, 5/01/09, FSA .................. 05/06 at 102 2,130,639
AAA 4,910 Hsg. Proj. Mtge., Ser A., 5.80%, 11/01/09, FSA ................. 05/06 at 102 5,270,247
AAA 4,565 Multifamily Mtge. Hsg, Ser C., 6.30%, 8/15/08, FHA ............. 08/02 at 102 4,911,210
See Notes to Financial Statements.
5
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS++ (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
New York St. Med. Care Fac. Fin. Agcy. Rev.,
<S> <C> <C> <C>
AAA $ 3,000 Mental Hlth. Fac., 5.25%, 8/15/07, FGIC ........................ 02/04 at 102 $ 3,163,440
AAA 6,190 Mental Hlth. Svcs. Impvt., Ser. D, 6.00%, 8/15/08, AMBAC ....... 08/02 at 102 6,678,267
AAA 5,000 New York Hosp., Ser. A, 6.50%, 2/15/05+, AMBAC ................. N/A 5,717,700
AAA 250 New York St. Pwr. Auth. Rev., Series CC, 5.125%, 1/01/11, MBIA .... No Opt. Call 259,948
New York St. Thruway Auth. Rev.,
AAA 1,000 Hwy. & Brdg. Trust Fund, Ser. B, 6.00%, 4/01/04+, FGIC ......... N/A 1,106,590
AAA 5,000 Hwy. & Brdg. Trust Fund, Ser. A, 5.625%, 4/01/08, AMBAC ........ 04/04 at 102 5,394,700
AAA 10,060 Ser. A, 5.875%, 1/01/02+, FGIC ................................. N/A 10,815,949
AAA 6,940 Service Contract, 5.75%, 4/01/09, MBIA ......................... 04/04 at 102 7,476,254
New York St. Urban Dev. Corp. Rev., Correctional Fac.,
AAA 1,750 5.625%, 1/01/07, AMBAC ......................................... 01/03 at 102 1,868,178
AAA 1,460 5.625%, 1/01/07, FSA ........................................... 01/03 at 102 1,555,513
AAA 2,000 Ser. A, 5.50%, 1/01/09, AMBAC .................................. No Opt. Call 2,152,800
AAA 2,055 Port Auth. of New York & New Jersey, Seventy-Second Ser.,
7.40%,10/01/02+, AMBAC ......................................... N/A 2,335,939
Suffolk Cnty, G.O., FGIC,
AAA 620 Ser. B, 6.00%, 5/01/07 ......................................... 05/02 at 102 666,116
AAA 615 Ser. B, 6.05%, 5/01/08 ......................................... 05/02 at 102 661,365
AAA 465 Ser. C, 6.00%, 6/15/07 ......................................... 06/02 at 102 506,794
AAA 430 Ser. C, 6.05%, 6/15/08 ......................................... 06/02 at 102 469,195
AAA 5,000 Suffolk Cnty. Ind. Dev. Agcy. Rev., Southwest,
6.00%, 2/01/08, FGIC ........................................... No Opt. Call 5,583,900
Suffolk Cnty. Wtr. Auth. Rev., Ser. C, AMBAC,
AAA 1,285 5.75%, 6/01/02+ ................................................ N/A 1,384,074
AAA 1,675 5.75%, 6/01/08 ................................................. 06/02 at 102 1,780,358
Triborough Brdg. & Tunl. Auth. Rev.,
AAA 8,110 6.20%, 1/01/08, FGIC ........................................... 01/02 at 101.5 8,695,055
AAA 6,500 6.25%, 1/01/12, AMBAC .......................................... 01/02 at 101.5 6,981,520
AAA 7,500 Ser. X, 6.00%, 1/01/07, AMBAC .................................. No Opt. Call 7,888,800
------------
260,918,082
------------
PUERTO RICO--2.9%
AAA 5,000 Puerto Rico Comnwlth. G.O., Ser. A, 6.25%, 7/01/10, FSA ........... 07/02 at 101.5 5,356,100
------------
TOTAL INVESTMENTS--143.7% (COST $241,780,351) ..................... 266,274,182
Other assets in excess of liabilities--2.5% ....................... 4,588,099
Liquidation value of preferred stock--(46.2)% ..................... (85,500,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ................ $185,362,281
============
- -------------------------
* Rating: Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ This bond is prerefunded. See glossary for definition.
