c52582_nq.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

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: 11/01/2007 – 01/31/2008

Item 1 – Schedule of Investments

BlackRock Preferred and Equity Advantage Trust
Schedule of Investments as of January 31, 2008 (Unaudited)
    Shares          
Industry   Held   Common Stocks   Value  
Aerospace & Defense - 0.8%   5,400   General Dynamics Corp. $ 456,084  
    11,400   Honeywell International, Inc.   673,398  
    7,200   L-3 Communications Holdings, Inc.   797,976  
    25,600   Lockheed Martin Corp.   2,762,752  
    38,500   Northrop Grumman Corp.   3,055,360  
            7,745,570  
Air Freight & Logistics - 0.5%   71,900   United Parcel Service, Inc. Class B   5,260,204  
Auto Components - 0.1%   23,100   Johnson Controls, Inc.   817,047  
Automobiles - 0.3%   101,300   General Motors Corp.   2,867,803  
Beverages - 1.0%   30,900   Anheuser-Busch Cos., Inc.   1,437,468  
    104,800   The Coca-Cola Co.   6,201,016  
    33,700   PepsiCo, Inc.   2,298,003  
            9,936,487  
Biotechnology - 0.8%   65,400   Amgen, Inc. (d)   3,046,986  
    15,500   Biogen Idec, Inc. (d)   944,725  
    14,100   Celgene Corp. (d)   791,151  
    10,200   Genzyme Corp. (d)   796,926  
    43,900   Gilead Sciences, Inc. (d)   2,005,791  
            7,585,579  
Capital Markets - 1.1%   87,300   American Capital Strategies Ltd.   3,070,341  
    23,800   The Goldman Sachs Group, Inc.   4,778,326  
    29,300   Lehman Brothers Holdings, Inc.   1,880,181  
    18,400   Morgan Stanley   909,512  
            10,638,360  
Chemicals - 0.7%   6,100   Air Products & Chemicals, Inc.   549,122  
    63,400   The Dow Chemical Co.   2,451,044  
    62,300   E.I. du Pont de Nemours & Co.   2,814,714  
    17,300   PPG Industries, Inc.   1,143,357  
            6,958,237  
Commercial Banks - 1.7%   26,500   BB&T Corp.   961,420  
    27,500   Comerica, Inc.   1,199,550  
    13,300   KeyCorp   347,795  
    19,500   National City Corp.   346,905  
    136,200   Regions Financial Corp.   3,437,688  
    151,000   U.S. Bancorp   5,126,450  
    64,900   Wachovia Corp.   2,526,557  
    80,700   Wells Fargo & Co.   2,744,607  
            16,690,972  
Commercial Services & Supplies - 0.0%   2,800   Monster Worldwide, Inc. (d)   77,980  
Communications Equipment - 1.3%   21,800   Ciena Corp. (d)   591,434  
    166,500   Cisco Systems, Inc. (d)   4,079,250  
    54,000   Corning, Inc.   1,299,780  
    143,800   Motorola, Inc.   1,658,014  
    123,900   QUALCOMM, Inc.   5,255,838  
            12,884,316  
Computers & Peripherals - 1.3%   31,300   Apple Inc. (d)   4,236,768  
    82,700   Dell, Inc. (d)   1,657,308  
    70,000   EMC Corp. (d)   1,110,900  
    46,300   Hewlett-Packard Co.   2,025,625  
    22,000   International Business Machines Corp.   2,361,480  
    44,700   SanDisk Corp. (d)   1,137,615  
    9,200   Sun Microsystems, Inc. (d)   161,000  
            12,690,696  

