UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-06500

 

Name of Fund: BlackRock MuniYield New York Quality Fund, Inc. (MYN)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Series Fund, Inc., 55 East 52nd Street, New York, NY 10055

 

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

 

Date of fiscal year end: 07/31/2011

 

Date of reporting period: 01/31/2011

 

Item 1 – Report to Stockholders

 


 

 

(BLACKROCK LOGO)

January 31, 2011

Semi-Annual Report (Unaudited)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

BlackRock MuniYield California Quality Fund, Inc. (MCA)

BlackRock MuniYield Quality Fund III, Inc. (MYI)

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)

BlackRock MuniYield New York Quality Fund, Inc. (MYN)

 

Not FDIC Insured § No Bank Guarantee § May Lose Value




 


 

Table of Contents


 

 

 




 

 

Page




 

 

 

Dear Shareholder

 

3

Semi-Annual Report:

 

 

Municipal Market Overview

 

4

Fund Summaries

 

5

The Benefits and Risks of Leveraging

 

10

Derivative Financial Instruments

 

10

Financial Statements:

 

 

Schedules of Investments

 

11

Statements of Assets and Liabilities

 

35

Statements of Operations

 

36

Statements of Changes in Net Assets

 

37

Statements of Cash Flows

 

40

Financial Highlights

 

41

Notes to Financial Statements

 

46

Officers and Directors

 

53

Additional Information

 

54


 

 

 


2

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 


Dear Shareholder

Economic data fluctuated widely throughout 2010, but as the year drew to a close, it became clear that cyclical stimulus had beaten out structural problems as economic data releases generally became more positive and financial markets showed signs of continuing improvement. The sovereign debt crises and emerging market inflation that troubled the global economy in 2010 remain a challenge to global growth, but overall levels of uncertainty are gradually declining as the United States and the world economy are progressing from a stimulus-driven recovery into a consumption-driven expansion.

In the United States, the corporate sector has been an important area of strength and consumer spending has shown improvement, although weakness in the housing and labor markets continues to burden the economy. It is important to note that we are in the midst of the first global economic recovery that is being led by emerging economies, and the United States has only just begun its transition to a self-sustaining expansion, suggesting that economic improvements still have a way to go.

Global equity markets experienced uneven growth and high volatility over the course of 2010, but ended the year strong. Stocks continued their advance through most of January until the political unrest in Egypt and widespread discord across the Middle East caused a sharp, but temporary decline at the end of the period. US stocks outpaced most international markets over the 12-month period. Small cap stocks outperformed large caps as investors moved into higher-risk assets.

Fixed income markets saw yields trend lower over most of 2010, until the fourth quarter brought an abrupt reversal in sentiment and risk tolerance that drove yields sharply upward (pushing prices downward) through year end and into the New Year. However, on a 12-month basis, yields were lower overall and fixed income markets performed well. Conversely, the tax-exempt municipal market was dealt an additional blow as it became evident that the Build America Bond program would expire at the end of 2010. In addition, negative headlines regarding fiscal challenges faced by state and local governments damaged investor confidence and sparked additional volatility in the municipal market. These conditions began to moderate as the period came to a close and the market has shown signs of improvement in supply-and-demand technicals.

Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates remained low. Yields on money market securities remain near all-time lows.

 

 

 

 

 

 

 

 

Total Returns as of January 31, 2011

 

6-month

 

12-month

 







US large cap equities (S&P 500 Index)

 

 

17.93

%

 

22.19

%









US small cap equities (Russell 2000 Index)

 

 

20.75

 

 

31.36

 









International equities (MSCI Europe, Australasia, Far East Index)

 

 

16.10

 

 

15.38

 









3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)

 

 

0.06

 

 

0.13

 









US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)

 

 

(2.25

)

 

5.25

 









US investment grade bonds (Barclays Capital US Aggregate Bond Index)

 

 

0.20

 

 

5.06

 









Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)

 

 

(2.84

)

 

1.10

 









US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)

 

 

8.65

 

 

15.96

 









 

 

 

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

While no one can peer into a crystal ball and eliminate the uncertainties presented by the economic landscape and financial markets, BlackRock can offer investors the next best thing: partnership with the world’s largest asset management firm and a unique global perspective that allows us to identify trends early and capitalize on market opportunities. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.

 

Sincerely,

-s- Rob Kapito

Rob Kapito
President, BlackRock Advisors, LLC


 

 

 


 

THIS PAGE NOT PART OF YOUR FUND REPORT

3




 


 

Municipal Market Overview

 


As of January 31, 2011


The municipal market began the period with a strong tone as rates fell (and prices rose) along with those of US Treasuries. However, the cliché of the “perfect storm” of negative events all conspired in the final months of 2010, leading to the worst quarterly performance for the municipal market since the tightening cycle of 1994. Treasury yields lost their support as concerns about the US deficit raised questions over the willingness of foreign investors to continue to purchase Treasury securities, at least at the previous historically low yields. Municipal valuations also suffered a quick and severe setback as it became evident that the Build America Bond (“BAB”) program would expire at year-end. The program had opened the taxable market to municipal issuers, which had successfully alleviated supply pressure in the traditional tax-exempt marketplace, bringing down yields in that space.

(LINE GRAPH)

The financial media has been replete with interviews, articles and presentations advertising the stress experienced in municipal finance, resulting in a loss of confidence among retail investors who buy individual bonds or mutual funds. From the middle of November through year-end, funds specializing in tax-exempt bonds witnessed weekly outflows averaging over $2.5 billion. Long-term and high-yield funds saw the greatest redemptions, followed by state-specific funds to a lesser but still significant degree. Demand usually is strong at the beginning of the new year against a backdrop of low new-issue supply, but the mutual fund outflows continued in January, putting additional upward pressure on municipal yields. Political uncertainty surrounding the midterm elections and the approach taken by the new Congress on issues such as income tax rates and alternative minimum tax (and the previously mentioned BAB non-extension) exacerbated the situation. All these conditions, combined with the seasonal illiquidity surrounding year-end holidays and dealers closing their fiscal books, sapped willing market participation from the trading community.

As demand for municipal securities from traditional retail investors was declining and trading desk liquidity was being curtailed, there was no comparable reduction in supply. As it became evident that the BAB program would be retired, issuers rushed deals to market both in the taxable municipal space and, to a lesser degree, in the traditional tax-exempt space. This imbalance in the supply/demand technicals provided the classic market action, leading to wider quality spreads and higher bond yields. The municipal curve steepened as the issuance was concentrated in longer (greater than 20-year) maturities. Curve steepening that began in October accelerated in November, spurred on by Treasury weakness, heavy supply and record outflows. As measured by Thomson Municipal Market Data, AAA-rated municipals rose nearly 82 basis points (“bps”) for maturities 25 years and longer from July 31, 2010, to January 31, 2011. The spread between two-year and 30-year maturities widened from 360 bps to 406 bps over the period.

The fundamental picture for municipalities will be subject to scrutiny for months to come, as the challenges to state and local budgets are real and need to be addressed with significant cuts to expenses and tax revenue increases. The debates around austerity measures needed to succeed in balancing these budgets are not over whether action needs to be taken, but over degree, approach and political will to accomplish these needs. The attention shone upon municipal finance has the potential to improve this market for the future if these efforts result in greater means toward disclosure and accuracy (and timeliness) of reporting. Early tests to judge progress will come soon as California, Illinois and Puerto Rico need to take austerity measures and access financing in the municipal market to address relatively immediate fiscal imbalances. BlackRock favors a more constructive outlook for the municipal market heading into 2011 as the typical, and this year particularly atypical, weakness passes.

 

 

 


4

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 



 

 

Fund Summary as of January 31, 2011

BlackRock MuniHoldings Quality Fund II, Inc.


 

 


Fund Overview


 

Effective November 9, 2010, BlackRock MuniHoldings Insured Fund II, Inc. changed its name to BlackRock MuniHoldings Quality Fund II, Inc.

BlackRock MuniHoldings Quality Fund II, Inc.’s (MUE) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

 

No assurance can be given that the Fund’s investment objective will be achieved.

 

 


Performance


 

Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of Fund assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Insured Municipal Debt Funds (Leveraged) category into the Lipper General Municipal Debt Funds (Leveraged) category. For the six months ended January 31, 2011, the Fund returned (15.50)% based on market price and (8.08)% based on net asset value (“NAV”). For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (8.46)% based on market price and (6.45)% based on NAV, while the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (11.13)% based on market price and (6.92)% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period-end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s exposure to longer-duration and longer-maturity bonds detracted from performance as the long end of the yield curve steepened during the period. Conversely, the Fund’s exposure to the housing sector contributed to performance as the sector was one of the municipal market’s better performers. Additionally, the Fund’s exposure to shorter-duration bonds and premium coupon bonds (6% or higher) benefited performance in the rising interest rate environment of the period.

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 


Fund Information



 

 

 

Symbol on New York Stock Exchange (“NYSE”)

 

MUE

Initial Offering Date

 

February 26, 1999

Yield on Closing Market Price as of January 31, 2011 ($11.65)1

 

7.57%

Tax Equivalent Yield2

 

11.65%

Current Monthly Distribution per Common Share3

 

$0.0735

Current Annualized Distribution per Common Share3

 

$0.8820

Leverage as of January 31, 20114

 

42%





 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution rate is not constant and is subject to change.

 

 

 

 

4

Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

1/31/11

 

7/31/10

 

Change

 

High

 

Low

 













Market Price

 

$

11.65

 

$

14.26

 

 

(18.30

)%

$

14.63

 

$

10.87

 

Net Asset Value

 

$

12.06

 

$

13.57

 

 

(11.13

)%

$

14.04

 

$

11.62

 


















The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

 

 

 

 

 

 

 

 


Sector Allocations

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

1/31/11

 

7/31/10

 







County/City/Special District/School District

 

28

%

 

28

%

 

Transportation

 

23

 

 

23

 

 

Utilities

 

22

 

 

23

 

 

Health

 

10

 

 

9

 

 

State

 

9

 

 

11

 

 

Housing

 

5

 

 

5

 

 

Corporate

 

2

 

 

1

 

 

Education

 

1

 

 

 

 

 

 

 

 

 

 

 

 


Credit Quality Allocations5

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

1/31/11

 

7/31/10

 







AAA/Aaa

 

11

%

 

54

%

 

AA/Aa

 

68

 

 

24

 

 

A

 

17

 

 

20

 

 

BBB/Baa

 

3

 

 

1

 

 

Not Rated6

 

1

 

 

1

 

 










 

 

 

 

5

Using the higher of Standard & Poor’s (“S&Ps”) or Moody’s Investors Service (Moody’s”) ratings.

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of January 31, 2011 and July 31, 2010, the market value of these securities was $3,531,114, representing 1% and $3,925,265, representing 1%, respectively, of the Fund’s long-term investments.


 

 

 

 


 

SEMI-ANNUAL REPORT

JANUARY 31, 2011

5




 

 


 

 

Fund Summary as of January 31, 2011

BlackRock MuniYield California Quality Fund, Inc.


 


Fund Overview


Effective November 9, 2010, BlackRock MuniYield California Insured Fund, Inc. changed its name to BlackRock MuniYield California Quality Fund, Inc.

BlackRock MuniYield California Quality Fund, Inc.’s (MCA) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal and California income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

          No assurance can be given that the Fund’s investment objective will be achieved.

 


Performance


Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of Fund assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Single-State Insured Municipal Debt Funds category into the Lipper California Municipal Debt Funds category. For the six months ended January 31, 2011, the Fund returned (9.16)% based on market price and (7.78)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (9.24)% based on market price and (8.09)% based on NAV, while the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (9.05)% based on market price and (6.44)% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. A generally negative municipal market environment hindered Fund performance. Some widening of credit spreads, especially among California school districts and health care credits, detracted from Fund performance, as did a relatively long duration posture given the rising interest rate environment of the period. Conversely, the Fund maintained a low average cash reserve level, which benefited total return by boosting income accrual. Increased exposure to tender option bonds to take advantage of the historically steep municipal yield curve also benefited the income accrual. As a result, the Fund was able to increase dividend payments twice over the period. In addition, the Fund’s holdings in corporate-backed municipals aided performance as non-traditional investors identified the sector’s attractive investment opportunities and subsequently drove up demand.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information



 

 

 

 

Symbol on NYSE

 

MCA

 

Initial Offering Date

 

October 30, 1992

 

Yield on Closing Market Price as of January 31, 2011 ($12.34)1

 

7.15%

 

Tax Equivalent Yield2

 

11.00%

 

Current Monthly Distribution per Common Share3

 

$0.0735

 

Current Annualized Distribution per Common Share3

 

$0.8820

 

Leverage as of January 31, 20114

 

44%

 






 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution rate is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

1/31/11

 

7/31/10

 

Change

 

High

 

Low

 


















Market Price

 

 

$

12.34

 

 

 

$

14.02

 

 

 

 

(11.98

) %

 

 

$

14.70

 

 

 

$

11.83

 

 

Net Asset Value

 

 

$

13.10

 

 

 

$

14.66

 

 

 

 

(10.64

) %

 

 

$

15.22

 

 

 

$

12.62

 

 




























The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

1/31/11

 

7/31/10

 







County/City/Special District/School District

 

51

%

 

55

%

 

Utilities

 

26

 

 

22

 

 

Education

 

8

 

 

7

 

 

Transportation

 

7

 

 

11

 

 

Corporate

 

4

 

 

1

 

 

Health

 

3

 

 

2

 

 

State

 

1

 

 

2

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

1/31/11

 

7/31/10

 







AAA/Aaa

 

10

%

 

57

%

 

AA/Aa

 

77

 

 

29

 

 

A

 

13

 

 

14

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 


6

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

 

Fund Summary as of January 31, 2011

BlackRock MuniYield Quality Fund III, Inc.


 


Fund Overview


Effective November 9, 2010, BlackRock MuniYield Insured Fund, Inc. changed its name to BlackRock MuniYield Quality Fund III, Inc.

BlackRock MuniYield Quality Fund III, Inc.’s (MYI) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

          No assurance can be given that the Fund’s investment objective will be achieved.

 


Performance


Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of Fund assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Insured Municipal Debt Funds (Leveraged) category into the Lipper General Municipal Debt Funds (Leveraged) category. For the six months ended January 31, 2011, the Fund returned (11.26)% based on market price and (8.17)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (8.46)% based on market price and (6.45)% based on NAV, while the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (11.13)% based on market price and (6.92)% based on NAV. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s exposure to the housing and corporate sectors contributed to performance as these sectors outperformed the general municipal market. Additionally, the Fund’s exposure to shorter-duration bonds and premium coupon bonds (6% or higher) benefited performance in the rising interest rate environment of the period. Conversely, the Fund’s long duration stance detracted from performance, again due to the rising rate environment. In addition, the Fund’s exposure to longer maturity bonds detracted as the long end of the yield curve steepened during the period.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information



 

 

 

 

 

Symbol on NYSE

 

 

MYI

 

Initial Offering Date

 

 

March 27, 1992

 

Yield on Closing Market Price as of January 31, 2011 ($12.17)1

 

 

7.10%

 

Tax Equivalent Yield2

 

 

10.92%

 

Current Monthly Distribution per Common Share3

 

 

$0.072

 

Current Annualized Distribution per Common Share3

 

 

$0.864

 

Leverage as of January 31, 20114

 

 

40%

 







 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution rate is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

1/31/11

 

7/31/10

 

Change

 

High

 

Low

 













Market Price

 

 

$

12.17

 

 

 

$

14.17

 

 

 

 

(14.11

)%

 

 

$

14.56

 

 

 

$

11.21

 

 

Net Asset Value

 

 

$

12.15

 

 

 

$

13.67

 

 

 

 

(11.12

)%

 

 

$

14.17

 

 

 

$

11.71

 

 




























The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

1/31/11

 

7/31/10

 







Transportation

 

27

%

 

27

%

 

County/City/Special District/School District

 

21

 

 

21

 

 

Utilities

 

18

 

 

17

 

 

Education

 

8

 

 

8

 

 

State

 

8

 

 

8

 

 

Health

 

7

 

 

7

 

 

Housing

 

6

 

 

6

 

 

Corporate

 

5

 

 

6

 

 










 

 

 

 

 

 

 

 







Credit Quality Allocations5

 

 

 

 

 

 

 







 

 

 

1/31/11

 

7/31/10

 







AAA/Aaa

 

9

%

 

46

%

 

AA/Aa

 

67

 

 

29

 

 

A

 

19

 

 

20

 

 

BBB/Baa

 

5

 

 

5

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 


 

SEMI-ANNUAL REPORT

JANUARY 31, 2011

7




 

 


 

Fund Summary as of January 31, 2011

BlackRock MuniYield Michigan Quality Fund II, Inc.


 


Fund Overview


Effective November 9, 2010, BlackRock MuniYield Michigan Insured Fund II, Inc. changed its name to BlackRock MuniYield Michigan Quality Fund II, Inc.

BlackRock MuniYield Michigan Quality Fund II, Inc.’s (MYM) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal and Michigan income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Michigan income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

 

 

No assurance can be given that the Fund’s investment objective will be achieved.


 


Performance


Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of Fund assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Single-State Insured Municipal Debt Funds category into the Lipper Michigan Municipal Debt Funds category. For the six months ended January 31, 2011, the Fund returned (10.75)% based on market price and (5.74)% based on NAV. For the same period, the closed-end Lipper Michigan Municipal Debt Funds category posted an average return of (7.46)% based on market price and (5.90)% based on NAV, while the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (9.05)% based on market price and (6.44)% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund maintained a low average cash reserve level, which benefited total return by boosting income accrual. Increased exposure to tender option bonds to take advantage of the historically steep municipal yield curve also benefited the income accrual. In addition, the Fund’s holdings in corporate-backed municipals aided performance as non-traditional investors identified the sector’s attractive investment opportunities and subsequently drove up demand. Conversely, a generally negative municipal market environment hindered Fund performance. Some widening of credit spreads, especially among health care credits, also detracted from Fund performance.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information



 

 

Symbol on NYSE

MYM

Initial Offering Date

February 28, 1992

Yield on Closing Market Price as of January 31, 2011 ($11.80)1

7.27%

Tax Equivalent Yield2

11.18%

Current Monthly Distribution per Common Share3

$0.0715

Current Annualized Distribution per Common Share3

$0.8580

Leverage as of January 31, 20114

39%




 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution rate is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

1/31/11

 

7/31/10

 

Change

 

High

 

Low

 













Market Price

 

$

11.80

 

$

13.67

 

 

(13.68

)%

$

13.95

 

$

11.01

 

Net Asset Value

 

$

12.60

 

$

13.82

 

 

(8.83

)%

$

14.25

 

$

12.23

 


















The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

 

 

1/31/11

 

7/31/10

 







County/City/Special District/School District

 

 

25

%

 

 

26

%

 

Utilities

 

 

15

 

 

 

12

 

 

Health

 

 

14

 

 

 

15

 

 

State

 

 

12

 

 

 

13

 

 

Corporate

 

 

12

 

 

 

12

 

 

Transportation

 

 

11

 

 

 

12

 

 

Education

 

 

8

 

 

 

8

 

 

Housing

 

 

3

 

 

 

2

 

 












 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

 

 

1/31/11

 

7/31/10

 







AAA/Aaa

 

 

4

%

 

 

40

%

 

AA/Aa

 

 

65

 

 

 

27

 

 

A

 

 

25

 

 

 

28

 

 

BBB/Baa

 

 

4

 

 

 

2

 

 

Not Rated6

 

 

2

 

 

 

3

 

 












 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of January 31, 2011 and July 31, 2010, the market value of these securities was $2,188,619, representing 1% and $4,382,645, representing 2%, respectively, of the Fund’s long-term investments.


 

 

 


8

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

Fund Summary as of January 31, 2011

BlackRock MuniYield New York Quality Fund, Inc.


 


Fund Overview


Effective November 9, 2010, BlackRock MuniYield New York Insured Fund, Inc. changed its name to BlackRock MuniYield New York Quality Fund, Inc.

BlackRock MuniYield New York Quality Fund, Inc.’s (MYN) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes and New York State and New York City personal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

 

 

No assurance can be given that the Fund’s investment objective will be achieved.


 


Performance


Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of Fund assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Single-State Insured Municipal Debt Funds category into the Lipper New York Municipal Debt Funds category. For the six months ended January 31, 2011, the Fund returned (8.99)% based on market price and (6.99)% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of (6.95)% based on market price and (5.68)% based on NAV, while the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (9.05)% based on market price and (6.44)% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. A generally negative municipal market hindered Fund performance, and the Fund’s exposure to long maturity and discount coupon bonds also detracted as the yield curve steepened and these issues underperformed the market. Additionally, Fund performance was negatively affected by exposure to lower-quality bonds, which underperformed, and to the transportation sector, which was one of the market’s poorest performers. On the positive side, the Fund benefited from an above-average yield relative to its Lipper category. In addition, the Fund’s holdings in corporate-backed municipals aided performance as non-traditional investors identified the sector’s attractive investment opportunities and subsequently drove up demand. Finally, the Fund benefited from exposure to the housing sector, which was one of the market’s better performers.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information



 

 

Symbol on NYSE

MYN

Initial Offering Date

February 28, 1992

Yield on Closing Market Price as of January 31, 2011 ($11.96)1

7.12%

Tax Equivalent Yield2

10.95%

Current Monthly Distribution per Common Share3

$0.071

Current Annualized Distribution per Common Share3

$0.852

Leverage as of January 31, 20114

40%




 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution rate is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

1/31/11

 

7/31/10

 

Change

 

High

 

Low

 













Market Price

 

$

11.96

 

$

13.57

 

 

(11.86

)%

$

14.40

 

$

11.60

 

Net Asset Value

 

$

12.51

 

$

13.89

 

 

(9.94

)%

$

14.37

 

$

12.11

 


















The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

 

 

1/31/11

 

7/31/10

 











Transportation

 

 

30

%

 

 

31

%

 

County/City/Special District/School District

 

 

28

 

 

 

29

 

 

State

 

 

11

 

 

 

11

 

 

Utilities

 

 

9

 

 

 

10

 

 

Education

 

 

8

 

 

 

7

 

 

Health

 

 

6

 

 

 

4

 

 

Corporate

 

 

4

 

 

 

5

 

 

Housing

 

 

3

 

 

 

2

 

 

Tobacco

 

 

1

 

 

 

1

 

 












 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

Credit Rating

 

1/31/11

 

7/31/10

 











AAA/Aaa

 

 

15

%

 

 

44

%

 

AA/Aa

 

 

50

 

 

 

17

 

 

A

 

 

24

 

 

 

34

 

 

BBB/Baa

 

 

9

 

 

 

2

 

 

BB/Ba

 

 

2

 

 

 

3

 

 












 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 


 

SEMI-ANNUAL REPORT

JANUARY 31, 2011

9




 


 

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and NAV of their common shares of beneficial interest (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

To leverage, all the Funds issue preferred shares (“Preferred Shares”), which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s holders of Common Shares (“Common Shareholders”) will benefit from the incremental net income.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Fund with assets received from the Preferred Shares issuance earn income based on long-term interest rates. In this case, the dividends paid to holders of Preferred Shares (“Preferred Shareholders”) are significantly lower than the income earned on the Fund’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup on the Common Shares will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Fund pays dividends on the higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Funds’ Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAV positively or negatively in addition to the impact on Fund performance from leverage from Preferred Shares discussed above.

The Funds may also leverage their assets through the use of TOBs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Funds, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect each Fund’s NAV per share.