++ Option call provisions: date (month/year) and price of the earliest optional call or redemption. There may be other
call provisions at varying prices at later dates.
========================================================================================================================
THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:
AMBAC -- American Municipal Bond Assurance Corporation FGIC-- Financial Guaranty Insurance Company
CAPMAC -- Capital Markets Assurance Corporation FSA-- Financial Security Assurance
CONNIE LEE -- College Construction Loan Insurance Association G.O.-- General Obligation Bond
FHA -- Federal Housing Administration MBIA-- Municipal Bond Insurance Association
P.C.R.-- Pollution Control Revenue
========================================================================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED
MUNICIPAL 2008 TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $241,780,351)
(Note 1) ............................... $266,274,182
Interest receivable ...................... 5,097,415
Other assets ............................. 13,105
------------
271,384,702
------------
LIABILITIES
Due to custodian 223,747
Investment advisory fee payable (Note 2) . 78,181
Dividends payable--preferred stock ....... 44,718
Administration fee payable (Note 2) ...... 22,337
Other accrued expenses ................... 153,438
------------
522,421
------------
NET INVESTMENT ASSETS .................... $270,862,281
============
Net investment assets were comprised of:
Common stock:
Par value (Note 4) ................... $ 112,571
Paid-in capital in excess of par ..... 156,370,725
Preferred stock (Note 4) ............. 85,500,000
------------
241,983,296
Undistributed net investment income .... 4,434,083
Accumulated net realized loss .......... (48,929)
Net unrealized appreciation ............ 24,493,831
------------
Net investment assets, June 30, 1998 ... $270,862,281
============
Net assets applicable to common
shareholders ......................... $185,362,281
============
Net asset value per common share:
($185,362,281 / 11,257,093 shares of
common stock issued and outstanding) ... $16.47
======
- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED
MUNICIPAL 2008 TERM TRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned ............ $7,412,487
----------
Expenses
Investment advisory ..................... 473,071
Administration .......................... 135,163
Auction agent ........................... 126,000
Custodian ............................... 42,000
Reports to shareholders ................. 30,000
Directors ............................... 20,000
Audit ................................... 16,000
Transfer agent .......................... 10,000
Legal ................................... 6,000
Miscellaneous ........................... 21,507
----------
Total expenses ........................ 879,741
----------
Net investment income ..................... 6,532,746
----------
UNREALIZED LOSS ON
INVESTMENTS (NOTE 3)
Net change in unrealized appreciation on
investments ........................... (988,516)
----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ........ $5,544,230
==========
See Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1998 1997
------------- ------------
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
OPERATIONS:
<S> <C> <C>
Net investment income ........................................................ $ 6,532,746 $13,045,382
Net realized gain on investments ............................................. -- 9,392
Net change in unrealized appreciation on investments ......................... (988,516) 8,222,820
------------ -----------
Net increase in net investment assets resulting from operations .............. 5,544,230 21,277,594
------------ ------------
DIVIDENDS AND DISTRIBUTIONS:
To common shareholders from net investment income ............................ (4,812,292) (9,617,474)
To common shareholders from net realized gain on investments ................. -- (12,203)
To preferred shareholders from net investment income ......................... (1,435,791) (2,948,583)
To preferred shareholders from net realized gain on investments .............. -- (3,745)
------------ ------------
Total dividends and distributions ........................................ (6,248,083) (12,582,005)
------------ ------------
Total increase (decrease) ................................................ (703,853) 8,695,589
------------ ------------
NET INVESTMENT ASSETS