1

BlackRock Preferred and Equity Advantage Trust
Schedule of Investments as of January 31, 2008 (Unaudited)
    Shares          
Industry   Held   Common Stocks   Value  
Consumer Finance - 0.1%   9,000   American Express Co. $ 443,880  
    37,750   Discover Financial Services, Inc.   660,625  
            1,104,505  
Diversified Financial Services - 4.1%   169,200   Bank of America Corp.   7,504,020  
    5,026   CME Group, Inc.   3,110,591  
    242,500   Citigroup, Inc.   6,843,350  
    103,100   JPMorgan Chase & Co.   4,902,405  
    185,000   UltraShort Financials ProShares   17,991,250  
            40,351,616  
Diversified Telecommunication   199,687   AT&T Inc.   7,685,957  
Services - 1.6%   229,800   Citizens Communications Co.   2,635,806  
    35,100   Embarq Corp.   1,590,030  
    100,100   Verizon Communications, Inc.   3,887,884  
            15,799,677  
Electric Utilities - 0.6%   13,500   American Electric Power Co., Inc.   578,205  
    8,900   Entergy Corp.   962,802  
    22,800   Exelon Corp.   1,737,132  
    26,000   FPL Group, Inc.   1,676,480  
    8,500   FirstEnergy Corp.   605,370  
            5,559,989  
Electrical Equipment - 0.5%   55,600   Emerson Electric Co.   2,826,704  
    34,300   Rockwell Automation, Inc.   1,955,786  
            4,782,490  
Electronic Equipment & Instruments - 0.1%   32,500   Tyco Electronics Ltd.   1,098,825  
               
Energy Equipment & Services - 1.0%   10,700   Baker Hughes, Inc.   694,751  
    44,400   National Oilwell Varco, Inc. (d)   2,674,212  
    18,600   Schlumberger Ltd.   1,403,556  
    49,918   Smith International, Inc.   2,706,055  
    19,363   Transocean, Inc.   2,373,904  
            9,852,478  
Food & Staples Retailing - 0.8%   49,506   CVS Caremark Corp.   1,934,199  
    85,900   Wal-Mart Stores, Inc.   4,370,592  
    39,600   Walgreen Co.   1,390,356  
    1,000   Whole Foods Market, Inc.   39,440  
            7,734,587  
Food Products - 0.4%   8,800   ConAgra Foods, Inc.   189,464  
    57,046   Kraft Foods, Inc.   1,669,166  
    140,100   Sara Lee Corp.   1,969,806  
            3,828,436  
Health Care Equipment & Supplies - 0.6%   11,900   Baxter International, Inc.   722,806  
    24,800   Becton Dickinson & Co.   2,145,944  
    36,800   Boston Scientific Corp. (d)   446,384  
    32,500   Covidien Ltd.   1,450,475  
    14,100   Zimmer Holdings, Inc. (d)   1,103,607  
            5,869,216  
Health Care Providers & Services - 0.6%   14,800   Aetna, Inc.   788,248  
    24,500   Express Scripts, Inc. (d)   1,653,505  
    27,000   Medco Health Solutions, Inc. (d)   1,352,160  
    47,400   UnitedHealth Group, Inc.   2,409,816  
            6,203,729  