The use of leverage may enhance opportunities for increased income to the Funds and Common Shareholders, but as described above, it also creates risks as short or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Funds’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, each Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Funds’ net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. Each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Fund to incur losses. The use of leverage may limit each Fund’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by ratings agencies that rate Preferred Shares issued by the Funds. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, the Funds are permitted to issue Preferred Shares in an amount of up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Fund anticipates that the total economic leverage from Preferred Shares and/or TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of January 31, 2011, the Funds had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 





 

 

Percent of
Leverage

 





MUE

 

 

42

%

MCA

 

 

44

%

MYI

 

 

40

%

MYM

 

 

39

%

MYN

 

 

40

%








 

Derivative Financial Instruments

The Funds may invest in various derivative instruments, including financial futures contracts, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Such derivative instruments involve risks, including the imperfect correlation between the value of a derivative instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative instrument. The Funds ability to successfully use a derivative instrument depends on the investment advisor’s ability to accurately predict pertinent market movements, which cannot be assured. The use of derivative instruments may result in losses greater than if they had not been used, may require a Fund to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders or may cause a Fund to hold an investment that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

 

 

 


10

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 



 

 

Schedule of Investments January 31, 2011 (Unaudited)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 3.2%

 

 

 

 

 

 

 

Birmingham Special Care Facilities Financing
Authority, RB, Children’s Hospital (AGC),
6.00%, 6/01/39

 

$

5,225

 

$

5,402,963

 

County of Jefferson Alabama, RB, Series A,
5.50%, 1/01/22

 

 

3,580

 

 

3,329,436

 

 

 

 

 

 




 

 

 

 

 

 

8,732,399

 









Arizona — 0.4%

 

 

 

 

 

 

 

State of Arizona, COP, Department of Administration,
Series A (AGM), 5.25%, 10/01/28

 

 

1,175

 

 

1,129,152

 









Arkansas — 4.5%

 

 

 

 

 

 

 

Arkansas Development Finance Authority, Refunding
RB, Series C (NPFGC):

 

 

 

 

 

 

 

5.35%, 12/01/11 (a)

 

 

1,050

 

 

1,102,868

 

5.35%, 12/01/35

 

 

11,115

 

 

10,993,624

 

 

 

 

 

 




 

 

 

 

 

 

12,096,492

 









California — 17.0%

 

 

 

 

 

 

 

California Educational Facilities Authority, RB,
University of Southern California, Series A,
5.25%, 10/01/38

 

 

5,050

 

 

5,090,804

 

California Health Facilities Financing Authority,
Refunding RB, Sutter Health, Series B,
6.00%, 8/15/42 (b)

 

 

2,865

 

 

2,813,201

 

City of Sunnyvale California, Refunding RB,
5.25%, 4/01/40

 

 

2,800

 

 

2,754,612

 

City of Vista California, COP, Refunding, Community
Projects (NPFGC), 5.00%, 5/01/37

 

 

3,375

 

 

2,876,141

 

County of Sacramento California, RB, Senior
Series A (AGC), 5.50%, 7/01/41

 

 

3,500

 

 

3,389,400

 

Los Angeles Community College District California, GO:

 

 

 

 

 

 

 

Election of 2001, Series A (NPFGC),
5.00%, 8/01/32

 

 

5,000

 

 

4,699,000

 

Election of 2008, Series C, 5.25%, 8/01/39

 

 

2,500

 

 

2,365,925

 

Modesto Schools Infrastructure Financing Agency,
Special Tax Bonds (AMBAC), 5.50%, 9/01/36

 

 

4,240

 

 

3,531,114

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 

Oceanside Unified School District California, GO,
Series A (AGC), 5.25%, 8/01/33

 

$

3,175

 

$

3,175,000

 

Oxnard Union High School District, GO, Refunding,
Election of 2004, Series A (AGM),
5.00%, 8/01/40

 

 

3,250

 

 

2,901,503

 

Port of Oakland, RB, Series K, AMT (NPFGC),
5.75%, 11/01/21

 

 

2,975

 

 

2,977,082

 

Port of Oakland, Refunding RB, Series M, AMT
(NPFGC), 5.38%, 11/01/27

 

 

2,220

 

 

2,067,775

 

Roseville Joint Union High School District California,
GO, Election of 2004, Series A (NPFGC),
5.00%, 8/01/29

 

 

2,985

 

 

2,863,242

 

Sacramento City Financing Authority California, RB,
Capital Improvement (AMBAC), 5.00%, 12/01/27

 

 

150

 

 

141,666

 

San Francisco City & County Airports Commission,
RB, Special Facility Lease, SFO Fuel, Series A, AMT
(AGM), 6.10%, 1/01/20

 

 

1,250

 

 

1,251,675

 

State of California, GO, Refunding, Veterans, Series
BZ, AMT (NPFGC), 5.35%, 12/01/21

 

 

1,280

 

 

1,280,013

 

Stockton Public Financing Authority California, RB,
Redevelopment Projects, Series A (Radian),
5.25%, 9/01/34

 

 

2,430

 

 

1,780,558

 

 

 

 

 

 




 

 

 

 

 

 

45,958,711

 









Colorado — 1.6%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Hospital,
NCMC Inc. Project, Series B (AGM),
6.00%, 5/15/26

 

 

3,300

 

 

3,477,903

 

Colorado Housing & Finance Authority, Refunding
RB, S/F Program, Senior Series A-2, AMT,
7.50%, 4/01/31

 

 

135

 

 

141,078

 

Regional Transportation District, COP, Series A,
5.00%, 6/01/25

 

 

765

 

 

747,351

 

 

 

 

 

 




 

 

 

 

 

 

4,366,332

 










 


Portfolio Abbreviations


To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

ACA

ACA Financial Guaranty Corp.

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

BOCES

Board of Cooperative Educational Services

CAB

Capital Appreciation Bonds

CIFG

CDC IXIS Financial Guaranty

COP

Certificates of Participation

EDA

Economic Development Authority

EDC

Economic Development Corp.

ERB

Education Revenue Bonds

FGIC

Financial Guaranty Insurance Co.

FHA

Federal Housing Administration

GAN

Grant Anticipation Notes

GO

General Obligation Bonds

HFA

Housing Finance Agency

HDA

Housing Development Authority

HRB

Housing Revenue Bonds

IDRB

Industrial Development Revenue Bonds

ISD

Independent School District

MRB

Mortgage Revenue Bonds

NPFGC

National Public Finance Guarantee Corp.

PILOT

Payment in Lieu of Taxes

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

S/F

Single-Family

SONYMA

State of New York Mortgage Agency

VRDN

Variable Rate Demand Notes


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2011

11




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









District of Columbia — 0.8%

 

 

 

 

 

 

 

District of Columbia, RB, Deed Tax, Housing
Production Trust Fund, Series A (NPFGC),
5.00%, 6/01/32

 

$

2,500

 

$

2,286,225

 









Florida — 18.3%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.24%,
10/01/37 (c)

 

 

905

 

 

131,632

 

Miami International Airport, Series A, AMT (AGM),
5.25%, 10/01/41

 

 

12,505

 

 

11,179,845

 

Miami International Airport, Series A, AMT (AGM),
5.50%, 10/01/41

 

 

6,700

 

 

6,223,362

 

Series A, AMT (AGM), 5.00%, 10/01/33

 

 

6,430

 

 

5,711,190

 

Water & Sewer System (AGM),
5.00%, 10/01/39

 

 

11,010

 

 

10,309,874

 

County of St. John’s Florida, RB, CAB (AMBAC),
5.37%, 6/01/31 (c)

 

 

710

 

 

214,250

 

Jacksonville Port Authority, RB, AMT (AGC),
6.00%, 11/01/38

 

 

3,625

 

 

3,643,850

 

Orange County School Board, COP, Series A (AGC),
5.50%, 8/01/34

 

 

12,375

 

 

11,994,469

 

 

 

 

 

 




 

 

 

 

 

 

49,408,472

 









Georgia — 3.7%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB, General, Series A (AGM),
5.00%, 1/01/40

 

 

2,355

 

 

2,188,596

 

Gwinnett County Hospital Authority, Refunding RB,
Gwinnett Hospital System, Series D (AGM),
5.50%, 7/01/41

 

 

3,425

 

 

3,195,696

 

Metropolitan Atlanta Rapid Transit Authority, RB, Third
Indenture, Series B (AGM), 5.00%, 7/01/34

 

 

4,830

 

 

4,751,223

 

 

 

 

 

 




 

 

 

 

 

 

10,135,515

 









Idaho — 0.1%

 

 

 

 

 

 

 

Idaho Housing & Finance Association, RB, S/F
Mortgage, Series E, AMT, 6.00%, 1/01/32

 

 

245

 

 

251,708

 









Illinois — 7.8%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO, Refunding,
Chicago School Reform Board, Series A (NPFGC),
5.50%, 12/01/26

 

 

2,080

 

 

2,051,733

 

Chicago Transit Authority, RB, Federal Transit
Administration Section 5309, Series A (AGC),
6.00%, 6/01/26

 

 

3,400

 

 

3,526,412

 

City of Chicago Illinois, GO, Refunding, Projects,
Series A (AGM):

 

 

 

 

 

 

 

5.00%, 1/01/29

 

 

3,585

 

 

3,282,820

 

5.00%, 1/01/30

 

 

1,430

 

 

1,302,630

 

City of Chicago Illinois, RB, General, Third Lien,
Series C (AGM), 5.25%, 1/01/35

 

 

2,085

 

 

1,997,305

 

City of Chicago Illinois, Refunding RB, Second Lien
(NPFGC), 5.50%, 1/01/30

 

 

2,270

 

 

2,267,367

 

Railsplitter Tobacco Settlement Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

2,350

 

 

2,224,909

 

6.00%, 6/01/28

 

 

670

 

 

639,408

 

State of Illinois, RB, Build Illinois, Series B,
5.25%, 6/15/28

 

 

4,000

 

 

3,858,400

 

 

 

 

 

 




 

 

 

 

 

 

21,150,984

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

 

Value

 









Indiana — 3.6%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB, Series A
(NPFGC), 5.00%, 1/01/42

 

$

8,000

 

$

7,200,720

 

Indianapolis Local Public Improvement Bond Bank,
Refunding RB, Waterworks Project, Series A (AGC),
5.50%, 1/01/38

 

 

2,370

 

 

2,429,463

 

 

 

 

 

 




 

 

 

 

 

 

9,630,183

 









Iowa — 1.0%

 

 

 

 

 

 

 

Iowa Finance Authority, Refunding RB, Iowa Health
System (AGC), 5.25%, 2/15/29

 

 

2,915

 

 

2,828,978

 









Kansas — 0.5%

 

 

 

 

 

 

 

Sedgwick & Shawnee Counties Kansas, MRB,
Series A-2, AMT (Ginnie Mae), 6.20%, 12/01/33

 

 

1,480

 

 

1,501,682

 









Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
RB, Louisville Arena, Sub-Series A-1 (AGC),
6.00%, 12/01/38

 

 

1,000

 

 

1,016,490

 

Kentucky State Property & Buildings Commission,
Refunding RB, Project No. 93 (AGC),
5.25%, 2/01/29

 

 

1,525

 

 

1,530,932

 

 

 

 

 

 




 

 

 

 

 

 

2,547,422

 









Louisiana — 1.4%

 

 

 

 

 

 

 

Louisiana State Citizens Property Insurance Corp.,
RB, Series C-3 (AGC), 6.13%, 6/01/25

 

 

3,550

 

 

3,830,557

 









Maine — 0.7%

 

 

 

 

 

 

 

City of Portland Maine, RB, General (AGM),
5.25%, 1/01/35

 

 

1,920

 

 

1,884,019

 









Michigan — 11.9%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series B (NPFGC),
5.50%, 7/01/29

 

 

4,170

 

 

3,941,275

 

Senior Lien, Series B (AGM), 7.50%, 7/01/33

 

 

2,500

 

 

2,895,175

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series C (BHAC), 5.75%, 7/01/27

 

 

2,600

 

 

2,672,462

 

Second Lien, Series E (BHAC), 5.75%, 7/01/31

 

 

5,060

 

 

5,080,898

 

Senior Lien, Series C-1 (AGM), 7.00%, 7/01/27

 

 

4,180

 

 

4,666,259

 

Senior Lien, Series C-2 (BHAC),
5.25%, 7/01/29

 

 

1,860

 

 

1,783,628

 

Kalamazoo Hospital Finance Authority, RB, Bronson
Methodist Hospital (AGM), 5.25%, 5/15/36

 

 

2,000

 

 

1,835,020

 

Michigan State Building Authority, Refunding RB,
Facilities Program, Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

1,440

 

 

1,459,973

 

5.25%, 10/15/25

 

 

750

 

 

750,563

 

Michigan Strategic Fund, Refunding RB, AMT, Detroit
Edison Co. (Syncora):

 

 

 

 

 

 

 

Pollution, Series C, 5.65%, 9/01/29

 

 

2,935

 

 

2,868,845

 

Project, Series A, 5.50%, 6/01/30

 

 

750

 

 

713,123

 

Royal Oak Hospital Finance Authority Michigan,
Refunding RB, William Beaumont Hospital,
8.25%, 9/01/39

 

 

3,115

 

 

3,468,584

 

 

 

 

 

 




 

 

 

 

 

 

32,135,805

 










 

 

 

See Notes to Financial Statements.

 




12

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Minnesota — 0.8%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, Refunding RB,
Fairview Health Services, Series B (AGC),
6.50%, 11/15/38

 

$

1,975

 

$

2,073,059

 









Nevada — 4.2%

 

 

 

 

 

 

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Las Vegas-McCarran International Airport,
Series A (AGC), 5.25%, 7/01/39

 

 

5,765

 

 

5,333,202

 

Subordinate Lien, Series A-2 (NPFGC),
5.00%, 7/01/36

 

 

6,595

 

 

5,826,023

 

Nevada Housing Division, Refunding RB, S/F
Mortgage, Mezzanine, Series A-2, AMT (NPFGC),
6.30%, 4/01/22

 

 

95

 

 

96,422

 

 

 

 

 

 




 

 

 

 

 

 

11,255,647

 









New Jersey — 7.5%

 

 

 

 

 

 

 

Delaware River Port Authority, RB, Series D (AGC),
5.00%, 1/01/40

 

 

3,000

 

 

2,867,460

 

 

 

 

 

 

 

 

 

New Jersey EDA, RB, Motor Vehicle Surcharge,
Series A (NPFGC), 5.25%, 7/01/33

 

 

11,000

 

 

10,814,540

 

New Jersey Health Care Facilities Financing
Authority, RB, Virtua Health (AGC),
5.50%, 7/01/38

 

 

3,400

 

 

3,429,444

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series A (AGC),
5.63%, 12/15/28

 

 

2,930

 

 

3,090,681

 

 

 

 

 

 




 

 

 

 

 

 

20,202,125

 









New York — 2.9%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series EE, 5.25%, 6/15/40

 

 

4,160

 

 

4,168,112

 

Second General Resolution, Series EE,
5.38%, 6/15/43

 

 

1,315

 

 

1,319,405

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

2,300

 

 

2,296,596

 

 

 

 

 

 




 

 

 

 

 

 

7,784,113

 









North Carolina — 0.4%

 

 

 

 

 

 

 

North Carolina HFA, RB, Home Ownership,
Series 14A, AMT (AMBAC), 5.35%, 1/01/22

 

 

1,020

 

 

1,021,449

 









Pennsylvania — 1.9%

 

 

 

 

 

 

 

Pennsylvania Turnpike Commission, RB, Sub-Series B
(AGM), 5.25%, 6/01/39

 

 

3,000

 

 

2,859,660

 

Pittsburgh & Allegheny County Sports & Exhibition
Authority, Refunding RB, Regional Asset District
Sales Tax (AGM), 5.00%, 2/01/31

 

 

2,270

 

 

2,208,460

 

 

 

 

 

 




 

 

 

 

 

 

5,068,120

 









Puerto Rico — 1.3%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 6.38%, 8/01/39

 

 

3,500

 

 

3,584,070

 









South Carolina — 5.8%

 

 

 

 

 

 

 

South Carolina State Housing Finance &
Development Authority, Refunding RB, Series A-2,
AMT (AGM), 6.35%, 7/01/19

 

 

925

 

 

937,876

 

South Carolina State Public Service Authority, RB,
Series A (AMBAC), 5.00%, 1/01/42

 

 

15,000

 

 

14,630,550

 

 

 

 

 

 




 

 

 

 

 

 

15,568,426

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Texas — 21.2%

 

 

 

 

 

 

 

City of Austin Texas, Refunding RB, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 11/15/28

 

$

1,795

 

$

1,774,034

 

5.00%, 11/15/29

 

 

2,270

 

 

2,226,461

 

City of Dallas Texas, Refunding RB (AGC),
5.25%, 8/15/38

 

 

2,100

 

 

2,005,878

 

City of Houston Texas, Refunding RB, Combined,
First Lien, Series A (AGC), 6.00%, 11/15/35

 

 

6,700

 

 

7,239,149

 

County of Bexar Texas, RB, Venue Project, Motor
Vehicle Rental (BHAC), 5.00%, 8/15/39

 

 

1,805

 

 

1,673,307

 

Dallas Area Rapid Transit, Refunding RB, Senior Lien,
5.25%, 12/01/38

 

 

3,920

 

 

3,932,191

 

Harris County Health Facilities Development Corp.,
Refunding RB, Memorial Hermann Healthcare
System, Series B, 7.25%, 12/01/35

 

 

1,000

 

 

1,073,870

 

Lower Colorado River Authority, Refunding RB, LCRA
Transmission Services Project (AGC),
5.50%, 5/15/36

 

 

2,935

 

 

2,899,193

 

Lubbock Cooper ISD Texas, GO, School Building
(AGC), 5.75%, 2/15/42

 

 

1,250

 

 

1,274,113

 

North Texas Tollway Authority, RB, System, First Tier,
Series K-2 (AGC), 6.00%, 1/01/38

 

 

1,000

 

 

1,019,480

 

North Texas Tollway Authority, Refunding RB (NPFGC)
System, First Tier:

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

14,750

 

 

13,861,755

 

Series A, 5.13%, 1/01/28

 

 

3,950

 

 

3,796,464

 

Series A, 5.63%, 1/01/33

 

 

10,975

 

 

10,489,027

 

Series B, 5.75%, 1/01/40

 

 

1,000

 

 

939,780

 

Tarrant County Cultural Education Facilities Finance
Corp., Refunding RB, Christus Health, Series A
(AGC), 6.50%, 7/01/37

 

 

3,000

 

 

3,072,390

 

 

 

 

 

 




 

 

 

 

 

 

57,277,092

 









Utah — 1.4%

 

 

 

 

 

 

 

City of Riverton Utah, RB, IHC Health Services Inc.,
5.00%, 8/15/41

 

 

4,085

 

 

3,739,368

 









Virginia — 0.9%

 

 

 

 

 

 

 

Virginia Public School Authority, RB, School
Financing, 6.50%, 12/01/35

 

 

2,195

 

 

2,382,365

 









Washington — 1.8%

 

 

 

 

 

 

 

Chelan County Public Utility District No. 1, RB,
Chelan Hydro System, Series A, AMT (AMBAC),
5.45%, 7/01/37

 

 

3,840

 

 

3,481,689

 

Washington Health Care Facilities Authority,
Refunding RB, Providence Health, Series C (AGM),
5.25%, 10/01/33

 

 

1,330

 

 

1,282,107

 

 

 

 

 

 




 

 

 

 

 

 

4,763,796

 









Total Municipal Bonds — 127.5%

 

 

 

 

 

344,594,266

 









 


 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

 

 

 

 

 

 









Alabama — 1.3%

 

 

 

 

 

 

 

Mobile Board of Water & Sewer Commissioners, RB
(NPFGC), 5.00%, 1/01/31

 

 

3,750

 

 

3,612,450

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2011

13




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par
(000)

 

Value

 







California — 3.8%

 

 

 

 

 

 

 

City of San Jose California, GO, Libraries, Parks, and
Public Safety Project (NPFGC), 5.00%, 9/01/30

 

$

3,805

 

$

3,807,015

 

 

 

 

 

 

 

 

 

San Diego Community College District California, GO,
Election of 2002 (AGM), 5.00%, 5/01/30

 

 

1,486

 

 

1,432,584

 

Sequoia Union High School District California, GO,
Refunding, Election of 2004, Series B (AGM),
5.50%, 7/01/35

 

 

5,189

 

 

5,133,742

 

 

 

 

 

 




 

 

 

 

 

 

10,373,341

 









Colorado — 3.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic
Health, Series C-3 (AGM), 5.10%, 10/01/41

 

 

9,410

 

 

8,608,174

 









District of Columbia — 0.7%

 

 

 

 

 

 

 

District of Columbia Water & Sewer Authority, RB,
Series A, 6.00%, 10/01/35

 

 

1,700

 

 

1,837,638

 









Florida — 8.1%

 

 

 

 

 

 

 

City of St. Petersburg Florida, Refunding RB (NPFGC),
5.00%, 10/01/35

 

 

6,493

 

 

5,983,345

 

County of Miami-Dade Florida, GO, Building Better
Communities Program, Series B-1,
6.00%, 7/01/38

 

 

12,500

 

 

13,186,875

 

Lee County Housing Finance Authority, RB,
Multi-County Program, Series A-2, AMT
(Ginnie Mae), 6.00%, 9/01/40

 

 

2,535

 

 

2,652,852

 

 

 

 

 

 




 

 

 

 

 

 

21,823,072

 









Georgia — 2.3%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB (AGM),
5.25%, 10/01/34

 

 

6,290

 

 

6,310,317

 









Illinois — 6.5%

 

 

 

 

 

 

 

Chicago Illinois O Hare International Airport Rev
Ser A, 5.00%, 1/01/38

 

 

7,500

 

 

6,847,687

 

City of Chicago Illinois, RB, Series A (AGM),
5.00%, 1/01/33

 

 

7,500

 

 

6,847,688

 

City of Chicago Illinois, Refunding RB, Second Lien
(AGM), 5.25%, 11/01/33

 

 

3,969

 

 

3,825,490

 

 

 

 

 

 




 

 

 

 

 

 

17,520,865

 









Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky State Property & Building Commission,
Refunding RB, Project No. 93 (AGC),
5.25%, 2/01/27

 

 

2,304

 

 

2,343,463

 









Massachusetts — 1.8%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB,
Series A (AGM), 5.00%, 8/15/30

 

 

4,994

 

 

4,997,889

 









Nevada — 7.1%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

10,000

 

 

10,702,300

 

Series B, 5.50%, 7/01/29

 

 

8,247

 

 

8,476,251

 

 

 

 

 

 




 

 

 

 

 

 

19,178,551

 









New Jersey — 1.4%

 

 

 

 

 

 

 

New Jersey State Housing & Mortgage Finance
Agency, RB, S/F Housing, Series CC,
5.25%, 10/01/29

 

 

3,941

 

 

3,867,311

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par
(000)

 

Value

 









New York — 2.6%

 

 

 

 

 

 

 

Sales Tax Asset Receivable Corp., RB, Series A
(AMBAC), 5.25%, 10/15/27

 

$

6,751

 

$

7,009,612

 









Washington — 2.7%

 

 

 

 

 

 

 

City of Bellevue Washington, GO, Refunding
(NPFGC), 5.50%, 12/01/39

 

 

6,883

 

 

7,231,633

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 42.4%

 

 

 

 

 

114,714,316

 









Total Long-Term Investments
(Cost — $477,021,180) — 169.9%

 

 

 

 

 

459,308,582

 









 


 

 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 









Florida — 0.4%

 

 

 

 

 

 

 

Jacksonville Health Facilities Authority, Refunding
RB,VRDN, Baptist Series C (Bank of America NA
LLC) 0.30%, 2/01/11 (e)

 

 

1,115

 

 

1,115,000

 









 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 









Money Market Fund — 0.2%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.20% (f)(g)

 

 

434,253

 

 

434,253

 









Total Short-Term Securities
(Cost — $1,549,253) — 0.6%

 

 

 

 

 

1,549,253

 









Total Investments (Cost — $478,570,433*) — 170.5%

 

 

 

 

 

460,857,835

 

Other Assets Less Liabilities — 1.1%

 

 

 

 

 

2,915,644

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (23.1)%

 

 

 

 

 

(62,425,648

)

Preferred Shares, at Redemption Value — (48.5)%

 

 

 

 

 

(131,008,297

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

270,339,534

 

 

 

 

 

 




 

 

 


*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

416,362,692

 

 

 




Gross unrealized appreciation

 

$

4,732,828

 

Gross unrealized depreciation

 

 

(22,620,619

)

 

 




Net unrealized depreciation

 

$

(17,887,791

)

 

 





 

 

(a)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(b)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Appreciation

 







Morgan Stanley Co. Inc.