Beginning of period ............................................................ 271,566,134 262,870,545
------------ ------------
End of period .................................................................. $270,862,281 $271,566,134
============ ============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
----------------------------------------------------
JUNE 30, 1998 1997 1996 1995 1994 1993
------------- ---- ---- ---- ---- ----
PER COMMON SHARE OPERATING
PERFORMANCE:
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of the period ........... $ 16.53 $ 15.76 $ 16.11 $ 13.77 $ 16.19 $ 14.33
-------- ------- ------- -------- -------- --------
Net investment income ............................ 0.58 1.16 1.15 1.15 1.14 1.14
Net realized and unrealized gain (loss)
on investments ................................. (0.08) 0.73 (0.33) 2.33 (2.49) 1.79
-------- ------- ------- -------- -------- --------
Net increase (decrease) from investment
operations ..................................... 0.50 1.89 0.82 3.48 (1.35) 2.93
-------- ------- ------- -------- -------- --------
Dividends from net investment income to:
Preferred shareholders ........................... (0.13) (0.26) (0.25) (0.29) (0.21) (0.17)
Common shareholders .............................. (0.43) (0.86) (0.85) (0.85) (0.86) (0.86)
Distributions from net realized gain on
investments to:
Preferred shareholders ........................... -- ** (0.02) -- -- (0.01)
Common shareholders .............................. -- *** (0.05) -- -- (0.03)
Distributions in excess of net realized gain
on investments to:
Preferred shareholders ........................... -- -- -- ** ** --
Common shareholders .............................. -- -- -- *** *** --
-------- ------- ------- -------- -------- -------
Total dividends and distributions .................. (0. 56) (1.12) (1.17) (1.14) (1.07) (1.07)
-------- ------- ------- -------- -------- -------
Net asset value, end of period* .................... $ 16.47 $ 16.53 $ 15.76 $ 16.11 $ 13.77 $ 16.19
======== ======== ======== ======== ======== =======
Market value, end of period* ....................... $ 16.06 $ 15.88 $ 15.13 $ 14.63 $ 12.50 $ 15.00
======== ======== ======== ======== ======== =======
TOTAL INVESTMENT RETURN+ ........................... 3.92% 10.93% 9.60% 24.19% (11.35%) 14.89%
======== ======== ======== ======== ======== =======
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS: ++
Expenses ........................................... 0.96%+++ 0.98% 1.03% 1.05% 1.08% 0.95%
Net investment income before preferred
stock dividends ................................ 7.10%+++ 7.26% 7.36% 7.54% 7.80% 7.31%
Preferred stock dividends .......................... 1.56%+++ 1.64% 1.70% 1.87% 1.46% 1.15%
Net investment income available to common
shareholders ................................... 5.54%+++ 5.62% 5.66% 5.67% 6.34% 6.16%
SUPPLEMENTAL DATA:
Average net assets of common shareholders
(in thousands) ................................. $185,509 $179,797 $176,229 $172,037 $164,792 $174,881
Portfolio turnover ................................. 0% 2% 10% 12% 50% 14%
Net assets of common shareholders, end of period
(in thousands) ................................... $185,362 $186,066 $177,371 $181,380 $155,064 $182,198
Preferred stock outstanding (in thousands) ......... $ 85,500 $ 85,500 $ 85,500 $ 85,500 $ 85,500 $ 85,500
Asset coverage per share of preferred stock,
end of period # ................................. $ 79,199 $ 79,406 $ 76,863 $ 78,035 $140,681 $156,549
</TABLE>
- ------------
* Net asset value and market value are published in THE WALLSTREET JOURNAL
each Monday.
** Actual amount paid to preferred shareholders was $0.0003, $0.00041 and
$0.00054 per common share for the fiscal years ended December 31, 1997,
1995 and 1994, respectively.
*** Actual amount was $0.0011, $0.0012 and $0.0025 per common share for the
fiscal years ended December 31, 1997, 1995 and 1994, respectively.
+ Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day and a sale at the current
market value on the last day of the period. Dividends and distributions, if
any, are assumed for purposes of this calculation, to be reinvested at
prices obtained under the Trust's dividend reinvestment plan. Total
investment return does not reflect brokerage commissions.
++ Ratios calculated on the basis of income and expenses applicable to both
the common and preferred shares, and preferred stock dividends, relative to
the average net assets of common shareholders.