2

BlackRock Preferred and Equity Advantage Trust  
Schedule of Investments as of January 31, 2008 (Unaudited)
    Shares          
Industry   Held   Common Stocks   Value  
Hotels, Restaurants & Leisure - 1.1%   35,900   Carnival Corp. $ 1,597,191  
    88,300   McDonald's Corp.   4,728,465  
    112,800   Starbucks Corp. (d)   2,133,048  
    51,600   Starwood Hotels & Resorts Worldwide, Inc.   2,334,900  
    1,700   Wendy's International, Inc.   41,514  
            10,835,118  
Household Durables - 0.3%   5,400   Black & Decker Corp.   391,716  
    23,200   Fortune Brands, Inc.   1,622,144  
    37,200   Lennar Corp. Class A   766,320  
            2,780,180  
Household Products - 0.7%   108,500   The Procter & Gamble Co.   7,155,575  
IT Services - 0.2%   41,700   Automatic Data Processing, Inc.   1,691,769  
    20,700   Cognizant Technology Solutions Corp. (d)   577,530  
            2,269,299  
Industrial Conglomerates - 1.9%   43,500   3M Co.   3,464,775  
    385,200   General Electric Co.   13,639,932  
    14,100   Textron, Inc.   790,305  
    27,800   Tyco International Ltd.   1,094,208  
            18,989,220  
Insurance - 1.4%   23,200   The Allstate Corp.   1,143,064  
    47,700   American International Group, Inc. (g)   2,631,132  
    21,400   Hartford Financial Services Group, Inc.   1,728,478  
    45,200   Lincoln National Corp.   2,457,072  
    80,500   Marsh & McLennan Cos., Inc.   2,221,800  
    60,500   The Progressive Corp.   1,122,880  
    56,700   The Travelers Cos., Inc.   2,727,270  
            14,031,696  
Internet & Catalog Retail - 0.2%   22,700   Amazon.com, Inc. (d)   1,763,790  
Internet Software & Services - 0.7%   92,800   eBay, Inc. (d)   2,495,392  
    7,270   Google, Inc. Class A (d)   4,102,461  
    34,800   Yahoo! Inc. (d)   667,464  
            7,265,317  
Leisure Equipment & Products - 0.1%   67,400   Eastman Kodak Co.   1,343,282  
Life Sciences Tools & Services - 0.1%   16,300   Thermo Fisher Scientific, Inc. (d)   839,287  
Machinery - 0.7%   44,800   Caterpillar, Inc.   3,187,072  
    38,000   Cummins, Inc.   1,834,640  
    17,600   Deere & Co.   1,544,576  
            6,566,288  
Media - 0.9%   90,500   CBS Corp. Class B   2,279,695  
    129,450   Comcast Corp. Class A   2,350,812  
    72,700   The DIRECTV Group, Inc. (d)   1,641,566  
    41,800   Viacom, Inc. Class B (d)   1,620,168  
    29,800   Walt Disney Co.   891,914  
            8,784,155  
Metals & Mining - 0.5%   32,100   Alcoa, Inc.   1,062,510  
    23,300   Allegheny Technologies, Inc.   1,640,320  
    27,500   Freeport-McMoRan Copper & Gold, Inc. Class B   2,448,325  
            5,151,155  
Multi-Utilities - 0.7%   9,100   Ameren Corp.   407,771  
    43,800   Consolidated Edison, Inc.   1,908,804  
    13,700   Dominion Resources, Inc.   589,100  
    43,100   Public Service Enterprise Group, Inc.   4,137,600  
            7,043,275  

3

BlackRock Preferred and Equity Advantage Trust
Schedule of Investments as of January 31, 2008 (Unaudited)
    Shares          
Industry   Held   Common Stocks   Value  
Multiline Retail - 0.0%   200   Family Dollar Stores, Inc. $ 4,206  
    7,200   Target Corp.   400,176  
            404,382  
Oil, Gas & Consumable   31,500   Anadarko Petroleum Corp.   1,845,585  
Fuels - 4.0%   11,500   Apache Corp.   1,097,560  
    91,700   Chevron Corp.   7,748,650  
    55,900   ConocoPhillips   4,489,888  
    35,900   Devon Energy Corp.   3,050,782  
    23,400   EOG Resources, Inc.   2,047,500  
    155,900   Exxon Mobil Corp.   13,469,760  
    28,500   Hess Corp.   2,588,655  
    700   Marathon Oil Corp.   32,795  
    21,200   Valero Energy Corp.   1,254,828  
    18,500   XTO Energy, Inc.   960,890  
            38,586,893  
Paper & Forest Products - 0.3%   70,100   International Paper Co.   2,260,725  
    25,200   MeadWestvaco Corp.   705,600  
    5,700   Weyerhaeuser Co.   386,004  
            3,352,329  
Pharmaceuticals - 3.1%   32,100   Abbott Laboratories   1,807,230  
    150,600   Bristol-Myers Squibb Co.   3,492,414  
    64,900   Eli Lilly & Co.   3,343,648  
    120,300   Johnson & Johnson   7,610,178  
    105,800   Merck & Co., Inc.   4,896,424  
    367,900   Pfizer, Inc. (g)   8,605,181  
    15,100   Wyeth   600,980  
            30,356,055  
Real Estate Investment Trusts (REITs) - 0.3%   9,900   Equity Residential   370,359  
    65,700   Plum Creek Timber Co., Inc.   2,742,975  
            3,113,334  
Semiconductors & Semiconductor Equipment - 1.2%   33,000   Applied Materials, Inc.   591,360  
    171,300   Intel Corp.   3,631,560  
    55,300   Linear Technology Corp.   1,530,151  
    59,300   Microchip Technology, Inc.   1,892,263  
    59,800   National Semiconductor Corp.   1,102,114  
    86,850   Nvidia Corp. (d)   2,135,642  
    32,400   Texas Instruments, Inc.   1,002,132  
            11,885,222  
Software - 1.5%   52,300   Autodesk, Inc. (d)   2,152,145  
    19,000   Electronic Arts, Inc. (d)   900,030  
    287,000   Microsoft Corp.   9,356,200  
    131,500   Oracle Corp. (d)   2,702,325  
            15,110,700  
Specialty Retail - 0.2%   84,400   Home Depot, Inc.   2,588,548  
Textiles, Apparel & Luxury Goods - 0.1%   19,400   Coach, Inc. (d)   621,770  
    7,900   VF Corp.   611,223  
            1,232,993  
Thrifts & Mortgage Finance - 0.3%   37,400   Fannie Mae   1,266,364  
    22,900   Freddie Mac   695,931  
    41,700   Washington Mutual, Inc.   830,664  
            2,792,959  