 

$

2,813,201

 

$

27,189

 


 

 

 

See Notes to Financial Statements.

 




14

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)


 

 

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(d)

Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

 

 

(e)

Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

 

 

(f)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended,were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

Affiliate

 

Shares at
July 31,
2010

 

Net
Activity

 

Shares at
January 31,
2011

 

Income

 

 











 

FFI Institutional Tax-Exempt Fund

 

 

17,366,850

 

 

(16,932,597

)

 

434,253

 

$

9,995

 

 
















 

 

 

(g)

Represents the current yield as of report date.

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates)or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of January 31, 2011 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

Long-Term Investments1

 

 

 

$

459,308,582

 

 

 

$

459,308,582

 

Short-Term Securities

 

$

434,253

 

 

1,115,000

 

 

 

 

1,549,253

 

 

 













Total

 

$

434,253

 

$

460,423,582

 

 

 

$

460,857,835

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2011

15




 

 


 

Schedule of Investments January 31, 2011 (Unaudited)

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California — 99.0%

 

 

 

 

 

 

 









Corporate — 0.9%

 

 

 

 

 

 

 

City of Chula Vista California, Refunding RB, San
Diego Gas & Electric, Series A, 5.88%, 2/15/34

 

$

2,435

 

$

2,495,169

 

University of California, RB, Limited Project, Series B
(AGM), 5.00%, 5/15/33

 

 

1,760

 

 

1,693,507

 

 

 

 

 

 




 

 

 

 

 

 

4,188,676

 









County/City/Special District/
School District — 48.4%

 

 

 

 

 

 

 

Arcadia Unified School District California, GO,
Election of 2006, Series A (AGM),
5.00%, 8/01/37

 

 

7,925

 

 

7,354,796

 

Bay Area Governments Association, Refunding RB,
California Redevelopment Agency Pool, Series A
(AGM), 6.00%, 12/15/24

 

 

255

 

 

258,703

 

Brentwood Infrastructure Financing Authority
California, Special Assessment Bonds, Refunding,
Series A (AGM), 5.20%, 9/02/29

 

 

3,980

 

 

3,905,455

 

City & County of San Francisco California, COP,
Refunding, Series A, 5.00%, 10/01/28

 

 

5,895

 

 

5,615,341

 

City of Riverside California, COP (AMBAC),
5.00%, 9/01/28

 

 

3,000

 

 

2,828,970

 

County of Kern California, COP, Capital Improvements
Projects, Series A (AGC), 6.00%, 8/01/35

 

 

2,000

 

 

2,100,960

 

Fairfield-Suisun Unified School District California,
GO, Election of 2002 (NPFGC), 5.50%, 8/01/28

 

 

2,500

 

 

2,511,025

 

Fremont Unified School District Alameda County
California, GO, Series A (NPFGC), 5.50%, 8/01/26

 

 

10,755

 

 

10,919,014

 

Fresno Joint Powers Financing Authority California,
RB, Series A (AGM), 5.75%, 6/01/26

 

 

3,295

 

 

3,297,142

 

Glendora Unified School District California, GO,
Election of 2005, Series A (NPFGC):

 

 

 

 

 

 

 

5.00%, 8/01/27

 

 

1,350

 

 

1,366,821

 

5.25%, 8/01/30

 

 

2,730

 

 

2,765,080

 

Los Angeles Community Redevelopment Agency
California, RB, Bunker Hill Project, Series A (AGM),
5.00%, 12/01/27

 

 

10,000

 

 

10,016,600

 

Los Angeles County Metropolitan Transportation
Authority, Refunding RB, Proposition A, First Tier,
Senior Series A (AMBAC):

 

 

 

 

 

 

 

5.00%, 7/01/27

 

 

5,240

 

 

5,301,832

 

5.00%, 7/01/35

 

 

6,825

 

 

6,748,833

 

Los Angeles Municipal Improvement Corp.,
Refunding RB, Real Property, Series B (AGC),
5.50%, 4/01/39

 

 

1,515

 

 

1,510,576

 

Los Angeles Unified School District California, GO,
Election of 2002, Series C (AGM),
5.00%, 7/01/32

 

 

10,000

 

 

9,291,700

 

Los Gatos Union School District California, GO,
Election of 2001, Series C (NPFGC),
5.13%, 8/01/32

 

 

1,075

 

 

1,089,029

 

Los Rios Community College District, GO, Election of
2008, Series A, 5.00%, 8/01/35

 

 

11,000

 

 

10,181,160

 

Murrieta Valley Unified School District Public
Financing Authority, Special Tax Bonds, Refunding,
Series A (AGC), 5.13%, 9/01/26

 

 

8,000

 

 

8,090,560

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (continued)

 

 

 

 

 

 

 









County/City/Special District/
School District (concluded)

 

 

 

 

 

 

 









Orange County Sanitation District, COP, Series A,
5.00%, 2/01/35

 

$

2,500

 

$

2,465,625

 

Orange County Water District, COP, Refunding,
5.25%, 8/15/34

 

 

9,045

 

 

9,064,989

 

Orchard School District California, GO, Election of
2001, Series A (AGC), 5.00%, 8/01/34

 

 

7,490

 

 

7,268,371

 

Oxnard Union High School District California, GO,
Refunding, Series A (NPFGC), 6.20%, 8/01/30

 

 

9,645

 

 

9,747,719

 

Pittsburg Unified School District, GO, Election of
2006, Series B (AGM):

 

 

 

 

 

 

 

5.50%, 8/01/34

 

 

2,000

 

 

2,024,500

 

5.63%, 8/01/39

 

 

4,500

 

 

4,581,180

 

Port of Oakland, Refunding RB, Series M, AMT
(NPFGC), 5.38%, 11/01/27

 

 

16,930

 

 

15,769,110

 

Redlands Unified School District California, GO,
Election of 2008 (AGM), 5.25%, 7/01/33

 

 

5,000

 

 

4,784,000

 

Riverside Unified School District California, GO,
Series C (AGC), 5.00%, 8/01/32

 

 

2,000

 

 

1,858,140

 

Sacramento Area Flood Control Agency, Special
Assessment Bonds, Refunding, Consolidated,
Capital Assessment District, Series A (NPFGC),
5.00%, 10/01/32

 

 

4,350

 

 

4,193,574

 

Saddleback Valley Unified School District California,
GO (AGM), 5.00%, 8/01/29

 

 

2,565

 

 

2,522,447

 

San Bernardino City Unified School District
California, GO, Series A (AGM), 5.00%, 8/01/28

 

 

5,000

 

 

4,994,200

 

San Diego Community College District California,
GO, Election of 2006 (AGM), 5.00%, 8/01/32

 

 

7,115

 

 

6,941,109

 

San Diego County Water Authority, COP, Refunding,
Series 2008-A (AGM), 5.00%, 5/01/38

 

 

4,895

 

 

4,610,258

 

San Jose Redevelopment Agency California, Tax
Allocation Bonds, Housing Set Aside Merged Area,
Series E, AMT (NPFGC), 5.85%, 8/01/27

 

 

7,300

 

 

7,303,869

 

San Juan Unified School District, GO, Election of
2002 (AGM), 5.00%, 8/01/34

 

 

6,475

 

 

5,931,229

 

San Mateo County Transportation District California,
Refunding RB, Series A (NPFGC), 5.00%, 6/01/29

 

 

4,350

 

 

4,383,408

 

Santa Rosa High School District California, GO,
Election of 2002 (NPFGC), 5.00%, 8/01/28

 

 

2,500

 

 

2,382,250

 

Snowline Joint Unified School District, COP,
Refunding, Refining Project (AGC),
5.75%, 9/01/38

 

 

5,600

 

 

5,854,184

 

South Tahoe Joint Powers Financing Authority, RB,
South Tahoe Redevelopment Project Area No. 1,
Series A (AGM), 5.00%, 10/01/29

 

 

1,645

 

 

1,513,614

 

Ventura County Community College District, GO,
Refunding, Series A (NPFGC), 5.00%, 8/01/27

 

 

3,395

 

 

3,395,000

 

West Contra Costa Unified School District California,
GO, Election of 2002, Series B (AGM),
5.00%, 8/01/32

 

 

6,690

 

 

6,401,193

 

Westminster Redevelopment Agency California, Tax
Allocation Bonds, Subordinate, Commercial
Redevelopment Project No. 1 (AGC),
6.25%, 11/01/39

 

 

4,300

 

 

4,603,451

 

 

 

 

 

 




 

 

 

 

 

 

217,747,017

 










 

 

 

See Notes to Financial Statements.


16

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

Schedule of Investments (continued)

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (continued)

 

 

 

 

 

 

 









Education — 7.9%

 

 

 

 

 

 

 

California State University, Refunding RB,
Systemwide, Series C (NPFGC),
5.00%, 11/01/35

 

$

20,000

 

$

18,030,800

 

Riverside Community College District, GO, Election
of 2004, Series C (AGM), 5.00%, 8/01/32

 

 

8,750

 

 

8,244,337

 

University of California, RB, Limited Project, Series D:

 

 

 

 

 

 

 

(AGM), 5.00%, 5/15/37

 

 

2,775

 

 

2,668,829

 

(NPFGC), 5.00%, 5/15/37

 

 

5,500

 

 

5,289,570

 

(NPFGC), 5.00%, 5/15/41

 

 

1,255

 

 

1,194,798

 

 

 

 

 

 




 

 

 

 

 

 

35,428,334

 









Health — 5.1%

 

 

 

 

 

 

 

ABAG Finance Authority for Nonprofit Corps,
Refunding RB, Sharp Healthcare, Series A,
6.00%, 8/01/30 (a)

 

 

2,250

 

 

2,157,795

 

California Health Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

Catholic Healthcare West, Series A,
6.00%, 7/01/34

 

 

2,130

 

 

2,131,257

 

Catholic Healthcare West, Series A,
6.00%, 7/01/39

 

 

5,500

 

 

5,425,860

 

Sutter Health, Series B, 6.00%, 8/15/42 (a)

 

 

2,800

 

 

2,749,376

 

California Statewide Communities Development
Authority, RB, Health Facility, Memorial Health
Services, Series A, 6.00%, 10/01/23

 

 

3,685

 

 

3,795,329

 

California Statewide Communities Development
Authority, Refunding RB, Catholic Healthcare
West, Series D (BHAC), 5.50%, 7/01/31

 

 

1,030

 

 

1,029,949

 

City of Newport Beach California, RB, Hoag Memorial
Hospital Presbyterian, 6.00%, 12/01/40 (a)

 

 

1,070

 

 

1,065,474

 

City of Torrance California, RB, Torrance Memorial
Medical Center, Series A, 5.00%, 9/01/40

 

 

5,350

 

 

4,478,003

 

 

 

 

 

 




 

 

 

 

 

 

22,833,043

 









Housing — 0.1%

 

 

 

 

 

 

 

California Rural Home Mortgage Finance Authority,
RB, AMT, Mortgage-Backed Securities Program
(Ginnie Mae):

 

 

 

 

 

 

 

Series A, 6.35%, 12/01/29

 

 

90

 

 

91,572

 

Series B, 6.25%, 12/01/31

 

 

65

 

 

65,686

 

County of San Bernardino California, Refunding RB,
Home Mortgage-Backed Securities, Series A-1,
AMT (Ginnie Mae), 6.25%, 12/01/31

 

 

140

 

 

142,783

 

 

 

 

 

 




 

 

 

 

 

 

300,041

 









State — 1.9%

 

 

 

 

 

 

 

California State Public Works Board, RB, Department
of Education, Riverside Campus Project, Series B,
6.50%, 4/01/34

 

 

3,670

 

 

3,767,659

 

California State University, Refunding RB,
Systemwide, Series C (NPFGC), 5.00%, 11/01/38

 

 

5,690

 

 

5,079,633

 

 

 

 

 

 




 

 

 

 

 

 

8,847,292

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (continued)

 

 

 

 

 

 

 









Transportation — 13.1%

 

 

 

 

 

 

 

City of San Jose California, RB, Series D (NPFGC),
5.00%, 3/01/28

 

$

4,575

 

$

4,446,809

 

County of Orange California, RB, Series B,
5.75%, 7/01/34

 

 

5,000

 

 

5,172,950

 

County of Sacramento California, RB:

 

 

 

 

 

 

 

Senior-Series B, AMT (AGM), 5.25%, 7/01/33

 

 

7,500

 

 

6,941,550

 

Subordinated and PFC/Grant, Series C (AGC),
5.75%, 7/01/39

 

 

5,455

 

 

5,477,529

 

Los Angeles Harbor Department, RB, Series B,
5.25%, 8/01/34

 

 

5,530

 

 

5,377,261

 

Port of Oakland, RB, Series K, AMT (NPFGC),
5.75%, 11/01/29

 

 

11,405

 

 

10,839,426

 

San Francisco City & County Airports
Commission, RB:

 

 

 

 

 

 

 

Series E, 6.00%, 5/01/39

 

 

9,650

 

 

9,933,324

 

Special Facility Lease, SFO Fuel, Series A, AMT
(AGM), 6.10%, 1/01/20

 

 

1,000

 

 

1,001,340

 

Special Facility Lease, SFO Fuel, Series A AMT
(AGM), 6.13%, 1/01/27

 

 

985

 

 

985,345

 

San Francisco City & County Airports Commission,
Refunding RB, Second Series 34E, AMT (AGM):

 

 

 

 

 

 

 

5.75%, 5/01/24

 

 

5,000

 

 

5,186,200

 

5.75%, 5/01/25

 

 

3,500

 

 

3,608,325

 

 

 

 

 

 




 

 

 

 

 

 

58,970,059

 









Utilities — 21.6%

 

 

 

 

 

 

 

City of Glendale California, RB (NPFGC),
5.00%, 2/01/32

 

 

4,380

 

 

4,145,758

 

City of Los Angeles California, Refunding RB,
Sub-Series A, 5.00%, 6/01/32

 

 

3,000

 

 

2,926,770

 

City of Santa Clara California, RB, Sub-Series A
(NPFGC), 5.00%, 7/01/28

 

 

5,500

 

 

5,480,750

 

Contra Costa Water District, Refunding RB, Series L
(AGM), 5.00%, 10/01/32

 

 

4,135

 

 

4,140,624

 

Dublin-San Ramon Services District, Refunding RB,
6.00%, 8/01/41

 

 

4,000

 

 

4,046,160

 

East Bay Municipal Utility District, RB, Series A
(NPFGC), 5.00%, 6/01/37

 

 

4,000

 

 

4,001,880

 

East Bay Municipal Utility District, Refunding RB,
Sub-Series A (AMBAC), 5.00%, 6/01/33

 

 

4,125

 

 

4,124,711

 

East Valley Water District Financing Authority,
Refunding RB, 5.00%, 10/01/40

 

 

4,065

 

 

3,769,027

 

Fortuna Public Financing Authority, RB (AGM),
5.00%, 10/01/36

 

 

1,500

 

 

1,351,755

 

Los Angeles County Sanitation Districts Financing
Authority, Refunding RB, Capital Project 14
(BHAC), 5.00%, 10/01/34

 

 

7,915

 

 

7,637,658

 

Los Angeles Department of Water & Power, RB,
Power System:

 

 

 

 

 

 

 

Series A-2, 5.25%, 7/01/32

 

 

1,035

 

 

1,029,680

 

Sub-Series A-1 (AGM), 5.00%, 7/01/37

 

 

13,525

 

 

12,914,076

 

Metropolitan Water District of Southern California,
RB, Series B-1 (NPFGC), 5.00%, 10/01/33

 

 

7,175

 

 

7,078,711

 


 

 

 

See Notes to Financial Statements.

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2011

17




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniYield California Quality Fund, Inc. (MCA)
(Percentages shown are based on Net Assets)

 

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 









Utilities (concluded)

 

 

 

 

 

 

 

Orange County Sanitation District, COP, Series B
(AGM), 5.00%, 2/01/30

 

$

2,105

 

$

2,099,885

 

Oxnard Financing Authority, RB, Redwood Trunk
Sewer & Headworks, Series A (NPFGC),
5.25%, 6/01/34

 

 

13,000

 

 

12,574,640

 

Sacramento Regional County Sanitation District, RB,
Sacramento Regional County Sanitation (NPFGC),
5.00%, 12/01/27

 

 

7,070

 

 

7,132,075

 

San Diego County Water Authority, COP, Series A
(AGM), 5.00%, 5/01/31

 

 

3,000

 

 

2,903,280

 

San Diego Public Facilities Financing Authority,
Refunding RB, Series A, 5.00%, 8/01/29

 

 

2,000

 

 

1,950,520

 

San Francisco City & County Public Utilities
Commission, RB, Series B, 5.00%, 11/01/29

 

 

3,000

 

 

2,988,930

 

Turlock Public Financing Authority California, RB,
Series A (NPFGC), 5.00%, 9/15/33

 

 

3,000

 

 

2,855,460

 

Vallecitos Water District California, COP, Refunding,
Series A (AGM), 5.00%, 7/01/27

 

 

2,000

 

 

1,919,840

 

 

 

 

 

 




 

 

 

 

 

 

97,072,190

 









Total Municipal Bonds — 99.0%

 

 

 

 

 

445,386,652

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (b)

 

 

 

 

 

 

 









California — 75.4%

 

 

 

 

 

 

 









Corporate — 5.9%

 

 

 

 

 

 

 

San Francisco Bay Area Rapid Transit District,
Refunding RB, Series A (NPFGC), 5.00%, 7/01/30

 

 

19,630

 

 

19,629,215

 

University of California, RB, Series L,
5.00%, 5/15/40

 

 

7,398

 

 

7,058,538

 

 

 

 

 

 




 

 

 

 

 

 

26,687,753

 









County/City/Special District/School District — 40.0%

 

 

 

 

 

 

 

Desert Community College District California, GO,
Series C (AGM), 5.00%, 8/01/37

 

 

12,150

 

 

11,165,121

 

Fremont Unified School District Alameda County
California, GO, Election of 2002, Series B (AGM),
5.00%, 8/01/30

 

 

15,997

 

 

14,992,840

 

Lodi Unified School District California, GO, Election
of 2002 (AGM), 5.00%, 8/01/29

 

 

10,260

 

 

9,864,785

 

Los Angeles Community College District
California, GO:

 

 

 

 

 

 

 

Election of 2001, Series A (AGM),
5.00%, 8/01/32

 

 

12,000

 

 

11,306,520

 

Election of 2001, Series A (NPFGC),
5.00%, 8/01/32

 

 

26,438

 

 

24,845,981

 

Election of 2003, Series E (AGM),
5.00%, 8/01/31

 

 

7,497

 

 

7,092,613

 

Election of 2008, Series A, 6.00%, 8/01/33

 

 

9,596

 

 

10,151,438

 

Los Angeles Unified School District California, GO,
Series I, 5.00%, 1/01/34

 

 

5,000

 

 

4,585,000

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (b)

 

Par
(000)

 

Value

 









California (continued)

 

 

 

 

 

 

 









County/City/Special District/School District (concluded)

 

 

 

 

 

 

 

Ohlone Community College District, GO, Ohlone,
Series B (AGM), 5.00%, 8/01/30

 

$

19,998

 

$

19,040,560

 

Peralta Community College District, GO, Series A
(NPFGC), 5.00%, 8/01/31

 

 

24,130

 

 

22,517,151

 

Poway Unified School District, GO, Election of 2002,
Improvement District 02, Series 1-B (AGM),
5.00%, 8/01/30

 

 

10,000

 

 

9,372,400

 

San Bernardino Community College District
California, GO, Election of 2002, Series C
(AGM), 5.00%, 8/01/31

 

 

7,550

 

 

7,045,358

 

San Diego County Water Authority, COP, Series A
(AGM), 5.00%, 5/01/30

 

 

7,350

 

 

7,137,144

 

San Francisco Bay Area Transit Financing Authority,
Refunding RB, Series A (NPFGC), 5.00%, 7/01/34

 

 

10,497

 

 

10,325,894

 

San Jose Financing Authority, Refunding RB, Civic
Center Project, Series B (AMBAC),
5.00%, 6/01/32

 

 

11,400

 

 

10,421,196

 

 

 

 

 

 




 

 

 

 

 

 

179,864,001

 









Education — 5.3%

 

 

 

 

 

 

 

California State University, RB, Systemwide, Series A
(AGM), 5.00%, 11/01/39

 

 

4,860

 

 

4,458,224

 

University of California, RB:

 

 

 

 

 

 

 

Limited Project, Series D (AGM),
5.00%, 5/15/41

 

 

8,000

 

 

7,616,240

 

Series O, 5.75%, 5/15/34

 

 

11,190

 

 

11,877,625

 

 

 

 

 

 




 

 

 

 

 

 

23,952,089

 









Utilities — 24.2%

 

 

 

 

 

 

 

Anaheim Public Financing Authority California, RB,
Electric System Distribution Facilities, Series A
(AGM), 5.00%, 10/01/31

 

 

3,568

 

 

3,357,471

 

City of Napa California, RB (AMBAC),
5.00%, 5/01/35

 

 

9,070

 

 

8,640,808

 

East Bay Municipal Utility District, RB, Sub-Series A
(NPFGC), 5.00%, 6/01/35

 

 

15,000

 

 

14,607,600

 

East Bay Municipal Utility District, Refunding RB,
Sub-Series A (AMBAC), 5.00%, 6/01/37

 

 

7,990

 

 

7,931,593

 

Los Angeles Department of Water & Power, RB:

 

 

 

 

 

 

 

Power System, Sub-Series A-1 (AGM),
5.00%, 7/01/31

 

 

5,007

 

 

4,845,421

 

Power System, Sub-Series A-1 (AMBAC),
5.00%, 7/01/37

 

 

5,029

 

 

4,802,123

 

System, Sub-Series A-2 (AGM),
5.00%, 7/01/35

 

 

7,500

 

 

7,193,475

 

Los Angeles Department of Water & Power,
Refunding RB, Power System, Sub-Series A-2
(NPFGC), 5.00%, 7/01/27

 

 

16,000

 

 

16,031,840

 

Metropolitan Water District of Southern California,
RB, Series A, 5.00%, 7/01/37

 

 

15,000

 

 

14,934,000

 

Rancho Water District Financing Authority, Refunding
RB, Series A (AGM), 5.00%, 8/01/34

 

 

9,277

 

 

8,833,261

 


 

 

 

See Notes to Financial Statements.


18

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniYield California Quality Fund, Inc. (MCA)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (b)

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 









Utilities (concluded)

 

 

 

 

 

 

 

San Diego County Water Authority, COP, Refunding,
Series 2008-A (AGM), 5.00%, 5/01/33

 

$

8,510

 

$

8,221,171

 

San Diego County Water Authority, COP, Series A
(AGM), 5.00%, 5/01/31

 

 

10,000

 

 

9,677,600

 

 

 

 

 

 




 

 

 

 

 

 

109,076,363

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 75.4%

 

 

 

 

 

339,580,206

 









Total Long-Term Investments
(Cost — $824,394,330) — 174.4%

 

 

 

 

 

784,966,858

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









BIF California Municipal Money Fund,
0.04% (c)(d)

 

 

11,363,487

 

 

11,363,487

 









Total Short-Term Securities
(Cost — $11,363,487) — 2.5%

 

 

 

 

 

11,363,487

 









Total Investments (Cost — $835,757,817*) — 176.9%

 

 

 

 

 

796,330,345

 

Other Assets Less Liabilities — 0.8%

 

 

 

 

 

3,615,080

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (40.7)%

 

 

 

 

 

(183,375,204

)

Preferred Shares, at Redemption Value — (37.0)%

 

 

 

 

 

(166,541,739

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

450,028,482

 

 

 

 

 

 






 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

652,948,560

 

 

 




Gross unrealized appreciation

 

$

1,950,961

 

Gross unrealized depreciation

 

 

(41,771,597

)

 

 




Net unrealized depreciation

 

$

(39,820,636

)

 

 





 

 

(a)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Appreciation
(Depreciation)

 









Citigroup Global Markets Inc.