+++ Annualized
# A stock split occurred on July 24, 1995 (Note 4).
The information above represents the unaudited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for Trust's shares.
See Notes to Financial Statements.
9
<PAGE>
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THE BLACKROCK NEW YOR KINSURED
MUNICIPAL 2008 TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION & ACCOUNTING POLICIES
The BlackRock New York Insured Municipal 2008 POLICIES Term Trust Inc. (the
"Trust"), was organized in Maryland on August 7, 1992 as a non-diversified
closed-end management investment company. The Trust's investment objective is to
manage a non-diversified portfolio of high quality securities that will return
$15 per share to investors on or about December 31, 2008 while providing current
income exempt from regular federal, New York State and New York City income
taxes. The ability of issuers of debt securities held by the Trust to meet their
obligations may be affected by economic developments in the state, a specific
industry or region. No assurance can be given that the Trust's investment
objective will be achieved.
The following is a summary of significant accounting policies followed by
the Trust.
SECURITIES VALUATION: Municipal securities (including commitments to purchase
such securities on a "when-issued" basis) are valued on the basis of prices
provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions
incomparable securities and various relationships between securities in
determining values. Any securities or other assets for which such current market
quotations are not readily available are valued at fair value as determined in
good faith under procedures established by and under the general supervision and
responsibility of the Trust's Board of Directors.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost, if their term to maturity from date of purchase is 60
days or less, or by amortizing their value on the 61st day prior to maturity, if
their original term to maturity from date of purchase exceeded 60 days.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust amortizes premium and accretes original issue
discount on securities purchased using the interest method.
FEDERAL INCOME TAXES: It is the Trust's intention to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute sufficient net income to shareholders. For this
reason and because substantially all of the Trust's gross income consists of
tax-exempt interest, no federal income tax provision is required.
DIVIDENDS AND DISTRIBUTIONS: The Trust declares and pays dividends and
distributions to common shareholders monthly from net investment income, net
realized short-term capital gains and other sources, if necessary. Net long-term
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.
ESTIMATES: The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
NOTE 2. AGREEMENTS
The Trust has an Investment Advisory Agreement with BlackRock Financial
Management, Inc. (the "Adviser"), a wholly-owned corporate subsidiary of
BlackRock Advisors, Inc., an indirect majority-owned subsidiary of PNCBank,
N.A., and an Administration Agreement with Princeton Administrators, L.P. (the
"Administrator"), an indirect wholly-owned subsidiary of Merrill Lynch & Co.,
Inc.
The investment advisory fee paid to the Adviser is computed weekly and
payable monthly at an annual rate of 0.35% of the Trust's average weekly net
investment assets. The administration fee paid to the Administrator is also
computed weekly and payable monthly at an annual rate of 0.10% of the Trust's
average weekly net investment assets.
Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. The Administrator pays occupancy and
certain clerical and accounting costs of the Trust. The Trust bears all other
costs and expenses.
NOTE 3. PORTFOLIO
For the six months ended June 30, 1998, the Trust, other than for short-term
investments, had no purchases or sales.
The federal income tax basis of the Trust's investments at June 30, 1998 was
substantially the same as the basis for financial reporting, and accordingly,
gross and net unrealized appreciation for federal income tax purposes was
$24,493,831.
10
<PAGE>
NOTE 4. CAPITAL
There are 200 million shares of $.01 par value common stock authorized. Of the
11,257,093 common shares outstanding at June 30, 1998, the Adviser owned 7,093
shares. As of June 30, 1998, there were 3,420 preferred shares outstanding as
follows: Series F28-1,710 and Series F7-1,710.
The Trust may classify or reclassify any unissued shares of common stock into
one or more series of preferred stock. On November 23, 1992, the Trust
reclassified 1,710 shares of common stock and issued 2 series of Auction Market
Preferred Stock ("Preferred Stock") as follows: Series F28--855 shares, Series
F7--855 shares. The Preferred Stock has a liquidation value of $25,000 per share
plus any accumulated but unpaid dividends. On May 16, 1995 shareholders approved
a proposal to split each share of the Trust's Auction Rate Municipal Preferred
Stock into two shares and simultaneously reduce each share's liquidation
preference from $50,000 to $25,000 plus any accumulated but unpaid dividends.
