PAGE 1
000 B000000 10/31/2003
000 C000000 0001215664
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 PREFERRED INCOME STRATEGIES FUND, INC.
001 B000000 811-21286
001 C000000 6092822800
002 A000000 P.O. BOX 9011
002 B000000 PRINCETON
002 C000000 NJ
002 D010000 08543
002 D020000 9011
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 FUND ASSET MANAGEMENT, L.P.
008 B000001 A
008 C000001 801-12485
008 D010001 PLAINSBORO
008 D020001 NJ
008 D030001 08536
011 A000001 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
011 B000001 8-7221
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10281
011 C040001 1201
012 A000001 EQUISERVE
012 B000001 85-11340
012 C010001 PROVIDENCE
012 C020001 RI
012 C030001 02940
012 C040001 3010
PAGE 2
013 A000001 ERNST & YOUNG LLP
013 B010001 METROPARK
013 B020001 NJ
013 B030001 08830
013 B040001 0471
014 A000001 MLPF&S AND OTHER ML BROKER/DEALER AFFILIATES
014 B000001 8-7221
015 A000001 STATE STREET BANK AND TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02101
015 E010001 X
015 A000002 THE BANK OF NEW YORK
015 B000002 S
015 C010002 NEW YORK
015 C020002 NY
015 C030002 10286
015 E010002 X
015 A000003 BANKERS TRUST COMPANY
015 B000003 S
015 C010003 NEW YORK
015 C020003 NY
015 C030003 10006
015 E010003 X
015 A000004 J.P. MORGAN CHASE BANK
015 B000004 S
015 C010004 NEW YORK
015 C020004 NY
015 C030004 10017
015 E010004 X
015 A000005 CUSTODIAL TRUST CO.
015 B000005 S
015 C010005 NEW YORK
015 C020005 NY
015 C030005 10167
015 E010005 X
015 A000006 MORGAN GUARANTY TRUST CO. OF NEW YORK
015 B000006 S
015 C010006 NEW YORK
015 C020006 NY
015 C030006 10260
015 E010006 X
018 000000 Y
019 A000000 Y
019 B000000 163
019 C000000 MERRILLLYN
020 A000001 LEHMAN BROTHERS INC.
020 B000001 13-2518466
020 C000001 144
020 A000002 RBS GREENWICH CAPITAL
PAGE 3
020 C000002 108
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 252
022 A000001 ML LIQUIDITY SERIES, LLC CASH SWEEP SERIES I
022 B000001 02-0651665
022 C000001 1759318
022 D000001 1737550
022 A000002 LEHMAN BROTHERS INC.
022 B000002 13-2518466
022 C000002 833331
022 D000002 113468
022 A000003 UBS WARBURG LLC
022 B000003 13-3873456
022 C000003 212543
022 D000003 48407
022 A000004 MORGAN STANLEY
022 B000004 13-2655998
022 C000004 158147
022 D000004 11699
022 A000005 CITIGROUP GLOBAL MARKETS INC.
022 B000005 11-2418191
022 C000005 119650
022 D000005 9234
022 A000006 J.P. MORGAN SECURITIES INC.
022 B000006 13-3224016
022 C000006 103106
022 D000006 11138
022 A000007 GOLDMAN, SACHS & CO.
022 B000007 13-5108880
022 C000007 82268
022 D000007 10255
022 A000008 WACHOVIA SECURITIES, INC.
022 B000008 54-0796506
022 C000008 63623
022 D000008 21651
022 A000009 DEUTSCHE BANK SECURITIES INC.
022 B000009 13-2730828
022 C000009 54529
022 D000009 15833
022 A000010 PREFERRED & CORP. INCOME STRATEGIES FUND, INC
022 B000010 04-3768343
022 C000010 0
022 D000010 65963
023 C000000 3682440
PAGE 4
023 D000000 2096649
024 000000 Y
025 A000001 LEHMAN BROTHERS HOLDINGS
025 C000001 E
025 D000001 26075
025 A000002 J.P. MORGAN CHASE CAPITAL XI
025 C000002 E
025 D000002 16308
025 A000003 MORGAN STANLEY CAPITAL TRUST III
025 C000003 E
025 D000003 3290
025 A000004 CHASE CAPITAL I
025 C000004 E
025 D000004 1083
025 A000005 JP MORGAN CAPITAL TRUST I
025 C000005 E
025 D000005 1072
025 A000006 LEHMAN BROTHERS HOLDING CAPITAL TRUST III
025 C000006 E
025 D000006 873
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.600
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
PAGE 5
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
055 A000000 Y
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 0
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
PAGE 6
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 Y
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 Y
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 Y
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 Y
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 Y
070 K020000 Y
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 Y
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
PAGE 7
071 A000000 1878194
071 B000000 359065
071 C000000 1314989
071 D000000 27
072 A000000 8
072 B000000 35072
072 C000000 15409
072 D000000 0
072 E000000 0
072 F000000 4952
072 G000000 191
072 H000000 0
072 I000000 46
072 J000000 20
072 K000000 0
072 L000000 15
072 M000000 66
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 0
072 S000000 2
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 544
072 X000000 5836
072 Y000000 1467
072 Z000000 46112
072AA000000 76167
072BB000000 57993
072CC010000 6689
072CC020000 0
072DD010000 35192
072DD020000 0
072EE000000 0
073 A010000 0.8670
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 0
074 B000000 0
074 C000000 9991
074 D000000 285838
074 E000000 1237703
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 31074
074 J000000 0
PAGE 8
074 K000000 0
074 L000000 19309
074 M000000 1872
074 N000000 1585787
074 O000000 14993
074 P000000 895
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 8984
074 R040000 15161
074 S000000 550032
074 T000000 995722
074 U010000 40593
074 U020000 0
074 V010000 24.53
074 V020000 0.00
074 W000000 0.0000
074 X000000 39301
074 Y000000 1594837
075 A000000 0
075 B000000 1348563
076 000000 23.69
077 A000000 Y
077 B000000 Y
077 O000000 Y
077 Q020000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE CO.
080 C000000 1500
081 A000000 Y
081 B000000 130
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 40593
086 A020000 969097
086 B010000 0
086 B020000 0
086 C010000 22
086 C020000 550000
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
PAGE 9
086 F020000 0
087 A010000 COMMON STOCK
087 A020000 74038E100
087 A030000 PSY
087 B010000 PREFERRED STOCK
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 Y
SIGNATURE DONALD C. BURKE
TITLE TREASURER