 

$

1,683,080

 

$

(35,395

)

Merrill Lynch & Co.

 

$

474,715

 

$

(9,983

)

Morgan Stanley Co. Inc.

 

$

2,749,376

 

$

26,572

 

Citigroup Global Markets Inc.

 

$

1,065,474

 

$

5,853

 










 

 

(b)

Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

 

 

(c)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Affiliate

 

Shares Held
at July 31,
2010

 

Net
Activity

 

Shares Held
at January 31,
2011

 

Income

 















BIF California Municipal Money Fund

 

 

39,049,939

 

 

(27,686,452

)

 

11,363,487

 

$

2,582

 
















 

 

 

(d)

Represents the current yield as of report date.

 

 

 

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

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of January 31, 2011 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

784,966,858

 

 

 

$

784,966,858

 

Short-Term Securities

 

$

11,363,487

 

 

 

 

 

 

11,363,487

 

 

 













Total

 

$

11,363,487

 

$

784,966,858

 

 

 

$

796,330,345

 

 

 














 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.




SEMI-ANNUAL REPORT

JANUARY 31, 2011

19




 

 


 

 

Schedule of Investments January 31, 2011 (Unaudited)

BlackRock MuniYield Quality Fund III, Inc. (MYI)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 0.5%

 

 

 

 

 

 

 

Birmingham Special Care Facilities Financing
Authority, RB, Children’s Hospital (AGC),
6.00%, 6/01/39

 

$

3,605

 

$

3,727,786

 









Alaska — 1.6%

 

 

 

 

 

 

 

Alaska Housing Finance Corp., RB, General Housing,
Series B (NPFGC), 5.25%, 12/01/30

 

 

2,000

 

 

1,975,580

 

Borough of Matanuska-Susitna Alaska, RB, Goose
Creek Correctional Center (AGC), 6.00%, 9/01/28

 

 

10,150

 

 

10,902,115

 

 

 

 

 

 




 

 

 

 

 

 

12,877,695

 









Arizona — 2.8%

 

 

 

 

 

 

 

Downtown Phoenix Hotel Corp., RB, Senior Series A
(FGIC), 5.00%, 7/01/36

 

 

21,355

 

 

16,013,260

 

Maricopa County & Phoenix Industrial Development
Authorities, Refunding RB, S/F, Series A-2, AMT
(Ginnie Mae), 5.80%, 7/01/40

 

 

2,075

 

 

2,112,786

 

State of Arizona, COP, Department of Administration,
Series A (AGM):

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

3,725

 

 

3,519,306

 

5.25%, 10/01/28

 

 

1,600

 

 

1,537,568

 

 

 

 

 

 




 

 

 

 

 

 

23,182,920

 









California — 14.0%

 

 

 

 

 

 

 

Alameda Corridor Transportation Authority,
Refunding RB, CAB, Subordinate Lien, Series A
(AMBAC), 5.47%, 10/01/24 (a)

 

 

10,000

 

 

7,839,800

 

California Health Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

St. Joseph Health System, Series A,
5.75%, 7/01/39

 

 

1,550

 

 

1,522,240

 

Sutter Health, Series B, 5.88%, 8/15/31 (b)

 

 

3,200

 

 

3,171,648

 

California HFA, RB, Home Mortgage, Series K, AMT,
5.50%, 2/01/42

 

 

5,170

 

 

5,248,998

 

California State University, RB, Systemwide, Series A
(NPFGC), 5.00%, 11/01/32

 

 

9,865

 

 

9,043,936

 

California State University, Refunding RB,
Systemwide, Series A (AGM), 5.00%, 11/01/37

 

 

3,545

 

 

3,269,979

 

California Statewide Communities Development
Authority, RB (AGM):

 

 

 

 

 

 

 

St. Joseph Health System, Series E,
5.25%, 7/01/47

 

 

9,000

 

 

8,230,950

 

Sutter Health, Series D, 5.05%, 8/15/38

 

 

750

 

 

684,585

 

City of Redding California, COP, Refunding, Series A
(AGM), 5.00%, 6/01/30

 

 

1,900

 

 

1,787,634

 

City of San Jose California, Refunding RB, Series A,
AMT (AMBAC), 5.50%, 3/01/32

 

 

11,965

 

 

10,999,424

 

County of Sacramento California, RB, Senior
Series A (AGM), 5.00%, 7/01/41

 

 

15,000

 

 

13,411,350

 

Fairfield-Suisun Unified School District California,
GO, Election of 2002 (NPFGC), 5.50%, 8/01/28

 

 

5,800

 

 

5,825,578

 

Los Angeles Community College District California,
GO, Election of 2001, Series A (AGM),
5.00%, 8/01/32

 

 

1,200

 

 

1,130,652

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 

Los Angeles Municipal Improvement Corp., RB,
Series B1 (NPFGC), 4.75%, 8/01/37

 

$

14,000

 

$

11,855,620

 

Mendocino-Lake Community College District, GO,
Election of 2006, Series A (NPFGC),
5.00%, 8/01/31

 

 

1,485

 

 

1,373,774

 

Norwalk-La Mirada Unified School District California,
GO, Refunding, CAB, Election of 2002, Series E
(AGC), 6.47%, 8/01/38 (c)

 

 

7,620

 

 

1,133,627

 

Oceanside Unified School District California, GO,
Series A (AGC), 5.25%, 8/01/33

 

 

2,500

 

 

2,500,000

 

Port of Oakland, RB, Series K, AMT (NPFGC),
5.75%, 11/01/29

 

 

3,645

 

 

3,464,244

 

Port of Oakland, Refunding RB, Series M, AMT
(NPFGC), 5.38%, 11/01/27

 

 

7,530

 

 

7,013,668

 

Riverside County Public Financing Authority, Tax
Allocation Bonds, Redevelopment Projects
(Syncora), 5.00%, 10/01/35

 

 

10,000

 

 

7,440,400

 

State of California, GO, Series 2007-2 (NPFGC),
5.50%, 4/01/30

 

 

10

 

 

9,768

 

Stockton Public Financing Authority California, RB,
Parking & Capital Projects (NPFGC),
5.25%, 9/01/34

 

 

5,000

 

 

4,392,700

 

West Valley-Mission Community College District, GO,
Election of 2004, Series A (AGM),
5.00%, 8/01/30

 

 

3,600

 

 

3,419,352

 

 

 

 

 

 




 

 

 

 

 

 

114,769,927

 









District of Columbia — 1.1%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, RB,
Series B, AMT (AMBAC), 5.00%, 10/01/32

 

 

10,000

 

 

9,216,300

 









Florida — 16.6%

 

 

 

 

 

 

 

Broward County School Board Florida, COP, Series A
(AGM), 5.25%, 7/01/33

 

 

15,000

 

 

13,900,800

 

City of Orlando Florida, RB, Senior, 6th Cent Contract
Payments, Series A (AGC), 5.25%, 11/01/38

 

 

14,050

 

 

12,296,279

 

City of Tallahassee Florida, RB (NPFGC),
5.00%, 10/01/32

 

 

3,300

 

 

3,104,277

 

Collier County School Board, COP (AGM),
5.00%, 2/15/23

 

 

5,000

 

 

5,103,600

 

County of Broward Florida, RB, Series A,
5.25%, 10/01/34

 

 

2,250

 

 

2,228,760

 

County of Miami-Dade Florida, GO, Building Better
Communities Program:

 

 

 

 

 

 

 

Series B, 6.38%, 7/01/28

 

 

6,000

 

 

6,496,080

 

Series B-1, 5.75%, 7/01/33

 

 

3,700

 

 

3,784,878

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

Jackson Health System (AGC), 5.75%, 6/01/39

 

 

5,200

 

 

5,211,804

 

Miami International Airport, AMT (NPFGC),
5.38%, 10/01/25

 

 

7,500

 

 

7,541,475

 

Miami International Airport, AMT (NPFGC),
5.38%, 10/01/27

 

 

1,000

 

 

989,620

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

Miami International Airport, Series A, AMT (AGM),
5.50%, 10/01/41

 

 

19,020

 

 

17,666,917

 

Water & Sewer System (AGM), 5.00%, 10/01/39

 

 

11,700

 

 

10,955,997

 


 

 

 

See Notes to Financial Statements.


20

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund III, Inc. (MYI)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Florida (concluded)

 

 

 

 

 

 

 

County of Miami-Dade Florida, Refunding RB:

 

 

 

 

 

 

 

(AGM), 5.00%, 7/01/35

 

$

2,800

 

$

2,505,916

 

Miami International Airport AMT (AGC),
5.00%, 10/01/40

 

 

11,000

 

 

9,483,100

 

Miami International Airport, Series A, AMT (AGC),
5.00%, 10/01/35

 

 

2,100

 

 

1,841,028

 

Series C (BHAC), 6.00%, 10/01/23

 

 

20,095

 

 

22,235,520

 

County of Orange Florida, Refunding RB, Series B
(NPFGC), 5.13%, 1/01/32

 

 

2,000

 

 

1,936,340

 

Highlands County Health Facilities Authority, RB,
Adventist Health System/Sunbelt, Series B,
6.00%, 11/15/37

 

 

1,750

 

 

1,784,510

 

Miami-Dade County School Board, COP, Refunding,
Series B (AGC), 5.25%, 5/01/31

 

 

2,390

 

 

2,340,216

 

Sarasota County Public Hospital District, RB,
Sarasota Memorial Hospital Project, Series A,
5.63%, 7/01/39

 

 

5,135

 

 

5,031,324

 

 

 

 

 

 




 

 

 

 

 

 

136,438,441

 









Georgia — 1.8%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB, General, Series B (AGM),
5.25%, 1/01/33

 

 

12,500

 

 

12,228,750

 

Gwinnett County Hospital Authority, Refunding RB,
Gwinnett Hospital System, Series D (AGM),
5.50%, 7/01/41

 

 

2,275

 

 

2,122,689

 

 

 

 

 

 




 

 

 

 

 

 

14,351,439

 









Illinois — 16.9%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO, Refunding,
CAB, School Reform, Series A (NPFGC),
5.39%, 12/01/22 (c)

 

 

8,230

 

 

4,100,927

 

Chicago Park District, GO, Harbor Facilities, Series C,
5.25%, 1/01/40

 

 

1,505

 

 

1,448,653

 

City of Chicago Illinois, ARB, General, Third Lien,
Series B-2, AMT (NPFGC):

 

 

 

 

 

 

 

5.25%, 1/01/27

 

 

16,685

 

 

15,444,637

 

6.00%, 1/01/27

 

 

26,230

 

 

26,332,559

 

City of Chicago Illinois, GO, CAB, City Colleges
(NPFGC) (c):

 

 

 

 

 

 

 

5.56%, 1/01/29

 

 

5,000

 

 

1,516,750

 

5.69%, 1/01/33

 

 

7,950

 

 

1,763,628

 

City of Chicago Illinois, GO, Refunding, Series B
(AGM), 5.00%, 1/01/24

 

 

12,950

 

 

12,448,835

 

City of Chicago Illinois, Refunding ARB, General,
Third Lien, Series C-2, AMT (AGM),
5.25%, 1/01/30

 

 

16,400

 

 

15,497,180

 

County of Cook Illinois, GO, Refunding, Series A,
5.25%, 11/15/33

 

 

3,700

 

 

3,534,092

 

Illinois Finance Authority, Refunding RB,
Northwestern Memorial Hospital, Series A,
6.00%, 8/15/39

 

 

5,250

 

 

5,365,815

 

Illinois Municipal Electric Agency, RB,
Series A (NPFGC):

 

 

 

 

 

 

 

5.00%, 2/01/35

 

 

21,200

 

 

19,690,348

 

5.25%, 2/01/35

 

 

15,000

 

 

14,368,800

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Illinois (concluded)

 

 

 

 

 

 

 

Kane, Kendall, Etc. Counties Community College
District No. 516 Illinois, GO, CAB, Series E
(NPFGC), 5.21%, 12/15/25 (c)

 

$

8,750

 

$

3,799,162

 

Metropolitan Pier & Exposition Authority, RB, CAB,
McCormick Place Expansion Project, Series A
(NPFGC) (c):

 

 

 

 

 

 

 

5.75%, 6/15/32

 

 

14,000

 

 

3,322,200

 

6.00%, 12/15/34

 

 

10,000

 

 

1,966,500

 

Metropolitan Pier & Exposition Authority, Refunding
RB, CAB, McCormick Place Expansion Project,
Series B (AGM) (c):

 

 

 

 

 

 

 

5.83%, 6/15/27

 

 

3,575

 

 

1,272,486

 

6.25%, 6/15/44

 

 

9,430

 

 

958,371

 

Railsplitter Tobacco Settlement Authority, RB,
6.00%, 6/01/28

 

 

1,700

 

 

1,622,378

 

Regional Transportation Authority, RB, Series C
(NPFGC), 7.75%, 6/01/20

 

 

1,000

 

 

1,192,570

 

State of Illinois, RB, Build Illinois, Series B,
5.25%, 6/15/34

 

 

3,500

 

 

3,276,315

 

 

 

 

 

 




 

 

 

 

 

 

138,922,206

 









Indiana — 2.4%

 

 

 

 

 

 

 

City of Indianapolis Indiana, Refunding RB, Second
Lien, Series B (AGC), 5.25%, 8/15/27

 

 

5,000

 

 

4,972,550

 

Indiana Municipal Power Agency, RB:

 

 

 

 

 

 

 

Series A (NPFGC), 5.00%, 1/01/37

 

 

9,200

 

 

8,437,688

 

Series B, 5.75%, 1/01/34

 

 

1,050

 

 

1,053,843

 

Indianapolis Local Public Improvement Bond Bank,
Refunding RB, Waterworks Project, Series A (AGC),
5.50%, 1/01/38

 

 

5,000

 

 

5,125,450

 

 

 

 

 

 




 

 

 

 

 

 

19,589,531

 









Iowa — 1.5%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Series A (AGC),
5.63%, 8/15/37

 

 

12,650

 

 

12,503,639

 









Kentucky — 1.7%

 

 

 

 

 

 

 

Kentucky State Property & Buildings Commission,
Refunding RB, Project No. 93 (AGC),
5.25%, 2/01/28

 

 

4,000

 

 

4,041,640

 

Louisville & Jefferson County Metropolitan Sewer
District Kentucky, RB, Series A (NPFGC),
5.25%, 5/15/37

 

 

10,000

 

 

9,928,700

 

 

 

 

 

 




 

 

 

 

 

 

13,970,340

 









Louisiana — 1.5%

 

 

 

 

 

 

 

New Orleans Aviation Board Louisiana, RB,
New Orleans Aviation, Series A, AMT (AGM),
5.25%, 1/01/32

 

 

13,335

 

 

12,240,597

 









Maryland — 0.6%

 

 

 

 

 

 

 

Maryland Community Development Administration,
Refunding RB, Residential, Series A, AMT,
5.75%, 9/01/39

 

 

4,505

 

 

4,675,740

 










 

 

 

See Notes to Financial Statements.




SEMI-ANNUAL REPORT

JANUARY 31, 2011

21




 

 


 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund III, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Massachusetts — 5.6%

 

 

 

 

 

 

 

Massachusetts HFA, RB:

 

 

 

 

 

 

 

S/F Housing, Series 128, AMT (AGM),
4.88%, 12/01/38 (d)

 

$

12,210

 

$

10,746,876

 

Series B, 7.00%, 12/01/38

 

 

3,440

 

 

3,694,319

 

Massachusetts HFA, Refunding RB:

 

 

 

 

 

 

 

Housing Development, Series B (NPFGC),
5.40%, 12/01/28

 

 

1,835

 

 

1,749,434

 

Rental Housing, Series A, AMT (AGM),
5.15%, 7/01/26

 

 

18,245

 

 

18,100,499

 

Series C, AMT, 5.35%, 12/01/42

 

 

3,100

 

 

2,782,808

 

Massachusetts Port Authority, Refunding RB,
BOSFUEL Project, AMT (NPFGC), 5.00%, 7/01/38

 

 

9,925

 

 

8,375,112

 

 

 

 

 

 




 

 

 

 

 

 

45,449,048

 









Michigan — 8.3%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Series B (AGM):

 

 

 

 

 

 

 

Second Lien, 6.25%, 7/01/36

 

 

1,075

 

 

1,127,944

 

Second Lien, 7.00%, 7/01/36

 

 

500

 

 

551,375

 

Senior Lien, 7.50%, 7/01/33

 

 

1,800

 

 

2,084,526

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Senior Lien, Series C-1 (AGM), 7.00%, 7/01/27

 

 

1,500

 

 

1,674,495

 

Senior Lien, Series D (AGM), 5.00%, 7/01/23

 

 

9,085

 

 

8,879,316

 

Series C (NPFGC), 5.00%, 7/01/22

 

 

4,540

 

 

4,559,431

 

Series D (NPFGC), 5.00%, 7/01/33

 

 

5,000

 

 

4,332,550

 

Kalamazoo Hospital Finance Authority, RB, Bronson
Methodist Hospital (AGM), 5.25%, 5/15/36

 

 

1,160

 

 

1,064,312

 

Michigan Higher Education Student Loan Authority,
RB, Student Loan, Series XVII-Q, AMT (AMBAC),
5.00%, 3/01/31

 

 

4,325

 

 

3,693,463

 

Michigan State Building Authority, Refunding RB,
Facilities Program, Series I:

 

 

 

 

 

 

 

6.25%, 10/15/38

 

 

3,125

 

 

3,274,281

 

(AGC), 5.25%, 10/15/24

 

 

1,750

 

 

1,774,273

 

(AGC), 5.25%, 10/15/25

 

 

3,250

 

 

3,252,437

 

Michigan State HDA, RB, Series C, AMT,
5.50%, 12/01/28

 

 

2,900

 

 

2,748,359

 

Michigan Strategic Fund, Refunding RB, AMT, Detroit
Edison Co., (Syncora):

 

 

 

 

 

 

 

Project, Series A, 5.50%, 6/01/30

 

 

5,000

 

 

4,754,150

 

Pollution, Series C, 5.65%, 9/01/29

 

 

2,935

 

 

2,868,845

 

State of Michigan, RB, GAN (AGM):

 

 

 

 

 

 

 

5.25%, 9/15/22

 

 

10,000

 

 

10,423,700

 

5.25%, 9/15/26

 

 

6,650

 

 

6,719,958

 

Wayne County Airport Authority, Refunding RB, AMT
(AGC), 5.38%, 12/01/32

 

 

5,000

 

 

4,392,100

 

 

 

 

 

 




 

 

 

 

 

 

68,175,515

 









Minnesota — 0.7%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, Refunding RB,
Fairview Health Services, Series B (AGC),
6.50%, 11/15/38

 

 

5,500

 

 

5,773,075

 









Missouri — 0.0%

 

 

 

 

 

 

 

Missouri Housing Development Commission, RB,
S/F Homeowner Loan, Series C-1, AMT
(Ginnie Mae), 7.15%, 3/01/32

 

 

70

 

 

71,983

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Nevada — 4.9%

 

 

 

 

 

 

 

City of Las Vegas Nevada, GO, Limited Tax,
Performing Arts Center, 6.00%, 4/01/34

 

$

2,250

 

$

2,348,572

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Las Vegas-McCarran International Airport,
Series A (AGC), 5.25%, 7/01/39

 

 

5,170

 

 

4,782,767

 

Southwest Gas Corp. Project, Series A, AMT
(AMBAC), 5.25%, 7/01/34

 

 

7,500

 

 

6,693,300

 

Subordinate Lien, Series A-2 (NPFGC),
5.00%, 7/01/30

 

 

20,000

 

 

18,106,200

 

Subordinate Lien, Series A2 (BHAC),
5.00%, 7/01/30

 

 

750

 

 

725,535

 

Las Vegas Convention & Visitors Authority, RB
(AMBAC), 5.00%, 7/01/37

 

 

8,500

 

 

7,586,080

 

 

 

 

 

 




 

 

 

 

 

 

40,242,454

 









New Jersey — 3.3%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax, 5.75%, 6/15/34

 

 

4,000

 

 

3,498,760

 

New Jersey EDA, Refunding RB, School Facilities
Construction, Series N-1:

 

 

 

 

 

 

 

(AMBAC), 5.50%, 9/01/24

 

 

10,000

 

 

10,505,400

 

(NPFGC), 5.50%, 9/01/28

 

 

2,165

 

 

2,184,377

 

New Jersey Transportation Trust Fund Authority, RB:

 

 

 

 

 

 

 

CAB, Transportation System, Series C (AGC),
5.71%, 12/15/25 (b)

 

 

15,735

 

 

6,355,996

 

Transportation System, Series A (NPFGC),
5.75%, 6/15/25

 

 

4,250

 

 

4,479,882

 

 

 

 

 

 




 

 

 

 

 

 

27,024,415

 









New York — 2.8%

 

 

 

 

 

 

 

City of New York New York, GO:

 

 

 

 

 

 

 

Series J, 5.25%, 5/15/24

 

 

10,000

 

 

10,457,600

 

Series M (AGC), 5.00%, 4/01/30

 

 

5,000

 

 

4,932,950

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-4, 5.50%, 1/15/34

 

 

7,250

 

 

7,408,992

 

 

 

 

 

 




 

 

 

 

 

 

22,799,542

 









North Carolina — 0.6%

 

 

 

 

 

 

 

North Carolina Medical Care Commission, RB,
Novant Health Obligation, Series A,
4.75%, 11/01/43

 

 

6,175

 

 

5,021,078

 









Ohio — 0.3%

 

 

 

 

 

 

 

Ohio Higher Educational Facility Commission,
Refunding RB, Summa Health System, 2010
Project (AGC), 5.25%, 11/15/40

 

 

2,775

 

 

2,531,411

 









Pennsylvania — 3.2%

 

 

 

 

 

 

 

Pennsylvania HFA, RB, S/F Mortgage, Series 70A,
AMT, 5.80%, 4/01/27

 

 

4,675

 

 

4,573,927

 

Pennsylvania Turnpike Commission, RB:

 

 

 

 

 

 

 

Series A (AMBAC), 5.50%, 12/01/31

 

 

15,600

 

 

15,668,172

 

Sub-Series C (AGC), 6.25%, 6/01/38

 

 

5,695

 

 

5,987,267

 

 

 

 

 

 




 

 

 

 

 

 

26,229,366

 









Puerto Rico — 2.7%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority, Refunding RB,
Government Facilities, Series M-3 (NPFGC):

 

 

 

 

 

 

 

6.00%, 7/01/26

 

 

3,325

 

 

3,330,719

 

6.00%, 7/01/27

 

 

3,720

 

 

3,750,727

 

6.00%, 7/01/28

 

 

2,750

 

 

2,761,248

 


 

 

 

See Notes to Financial Statements.