4

BlackRock Preferred and Equity Advantage Trust
Schedule of Investments as of January 31, 2008 (Unaudited)
    Shares          
Industry   Held   Common Stocks   Value  
Tobacco - 0.9%   90,700   Altria Group, Inc. $ 6,876,874  
    36,900   Reynolds American, Inc.   2,336,877  
    9,500   UST, Inc.   493,620  
            9,707,371  
        Total Common Stocks      
        (Cost - $442,134,790) - 41.4%   410,287,222  
        Preferred Securities      
    Face          
    Amount   Capital Trusts      
Capital Markets - 2.8% $ 4,650,000   State Street Capital Trust III, 8.25% due 12/29/2049 (c)   4,671,103  
    28,305,000   State Street Capital Trust IV, 5.991% due 6/01/2067 (c)   23,311,375  
            27,982,478  
Commercial Banks - 4.0%   2,375,000   Abbey National Capital Trust I, 8.963%      
        due 12/29/2049 (c)   2,806,597  
    15,300,000   BB&T Capital Trust IV, 6.82% due 6/12/2077 (c)   14,323,906  
    3,500,000   Barclays Bank Plc, 5.926% due 9/29/2049 (c)(e)   3,257,720  
    7,200,000   Dresdner Funding Trust I, 8.151% due 6/30/2031 (e)   7,198,337  
    7,000,000   HSBC Capital Funding LP/Jersey Channel Islands,      
        10.176% due 12/29/2049 (c)(e)   9,014,803  
    3,250,000   Huntington Capital III, 6.65% due 5/15/2037 (c)   2,703,077  
            39,304,440  
Consumer Finance - 0.4%   5,000,000   Capital One Capital III, 7.686% due 8/15/2036   3,784,550  
Diversified Financial Services - 1.0%   13,945,000   JPMorgan Chase Capital XXI, 4.065% due 5/15/2077 (c)   10,453,646  
Insurance - 4.9%   18,273,000   Aon Corp., 8.205% due 1/01/2027   18,719,044  
    17,000,000   Ace Capital Trust II, 9.70% due 4/01/2030   20,789,980  
    10,000,000   Mangrove Bay Pass-Through Trust, 6.102%      
        due 7/15/2033 (c)(e)   8,649,200  
            48,158,224  
Thrifts & Mortgage Finance - 0.8%   5,000,000   Astoria Capital Trust I Series B, 9.75% due 11/01/2029   5,285,030  
    3,225,000   Webster Capital Trust IV, 7.65% due 6/15/2037 (c)   2,792,334  
            8,077,364  
        Total Capital Trusts (Cost - $158,838,270) - 13.9%   137,760,702  
    Shares          
    Held   Preferred Stocks      
Commercial Banks - 3.9%   67,200   Royal Bank of Scotland Group Plc Series L, 5.75%   1,491,840  
    372,000   Santander Finance Preferred SA Unipersonal, 6.50%   8,300,250  
    670,000   Santander Finance Preferred SA Unipersonal, 6.80%   15,619,375  
    488,200   Wachovia Corp. Series J, 8%   12,873,834  
            38,285,299  
Diversified Financial Services - 4.2%   25,000   Bank of America Corp., 6.625%   608,500  
    7,000   Bank of America Corp. Series L, 7.25% (a)   7,854,000  
    390,000   Citigroup, Inc. Series AA, 8.125%   10,225,800  
    225,000   Citigroup, Inc. Series T, 6.50% (a)   12,161,250  
    150,000   CoBank ACB, 7%   6,482,250  