The stock split occurred on July 24, 1995.
Dividends on Series F7 are cumulative at a rate which is reset every 7 days
based on the results of an auction. Dividends on Series F28 are also cumulative
at a rate which is reset every 28 days based on the results of an auction.
Dividend rates ranged from 2.40% to 5.00% during the six months ended June 30,
1998.
The Trust may not declare dividends or make other distributions on shares of
common stock or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
Preferred Stock would be less than 200%.
The Preferred Stock is redeemable at the option of the Trust, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated or
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared if certain requirements relating to the
composition of the assets and liabilities of the Trust as set forth in the
Articles of Incorporation are not satisfied.
The holders of Preferred Stock have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of shares
of common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Trust's directors. In addition, the Investment
Company Act of 1940 requires that along with approval by stockholders that might
otherwise be required, the approval of the holders of a majority of any
outstanding preferred shares, voting separately as a class would be required to
(a) adopt any plan of reorganization that would adversely affect the Preferred
Stock, and (b) take any action requiring a vote of security holders, including,
among other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.
NOTE 5. DIVIDENDS
Subsequent to June 30, 1998, the Board of Directors of the Trust declared a
dividend from undistributed earnings of $0.07125 per common share payable July
31, 1998 to shareholders of record on July 15, 1998.
For the period July 1, 1998 to July 31, 1998, dividends declared on Preferred
Stock totalled $230,225 in aggregate for the two outstanding Preferred Stock
series.
11
<PAGE>
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THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
automatically reinvested by State Street Bank & Trust Company (the "Plan Agent")
in Trust shares. Shareholders who do not participate in the Plan will receive
all distributions in cash paid by check in United States dollars mailed directly
to the shareholders of record (or if the shares are held in street or other
nominee name, then to the nominee) by the custodian, as dividend disbursing
agent.
The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange for the participants' accounts. The Trust will not issue shares
under the Plan.
Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment for any fraction of a Trust share.
The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal income tax that may be payable on
such dividends or distributions.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
change sent to all shareholders of the Trust at least 90 days before the record
date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent upon at least 90 days' written notice to all
shareholders of the Trust. All correspondence concerning the Plan should be
directed to the Plan Agent at (800) 699-1BFM. The address is on the front of
this report.
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
There have been no material changes in the Trust's investment objectives
or policies that have not been approved by the shareholders.There have been no
changes in the Trust's charter or by-laws.There have been no changes in the
principal risk factors associated with investment in the Trust. There have been
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
The Annual Meeting of Trust Shareholders was held May 6, 1998 to vote on
the following matters:
(1) To elect two Directors to serve as follows:
<TABLE>
<CAPTION>
CLASS TERM EXPIRING
----- ----- -------
<S> <C> <C> <C>
Walter F. Mondale ............................................. II 3 years 2001
Ralph L.Schlosstein ........................................... II 3 years 2001
Directors whose term of office continues beyond this meeting are Andrew F.Brimmer, Richard E. Cavanagh, Kent
Dixon, Frank J. Fabozzi,Laurence D. Fink,James Grosfeld and James Clayburn La Force, Jr.
(2) To ratify the selection of Deloitte & Touche LLP as independent public
accountants of the Trust for the fiscal year ending December 31, 1998.
Shareholders elected the two Directors and ratified the selection of
Deloitte & Touche LLP. The results of the voting was as follows:
VOTES FOR VOTES AGAINST ABSTENTIONS
-------- ----------- ----------
Walter F.Mondale .............................................. 8,301,213 0 124,949
Ralph L.Schlosstein ........................................... 8,317,395 0 108,767
Ratification of Deloitte & Touche LLP ......................... 8,321,885 28,109 76,168
</TABLE>
12
<PAGE>
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THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
THE TRUST'S INVESTMENT OBJECTIVE
The BlackRock New York Insured Municipal 2008 TermTrust's investment objective
is to provide current income exempt from regular federal income tax, New York
State and New YorkCity income tax, and to return $15 per share (the initial
public offering price per share) to investors on or about December 31, 2008.