 




22

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund III, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Puerto Rico (concluded)

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 6.38%, 8/01/39

 

$

10,195

 

$

10,439,884

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.70%, 8/01/41 (c)

 

 

7,500

 

 

977,100

 

First Sub-Series C, 6.00%, 8/01/39

 

 

1,180

 

 

1,176,802

 

 

 

 

 

 




 

 

 

 

 

 

22,436,480

 









South Carolina — 1.1%

 

 

 

 

 

 

 

Charleston Educational Excellence Finance Corp.,
RB, Charleston County School (AGC):

 

 

 

 

 

 

 

5.25%, 12/01/28

 

 

3,895

 

 

3,901,271

 

5.25%, 12/01/29

 

 

3,215

 

 

3,203,330

 

5.25%, 12/01/30

 

 

1,160

 

 

1,144,444

 

South Carolina State Housing Finance &
Development Authority, Refunding RB, Series A-2,
AMT (AGM), 6.35%, 7/01/19

 

 

490

 

 

496,821

 

 

 

 

 

 




 

 

 

 

 

 

8,745,866

 









Tennessee — 0.2%

 

 

 

 

 

 

 

Tennessee Housing Development Agency, Refunding
RB, Homeownership Program, Series A, AMT
(AGM), 5.35%, 1/01/26

 

 

1,505

 

 

1,504,970

 









Texas — 15.5%

 

 

 

 

 

 

 

City of Houston Texas, RB, Combined, First Lien,
Series A (AGM), 5.00%, 11/15/36

 

 

10,000

 

 

9,758,600

 

City of Houston Texas, Refunding RB, Combined,
First Lien, Series A (AGC):

 

 

 

 

 

 

 

6.00%, 11/15/35

 

 

5,700

 

 

6,158,679

 

5.38%, 11/15/38

 

 

3,650

 

 

3,707,013

 

Dallas ISD, GO, School Building (PSF-GTD),
6.38%, 2/15/34

 

 

10,000

 

 

11,162,900

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., Refunding RB, Joint Series A,
AMT (NPFGC), 5.63%, 11/01/26

 

 

15,000

 

 

15,025,200

 

Grand Prairie ISD Texas, GO, Refunding, CAB,
6.24%, 8/15/28 (c)

 

 

10,000

 

 

3,402,700

 

Harris County Hospital District, RB, Senior Lien,
Series A (NPFGC), 5.25%, 2/15/37

 

 

9,650

 

 

8,953,366

 

Harris County-Houston Sports Authority, Refunding
RB, Senior Lien, Series G (NPFGC),
5.25%, 11/15/30

 

 

5,000

 

 

4,200,000

 

Judson ISD Texas, GO, School Building (AGC),
5.00%, 2/01/37

 

 

10,000

 

 

9,565,600

 

Matagorda County Navigation District No. 1 Texas,
Refunding RB, Central Power & Light Co. Project,
AMT (NPFGC), 5.20%, 5/01/30 (d)

 

 

4,150

 

 

3,818,000

 

North Texas Tollway Authority, Refunding, First Tier, RB:

 

 

 

 

 

 

 

Series A, 6.00%, 1/01/28

 

 

6,275

 

 

6,481,950

 

System, Series A (NPFGC), 5.13%, 1/01/28

 

 

21,750

 

 

20,904,577

 

System, Series B (NPFGC), 5.75%, 1/01/40

 

 

10,000

 

 

9,397,800

 

Texas Department of Housing & Community Affairs,
MRB, Series A, AMT (NPFGC), 5.45%, 9/01/23

 

 

3,930

 

 

3,947,017

 

Texas State Turnpike Authority, RB, First Tier,
Series A (AMBAC):

 

 

 

 

 

 

 

5.50%, 8/15/39

 

 

5,500

 

 

5,056,205

 

5.00%, 8/15/42

 

 

6,900

 

 

5,859,480

 

 

 

 

 

 




 

 

 

 

 

 

127,399,087

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Utah — 2.4%

 

 

 

 

 

 

 

Utah Transit Authority, Refunding RB, CAB,
Sub-Series A (c):

 

 

 

 

 

 

 

(AGC), 5.40%, 6/15/20

 

$

15,930

 

$

10,340,163

 

(NPFGC), 4.88%, 6/15/23

 

 

5,000

 

 

2,587,150

 

(NPFGC), 5.22%, 6/15/24

 

 

13,930

 

 

6,730,697

 

 

 

 

 

 




 

 

 

 

 

 

19,658,010

 









Vermont — 0.3%

 

 

 

 

 

 

 

Vermont HFA, HRB, Series 12B, AMT (AGM),
6.30%, 11/01/19

 

 

290

 

 

295,678

 

Vermont HFA, Refunding RB, Multiple Purpose,
Series C, AMT (AGM), 5.50%, 11/01/38 (d)

 

 

2,585

 

 

2,495,663

 

 

 

 

 

 




 

 

 

 

 

 

2,791,341

 









Washington — 4.8%

 

 

 

 

 

 

 

Chelan County Public Utility District No. 1, RB,
Chelan Hydro System, Series A, AMT (AMBAC),
5.45%, 7/01/37

 

 

3,030

 

 

2,747,271

 

Chelan County Public Utility District No. 1,
Refunding RB, Chelan Hydro System, Series C,
AMT (NPFGC), 5.65%, 7/01/32

 

 

6,000

 

 

5,727,480

 

Radford Court Properties Washington, RB (NPFGC),
5.75%, 6/01/32

 

 

10,000

 

 

9,998,500

 

Seattle Housing Authority Washington, RB, Capital
Fund Program, High Rise Rehabilitation, Series III,
AMT (AGM), 5.15%, 11/01/27

 

 

6,255

 

 

6,093,558

 

Washington Health Care Facilities Authority, RB:

 

 

 

 

 

 

 

Providence Health & Services, Series A,
5.00%, 10/01/39

 

 

1,125

 

 

995,591

 

Providence Health & Services, Series A,
5.25%, 10/01/39

 

 

2,725

 

 

2,505,883

 

Providence Health System, Series A (NPFGC),
5.25%, 10/01/21

 

 

5,575

 

 

5,695,810

 

Washington Health Care Facilities Authority,
Refunding RB, Catholic Health Initiatives,
Series D, 6.38%, 10/01/36

 

 

5,400

 

 

5,623,344

 

 

 

 

 

 




 

 

 

 

 

 

39,387,437

 









Wisconsin — 0.8%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities
Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit Group,
5.00%, 11/15/33

 

 

3,745

 

 

3,355,408

 

SynergyHealth Inc., 6.00%, 11/15/32

 

 

3,395

 

 

3,400,432

 

 

 

 

 

 




 

 

 

 

 

 

6,755,840

 









Total Municipal Bonds — 120.5%

 

 

 

 

 

988,463,479

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 









Arizona — 1.3%

 

 

 

 

 

 

 

Arizona School Facilities Board, COP (AGC),
5.13%, 9/01/21

 

 

10,000

 

 

10,287,400

 










 

 

 

See Notes to Financial Statements.


SEMI-ANNUAL REPORT

JANUARY 31, 2011

23




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund III, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 







California — 12.7%

 

 

 

 

 

 

 

Alameda County Joint Powers Authority, Refunding
RB, Lease (AGM), 5.00%, 12/01/34

 

$

6,990

 

$

6,475,956

 

California State University, RB, Systemwide, Series A
(AGM), 5.00%, 11/01/33

 

 

7,996

 

 

7,460,764

 

California State University, Refunding RB,
Systemwide, Series A (AGM), 5.00%, 11/01/37

 

 

18,435

 

 

17,004,418

 

City of Riverside California, RB, Issue D (AGM),
5.00%, 10/01/38

 

 

20,000

 

 

18,061,000

 

Foothill-De Anza Community College District, GO,
Election of 1999, Series C (NPFGC),
5.00%, 8/01/36

 

 

7,500

 

 

7,227,900

 

Las Virgenes Unified School District California, GO,
Series A (AGM), 5.00%, 8/01/31

 

 

10,000

 

 

9,331,263

 

Los Angeles Community College District California,
GO, Election of 2008, Series A, 6.00%, 8/01/33

 

 

5,248

 

 

5,551,568

 

Orange County Sanitation District, COP, Series B
(AGM), 5.00%, 2/01/37

 

 

10,780

 

 

10,625,738

 

San Diego Community College District California,
GO, Election of 2002, 5.25%, 8/01/33

 

 

1,047

 

 

1,052,619

 

San Diego County Water Authority, COP, Refunding,
Series 2008-A (AGM), 5.00%, 5/01/33

 

 

9,370

 

 

9,051,982

 

San Francisco Bay Area Rapid Transit District, RB
(AGM), 5.00%, 7/01/36

 

 

10,000

 

 

9,802,099

 

University of California, RB, Series O,
5.75%, 5/15/34

 

 

2,205

 

 

2,340,497

 

 

 

 

 

 




 

 

 

 

 

 

103,985,804

 









Colorado — 0.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Refunding RB,
Catholic Healthcare, Series A, 5.50%, 7/01/34

 

 

2,469

 

 

2,412,016

 









Connecticut — 0.6%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB, Yale University, Series T-1,
4.70%, 7/01/29

 

 

5,010

 

 

5,044,569

 









District of Columbia — 0.9%

 

 

 

 

 

 

 

District of Columbia, RB, Series A,
5.50%, 12/01/30

 

 

2,595

 

 

2,718,626

 

District of Columbia Water & Sewer Authority, RB,
Series A, 6.00%, 10/01/35

 

 

4,281

 

 

4,626,524

 

 

 

 

 

 




 

 

 

 

 

 

7,345,150

 









Florida — 0.4%

 

 

 

 

 

 

 

Florida State Board of Education, GO, Series D,
5.00%, 6/01/37

 

 

3,299

 

 

3,241,375

 









Georgia — 1.2%

 

 

 

 

 

 

 

Metropolitan Atlanta Rapid Transit Authority, RB, Third
Indenture, Series B (AGM), 5.00%, 7/01/37

 

 

10,000

 

 

9,784,190

 









Hawaii — 1.2%

 

 

 

 

 

 

 

Honolulu City & County Board of Water Supply, RB,
Series A (NPFGC), 5.00%, 7/01/33

 

 

9,830

 

 

9,744,577

 









Illinois — 2.7%

 

 

 

 

 

 

 

City of Chicago Illinois, GO, Refunding, Series A
(AGC), 5.25%, 1/01/24

 

 

11,000

 

 

10,827,410

 

Illinois Finance Authority, RB, University of Chicago,
Series B, 6.25%, 7/01/38

 

 

10,000

 

 

10,960,700

 

 

 

 

 

 




 

 

 

 

 

 

21,788,110

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 







Kentucky — 0.7%

 

 

 

 

 

 

 

Kentucky State Property & Building Commission,
Refunding RB, Project No. 93 (AGC),
5.25%, 2/01/27

 

$

5,985

 

$

6,086,916

 









Louisiana — 1.2%

 

 

 

 

 

 

 

State of Louisiana, RB, Series A (AGM),
5.00%, 5/01/36

 

 

10,000

 

 

9,638,100

 









Nevada — 0.7%

 

 

 

 

 

 

 

Clark County Water Reclamation District,
GO, Series B:

 

 

 

 

 

 

 

5.50%, 7/01/29

 

 

510

 

 

523,986

 

5.75%, 7/01/34

 

 

4,813

 

 

5,089,208

 

 

 

 

 

 




 

 

 

 

 

 

5,613,194

 









New Jersey — 1.3%

 

 

 

 

 

 

 

Garden State Preservation Trust, RB, Election of
2005, Series A (AGM), 5.75%, 11/01/28

 

 

10,000

 

 

10,975,700

 









New York — 4.9%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB,
Series DD, 5.00%, 6/15/37

 

 

17,567

 

 

16,942,848

 

Port Authority of New York & New Jersey, RB,
Consolidated, 155th Series, AMT (AGM),
5.13%, 7/15/30

 

 

19,500

 

 

18,745,155

 

Triborough Bridge & Tunnel Authority, RB, General,
Series A-2, 5.25%, 11/15/34

 

 

4,500

 

 

4,528,215

 

 

 

 

 

 




 

 

 

 

 

 

40,216,218

 









North Carolina — 1.1%

 

 

 

 

 

 

 

North Carolina HFA, RB, Series 31-A, AMT,
5.25%, 7/01/38

 

 

9,956

 

 

9,169,933

 









Ohio — 0.7%

 

 

 

 

 

 

 

County of Montgomery Ohio, RB, Catholic Health,
Series C-1 (AGM), 5.00%, 10/01/41

 

 

4,990

 

 

4,492,796

 

State of Ohio, RB, Cleveland Clinic Health, Series B,
5.50%, 1/01/34

 

 

1,520

 

 

1,490,816

 

 

 

 

 

 




 

 

 

 

 

 

5,983,612

 









South Carolina — 0.6%

 

 

 

 

 

 

 

South Carolina State Housing Finance &
Development Authority, Refunding RB, Series B-1,
5.55%, 7/01/39

 

 

4,788

 

 

4,781,153

 









Texas — 4.1%

 

 

 

 

 

 

 

Friendswood ISD Texas, GO, Schoolhouse (PSF-GTD),
5.00%, 2/15/37

 

 

12,955

 

 

12,977,548

 

Houston ISD, GO, Schoolhouse (PSF-GTD),
5.00%, 2/15/33

 

 

10,000

 

 

10,041,100

 

Texas State University Systems, Refunding RB,
5.25%, 3/15/26

 

 

10,000

 

 

10,316,900

 

 

 

 

 

 




 

 

 

 

 

 

33,335,548

 









Virginia — 0.5%

 

 

 

 

 

 

 

University of Virginia, Refunding RB, General,
5.00%, 6/01/40

 

 

3,950

 

 

3,990,803

 









Washington — 6.2%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit Authority, RB,
Series A (AGM), 5.00%, 11/01/34

 

 

16,770

 

 

16,743,084

 

County of King Washington, RB (AGM),
5.00%, 1/01/37

 

 

15,785

 

 

15,514,038

 

Port of Seattle Washington, Refunding RB, Series B,
AMT (NPFGC), 5.20%, 7/01/29

 

 

20,565

 

 

18,981,513

 

 

 

 

 

 




 

 

 

 

 

 

51,238,635

 










 

 

 

See Notes to Financial Statements.

 


24

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniYield Quality Fund III, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 







Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority,
Refunding RB, Froedtert & Community Health Inc.,
5.25%, 4/01/39

 

$

3,959

 

$

3,642,996

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 43.7%

 

 

 

 

 

358,305,999

 









Total Long-Term Investments
(Cost — $1,407,170,806) — 164.2%

 

 

 

 

 

1,346,769,478

 










 

 

 

 

 

 

 

 


Short-Term Securities

 

Shares

 

 

 

 








FFI Institutional Tax-Exempt Fund, 0.15% (f)(g)

 

 

16,618,977

 

 

16,618,977

 









Total Short-Term Securities
(Cost — $16,618,977) — 2.0%

 

 

 

 

 

16,618,977

 









Total Investments (Cost — $1,423,789,783*) — 166.2%

 

 

 

 

 

1,363,388,455

 

Other Assets Less Liabilities — 1.2%

 

 

 

 

 

8,795,107

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (23.9)%

 

 

 

 

 

(195,707,487

)

Preferred Shares, at Redemption Value — (43.5)%

 

 

 

 

 

(356,492,999

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

819,983,076

 

 

 

 

 

 




 

 

 


*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

1,233,666,533

 

 

 




Gross unrealized appreciation

 

$

12,814,066

 

Gross unrealized depreciation

 

 

(78,665,488

)

 

 




Net unrealized depreciation

 

$

(65,851,422

)

 

 





 

 

(a)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(b)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 









Counterparty

 

Value

 

Unrealized
Appreciation

 









Morgan Stanley Co. Inc.

 

$

3,171,648

 

$

25,952

 










 

 

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(d)

Variable rate security. Rate shown is as of report date.

 

 

(e)

Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

 

 

(f)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Affiliate

 

Shares Held
at July 31,
2010

 

Net
Activity

 

Shares Held
at January 31,
2011

 

Income

 











FFI Institutional
Tax-Exempt Fund

 

 

11,426,470

 

 

5,192,507

 

 

16,618,977

 

$

13,192

 
















 

 

 

(g)

Represents the current yield as of report date.

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of January 31, 2011 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

1,346,769,478

 

 

 

$

1,346,769,478

 

Short-Term Securities

 

$

16,618,977

 

 

 

 

 

 

16,618,977

 

 

 













Total

 

$

16,618,977

 

$

1,346,769,478

 

 

 

$

1,363,388,455

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

 

See Notes to Financial Statements.

 

 


 

SEMI-ANNUAL REPORT

JANUARY 31, 2011

25



 

 



 

 

Schedule of Investments January 31, 2011 (Unaudited)

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan — 134.6%

 

 

 

 

 

 

 









Corporate — 13.7%

 

 

 

 

 

 

 

Delta County EDC, Refunding RB, Mead Westvaco-
Escanaba, Series A, 6.25%, 4/15/12 (a)

 

$

2,420

 

$

2,585,165

 

Dickinson County EDC Michigan, Refunding RB,
International Paper Co. Project, Series A,
5.75%, 6/01/16

 

 

2,500

 

 

2,530,800

 

Michigan Strategic Fund, Refunding RB, Detroit
Edison Co. Project, Series A, AMT (NPFGC),
5.55%, 9/01/29

 

 

9,500

 

 

9,179,185

 

Monroe County EDC Michigan, Refunding RB,
Detroit Edison Co. Project, Series AA (NPFGC),
6.95%, 9/01/22

 

 

5,700

 

 

6,588,060

 

 

 

 

 

 




 

 

 

 

 

 

20,883,210

 









County/City/Special District/
School District — 34.3%

 

 

 

 

 

 

 

Adrian City School District Michigan, GO (AGM),
5.00%, 5/01/14 (a)

 

 

2,400

 

 

2,687,352

 

Allendale Public School District Michigan, GO,
School Building and Site, Series A (AGM),
5.50%, 5/01/16

 

 

1,000

 

 

1,130,090

 

Bay City School District Michigan, GO, School
Building & Site (AGM), 5.00%, 5/01/36

 

 

2,915

 

 

2,683,549

 

Charter Township of Canton Michigan, GO, Capital
Improvement (AGM):

 

 

 

 

 

 

 

5.00%, 4/01/25

 

 

1,250

 

 

1,249,662

 

5.00%, 4/01/26

 

 

1,250

 

 

1,232,925

 

5.00%, 4/01/27

 

 

500

 

 

501,280

 

City of Oak Park Michigan, GO, Street Improvement
(NPFGC), 5.00%, 5/01/30

 

 

600

 

 

586,176

 

County of Genesee Michigan, GO, Refunding,
Series A (NPFGC), 5.00%, 5/01/19

 

 

400

 

 

417,020

 

County of Genesee Michigan, GO, Water Supply
System (NPFGC), 5.13%, 11/01/33

 

 

500

 

 

469,615

 

County of Wayne Michigan, GO, Airport Hotel, Detroit
Metropolitan Airport, Series A (NPFGC),
5.00%, 12/01/30

 

 

1,180

 

 

995,767

 

Dearborn Brownfield Redevelopment Authority, GO,
Limited Tax, Redevelopment, Series A (AGC),
5.50%, 5/01/39

 

 

2,000

 

 

1,994,120

 

Detroit City School District Michigan, GO, School
Building & Site Improvement (FGIC):

 

 

 

 

 

 

 

Series A, 5.38%, 5/01/13 (a)

 

 

1,480

 

 

1,626,372

 

Series B, 5.00%, 5/01/28

 

 

1,900

 

 

1,739,374

 

Eaton Rapids Public Schools Michigan, GO, School
Building & Site (AGM), 5.25%, 5/01/23

 

 

2,000

 

 

2,095,700

 

Gibraltar School District Michigan, GO, School
Building & Site:

 

 

 

 

 

 

 

(FGIC), 5.00%, 5/01/14 (a)

 

 

3,065

 

 

3,431,972

 

(NPFGC), 5.00%, 5/01/28

 

 

585

 

 

562,074

 

Grand Blanc Community Schools Michigan,
GO (NPFGC):

 

 

 

 

 

 

 

5.63%, 5/01/17

 

 

1,000

 

 

1,029,660

 

5.63%, 5/01/18

 

 

1,000

 

 

1,028,900

 

5.63%, 5/01/19

 

 

1,100

 

 

1,131,207

 

Grand Rapids Building Authority Michigan, RB,
Series A (AMBAC) (a):

 

 

 

 

 

 

 

5.50%, 10/01/12

 

 

535

 

 

578,405

 

5.50%, 10/01/12

 

 

130

 

 

140,547

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan (continued)

 

 

 

 

 

 

 









County/City/Special District/
School District (concluded)

 

 

 

 

 

 

 

Gull Lake Community School District, GO, Refunding
(AGM), 4.00%, 5/01/26

 

$

615

 

$

554,152

 

Harper Creek Community School District Michigan,
GO, Refunding (AGM), 5.00%, 5/01/22

 

 

1,000

 

 

1,034,750

 

Harper Woods School District Michigan, GO,
Refunding, School Building & Site:

 

 

 

 

 

 

 

(FGIC), 5.00%, 5/01/14 (a)

 

 

215

 

 

240,376

 

(NPFGC), 5.00%, 5/01/34

 

 

10

 

 

9,224

 

Haslett Public School District Michigan, GO, Building
& Site (NPFGC), 5.63%, 11/01/11 (a)

 

 

1,275

 

 

1,324,865

 

Jonesville Community Schools Michigan, GO,
Refunding (NPFGC), 5.00%, 5/01/29

 

 

1,085

 

 

1,021,723

 

L’Anse Creuse Public Schools Michigan, GO, School
Building & Site (AGM):

 

 

 

 

 

 

 

5.00%, 5/01/12

 

 

400

 

 

419,240

 

5.00%, 5/01/25

 

 

1,000

 

 

1,010,210

 

5.00%, 5/01/26

 

 

1,050

 

 

1,032,329

 

5.00%, 5/01/35

 

 

2,000

 

 

1,892,380

 

Lincoln Consolidated School District Michigan, GO,
Refunding (NPFGC), 4.63%, 5/01/28

 

 

2,325

 

 

2,112,076

 

Livonia Public Schools School District Michigan, GO,
Refunding, Series A (NPFGC), 5.00%, 5/01/24

 

 

500

 

 

500,260

 

Ludington Area School District Michigan, GO
(NPFGC), 5.25%, 5/01/23

 

 

1,440

 

 

1,491,278

 

Michigan State Building Authority, RB, Facilities
Program, Series H (AGM), 5.00%, 10/15/26

 

 

3,000

 

 

2,910,840

 

New Haven Community Schools Michigan, GO,
Refunding, School Building & Site (AGM),
5.00%, 5/01/23

 

 

500

 

 

509,130

 

New Lothrop Area Public Schools Michigan, GO,
School Building & Site (AGM), 5.00%, 5/01/35

 

 

1,200

 

 

1,108,008

 

Pontiac Tax Increment Finance Authority Michigan,
Tax Allocation Bonds, Refunding, Tax Increment
Development (ACA), 5.38%, 6/01/12 (a)

 

 

640

 

 

684,928

 

Reed City Public Schools Michigan, GO, School
Building & Site (AGM), 5.00%, 5/01/14 (a)

 

 

1,000

 

 

1,122,110

 

Rochester Community School District, GO
(NPFGC), 5.00%, 5/01/19

 

 

265

 

 

283,643

 

Southfield Public Schools Michigan, GO, School
Building & Site, Series B (AGM), 5.00%,
5/01/14 (a)

 

 

1,000

 

 

1,122,110

 

Sparta Area Schools Michigan, GO, School Building
& Site (FGIC), 5.00%, 5/01/14 (a)

 

 

1,000

 

 

1,118,030

 

Thornapple Kellogg School District Michigan, GO,
School Building & Site (NPFGC), 5.00%, 5/01/32

 

 

1,500

 

 

1,406,565

 

Van Dyke Public Schools Michigan, GO, School
Building & Site (AGM), 5.00%, 5/01/28

 

 

750

 

 

726,353

 

Zeeland Public Schools Michigan, GO, School
Building & Site (NPFGC), 5.00%, 5/01/29

 

 

1,230

 

 

1,199,717

 

 

 

 

 

 




 

 

 

 

 

 

52,146,064

 









Education — 8.8%

 

 

 

 

 

 

 

Ferris State University, Refunding RB, General (AGM):

 

 

 

 

 

 

 

4.50%, 10/01/23

 

 

1,360

 

 

1,334,813

 

4.50%, 10/01/24

 

 

1,595

 

 

1,538,042

 

4.50%, 10/01/25

 

 

1,405

 

 

1,325,941

 

Michigan Higher Education Facilities Authority, RB,
Limited Obligation, Hillsdale College Project,
5.00%, 3/01/35

 

 

1,125

 

 

966,004

 


 

 

 

See Notes to Financial Statements.