5

BlackRock Preferred and Equity Advantage Trust
Schedule of Investments as of January 31, 2008 (Unaudited)
    Shares          
Industry   Held   Preferred Stocks   Value  
    200,000   ING Groep NV, 6.125% $ 4,718,000  
            42,049,800  
Electric Utilities - 3.0%   100,000   Alabama Power Co., 6.50%   2,475,000  
    40,000   Entergy Louisiana LLC, 6.95%   4,322,360  
    785,000   Interstate Power & Light Co. Series B, 8.375%   23,353,750  
            30,151,110  
Insurance - 8.3%   380,000   ACE Ltd. Series C, 7.80%   9,507,600  
    400,000   Aegon NV, 6.50%   9,536,000  
    100,000   Arch Capital Group Ltd. Series A, 8%   2,553,130  
    160,000   Arch Capital Group Ltd. Series B, 7.875%   4,000,000  
    655,000   Aspen Insurance Holdings Ltd., 7.401% (c)   14,901,250  
    180,000   Axis Capital Holdings Ltd. Series B, 7.50% (c)   19,220,634  
    369,000   Endurance Specialty Holdings Ltd. Series A, 7.75%   9,129,060  
    265,600   PartnerRe Ltd. Series C, 6.75%   6,493,920  
    285,000   RenaissanceRe Holding Ltd. Series D, 6.60%   6,446,700  
            81,788,294  
Real Estate Investment Trusts (REITs) - 1.8%   55,000   iStar Financial, Inc. Series I, 7.50%   1,041,150  
    13,000   Sovereign Real Estate Investment Corp., 12%   16,770,000  
            17,811,150  
Thrifts & Mortgage Finance - 2.0%   200,000   Fannie Mae, 8.25%   5,284,000  
    65,000   Fannie Mae Series R, 7.625%   1,693,250  
    290,000   Freddie Mac Series Z, 8.375%   7,786,500  
    50   Roslyn Real Estate Asset Corp. Series D, 8.88% (c)   5,025,000  
            19,788,750  
Wireless Telecommunication Services - 1.1%   10,000   Centaur Funding Corp., 9.08%   11,015,625  
        Total Preferred Stocks      
        (Cost - $249,850,490) - 24.3%   240,890,028  
    Face          
    Amount   Trust Preferreds      
Commercial Banks - 1.8% $ 5,250,000   Citizens Funding Trust I, 7.50% due 9/15/2066   4,295,140  
    14,500,000   KeyCorp Capital IX, 6.75%   12,985,285  
            17,280,425  
Diversified Telecommunication Services - 0.7%   6,750,000   AT&T Inc., 6.375% due 2/15/2056   6,732,631  
Electric Utilities - 0.7%   7,200,000   PPL Energy Supply LLC, 7% due 7/15/2046   7,330,486  
Insurance - 0.4%   4,268,275   W.R. Berkley Capital Trust II, 6.75% due 7/26/2045   4,094,395  
Media - 1.8%   19,500,000   Comcast Corp., 6.625% due 5/15/2056   18,045,689  
Oil, Gas & Consumable Fuels - 0.3%   3,000,000   Nexen, Inc., 7.35% due 11/01/2043   3,007,215  
Thrifts & Mortgage Finance - 0.2%   1,777,500   Sovereign Capital Trust V, 7.75% due 5/22/2036   1,648,762  
        Total Trust Preferreds (Cost - $62,899,211) - 5.9%   58,139,603  
        Total Preferred Securities      
        (Cost - $471,587,971) - 44.1%   436,790,333  
        Corporate Bonds      
Building Products - 0.3%   3,160,000   C8 Capital SPV Ltd., 6.64% due 12/29/2049 (c)(e)   2,857,430  
Capital Markets - 1.2%   3,050,000   The Bear Stearns Cos., Inc., 6.40% due 10/02/2017   2,895,356  
    7,000,000   Credit Suisse Guernsey Ltd., 5.86% due 5/29/2049 (c)   6,423,424  
    1,075,000   Lehman Brothers Holdings, Inc., 6.691%      
        due 9/15/2022 (c)   1,033,021  
    1,875,000   Lehman Brothers Holdings, Inc., 6.875% due 7/17/2037   1,824,311  
            12,176,112  