WHO MANAGES THE TRUST?
BlackRock Financial Management, Inc. ("BlackRock") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $119
billion on behalf of taxable and tax-exempt clients worldwide. Strategies
include fixed income, equity and cash and may incorporate both domestic and
international securities. Domestic fixed income strategies utilize the
government, mortgage, corporate and municipal bond sectors. BlackRock manages
twenty-one closed-end funds that are traded on either the New York or American
stock exchanges, and a $23 billion family of open-end equity and bond funds.
Current institutional clients number 334, domiciled in the United States and
overseas.
WHAT CAN THE TRUST INVEST IN?
The Trust intends to invest at least 80% of total assets in a portfolio of New
York municipal obligations insured a timely payment of principal and interest.
The Trust may invest up to 20% in uninsured New York municipal obligations were
rateds Aaa by Moody's or AAA by S&P or are determined by the Adviser to be of
comparable credit quality (guaranteed, escrowed or backed in trust).
WHAT IS THE ADVISER'S INVESTMENT STRATEGY?
The Adviser will manage the assets of the Trust in accordance with the Trust's
investment objective and policies to seek to achieve its objective by investing
in municipal debt securities that are diversified both geographically and
according to revenue source. As such, the Adviser actively manages the assets in
relation to market conditions and interest rate changes. In seeking the
investment objective, the Trust does not expect to invest more than 25% of its
total assets in municipals that are issued by the same state. Depending on yield
and portfolio allocation considerations, the Adviser may choose to invest a
portion of the Trust's assets in securities which pay interest that is subject
to AMT (alternative minimum tax). In addition to seeking the return of the
initial offering price, the Adviser also seeks to provide current income exempt
from federal income tax New York State and New YorkCity income tax to investors.
The portfolio managers will attempt to achieve this objective by investing in
securities that provide competitive income. In addition, leverage will be used
(in an amount up to 35% of the total assets) to enhance the income of the
portfolio. In order to maintain competitive yields as the Trust approaches
maturity and depending on market conditions, the Adviser will attempt to
purchase securities with call protection or maturities as close to the Trust's
maturity date as possible. Securities with call protection should provide the
portfolio with some degree of protection against reinvestment risk during times
of lower prevailing interest rates. Since the Trust's primary goal is to return
the initial offering price at maturity, any cash that the Trust receives prior
to its maturity date will be reinvested in securities with maturities which
coincide with the remaining term of the Trust. Since shorter-term securities
typically yield less than longer-term security this strategy will likely result
in a decline in the Trust's income over time. It is important to note that the
Trust will be managed so as to preserve the integrity of the return of the
initial offering price. If market conditions, such as high interest rate
volatility, force a choice between current income and risking the return of the
initial offering price, it is likely that the return of the initial offering
price will be emphasized.
HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY?
The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial advisor. The Trust
pays monthly dividends which are typically paid on the last business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the Trust through the Trust's transfer agent, State Street
Bank and Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.
13
<PAGE>
LEVERAGE CONSIDERATIONS IN A TERM TRUST
Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the issuance of preferred
stock. Leverage permits the Trust to borrow money at short-term rates and
reinvest that money in longer-term assets which typically offer higher interest
rates. The difference between the cost of the borrowed funds and the income
earned on the proceeds that are invested in longer term assets is the benefit to
the Trust from leverage. In general, the portfolio is typically leveraged at
approximately 35% of total assets. Leverage also increases the duration (or
price volatility of the net assets) of the Trust, which can improve the
performance of the Trust in a declining rate environment, but can cause net
assets to decline faster than the market in a rapidly rising rate environment.
BlackRock's portfolio managers continuously monitor and regularly review the
Trust's use of leverage and the Trust may reduce, or unwind, the amount of
leverage employed should BlackRock consider that reduction to be in the best
interests of the shareholders.
SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO TERM TRUSTS
THE TRUST IS INTENDED TO BE A LONG-TERM INVESTMENT AND IS NOT A SHORT-TERM
TRADING VEHICLE.
RETURN OF INITIAL INVESTMENT. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.
DIVIDEND CONSIDERATIONS. The income and dividends paid by the Trust are likely
to decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.
LEVERAGE. The Trust utilizes leverage through the issuance of preferred stock
which involves special risks. The Trust's net asset value and market value may
be more volatile due to its use of leverage.
MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: BLN) and as such
are subject to supply and demand influences. As a result, shares may trade at a
discount or a premium to their net asset value.
ILLIQUID SECURITIES. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. These securities involve special risks.
ANTITAKEOVER PROVISIONS. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.
MUNICIPAL OBLIGATIONS. Municipal obligations include debt obligations issued by
states, cities, and local authorities, and possessions and certain territories
of the United States to obtain funds for various public purposes, including the
construction of public facilities, the refinancing of outstanding obligations
and the obtaining of funds for general operating expenses and for loans to other
public institutions and facilities. The value of municipal debt securities
generally varies inversely with changes in prevailing market interest rates.
Depending on the amount of call protection that the securities in the Trust
have, the Trust may be subject to certain reinvestment risks in environments of
declining interest rates.
ALTERNATIVE MINIMUM TAX (AMT). The Trust may invest in securities subject to
AMT. The Trust currently holds no securities that are subject to AMT.
14
<PAGE>
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THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
GLOSSARY
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
CLOSED-END FUND: Investment vehicle which initially offers a fixed number of shares and
trades on a stock exchange. The fund invests in a portfolio of securities in
accordance with its stated investment objectives and policies.
DISCOUNT: When a fund's net asset value is greater than its stock price the fund is
said to be trading at a discount.
DIVIDEND: Income generated by securities in a portfolio and distributed to
shareholders after the deduction of expenses. This Trust declares and pays
dividends to common shareholders on a monthly basis.
DIVIDEND REINVESTMENT: Shareholders may have all dividends and distributions of capital gains
automatically reinvested into additional shares of a fund.
MARKET PRICE: Price per share of a security trading in the secondary market. For a
closed-end fund, this is the price at which one share of the fund trades on
the stock exchange. If you were to buy or sell shares, you would pay or
receive the market price.
NET ASSET VALUE (NAV): Net asset value is the total market value of all securities and other assets
held by the Trust, plus income accrued on its investments, minus any
liabilities including accrued expenses, divided by the total number of
outstanding shares. It is the underlying value of a single share on a given
day. Net asset value for the Trust is calculated weekly and published in
BARRON'S on Saturday and THE NEW YORK TIMES or THE WALL STREET JOURNAL each
Monday.
PREMIUM: When a fund's stock price is greater than its net asset value, the fund is
said to be trading at a premium.
PRE-REFUNDED BONDS: These securities are collateralized by U.S. Government securities which are
held in escrow and are used to pay principal and interest on the tax exempt
issue and retire the bond in full at the date indicated, typically at a
premium to par.
</TABLE>
15
<PAGE>
BlackRock
DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein
OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin Klingert, VICE PRESIDENT/TAX
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY
INVESTMENT ADVISER
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM
ADMINISTRATOR
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ08543-9095
(800) 543-6217
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM
AUCTION AGENT
Bankers Trust Company
4 Albany Street
New York, NY 10006
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
919 Third Avenue
New York, NY 10022
The accompanying financial statements as of June 30, 1998, were not audited
and, accordingly, no opinion is expressed on them.
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.
THE BLACKROCK NEW YORK INSURED
MUNICIPAL 2008 TERM TRUST INC.
c/o Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 227-7BFM
092476-10-5
092476-20-4
092476-30-3
092476-40-2
[RECYCLE LOGO] Printed on recycled paper
THE BLACKROCK
NEW YORK INSURED
MUNICIPAL 2008
TERM TRUST INC.
================================
SEMI-ANNUAL REPORT
JUNE 30, 1998