 




26

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan (continued)

 

 

 

 

 

 

 









Education (concluded)

 

 

 

 

 

 

 

Michigan Higher Education Facilities Authority,
Refunding RB, Limited Obligation, Creative
Studies (a):

 

 

 

 

 

 

 

5.85%, 6/01/12

 

$

550

 

$

587,158

 

5.90%, 6/01/12

 

 

1,000

 

 

1,068,230

 

Michigan Higher Education Student Loan Authority,
RB, Student Loan, Series XVII-Q, AMT (AMBAC),
5.00%, 3/01/31

 

 

500

 

 

426,990

 

Michigan State University, Refunding RB, General,
Series C:

 

 

 

 

 

 

 

5.00%, 2/15/40

 

 

3,770

 

 

3,679,633

 

5.00%, 2/15/44

 

 

1,000

 

 

968,570

 

Saginaw Valley State University Michigan, Refunding
RB, General (NPFGC), 5.00%, 7/01/24

 

 

1,450

 

 

1,412,619

 

 

 

 

 

 




 

 

 

 

 

 

13,308,000

 









Health — 21.8%

 

 

 

 

 

 

 

Dickinson County Healthcare System, Refunding RB,
Series A (ACA), 5.80%, 11/01/24

 

 

2,170

 

 

2,188,619

 

Flint Hospital Building Authority Michigan, Refunding
RB, Hurley Medical Center (ACA):

 

 

 

 

 

 

 

6.00%, 7/01/20

 

 

695

 

 

651,243

 

Series A, 5.38%, 7/01/20

 

 

385

 

 

342,943

 

Kalamazoo Hospital Finance Authority, RB, Bronson
Methodist Hospital (AGM), 5.25%, 5/15/36

 

 

2,750

 

 

2,523,152

 

Kent Hospital Finance Authority Michigan, RB,
Spectrum Health, Series A (NPFGC), 5.50%,
7/15/11 (a)

 

 

3,000

 

 

3,098,760

 

Michigan State Hospital Finance Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit Group,
5.00%, 11/15/25

 

 

2,300

 

 

2,276,149

 

Hospital, MidMichigan Obligation Group,
Series A (AMBAC), 5.50%, 4/15/18

 

 

1,000

 

 

1,012,120

 

McLaren Health Care, Series C,
5.00%, 8/01/35

 

 

1,585

 

 

1,407,004

 

Mercy Health Services, Series R (AMBAC),
5.38%, 8/15/26 (b)

 

 

2,000

 

 

2,006,740

 

Michigan State Hospital Finance Authority,
Refunding RB:

 

 

 

 

 

 

 

Hospital, Crittenton, Series A, 5.63%, 3/01/27

 

 

1,300

 

 

1,218,230

 

Hospital, Oakwood Obligation Group, Series A,
5.00%, 7/15/25

 

 

2,470

 

 

2,275,809

 

Hospital, Oakwood Obligation Group, Series A,
5.00%, 7/15/37

 

 

3,340

 

 

2,765,654

 

Hospital, Sparrow Obligated, 5.00%, 11/15/31

 

 

1,595

 

 

1,418,944

 

McLaren Health Care, 5.75%, 5/15/38

 

 

1,500

 

 

1,469,520

 

Trinity Health Credit, Series A, 6.13%, 12/01/23

 

 

940

 

 

1,009,034

 

Trinity Health Credit, Series A, 6.25%, 12/01/28

 

 

570

 

 

594,282

 

Trinity Health Credit, Series A, 6.50%, 12/01/33

 

 

1,400

 

 

1,467,130

 

Trinity Health Credit, Series C, 5.38%, 12/01/23

 

 

1,000

 

 

1,004,680

 

Trinity Health Credit, Series C, 5.38%, 12/01/30

 

 

1,950

 

 

1,831,069

 

Trinity Health Credit, Series D, 5.00%, 8/15/34

 

 

1,650

 

 

1,466,140

 

Royal Oak Hospital Finance Authority Michigan,
Refunding RB, William Beaumont Hospital,
8.25%, 9/01/39

 

 

1,000

 

 

1,113,510

 

 

 

 

 

 




 

 

 

 

 

 

33,140,732

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan (continued)

 

 

 

 

 

 

 









Housing — 5.1%

 

 

 

 

 

 

 

Michigan State HDA, RB:

 

 

 

 

 

 

 

Deaconess Tower, AMT (Ginnie Mae),
5.25%, 2/20/48

 

$

1,000

 

$

927,390

 

Series A, 4.75%, 12/01/25

 

 

2,675

 

 

2,472,636

 

Series A, 6.00%, 10/01/45

 

 

4,280

 

 

4,239,469

 

Series A, AMT (NPFGC), 5.30%, 10/01/37

 

 

20

 

 

18,856

 

 

 

 

 

 




 

 

 

 

 

 

7,658,351

 









State — 13.2%

 

 

 

 

 

 

 

Michigan Municipal Bond Authority, Refunding RB,
Local Government, Charter County Wayne,
Series B (AGC):

 

 

 

 

 

 

 

5.00%, 11/01/14

 

 

1,500

 

 

1,640,640

 

5.00%, 11/01/15

 

 

1,000

 

 

1,086,500

 

5.00%, 11/01/16

 

 

500

 

 

550,765

 

5.38%, 11/01/24

 

 

125

 

 

130,285

 

Michigan State Building Authority, Refunding RB,
Facilities Program:

 

 

 

 

 

 

 

Series I, 6.25%, 10/15/38

 

 

2,350

 

 

2,462,260

 

Series I (AGC), 5.25%, 10/15/24

 

 

2,000

 

 

2,027,740

 

Series I (AGC), 5.25%, 10/15/25

 

 

1,500

 

 

1,501,125

 

Series I (AGC), 5.25%, 10/15/26

 

 

400

 

 

395,336

 

Series II (NPFGC), 5.00%, 10/15/29

 

 

2,000

 

 

1,846,540

 

State of Michigan, COP, Refunding, New Center
Development Inc. (NPFGC), 5.75%, 9/01/11 (b)

 

 

5,045

 

 

5,202,454

 

State of Michigan, RB, GAN (AGM), 5.25%, 9/15/27

 

 

3,250

 

 

3,264,235

 

 

 

 

 

 




 

 

 

 

 

 

20,107,880

 









Transportation — 14.9%

 

 

 

 

 

 

 

State of Michigan, Refunding RB (AGM),
5.25%, 5/15/19

 

 

1,000

 

 

1,107,390

 

Sturgis Building Authority, RB, Sturgis Hospital
Project (NPFGC), 4.75%, 10/01/34

 

 

3,525

 

 

3,109,262

 

Wayne County Airport Authority, RB, Detroit
Metropolitan Wayne County Airport, AMT (NPFGC):

 

 

 

 

 

 

 

5.25%, 12/01/25

 

 

4,475

 

 

4,131,454

 

5.25%, 12/01/26

 

 

3,700

 

 

3,365,742

 

5.00%, 12/01/34

 

 

5,200

 

 

4,228,484

 

Wayne County Airport Authority, Refunding RB,
AMT (AGC):

 

 

 

 

 

 

 

5.75%, 12/01/26

 

 

3,060

 

 

2,936,957

 

5.38%, 12/01/32

 

 

4,300

 

 

3,777,206

 

 

 

 

 

 




 

 

 

 

 

 

22,656,495

 









Utilities — 22.8%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series B (AGM), 7.00%, 7/01/36

 

 

2,000

 

 

2,205,500

 

Second Lien, Series B (NPFGC), 5.00%,
7/01/13 (a)

 

 

1,780

 

 

1,949,563

 

Second Lien, Series B (NPFGC),
5.00%, 7/01/34

 

 

2,620

 

 

2,283,671

 

Senior Lien, Series A (AGM), 5.00%, 7/01/25

 

 

3,460

 

 

3,262,849

 

Senior Lien, Series A (FGIC), 5.75%,
7/01/11 (a)

 

 

1,000

 

 

1,030,770

 

Senior Lien, Series A (NPFGC), 5.00%, 7/01/34

 

 

4,600

 

 

4,093,908

 

City of Detroit Michigan, Refunding RB, Second Lien,
Series C (AGM), 5.00%, 7/01/29

 

 

6,475

 

 

5,745,591

 


 

 

 

 

See Notes to Financial Statements.

 

 


 

SEMI-ANNUAL REPORT

JANUARY 31, 2011

27




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Michigan (concluded)

 

 

 

 

 

 

 









Utilities (concluded)

 

 

 

 

 

 

 

City of Grand Rapids Michigan, RB (NPFGC),
5.00%, 1/01/34

 

$

6,900

 

$

6,698,175

 

City of Grand Rapids Michigan, Refunding RB,
Series A (NPFGC), 5.50%, 1/01/22

 

 

1,500

 

 

1,620,135

 

City of Wyoming Michigan, RB (NPFGC),
5.00%, 6/01/30

 

 

5,300

 

 

5,041,042

 

Michigan Municipal Bond Authority, RB, Clean Water
Revolving-Pooled, 5.00%, 10/01/27

 

 

760

 

 

776,910

 

 

 

 

 

 




 

 

 

 

 

 

34,708,114

 









Total Municipal Bonds in Michigan

 

 

 

 

 

204,608,846

 









 

 

 

 

 

 

 

 









Guam — 1.1%

 

 

 

 

 

 

 









County/City/Special District/
School District — 0.5%

 

 

 

 

 

 

 

Territory of Guam, RB, Section 30, Series A,
5.63%, 12/01/29

 

 

850

 

 

817,955

 









Utilities — 0.6%

 

 

 

 

 

 

 

Guam Power Authority, Refunding RB, Series A
(AGM), 5.00%, 10/01/37

 

 

955

 

 

857,829

 









Total Municipal Bonds in Guam

 

 

 

 

 

1,675,784

 









 

 

 

 

 

 

 

 









Puerto Rico — 9.3%

 

 

 

 

 

 

 









County/City/Special District/
School District — 1.9%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., Refunding
RB, First Sub-Series C (AGM), 5.13%, 8/01/42

 

 

3,200

 

 

2,976,224

 









State — 5.4%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority, Refunding
RB, Government Facilities, Series M-3 (NPFGC),
6.00%, 7/01/27

 

 

4,200

 

 

4,234,692

 

Puerto Rico Sales Tax Financing Corp., Refunding
RB, CAB, Series A (NPFGC) (c):

 

 

 

 

 

 

 

5.19%, 8/01/43

 

 

12,500

 

 

1,397,375

 

5.00%, 8/01/46

 

 

30,000

 

 

2,631,600

 

 

 

 

 

 




 

 

 

 

 

 

8,263,667

 









Transportation — 2.0%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation Authority,
Refunding RB, Series CC (AGC), 5.50%, 7/01/31

 

 

3,000

 

 

2,988,900

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

14,228,791

 









Total Municipal Bonds — 145.0%

 

 

 

 

 

220,513,421

 










 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

 

 

 

 

 

 









Michigan — 10.9%

 

 

 

 

 

 

 









Corporate — 4.9%

 

 

 

 

 

 

 

Wayne State University, Refunding RB, General
(AGM), 5.00%, 11/15/35

 

 

7,790

 

 

7,427,687

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par
(000)

 

Value

 







Michigan (concluded)

 

 

 

 

 

 

 









County/City/Special District/

 

 

 

 

 

 

 

School District — 2.6%

 

 

 

 

 

 

 

Lakewood Public Schools Michigan, GO, School
Building & Site (AGM), 5.00%, 5/01/37

 

$

3,970

 

$

3,944,671

 









Education — 3.4%

 

 

 

 

 

 

 

Portage Public Schools Michigan, GO, School
Building & Site (AGM), 5.00%, 5/01/31

 

 

2,850

 

 

2,744,379

 

Saginaw Valley State University, Refunding RB,
General (AGM), 5.00%, 7/01/31

 

 

2,500

 

 

2,394,975

 

 

 

 

 

 




 

 

 

 

 

 

5,139,354

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 10.9%

 

 

 

 

 

16,511,712

 









Total Long-Term Investments
(Cost — $248,212,449) — 155.9%

 

 

 

 

 

237,025,133

 










 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








BIF Michigan Municipal Money Fund, 0.00% (e)(f)

 

 

9,328,659

 

 

9,328,659

 









Total Short-Term Securities
(Cost — $9,328,659) — 6.1%

 

 

 

 

 

9,328,659

 









Total Investments (Cost — $257,541,108*) — 162.0%

 

 

 

 

 

246,353,792

 

Other Assets Less Liabilities — 1.4%

 

 

 

 

 

2,080,396

 

Liability for Trust Certificates, Including Interest

 

 

 

 

 

 

 

Expense and Fees Payable — (5.9)%

 

 

 

 

 

(9,035,659

)

Preferred Shares, at Redemption Value — (57.5)%

 

 

 

 

 

(87,357,820

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

152,040,709

 

 

 

 

 

 






 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

248,553,380

 

 

 




Gross unrealized appreciation

 

$

4,018,438

 

Gross unrealized depreciation

 

 

(15,248,026

)

 

 




Net unrealized depreciation

 

$

(11,229,588

)

 

 





 

 

(a)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(b)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(d)

Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.


 

 

 

See Notes to Financial Statements.

 




28

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

Schedule of Investments (concluded)

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)


 

 

(e)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Affiliate

 

Shares Held
at July 31,
2010

 

Net
Activity

 

Shares Held
at January 31,

2011

 

Income

 











BIF Michigan Municipal
Money Fund

 

 

605,019

 

 

8,723,640

 

 

9,328,659

 

 

 
















 

 

 

(f)

Represents the current yield as of report date.

 

 

 

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

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of January 31, 2011 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in
Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

 

$

237,025,133

 

 

 

$

237,025,133

 

Short-Term
Securities

 

$

9,328,659

 

 

 

 

 

 

9,328,659

 

 

 













Total

 

$

9,328,659

 

$

237,025,133

 

 

 

$

246,353,792

 

 

 














 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

 

See Notes to Financial Statements.

 

 


 

SEMI-ANNUAL REPORT

JANUARY 31, 2011

29




 

 


 

Schedule of Investments January 31, 2011 (Unaudited)

BlackRock MuniYield New York Quality Fund, Inc. (MYN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 









New York — 115.6%

 

 

 

 

 

 

 









Corporate — 6.2%

 

 

 

 

 

 

 

New York City Industrial Development Agency,
Refunding RB, Terminal One Group Association
Project, AMT, 5.50%, 1/01/24 (a)

 

$

1,500

 

$

1,475,445

 

New York Liberty Development Corp., RB, Goldman
Sachs Headquarters, 5.25%, 10/01/35

 

 

900

 

 

869,751

 

New York State Energy Research & Development
Authority, RB, Lilco Project, Series A (NPFGC),
5.15%, 3/01/16

 

 

3,000

 

 

3,061,110

 

New York State Energy Research & Development
Authority, Refunding RB, Brooklyn Union
Gas/Keyspan, Series A, AMT (FGIC),
4.70%, 2/01/24

 

 

4,750

 

 

4,574,535

 

Suffolk County Industrial Development Agency
New York, RB, KeySpan, Port Jefferson, AMT,
5.25%, 1/03/11

 

 

4,625

 

 

4,329,694

 

Suffolk County Industrial Development Agency
New York, Refunding RB, Ogden Martin System
Huntington, AMT (AMBAC):

 

 

 

 

 

 

 

6.15%, 10/01/11

 

 

9,170

 

 

9,479,671

 

6.25%, 10/01/12

 

 

6,470

 

 

6,937,781

 

 

 

 

 

 




 

 

 

 

 

 

30,727,987

 









County/City/Special District/
School District — 33.9%

 

 

 

 

 

 

 

Amherst Development Corp., RB, University at
Buffalo Foundation Faculty-Student Housing Corp.,
Series A (AGM), 4.63%, 10/01/40

 

 

2,000

 

 

1,736,140

 

City of Buffalo New York, GO, School,
Series D (NPFGC):

 

 

 

 

 

 

 

5.50%, 12/15/14

 

 

1,250

 

 

1,285,075

 

5.50%, 12/15/16

 

 

1,500

 

 

1,539,900

 

City of New York New York, GO, Refunding:

 

 

 

 

 

 

 

Series 02-B (AMBAC), 7.00%, 2/01/18

 

 

70

 

 

70,351

 

Series E, 5.00%, 8/01/27

 

 

1,070

 

 

1,077,362

 

Dutchess County Resource Recovery Agency
New York, RB, Solid Waste System, Series A
(NPFGC), 5.40%, 1/01/13

 

 

1,700

 

 

1,747,855

 

Erie County Industrial Development Agency, RB, City
of Buffalo Project (AGM), 5.75%, 5/01/20

 

 

1,900

 

 

1,980,788

 

Hudson Yards Infrastructure Corp., RB, Series A:

 

 

 

 

 

 

 

5.00%, 2/15/47

 

 

750

 

 

637,605

 

(FGIC), 5.00%, 2/15/47

 

 

11,000

 

 

9,351,540

 

(NPFGC), 4.50%, 2/15/47

 

 

17,525

 

 

13,231,375

 

New York City Industrial Development Agency,
RB, PILOT:

 

 

 

 

 

 

 

CAB, Yankee Stadium (AGC),
6.53%, 3/01/39 (b)

 

 

5,000

 

 

861,700

 

CAB, Yankee Stadium (AGC),
6.47%, 3/01/43 (b)

 

 

4,330

 

 

563,116

 

Queens Baseball Stadium (AGC),
6.38%, 1/01/39

 

 

1,000

 

 

1,044,410

 

Queens Baseball Stadium (AMBAC),
5.00%, 1/01/36

 

 

11,800

 

 

9,592,220

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 









County/City/Special District/
School District (concluded)

 

 

 

 

 

 

 

New York City Industrial Development Agency, RB,
PILOT (concluded):

 

 

 

 

 

 

 

Queens Baseball Stadium (AMBAC),
5.00%, 1/01/39

 

$

5,250

 

$

4,212,862

 

Queens Baseball Stadium (AMBAC),
5.00%, 1/01/46

 

 

8,050

 

 

6,318,203

 

Yankee Stadium (FGIC), 5.00%, 3/01/46

 

 

9,650

 

 

8,342,232

 

Yankee Stadium (NPFGC), 5.00%, 3/01/36

 

 

3,500

 

 

3,102,610

 

New York City Transit Authority/Metropolitan Transit
Authority/Triborough Bridge & Tunnel Authority,
COP, Series A (AMBAC), 5.63%, 1/01/12

 

 

1,020

 

 

1,023,499

 

New York City Transitional Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2008, Series S-1, 4.50%, 1/15/38

 

 

1,700

 

 

1,494,946

 

Fiscal 2009, Series S-1 (AGC),
5.50%, 7/15/38

 

 

6,000

 

 

6,143,400

 

Fiscal 2009, Series S-4 (AGC),
5.50%, 1/15/39

 

 

1,500

 

 

1,537,815

 

Future Tax Secured, Series C (FGIC),
5.00%, 2/01/33

 

 

12,395

 

 

12,151,934

 

Future Tax Secured, Series E (NPFGC),
5.25%, 2/01/22

 

 

2,500

 

 

2,635,075

 

Series S-2 (AGM), 5.00%, 1/15/37

 

 

5,000

 

 

4,830,650

 

Series S-2 (NPFGC), 4.25%, 1/15/34

 

 

5,980

 

 

5,161,697

 

New York City Transitional Finance Authority,
Refunding RB, Series A (FGIC), 5.00%, 11/15/26

 

 

1,000

 

 

1,005,250

 

New York Convention Center Development Corp., RB,
Hotel Unit Fee Secured (AMBAC):

 

 

 

 

 

 

 

5.00%, 11/15/30

 

 

1,500

 

 

1,396,425

 

5.00%, 11/15/35

 

 

33,000

 

 

29,950,800

 

5.00%, 11/15/44

 

 

14,470

 

 

12,898,558

 

North Country Development Authority, Refunding RB
(AGM), 6.00%, 5/15/15

 

 

980

 

 

1,061,859

 

Sales Tax Asset Receivable Corp., RB, Series A
(AMBAC), 5.00%, 10/15/32

 

 

11,200

 

 

11,140,416

 

Syracuse Industrial Development Agency New York,
RB, Carousel Center Project, Series A, AMT
(Syncora), 5.00%, 1/01/36

 

 

6,150

 

 

4,496,634

 

Town of Huntington New York, GO,
Refunding (AMBAC):

 

 

 

 

 

 

 

5.50%, 4/15/12

 

 

460

 

 

487,651

 

5.50%, 4/15/13

 

 

455

 

 

499,745

 

Town of North Hempstead New York, GO, Refunding,
Series B (NPFGC):

 

 

 

 

 

 

 

6.40%, 4/01/13

 

 

1,745

 

 

1,938,067

 

6.40%, 4/01/17

 

 

555

 

 

666,227

 

 

 

 

 

 




 

 

 

 

 

 

167,215,992

 









Education — 11.2%

 

 

 

 

 

 

 

City of Troy New York, Refunding RB, Rensselaer
Polytechnic, Series A, 5.13%, 9/01/40

 

 

5,725

 

 

5,279,710

 

Madison County Industrial Development Agency
New York, RB, Colgate University Project,
Series A (AMBAC):

 

 

 

 

 

 

 

5.00%, 7/01/30

 

 

5,410

 

 

5,356,711

 

5.00%, 7/01/35

 

 

2,675

 

 

2,608,607

 


 

 

 

See Notes to Financial Statements.