6

BlackRock Preferred and Equity Advantage Trust
Schedule of Investments as of January 31, 2008 (Unaudited)
    Face          
Industry   Amount   Corporate Bonds   Value  
Commercial Banks - 25.8% $ 20,100,000   BNP Paribas, 7.195% due 6/29/2049 (c)(e)(g) $ 19,369,867  
    6,685,000   Bank of Ireland Capital Funding II, LP, 5.571%      
        due 2/01/2049 (c)(e)   5,798,074  
    30,000,000   Bank of Ireland Capital Funding III, LP, 6.107%      
        due 8/29/2049 (c)(e)   25,836,690  
    11,500,000   Barclays Bank Plc, 6.86% due 9/29/2049 (c)(e)   11,178,575  
    20,000,000   Commonwealth Bank of Australia, 6.024%      
        due 3/29/2049 (c)(e)   18,706,280  
    27,495,000   Credit Agricole SA, 6.637% due 5/29/2049 (c)(e)   25,006,015  
    25,000,000   HBOS Plc, 6.657% due 5/01/2049 (c)(e)   20,385,575  
    2,500,000   ICICI Bank Ltd., 6.375% due 4/30/2022 (c)(e)   2,109,592  
    24,480,000   ICICI Bank Ltd., 7.25% due 8/29/2049 (c)(e)(f)   21,675,816  
    5,000,000   Kazkommerts Finance 2 B.V., 9.20% due 11/29/2049 (c)   4,150,000  
    12,500,000   Lloyds TSB Group Plc, 6.267% due 11/29/2049 (c)(e)   11,054,225  
    21,000,000   Mizuho Capital Investment 1 Ltd., 6.686%      
        due 12/31/2049 (c)(e)   18,933,810  
    16,825,000   Resona Preferred Global Securities Ltd., 7.191%      
        due 12/29/2049 (c)(e)   16,690,501  
    3,130,000   Royal Bank of Scotland Group Plc, 7.648%      
        due 8/31/2049 (c)   3,250,921  
    6,100,000   Royal Bank of Scotland Plc Series MTN, 7.64%      
        due 3/31/2049 (c)   6,247,669  
    10,000,000   SMFG Preferred Capital USD 1 Ltd., 6.078% due      
        1/29/2049 (c)(e)   9,248,800  
    7,000,000   Shinsei Finance II (Cayman) Ltd., 7.16%      
        due 7/29/2049 (c)(e)   5,615,316  
    17,850,000   Societe Generale, 5.922% due 12/31/2049 (c)(e)   16,466,304  
    8,175,000   Standard Chartered Bank, 7.014% due 12/30/2049 (c)(e)   7,749,311  
    7,150,000   Woori Bank, 6.208% due 5/02/2067 (c)(e)   6,143,874  
            255,617,215  
Diversified Financial Services - 6.3%   20,475,000   Bank of America Corp. Series K, 8% due 12/29/2049 (c)   21,268,406  
    5,000,000   C10 Capital SPV Ltd., 6.722% due 12/31/2049 (c)(e)   4,372,800  
    10,000,000   ING Groep NV, 5.775% due 12/29/2049 (c)   9,323,460  
    12,875,000   JPMorgan Chase Capital XXI Series U, 4.062%      
        due 2/02/2037 (c)   9,570,129  
    18,400,000   JPMorgan Chase Capital XXV, 6.80% due 10/01/2037   17,389,472  
    283,000   Stan IV Ltd., 7.137% due 7/20/2011 (c)   271,680  
            62,195,947  
Electric Utilities - 0.5%   552,000   Duke Energy Carolinas LLC, 5.25% due 1/15/2018   561,134  
    3,900,000   PPL Capital Funding, 6.70% due 3/30/2067 (c)   3,589,950  
    300,000   Southern California Edison Co. Series 08-A, 5.95%      
        due 2/01/2038   299,914  
            4,450,998  
Gas Utilities - 0.5%   5,000,000   Southern Union Co., 7.20% due 11/01/2066 (c)   4,918,140  
Insurance - 18.5%   12,000,000   AXA SA, 6.463% due 12/31/2049 (c)(e)   10,452,240  
    8,675,000   The Allstate Corp., 6.50% due 5/15/2057 (c)   7,905,354  
    8,725,000   The Allstate Corp. Series B, 6.125% due 5/15/2067 (c)   8,489,189  
    11,150,000   American International Group, Inc., 6.25% due 3/15/2087   9,741,655  
    15,300,000   Chubb Corp., 6.375% due 3/29/2067 (c)   15,078,609  
    12,025,000   Everest Reinsurance Holdings, Inc., 6.60%      
        due 5/01/2067 (c)   10,621,923  
    11,600,000   Liberty Mutual Group, Inc., 7% due 3/15/2037 (c)(e)   10,253,820  
    3,750,000   Lincoln National Corp., 7% due 5/17/2066 (c)   3,729,491  
    4,225,000   Lincoln National Corp., 6.05% due 4/20/2067 (c)   3,945,597  