30

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

Schedule of Investments (continued)

BlackRock MuniYield New York Quality Fund, Inc. (MYN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (continued)

 

 

 

 

 

 

 









Education (concluded)

 

 

 

 

 

 

 

New York City Industrial Development Agency,
Refunding RB:

 

 

 

 

 

 

 

Nightingale-Bamford School (AMBAC),
5.25%, 1/15/18

 

$

1,275

 

$

1,341,746

 

Polytechnic University Project (ACA),
5.25%, 11/01/37

 

 

500

 

 

449,085

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/33

 

 

5,500

 

 

5,678,530

 

New York City Trust for Cultural Resources, Refunding
RB, Museum of Modern Art, Series 1A,
5.00%, 4/01/31

 

 

1,000

 

 

991,150

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Convent of the Sacred Heart (AGM),
5.75%, 11/01/40 (c)

 

 

2,075

 

 

2,051,470

 

Cornell University, Series A, 5.00%, 7/01/40

 

 

1,000

 

 

984,810

 

Mount Sinai School of Medicine,
5.13%, 7/01/39

 

 

665

 

 

613,216

 

Mount Sinai School of Medicine at NYU
(NPFGC), 5.00%, 7/01/35

 

 

7,100

 

 

6,536,473

 

New York University, Series 1 (AMBAC),
5.50%, 7/01/40

 

 

4,580

 

 

4,662,165

 

The New School (AGM), 5.50%, 7/01/43

 

 

6,550

 

 

6,452,208

 

Rensselaer County Industrial Development Agency
New York, RB, Polytechnic Institute, Series B
(AMBAC), 5.50%, 8/01/22

 

 

1,255

 

 

1,264,726

 

Trust for Cultural Resources, RB, Carnegie Hall,
Series A:

 

 

 

 

 

 

 

4.75%, 12/01/39

 

 

3,550

 

 

3,190,527

 

5.00%, 12/01/39

 

 

2,150

 

 

2,009,971

 

Trust for Cultural Resources, Refunding RB, American
Museum of Natural History, Series A (NPFGC):

 

 

 

 

 

 

 

5.00%, 7/01/36

 

 

5,250

 

 

5,059,583

 

5.00%, 7/01/44

 

 

500

 

 

476,605

 

 

 

 

 

 




 

 

 

 

 

 

55,007,293

 









Health — 9.8%

 

 

 

 

 

 

 

Dutchess County Industrial Development Agency, RB,
Vassar Brothers Medical Center (AGC):

 

 

 

 

 

 

 

5.50%, 4/01/30

 

 

250

 

 

238,038

 

5.50%, 4/01/34

 

 

490

 

 

465,966

 

Monroe County Industrial Development Corp., RB,
Unity Hospital of Rochester Project (FHA),
5.50%, 8/15/40

 

 

4,650

 

 

4,630,284

 

New York City Health & Hospital Corp., Refunding
RB, Health System, Series A, 5.00%, 2/15/30

 

 

3,200

 

 

3,016,160

 

New York City Industrial Development Agency, RB,
Royal Charter, New York Presbyterian (AGM),
5.75%, 12/15/29

 

 

7,970

 

 

8,154,426

 

New York State Dormitory Authority, MRB, Montefiore
Hospital (NPFGC), 5.00%, 8/01/33

 

 

1,500

 

 

1,389,285

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 









Health (concluded)

 

 

 

 

 

 

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Healthcare, Series A, 5.00%, 3/15/38

 

$

2,750

 

$

2,666,455

 

Hudson Valley Hospital (BHAC),
5.00%, 8/15/36

 

 

6,500

 

 

6,263,855

 

New York & Presbyterian Hospital (AGM),
5.25%, 2/15/31

 

 

3,000

 

 

3,035,610

 

New York & Presbyterian Hospital (AGM),
5.00%, 8/15/36

 

 

5,000

 

 

4,731,100

 

New York State Rehabilitation Association,
Series A (CIFG), 5.25%, 7/01/19

 

 

1,180

 

 

1,198,278

 

New York State Rehabilitation Association,
Series A (CIFG), 5.13%, 7/01/23

 

 

1,000

 

 

970,910

 

North Shore-Long Island Jewish Health System,
Series A, 5.50%, 5/01/37

 

 

2,075

 

 

1,972,640

 

NYU Hospital Center, Series A, 5.75%, 7/01/31

 

 

3,450

 

 

3,321,556

 

NYU Hospital Center, Series A, 6.00%, 7/01/40

 

 

1,800

 

 

1,756,206

 

Series B (NPFGC), 6.50%, 2/15/11 (d)

 

 

1,000

 

 

1,002,400

 

New York State Dormitory Authority, Refunding RB,
St. Luke’s Roosevelt Hospital (FHA),
4.90%, 8/15/31

 

 

2,900

 

 

2,566,761

 

Oneida County Industrial Development Agency
New York, RB, Civic Facility, Mohawk Valley,
Series A (AGM), 5.20%, 2/01/13

 

 

720

 

 

731,239

 

 

 

 

 

 




 

 

 

 

 

 

48,111,169

 









Housing — 3.8%

 

 

 

 

 

 

 

Monroe County Industrial Development Agency,
IDRB, Southview Towers Project, AMT (SONYMA):

 

 

 

 

 

 

 

6.13%, 2/01/20

 

 

1,060

 

 

1,066,318

 

6.25%, 2/01/31

 

 

1,125

 

 

1,127,801

 

New York City Housing Development Corp., RB, AMT:

 

 

 

 

 

 

 

Series A-1-A, 5.00%, 11/01/30

 

 

750

 

 

681,570

 

Series A-1-A, 5.45%, 11/01/46

 

 

1,335

 

 

1,175,027

 

Series C, 5.00%, 11/01/26

 

 

1,500

 

 

1,457,205

 

Series C, 5.05%, 11/01/36

 

 

2,000

 

 

1,724,180

 

Series H-1, 4.70%, 11/01/40

 

 

1,340

 

 

1,146,249

 

Series H-2-A, 5.20%, 11/01/35

 

 

840

 

 

755,840

 

Series H-2-A, 5.35%, 5/01/41

 

 

600

 

 

530,652

 

New York Mortgage Agency, Refunding RB, AMT:

 

 

 

 

 

 

 

Homeowner Mortgage, Series 97,
5.50%, 4/01/31

 

 

980

 

 

961,204

 

Series 133, 4.95%, 10/01/21

 

 

520

 

 

522,959

 

Series 143, 4.85%, 10/01/27

 

 

1,100

 

 

1,014,189

 

Series 143, 4.90%, 10/01/37

 

 

980

 

 

868,221

 

Series 143 (NPFGC), 4.85%, 10/01/27

 

 

2,485

 

 

2,347,878

 

New York State HFA, RB, St. Philip’s Housing,
Series A, AMT (Fannie Mae), 4.65%, 11/15/38

 

 

1,500

 

 

1,305,960

 

Yonkers Industrial Development Agency New York,
RB, Monastery Manor Associates LP Project, AMT
(SONYMA), 5.25%, 4/01/37

 

 

2,445

 

 

2,160,304

 

 

 

 

 

 




 

 

 

 

 

 

18,845,557

 










 

 

 

 

See Notes to Financial Statements.


 

SEMI-ANNUAL REPORT

JANUARY 31, 2011

31




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniYield New York Quality Fund, Inc. (MYN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 









State — 8.4%

 

 

 

 

 

 

 

New York State Dormitory Authority, ERB, Series C,
5.00%, 12/15/31

 

$

1,500

 

$

1,501,425

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Master BOCES Program Lease (AGC),
5.00%, 8/15/28

 

 

1,750

 

 

1,741,880

 

Mental Health Facilities, Series B,
5.25%, 2/15/14 (e)

 

 

1,570

 

 

1,752,936

 

Mental Health Services Facilities, Series C AMT
(AGM), 5.40%, 2/15/33

 

 

6,460

 

 

6,064,325

 

School Districts Financing Program, Series A
(AGM), 5.00%, 10/01/35

 

 

550

 

 

525,212

 

School Districts Financing Program, Series C
(AGM), 5.00%, 10/01/37

 

 

4,050

 

 

3,849,565

 

School Districts Financing Program, Series E
(NPFGC), 5.75%, 10/01/30

 

 

6,900

 

 

7,155,783

 

New York State Dormitory Authority, Refunding RB,
School Districts Financing Program, Series B
(AGM), 5.00%, 4/01/36

 

 

5,000

 

 

4,765,800

 

New York State Thruway Authority, RB:

 

 

 

 

 

 

 

Second General, Series B, 5.00%, 4/01/27

 

 

1,500

 

 

1,518,555

 

Series A (AMBAC), 5.00%, 4/01/26

 

 

4,380

 

 

4,439,393

 

New York State Urban Development Corp.,
RB (NPFGC):

 

 

 

 

 

 

 

Personal Income Tax, Series C-1, 5.00%,
3/15/13 (e)

 

 

3,000

 

 

3,264,990

 

State Personal Income Tax, State Facilities,
Series A-1, 5.00%, 3/15/29

 

 

5,000

 

 

5,022,650

 

 

 

 

 

 




 

 

 

 

 

 

41,602,514

 









Tobacco — 1.9%

 

 

 

 

 

 

 

Tobacco Settlement Financing Corp. New York, RB,
Asset-Backed:

 

 

 

 

 

 

 

Series A-1 (AMBAC), 5.25%, 6/01/20

 

 

5,000

 

 

5,307,600

 

Series A-1 (AMBAC), 5.25%, 6/01/22

 

 

2,000

 

 

2,058,420

 

Series B-1C, 5.50%, 1/07/11

 

 

1,900

 

 

1,998,097

 

 

 

 

 

 




 

 

 

 

 

 

9,364,117

 









Transportation — 29.4%

 

 

 

 

 

 

 

Hudson Yards Infrastructure Corp., RB:

 

 

 

 

 

 

 

(AGC), 5.00%, 2/15/47

 

 

4,300

 

 

3,764,865

 

Series A (AGC), 5.00%, 2/15/47

 

 

550

 

 

481,553

 

Series A (AGM), 5.00%, 2/15/47

 

 

3,840

 

 

3,362,112

 

Metropolitan Transportation Authority, RB:

 

 

 

 

 

 

 

Series 2008C, 6.50%, 11/15/28

 

 

3,200

 

 

3,499,744

 

Transportation, Series A (NPFGC),
5.00%, 11/15/32

 

 

1,295

 

 

1,175,834

 

Metropolitan Transportation Authority, Refunding RB:

 

 

 

 

 

 

 

Series A (AGM), 5.00%, 11/15/32

 

 

1,015

 

 

991,229

 

Series A (AGM), 5.75%, 11/15/32

 

 

29,300

 

 

29,380,868

 

Series A (NPFGC), 5.13%, 11/15/22

 

 

1,390

 

 

1,412,671

 

Series A (NPFGC), 5.00%, 11/15/30

 

 

6,600

 

 

6,485,556

 

Series A (NPFGC), 5.25%, 11/15/31

 

 

2,500

 

 

2,372,500

 

Series B, 5.00%, 11/15/34

 

 

1,500

 

 

1,433,580

 

Series C (AGM), 5.13%, 7/01/12 (e)

 

 

1,640

 

 

1,747,420

 

Transportation, Series F (NPFGC), 5.25%,
11/15/12 (e)

 

 

6,235

 

 

6,752,941

 

Transportation, Series F (NPFGC),
5.00%, 11/15/31

 

 

5,000

 

 

4,593,550

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (concluded)

 

 

 

 

 

 

 









Transportation (concluded)

 

 

 

 

 

 

 

New York State Thruway Authority, RB:

 

 

 

 

 

 

 

Series F (AMBAC), 5.00%, 1/01/30

 

$

6,000

 

$

5,793,300

 

Series G (AGM), 4.75%, 1/01/29

 

 

7,250

 

 

7,003,572

 

Series G (AGM), 4.75%, 1/01/30

 

 

9,000

 

 

8,588,700

 

Series G (AGM), 5.00%, 1/01/30

 

 

2,000

 

 

1,968,680

 

Series G (AGM), 5.00%, 1/01/32

 

 

1,030

 

 

997,493

 

Niagara Falls Bridge Commission, Refunding RB,
Bridge System, Series A (AGC), 4.00%, 10/01/19

 

 

3,900

 

 

3,999,489

 

Niagara Frontier Transportation Authority New York,
RB, Buffalo Niagara International Airport, Series B
(NPFGC), 5.50%, 4/01/19

 

 

2,705

 

 

2,710,735

 

Port Authority of New York & New Jersey, RB:

 

 

 

 

 

 

 

Consolidated, 116th Series, 4.13%, 9/15/32

 

 

2,700

 

 

2,359,665

 

Consolidated, 161st Series, 4.50%, 10/15/37

 

 

1,000

 

 

904,830

 

Special Project, JFK International Air Terminal,
Series 6 AMT (NPFGC), 6.25%, 12/01/11

 

 

7,175

 

 

7,337,011

 

Special Project, JFK International Air Terminal,
Series 6 AMT (NPFGC), 6.25%, 12/01/13

 

 

4,425

 

 

4,653,772

 

Special Project, JFK International Air Terminal,
Series 6 AMT (NPFGC), 6.25%, 12/01/14

 

 

7,380

 

 

7,787,007

 

Special Project, JFK International Air Terminal,
Series 6 AMT (NPFGC), 5.75%, 12/01/22

 

 

10,160

 

 

9,889,033

 

Special Project, JFK International Air Terminal,
Series 6 AMT (NPFGC), 5.75%, 12/01/25

 

 

3,500

 

 

3,345,055

 

Triborough Bridge & Tunnel Authority, RB:

 

 

 

 

 

 

 

Sub-Series A (NPFGC), 5.25%, 11/15/30

 

 

6,000

 

 

6,011,820

 

Subordinate Bonds (AMBAC), 5.00%, 11/15/28

 

 

2,465

 

 

2,444,738

 

Triborough Bridge & Tunnel Authority, Refunding RB,
Series C, 5.00%, 11/15/38

 

 

2,000

 

 

1,927,160

 

 

 

 

 

 




 

 

 

 

 

 

145,176,483

 









Utilities — 11.0%

 

 

 

 

 

 

 

Buffalo Sewer Authority New York, Refunding RB,
Series F (NPFGC), 6.00%, 7/01/13

 

 

3,315

 

 

3,476,142

 

Long Island Power Authority, RB, Series A (AMBAC),
5.00%, 9/01/29

 

 

7,000

 

 

6,658,050

 

Long Island Power Authority, Refunding RB:

 

 

 

 

 

 

 

General, Series A (AGC), 6.00%, 5/01/33

 

 

1,500

 

 

1,594,005

 

General, Series B (AGM), 5.00%, 12/01/35

 

 

4,000

 

 

3,803,280

 

Series A (AGC), 5.75%, 4/01/39

 

 

1,015

 

 

1,045,552

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Series A (NPFGC), 5.75%, 6/15/11 (e)

 

 

14,650

 

 

14,942,414

 

Series DD, 5.00%, 6/15/32

 

 

5,000

 

 

4,935,100

 

Series DD (AGM), 4.50%, 6/15/39

 

 

1,000

 

 

889,920

 

Series G (AGM), 5.00%, 6/15/34

 

 

4,225

 

 

4,111,179

 

New York City Municipal Water Finance Authority,
Refunding RB:

 

 

 

 

 

 

 

Second General Resolution, Fiscal 2011,
Series BB, 5.00%, 6/15/31

 

 

1,000

 

 

996,140

 

Series A (AGM), 4.25%, 6/15/39

 

 

500

 

 

428,070

 

Series A (NPFGC), 5.13%, 6/15/34

 

 

1,250

 

 

1,237,325

 

Series D (AGM), 5.00%, 6/15/37

 

 

9,000

 

 

8,680,140

 

Series F (AGM), 5.00%, 6/15/29

 

 

500

 

 

500,235

 

New York State Environmental Facilities Corp.,
Refunding RB, Revolving Funds, New York City
Municipal Water, Series B, 5.00%, 6/15/33

 

 

1,040

 

 

1,034,394

 

 

 

 

 

 




 

 

 

 

 

 

54,331,946

 









Total Municipal Bonds in New York

 

 

 

 

 

570,383,058

 










 

 

 

See Notes to Financial Statements.


32

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniYield New York Quality Fund, Inc. (MYN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Guam — 1.4%

 

 

 

 

 

 

 









Transportation — 0.9%

 

 

 

 

 

 

 

Guam International Airport Authority, Refunding RB,
General, Series C, AMT (NPFGC):

 

 

 

 

 

 

 

5.25%, 10/01/21

 

$

2,240

 

$

2,240,381

 

5.25%, 10/01/22

 

 

2,050

 

 

2,043,645

 

 

 

 

 

 




 

 

 

 

 

 

4,284,026

 









Utilities — 0.5%

 

 

 

 

 

 

 

Guam Power Authority, Refunding RB, Series A
(AGM), 5.00%, 10/01/37

 

 

2,730

 

 

2,452,222

 









Total Municipal Bonds in Guam

 

 

 

 

 

6,736,248

 









 

 

 

 

 

 

 

 









Puerto Rico — 17.2%

 

 

 

 

 

 

 









County/City/Special District/
School District — 0.7%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB,
First Sub-Series A (AGM), 5.00%, 8/01/40

 

 

2,100

 

 

1,950,501

 

Puerto Rico Sales Tax Financing Corp., Refunding
RB, CAB, Series A (NPFGC), 5.77%, 8/01/41 (b)

 

 

12,800

 

 

1,667,584

 

 

 

 

 

 




 

 

 

 

 

 

3,618,085

 









Housing — 0.8%

 

 

 

 

 

 

 

Puerto Rico Housing Finance Authority, Refunding
RB, Subordinate, Capital Fund Modernization,
5.13%, 12/01/27

 

 

4,000

 

 

3,975,200

 









State — 7.7%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding:

 

 

 

 

 

 

 

Public Improvement, Series A (NPFGC),
5.50%, 7/01/20

 

 

2,000

 

 

2,029,260

 

Public Improvement, Series A (NPFGC),
5.50%, 7/01/21

 

 

3,000

 

 

3,017,580

 

Public Improvement, Series A-4 (AGM),
5.25%, 7/01/30

 

 

2,150

 

 

2,088,747

 

Sub-Series C-7 (NPFGC), 6.00%, 7/01/27

 

 

2,000

 

 

2,016,520

 

Sub-Series C-7 (NPFGC), 6.00%, 7/01/28

 

 

4,775

 

 

4,794,530

 

Puerto Rico Commonwealth Infrastructure Financing
Authority, RB, CAB, Series A (b):

 

 

 

 

 

 

 

(AMBAC), 4.67%, 7/01/35

 

 

3,900

 

 

634,686

 

(AMBAC), 5.02%, 7/01/43

 

 

8,000

 

 

700,640

 

(FGIC), 4.62%, 7/01/31

 

 

22,030

 

 

5,013,808

 

Puerto Rico Convention Center Authority, RB,
Series A (AMBAC), 5.00%, 7/01/31

 

 

4,000

 

 

3,490,000

 

Puerto Rico Highway & Transportation Authority,
Refunding RB, Series CC (AGM):

 

 

 

 

 

 

 

5.50%, 7/01/31

 

 

4,500

 

 

4,483,350

 

5.25%, 7/01/32

 

 

1,000

 

 

957,800

 

Puerto Rico Public Buildings Authority, Refunding RB,
Government Facilities, Series M-3 (NPFGC),
6.00%, 7/01/28

 

 

2,850

 

 

2,861,656

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 5.75%, 8/01/37

 

 

5,500

 

 

5,354,195

 

Puerto Rico Sales Tax Financing Corp., Refunding
RB, CAB, Series A (NPFGC), 5.99%, 8/01/43 (b)

 

 

5,000

 

 

558,950

 

 

 

 

 

 




 

 

 

 

 

 

38,001,722

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Puerto Rico (concluded)

 

 

 

 

 

 

 









Transportation — 5.6%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation Authority, RB:

 

 

 

 

 

 

 

Series G (FGIC), 5.25%, 7/01/13 (e)

 

$

655

 

$

722,956

 

Series G (FGIC), 5.25%, 7/01/19

 

 

2,265

 

 

2,269,734

 

Series G (FGIC), 5.25%, 7/01/21

 

 

345

 

 

338,883

 

Series Y (AGM), 6.25%, 7/01/21

 

 

6,275

 

 

6,750,896

 

Puerto Rico Highway & Transportation Authority,
Refunding RB:

 

 

 

 

 

 

 

Series AA-1 (AGM), 4.95%, 7/01/26

 

 

8,690

 

 

8,425,303

 

Series CC (AGM), 5.50%, 7/01/29

 

 

500

 

 

503,435

 

Series CC (AGM), 5.25%, 7/01/33

 

 

1,000

 

 

949,460

 

Series CC (AGM), 5.25%, 7/01/36

 

 

4,750

 

 

4,434,505

 

Series D, 5.75%, 7/01/12 (e)

 

 

3,000

 

 

3,212,730

 

 

 

 

 

 




 

 

 

 

 

 

27,607,902

 









Utilities — 2.4%

 

 

 

 

 

 

 

Puerto Rico Aqueduct & Sewer Authority, RB, Senior
Lien, Series A (AGC), 5.13%, 7/01/47

 

 

9,980

 

 

8,925,613

 

Puerto Rico Electric Power Authority, Refunding RB,
Series VV (NPFGC), 5.25%, 7/01/30

 

 

3,000

 

 

2,809,110

 

 

 

 

 

 




 

 

 

 

 

 

11,734,723

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

84,937,632

 









Total Municipal Bonds — 134.2%

 

 

 

 

 

662,056,938

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to

 

 

 

 

 

 

 

Tender Option Bond Trusts (f)

 

 

 

 

 

 

 









New York — 29.4%

 

 

 

 

 

 

 









County/City/Special District/
School District — 11.8%

 

 

 

 

 

 

 

City of New York New York, GO:

 

 

 

 

 

 

 

Series J, 5.00%, 5/15/23

 

 

6,750

 

 

6,956,010

 

Sub-Series C-3 (AGC), 5.75%, 8/15/28

 

 

14,400

 

 

15,309,072

 

New York State Dormitory Authority, RB, State
University Dormitory Facilities, Series A,
5.25%, 7/01/29

 

 

6,000

 

 

6,118,260

 

Sales Tax Asset Receivable Corp., RB, Series A
(AMBAC):

 

 

 

 

 

 

 

5.25%, 10/15/27

 

 

14,500

 

 

14,868,880

 

5.00%, 10/15/32

 

 

14,500

 

 

14,868,880

 

 

 

 

 

 




 

 

 

 

 

 

58,121,102

 









Education — 1.3%

 

 

 

 

 

 

 

New York State Dormitory Authority, RB, New York
University, Series A, 5.00%, 7/01/38

 

 

6,498

 

 

6,318,292

 









State — 1.6%

 

 

 

 

 

 

 

New York State Dormitory Authority, ERB, Series B,
5.75%, 3/15/36

 

 

7,850

 

 

8,233,237

 









Transportation — 13.3%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, RB, Series A
(NPFGC), 5.00%, 11/15/31

 

 

3,901

 

 

3,792,707

 

Metropolitan Transportation Authority, Refunding RB,
Series A (AGM), 5.00%, 11/15/30

 

 

8,460

 

 

8,060,857

 

New York State Thruway Authority, RB, Series G
(AGM), 5.00%, 1/01/32

 

 

16,000

 

 

15,495,040

 

New York State Thruway Authority, Refunding RB,
Series H (AGM), 5.00%, 1/01/37

 

 

10,000

 

 

9,552,300

 


 

 

 

 

See Notes to Financial Statements.


 

SEMI-ANNUAL REPORT

JANUARY 31, 2011

33




 

 


 

Schedule of Investments (concluded)

BlackRock MuniYield New York Quality Fund, Inc. (MYN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 









Transportation (concluded)

 

 

 

 

 

 

 

Port Authority of New York & New Jersey, RB,
Consolidated, 155th Series, AMT (AGM),
5.13%, 7/15/30

 

$

2,500

 

$

2,403,225

 

Triborough Bridge & Tunnel Authority, Refunding
RB (NPFGC):

 

 

 

 

 

 

 

5.25%, 1/07/11

 

 

7,000

 

 

7,090,370

 

5.00%, 11/15/32

 

 

19,677

 

 

19,166,274

 

 

 

 

 

 




 

 

 

 

 

 

65,560,773

 









Utilities — 1.4%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series A, 5.75%, 6/15/40

 

 

4,094

 

 

4,270,875

 

Series FF-2, 5.50%, 6/15/40

 

 

2,759

 

 

2,820,313

 

 

 

 

 

 




 

 

 

 

 

 

7,091,188

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 29.4%

 

 

 

 

 

145,324,592

 









Total Long-Term Investments
(Cost — $843,770,117) — 163.6%

 

 

 

 

 

807,381,530

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









BIF New York Municipal Money Fund, 0.00% (g)(h)

 

 

2,313,263

 

 

2,313,263

 









Total Short-Term Securities
(Cost — $2,313,263) — 0.5%

 

 

 

 

 

2,313,263

 









Total Investments (Cost — $846,083,380*) — 164.1%

 

 

 

 

 

809,694,793

 

Other Assets Less Liabilities — 2.1%

 

 

 

 

 

10,216,050

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (16.0)%

 

 

 

 

 

(78,668,130

)

Preferred Shares, at Redemption Value — (50.2)%

 

 

 

 

 

(247,728,429

)

 

 

 

 

 




Net Assets Applicable to Common shares — 100.0%

 

 

 

 

$

493,514,284

 

 

 

 

 

 




 

 

 


*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

768,127,698

 

 

 




Gross unrealized appreciation

 

$

8,989,659

 

Gross unrealized depreciation

 

 

(46,037,368

)

 

 




Net unrealized depreciation

 

$

(37,047,709

)

 

 





 

 

(a)

Variable rate security. Rate shown is as of report date.