7

BlackRock Preferred and Equity Advantage Trust
Schedule of Investments as of January 31, 2008 (Unaudited)
    Face          
Industry   Amount   Corporate Bonds   Value  
  $ 4,550,000   MetLife, Inc., 6.40% due 12/15/2066 $ 4,083,334  
    8,025,000   Nationwide Life Global Funding I, 6.75% due 5/15/2067   6,776,535  
    19,675,000   Progressive Corp., 6.70% due 6/15/2037 (c)   18,708,367  
    7,105,000   QBE Capital Funding II LP, 6.797% due 6/29/2049 (c)(e)   6,690,146  
    15,000,000   Reinsurance Group of America, 6.75% due 12/15/2065 (c)   13,767,105  
    27,475,000   Swiss Re Capital I LP, 6.854% due 5/29/2049 (c)(e)   26,578,243  
    9,000,000   The Travelers Cos., Inc., 6.25% due 3/15/2067 (c)   8,558,181  
    4,400,000   White Mountains Re Group Ltd., 7.506%      
        due 5/29/2049 (c)(e)   4,004,810  
    2,050,000   ZFS Finance (USA) Trust IV, 5.875% due 5/09/2032 (c)(e)   1,909,657  
    13,220,000   ZFS Finance (USA) Trust V, 6.50% due 5/09/2067 (c)(e)   12,070,124  
            183,364,380  
Metals & Mining - 0.4%   5,000,000   Aleris International, Inc., 10% due 12/15/2016   3,512,500  
Multi-Utilities - 0.1%   1,575,000   Puget Sound Energy, Inc. Series A,      
        6.974% due 6/01/2067 (c)   1,471,006  
Oil, Gas & Consumable Fuels - 1.1%   4,500,000   Enterprise Products Operating LP, 8.375%      
        due 8/01/2066 (c)   4,496,953  
    7,325,000   TransCanada PipeLines Ltd., 6.35% due 5/15/2067 (c)   6,820,740  
            11,317,693  
Thrifts & Mortgage Finance - 0.2%   3,000,000   Washington Mutual Preferred Funding Delaware, 6.534%      
        due 3/29/2049 (c)(e)   2,031,510  
        Total Corporate Bonds (Cost - $597,337,411) - 54.9%   543,912,931  
        Short-Term Securities      
Government Agency Note - 1.9%   14,900,000   Federal Home Loan Bank, 1.35% due 2/01/2008   14,900,000  
    3,300,000   Federal Home Loan Bank, 2.50% due 2/21/2008   3,295,417  
            18,195,417  
    Beneficial          
    Interest          
  $ 42,510,000   SSgA Money Market Fund, 3.62% due 12/31/2030   42,510,000  
        Total Short-Term Securities      
        (Cost - $60,705,417) - 4.3%   60,705,417  
    Number of          
    Contracts   Options Purchased      
Call Options Purchased   50   S&P 500 Listed Option, expiring March 2008 at 1,385   214,500  
    70   SPX Volatility Index, expiring February 2008 at 25   14,875  
        Total Options Purchased      
        (Premiums Paid - $156,920) - 0.0%   229,375  
        Total Investments Before Options Written      
        (Cost - $1,571,922,509*) - 146.6%   1,451,925,278  
        Options Written      
Call Options Written   95   S&P 500 Listed Option, expiring February 2008 at $1,350   (414,200 )
    1,575   S&P 500 Listed Option, expiring February 2008 at $1,375   (4,378,500 )
    740   S&P 500 Listed Option, expiring February 2008 at $1,400   (1,139,600 )
    150   S&P 500 Listed Option, expiring March 2008 at $1,440   (276,000 )
        Total Options Written      
        (Premiums Received - $4,947,247) - (0.6%)   (6,208,300 )

8

BlackRock Preferred and Equity Advantage Trust
Schedule of Investments as of January 31, 2008 (Unaudited)
            Value  
        Total Investments, Net of Options Written      
        (Cost - $1,566,975,262) - 146.0% $ 1,445,716,978  
        Other Assets Less Liabilities - 0.7%   6,751,670  
        Preferred Shares, at Redemption Value - (46.7%)   (462,282,801 )
        Net Assets Applicable to Common Shares - 100.0% $ 990,185,847  

*   The cost and unrealized appreciation (depreciation) of investments as of January 3l, 2008, as  
    computed for federal income tax purposes, were as follows:          
    Aggregate cost $ 1,571,935,175      
    Gross unrealized appreciation $ 15,093,960      
    Gross unrealized depreciation   (135,091,156 )    
    Net unrealized depreciation $ (119,997,196 )    
(a)   Convertible security.
(b)   Depositary receipts.
(c)   Floating rate security.
(d)   Non-income producing security.
(e)   The security may be offered and sold to "qualified institutional buyers" under Rule 144A of the Securities Act of 1933.
(f)   Represents a pay-in-kind security which may pay interest/dividends in additional face/shares.
(g)   All, or a portion or security, held as collateral in connection with open financial futures contracts. • Financial futures contracts purchased as of January 31, 2008 were as follows:

    Number of       Expiration     Face         Unrealized    
    Contracts   Issue   Date     Value         Depreciation    
    558   S &P Emini   March 2008   $ 39,839,642       $ (1,351,592 )  
    1,470   2-Year                        
        U.S. Treasury Bonds   March 2008   $ 313,534,145         (102,582 )  
    Total Unrealized Depreciation - Net                 $ (1,454,174 )  
                                 
•   Financial futures contracts sold as of January 31, 2008 were as follows:                    
    Number of       Expiration     Face         Unrealized    
    Contracts   Issue   Date     Value         Appreciation    
    464   30-Year                        
        U.S. Treasury Bonds   March 2008   $ 55,363,932       $ 2,932    
                                 
•   Swaps outstanding as of January 31, 2008 were as follows:                    
                        Unrealized        
              Notional         Appreciation        
              Amount         (Depreciation)        
    Receive a fixed rate of 3.2325% and pay a floating rate based on 3-                    
    month USD LIBOR                    
    Broker, Citibank NA                      
    Expires, January 2010 $ 173,000,000       $ 1,014,320        
                                 
    Bought credit default protection on Capital One Financial Corp.                    
    and pay 4.175%                        
    Broker, Citibank NA                        
    Expires, March 2013   $ 3,000,000         (23,670 )      

9

BlackRock Preferred and Equity Advantage Trust
Schedule of Investments as of January 31, 2008 (Unaudited)
                  Unrealized    
          Notional       Appreciation    
          Amount       (Depreciation)    
    Bought credit default protection on Capital One Financial Corp.              
    and pay 4.20%                  
    Broker, Deutsche Bank AG                  
    Expires, March 2013   $ 7,000,000     $ (189,070 )  
                       
    Pay a fixed rate of 4.3975% and receive a floating rate              
    based on 3-month USD LIBOR                  
    Broker, Citibank NA                  
    January 2018   $ 39,300,000       (386,675 )  
    Total           $ 414,905    

10

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 Preferred and Equity Advantage Trust

By:   
/s/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer of
  BlackRock Preferred and Equity Advantage Trust

Date: March 24, 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: March 24, 2008

By:   
/s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Preferred and Equity Advantage Trust

Date: March 24, 2008