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Appreciation

 







Wells Fargo Brokerage

 

$

2,051,470

 

$

5,769

 










 

 

(d)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(e)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(f)

Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

 

 

(g)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Affiliate

 

Shares Held
at July 31,
2010

 

Net
Activity

 

Shares Held
at January 31,
2011

 

Income

 











BIF New York Municipal Money Fund

 

 

8,174,307

 

 

(5,861,044

)

 

2,313,263

 

$

12

 
















 

 

 

(h)

Represents the current yield as of report date.

 

 

 

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

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of January 31, 2011 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

807,381,530

 

 

 

$

807,381,530

 

Short-Term Securities

 

$

2,313,263

 

 

 

 

 

 

2,313,263

 

 

 













Total

 

$

2,313,263

 

$

807,381,530

 

 

 

$

809,694,793

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.


34

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31, 2011 (Unaudited)

 

BlackRock
MuniHoldings
Quality
Fund II, Inc.
(MUE)

 

BlackRock
MuniYield
California
Quality
Fund, Inc.
(MCA)

 

BlackRock
MuniYield
Quality
Fund III, Inc.
(MYI)

 

BlackRock
MuniYield
Michigan
Quality
Fund II, Inc.
(MYM)

 

BlackRock
MuniYield
New York
Quality
Fund, Inc.
(MYN)

 













Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













Investments at value — unaffiliated1

 

$

460,423,582

 

$

784,966,858

 

$

1,346,769,478

 

$

237,025,133

 

$

807,381,530

 

Investments at value — affiliated2

 

 

434,253

 

 

11,363,487

 

 

16,618,977

 

 

9,328,659

 

 

2,313,263

 

Interest receivable

 

 

5,278,282

 

 

12,412,136

 

 

16,599,816

 

 

3,040,407

 

 

9,778,087

 

Investments sold receivable

 

 

4,150,968

 

 

 

 

695,590

 

 

 

 

6,745,238

 

Income receivable — affiliated

 

 

 

 

1,237

 

 

2,404

 

 

 

 

 

Prepaid expenses

 

 

17,761

 

 

32,868

 

 

52,110

 

 

9,639

 

 

30,216

 

Other assets

 

 

9,727

 

 

122,196

 

 

219,599

 

 

 

 

90,952

 

 

 
















Total assets

 

 

470,314,573

 

 

808,898,782

 

 

1,380,957,974

 

 

249,403,838

 

 

826,339,286

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Accrued Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Investments purchased payable

 

 

4,696,158

 

 

5,986,870

 

 

3,148,062

 

 

 

 

3,080,687

 

Income dividends payable — Common Shares

 

 

1,647,470

 

 

2,525,548

 

 

4,859,139

 

 

862,985

 

 

2,801,198

 

Investment advisory fees payable

 

 

193,715

 

 

338,044

 

 

581,906

 

 

102,359

 

 

345,345

 

Interest expense and fees payable

 

 

43,340

 

 

172,783

 

 

134,143

 

 

5,659

 

 

53,326

 

Other affiliates payable

 

 

2,445

 

 

4,170

 

 

7,236

 

 

1,293

 

 

4,295

 

Officer’s and Directors’ fees payable

 

 

680

 

 

98,725

 

 

178,069

 

 

505

 

 

106,927

 

Other accrued expenses payable

 

 

 

 

 

 

 

 

2,508

 

 

89,991

 

 

 
















Total accrued liabilities

 

 

6,583,808

 

 

9,126,140

 

 

8,908,555

 

 

975,309

 

 

6,481,769

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Trust certificates3

 

 

62,382,934

 

 

183,202,421

 

 

195,573,344

 

 

9,030,000

 

 

78,614,804

 

 

 
















Total Liabilities

 

 

68,966,116

 

 

192,328,561

 

 

204,481,899

 

 

10,005,309

 

 

85,096,573

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 


















$25,000 per share liquidation preference, plus unpaid dividends4,5

 

 

131,008,297

 

 

166,541,739

 

 

356,492,999

 

 

87,357,820

 

 

247,728,429

 

 

 
















Net Assets Applicable to Common Shareholders

 

$

270,339,534

 

$

450,028,482

 

$

819,983,076

 

$

152,040,709

 

$

493,514,284

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net Assets Applicable to Common
Shareholders Consist of

 

 

 

 

 

 

 


















Paid-in capital6

 

$

298,976,954

 

$

497,660,786

 

$

952,125,486

 

$

163,265,826

 

$

550,722,532

 

Undistributed net investment income

 

 

5,637,037

 

 

7,935,920

 

 

16,375,411

 

 

2,827,224

 

 

9,729,754

 

Accumulated net realized loss

 

 

(16,561,859

)

 

(16,140,752

)

 

(88,116,493

)

 

(2,865,025

)

 

(30,549,415

)

Net unrealized appreciation/depreciation

 

 

(17,712,598

)

 

(39,427,472

)

 

(60,401,328

)

 

(11,187,316

)

 

(36,388,587

)

 

 
















Net Assets Applicable to Common Shareholders

 

$

270,339,534

 

$

450,028,482

 

$

819,983,076

 

$

152,040,709

 

$

493,514,284

 

 

 
















Net asset value per Common Share

 

$

12.06

 

$

13.10

 

$

12.15

 

$

12.60

 

$

12.51

 

 

 
















1 Investments at cost — unaffiliated

 

$

478,136,180

 

$

824,394,330

 

$

1,407,170,806

 

$

248,212,449

 

$

843,770,117

 

 

 
















2 Investments at cost — affiliated

 

$

434,253

 

$

11,363,487

 

$

16,618,977

 

$

9,328,659

 

$

2,313,263

 

 

 
















3 Represents short-term floating rate certificates issued by TOBs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Preferred Shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Par value $0.05 per share

 

 

 

 

 

 

 

 

1,941

 

 

9,908

 

 

 
















Par value $0.10 per share

 

 

5,240

 

 

6,661

 

 

14,258

 

 

1,553

 

 

 

 

 
















5 Preferred Shares authorized

 

 

8,180

 

 

11,000

 

 

22,800

 

 

3,960

 

 

12,160

 

 

 
















6 Common Shares outstanding, 200 million shares authorized, $0.10 par value

 

 

22,414,561

 

 

34,361,200

 

 

67,488,045

 

 

12,069,721

 

 

39,453,493

 

 

 

















 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2011

35




 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended January 31, 2011 (Unaudited)

 

BlackRock
MuniHoldings
Quality
Fund II, Inc.
(MUE)

 

BlackRock
MuniYield
California
Quality
Fund, Inc.
(MCA)

 

BlackRock
MuniYield
Quality
Fund III, Inc.
(MYI)

 

BlackRock
MuniYield
Michigan
Quality
Fund II, Inc.
(MYM)

 

BlackRock
MuniYield
New York
Quality
Fund, Inc.
(MYN)

 


















Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Interest

 

$

11,800,119

 

$

19,183,327

 

$

35,839,053

 

$

6,222,680

 

$

20,509,483

 

Income — affiliated

 

 

9,995

 

 

6,307

 

 

19,962

 

 

 

 

4,052

 

 

 
















Total income

 

 

11,810,114

 

 

19,189,634

 

 

35,859,015

 

 

6,222,680

 

 

20,513,535

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Investment advisory

 

 

1,352,392

 

 

2,116,164

 

 

3,644,906

 

 

652,947

 

 

2,168,430

 

Commissions for Preferred Shares

 

 

90,011

 

 

110,168

 

 

228,607

 

 

60,595

 

 

181,533

 

Professional

 

 

76,376

 

 

112,320

 

 

181,400

 

 

39,060

 

 

87,706

 

Accounting services

 

 

28,756

 

 

39,308

 

 

61,969

 

 

20,300

 

 

42,426

 

Transfer agent

 

 

22,488

 

 

34,273

 

 

55,835

 

 

22,371

 

 

42,737

 

Officer and Directors

 

 

15,210

 

 

27,491

 

 

54,747

 

 

9,817

 

 

32,603

 

Custodian

 

 

11,645

 

 

15,837

 

 

26,082

 

 

7,792

 

 

19,567

 

Printing

 

 

10,189

 

 

12,832

 

 

28,247

 

 

5,296

 

 

16,265

 

Registration

 

 

4,337

 

 

5,401

 

 

10,145

 

 

4,592

 

 

6,798

 

Miscellaneous

 

 

38,053

 

 

48,347

 

 

66,077

 

 

31,682

 

 

56,512

 

 

 
















Total expenses excluding interest expense and fees

 

 

1,649,457

 

 

2,522,141

 

 

4,358,015

 

 

854,452

 

 

2,654,577

 

Interest expense and fees1

 

 

238,138

 

 

726,890

 

 

739,813

 

 

31,737

 

 

305,185

 

 

 
















Total expenses

 

 

1,887,595

 

 

3,249,031

 

 

5,097,828

 

 

886,189

 

 

2,959,762

 

Less fees waived by advisor

 

 

(95,345

)

 

(17,503

)

 

(3,297

)

 

(8,695

)

 

(15,881

)

 

 
















Total expenses after fees waived

 

 

1,792,250

 

 

3,231,528

 

 

5,094,531

 

 

877,494

 

 

2,943,881

 

 

 
















Net investment income

 

 

10,017,864

 

 

15,958,106

 

 

30,764,484

 

 

5,345,186

 

 

17,569,654

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(1,029,213

)

 

1,799,526

 

 

502,677

 

 

458,505

 

 

(1,294,633

)

Financial futures contracts

 

 

 

 

(117,641

)

 

(521,071

)

 

 

 

(213,576

)

 

 
















 

 

 

(1,029,213

)

 

1,681,885

 

 

(18,394

)

 

458,505

 

 

(1,508,209

)

 

 
















Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(32,647,512

)

 

(56,416,204

)

 

(103,166,137

)

 

(15,126,120

)

 

(53,125,910

)

Financial futures contracts

 

 

 

 

89,999

 

 

399,313

 

 

 

 

141,179

 

 

 
















 

 

 

(32,647,512

)

 

(56,326,205

)

 

(102,766,824

)

 

(15,126,120

)

 

(52,984,731

)

 

 
















Total realized and unrealized loss

 

 

(33,676,725

)

 

(54,644,320

)

 

(102,785,218

)

 

(14,667,615

)

 

(54,492,940

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

 

(276,682

)

 

(498,787

)

 

(1,191,444

)

 

(231,827

)

 

(714,945

)

 

 
















Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

(23,935,543

)

$

(39,185,001

)

$

(73,212,178

)

$

(9,554,256

)

$

(37,638,231

)

 

 

















 

 

1

Related to TOBs.


 

 

 

See Notes to Financial Statements.

 




36

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 



 

Statements of Changes in Net Assets

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)


 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months
Ended
January 31,
2011
(Unaudited)

 

Year Ended
July 31,
2010

 









Operations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Net investment income

 

$

10,017,864

 

$

20,469,395

 

Net realized gain (loss)

 

 

(1,029,213

)

 

849,064

 

Net change in unrealized appreciation/depreciation

 

 

(32,647,512

)

 

27,313,334

 

Dividends to Preferred Shareholders from net investment income

 

 

(276,682

)

 

(546,058

)

 

 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(23,935,543

)

 

48,085,735

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Net investment income

 

 

(9,879,592

)

 

(19,116,579

)

 

 







 

 

 

 

 

 

 

 









Capital Share Transactions

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Net increase in net assets derived from capital share transactions

 

 

487,377

 

 

355,807

 

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Total increase (decrease) in net assets applicable to Common Shareholders

 

 

(33,327,758

)

 

29,324,963

 

Beginning of period

 

 

303,667,292

 

 

274,342,329

 

 

 







End of period

 

$

270,339,534

 

$

303,667,292

 

 

 







Undistributed net investment income

 

$

5,637,037

 

$

5,775,447

 

 

 







 

 

 

 

 

 

 

 

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

 

Six Months
Ended
January 31,
2011
(Unaudited)

 

 

Year Ended
July 31,
2010

 









Operations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Net investment income

 

$

15,958,106

 

$

29,953,463

 

Net realized gain

 

 

1,681,885

 

 

145,823

 

Net change in unrealized appreciation/depreciation

 

 

(56,326,205

)

 

39,396,178

 

Dividends to Preferred Shareholders from net investment income

 

 

(498,787

)

 

(982,980

)

 

 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(39,185,001

)

 

68,512,484

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Net investment income

 

 

(14,655,052

)

 

(26,148,873

)

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Total increase (decrease) in net assets applicable to Common Shareholders

 

 

(53,840,053

)

 

42,363,611

 

Beginning of period

 

 

503,868,535

 

 

461,504,924

 

 

 







End of period

 

$

450,028,482

 

$

503,868,535

 

 

 







Undistributed net investment income

 

$

7,935,920

 

$

7,131,653

 

 

 







 

 

 

 

 

 

 

 


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2011

37




 

 


 

Statements of Changes in Net Assets

BlackRock MuniYield Quality Fund III, Inc. (MYI)


 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months
Ended
January 31,
2011
(Unaudited)

 

Year Ended
July 31,
2010

 









Operations

 

 

 

 

 

 

 









Net investment income

 

$

30,764,484

 

$

60,126,026

 

Net realized loss

 

 

(18,394

)

 

(16,592

)

Net change in unrealized appreciation/depreciation

 

 

(102,766,824

)

 

87,963,066

 

Dividends to Preferred Shareholders from net investment income

 

 

(1,191,444

)

 

(2,350,328

)

 

 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(73,212,178

)

 

145,722,172

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(29,090,792

)

 

(51,624,188

)

 

 







 

 

 

 

 

 

 

 









Capital Share Transactions

 

 

 

 

 

 

 









Net increase in net assets derived from capital share transactions

 

 

2,052,218

 

 

514,005

 

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

(100,250,752

)

 

94,611,989

 

Beginning of period

 

 

920,233,828

 

 

825,621,839

 

 

 







End of period

 

$

819,983,076

 

$

920,233,828

 

 

 







Undistributed net investment income

 

$

16,375,411

 

$

15,893,163

 

 

 







 

 

 

 

 

 

 

 

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)

 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

 

Six Months
Ended
January 31,
2011
(Unaudited)

 

 

Year Ended
July 31,
2010

 









Operations

 

 

 

 

 

 

 









Net investment income

 

$

5,345,186

 

$

11,008,565

 

Net realized gain

 

 

458,505

 

 

953,727

 

Net change in unrealized appreciation/depreciation

 

 

(15,126,120

)

 

9,751,120

 

Dividends to Preferred Shareholders from net investment income

 

 

(231,827

)

 

(458,167

)

 

 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(9,554,256

)

 

21,255,245

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(5,177,910

)

 

(9,842,858

)

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

(14,732,166

)

 

11,412,387

 

Beginning of period

 

 

166,772,875

 

 

155,360,488

 

 

 







End of period

 

$

152,040,709

 

$

166,772,875

 

 

 







Undistributed net investment income

 

$

2,827,224

 

$

2,891,775

 

 

 








 

 

 

See Notes to Financial Statements.


38

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

Statements of Changes in Net Assets

BlackRock MuniYield New York Quality Fund, Inc. (MYN)


 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months
Ended
January 31,
2011
(Unaudited)

 

Year Ended
July 31,
2010

 


Operations

 

 

 

 

 

 

 









Net investment income

 

$

17,569,654

 

$

35,629,645

 

Net realized gain (loss)

 

 

(1,508,209

)

 

100,524

 

Net change in unrealized appreciation/depreciation

 

 

(52,984,731

)

 

42,118,603

 

Dividends to Preferred Shareholders from net investment income

 

 

(714,945

)

 

(1,419,084

)

 

 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(37,638,231

)

 

76,429,688

 

 

 















Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(16,767,207

)

 

(27,710,788

)

 

 















Capital Share Transactions

 

 

 

 

 

 

 









Net increase in net assets derived from capital share transactions

 

 

107,768

 

 

 

 

 















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

(54,297,670

)

 

48,718,900

 

Beginning of period

 

 

547,811,954

 

 

499,093,054

 

 

 







End of period

 

$

493,514,284

 

$

547,811,954

 

 

 







Undistributed net investment income

 

$

9,729,754

 

$

9,642,252

 

 

 








 

 

 

See Notes to Financial Statements.


SEMI-ANNUAL REPORT

JANUARY 31, 2011

39




 

 

 

 

 

 

 

 

 

 

 


 

Statements of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended January 31, 2011 (Unaudited)

 

BlackRock
MuniHoldings
Quality
Fund II, Inc.
(MUE)

 

BlackRock
MuniYield
California
Quality
Fund, Inc.
(MCA)

 

BlackRock
MuniYield
Quality
Fund III, Inc.
(MYI)

 


Cash Provided by Operating Activities

 

 

 

 

 

 

 

 

 

 


Net decrease in net assets resulting from operations, excluding dividends to Preferred Shareholders

 

$

(23,658,861

)

$

(38,686,214

)

$

(72,020,734

)

Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in interest receivable

 

 

(100,119

)

 

(2,211,424

)

 

327,057

 

Increase in other assets

 

 

(9,101

)

 

(40,747

)

 

(72,400

)

Increase in income receivable — affiliated

 

 

 

 

(939

)

 

(1,866

)

Decrease in cash held as collateral for financial futures contracts

 

 

 

 

72,000

 

 

288,600

 

Decrease in investment advisory fees payable

 

 

(13,608

)

 

(11,640

)

 

(58,952

)

Increase (decrease) in interest expense and fees payable

 

 

(2,001

)

 

81,990

 

 

17,544

 

Decrease in other affiliates payable

 

 

(591

)

 

(718

)

 

(1,954

)

Decrease in other accrued expenses payable

 

 

(80,421

)

 

(103,524

)

 

(163,081

)

Decrease in margin variation payable

 

 

 

 

(30,188

)

 

(132,970

)

Increase in Officer’s and Directors’ fees payable

 

 

163

 

 

15,492

 

 

28,528

 

Net realized and unrealized gain on investments

 

 

33,676,725

 

 

54,619,304

 

 

102,668,782

 

Amortization of premium and discount on investments

 

 

534,670

 

 

1,367,660

 

 

(545,070

)

Proceeds from sales of long-term investments

 

 

28,996,169

 

 

83,124,194

 

 

47,913,749

 

Purchases of long-term investments

 

 

(46,299,632

)

 

(122,975,054

)

 

(44,801,831

)

Net proceeds from sales (purchases) of short-term securities

 

 

16,932,597

 

 

27,686,452

 

 

(5,192,507

)

 

 










Cash provided by operating activities

 

 

9,975,990

 

 

2,906,644

 

 

28,252,895

 

 

 





















Cash Used for Financing Activities

 

 

 

 

 

 

 

 

 

 












Cash receipts from trust certificates

 

 

 

 

12,065,000

 

 

 

Cash payments on trust certificates

 

 

(310,000

)

 

 

 

(89,931

)

Cash dividends paid to Common Shareholders

 

 

(9,389,600

)

 

(14,466,066

)

 

(26,960,648

)

Cash dividends paid to Preferred Shareholders

 

 

(274,810

)

 

(505,578

)

 

(1,202,316

)

Increase in custodian bank payable

 

 

(1,580

)

 

 

 

 

 

 










Cash used for financing activities

 

 

(9,975,990

)

 

(2,906,644

)

 

(28,252,895

)

 

 





















Cash

 

 

 

 

 

 

 

 

 

 












Net change in cash

 

 

 

 

 

 

 

Cash at beginning of period

 

 

 

 

 

 

 

 

 










Cash at end of period

 

 

 

 

 

 

 

 

 





















Cash Flow Information

 

 

 

 

 

 

 

 

 

 












Cash paid during the period for interest and fees

 

$

240,139

 

$

644,900

 

$

722,269

 

 

 





















Noncash Activities

 

 

 

 

 

 

 

 

 

 












Capital shares issued in reinvestment of dividends paid to Common Shareholders

 

$

487,377

 

 

 

$

2,052,218

 

 

 











 

 

 

A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average total assets.


 

 

 

See Notes to Financial Statements.

 




40

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

Financial Highlights

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2011
(Unaudited)

 

 

 

Period
October 1,
2007
to July 31,
2008

 

 

 

 

 

Year Ended
July 31,

 

 

Year Ended September 30,

 

 

 


 

 


 

 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

13.57

 

$

12.27

 

$

12.84

 

$

13.72

 

$

14.15

 

$

14.23

 

$

14.41

 

 

 






















Net investment income1

 

 

0.45

 

 

0.92

 

 

0.90

 

 

0.78

 

 

0.97

 

 

0.93

 

 

0.97

 

Net realized and unrealized gain (loss)

 

 

(1.51

)

 

1.26

 

 

(0.71

)

 

(0.91

)

 

(0.45

)

 

0.03

 

 

(0.09

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.01

)

 

(0.02

)

 

(0.12

)

 

(0.25

)

 

(0.33

)

 

(0.29

)

 

(0.18

)

 

 






















Net increase (decrease) from investment operations

 

 

(1.07

)

 

2.16

 

 

0.07

 

 

(0.38

)

 

0.19

 

 

0.67

 

 

0.70

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.44

)

 

(0.86

)

 

(0.64

)

 

(0.50

)

 

(0.62

)

 

(0.75

)

 

(0.88

)

 

 






















Net asset value, end of period

 

$

12.06

 

$

13.57

 

$

12.27

 

$

12.84

 

$

13.72

 

$

14.15

 

$

14.23

 

 

 






















Market price, end of period

 

$

11.65

 

$

14.26

 

$

11.40

 

$

11.30

 

$

12.39

 

$

12.96

 

$

13.90

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

(8.08

)%3

 

18.04

%

 

1.58

%

 

(2.41

)%3

 

1.73

%

 

5.19

%

 

5.35

%

 

 






















Based on market price

 

 

(15.50

)%3

 

33.51

%

 

7.24

%

 

(4.89

)%3

 

0.31

%

 

(1.37

)%

 

11.92

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses4

 

 

1.27

%5

 

1.28

%

 

1.66

%

 

1.55

%5

 

1.61

%

 

1.64

%

 

1.38

%

 

 






















Total expenses after fees waived and paid indirectly4

 

 

1.20

%5

 

1.15

%

 

1.45

%

 

1.45

%5

 

1.54

%

 

1.57

%

 

1.32

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.04

%5

 

0.99

%

 

1.04

%

 

1.15

%5

 

1.17

%

 

1.16

%

 

1.15

%

 

 






















Net investment income4

 

 

6.73

%5

 

6.92

%

 

7.61

%

 

6.74

%5

 

6.94

%

 

6.70

%

 

6.72

%

 

 






















Dividends to Preferred Shareholders

 

 

0.19

%5

 

0.18

%

 

1.03

%

 

2.19

%5

 

2.37

%

 

2.10

%

 

1.27

%

 

 






















Net investment income to Common Shareholders

 

 

6.54

%5

 

6.74

%

 

6.58

%

 

4.55

%5

 

4.57

%

 

4.60

%

 

5.45

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

270,340

 

$

303,667

 

$

274,342

 

$

286,933

 

$

306,769

 

$

316,216

 

$

318,044

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

131,000

 

$

131,000

 

$

131,000

 

$

145,300

 

$

204,500

 

$

204,500

 

$

204,500

 

 

 






















Portfolio turnover

 

 

7

%

 

20

%

 

37

%

 

43

%

 

43

%

 

35

%

 

46

%

 

 






















Asset coverage, end of period per $1,000

 

$

3,064

7

$

3,3188

7

$

3,094

7

$

2,975

7

$

2,500

7

$

2,546

7

$

2,555

 

 

 























 

 

1

Based on average Common Shares outstanding.

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

3

Aggregate total investment return.

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

5

Annualized.

 

 

6

Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

 

 

7

Asset coverage per preferred share at $25,000 liquidation preference for the periods ended 2011, 2010, 2009, 2008, 2007 and 2006 were $76,593, $82,953, $77,357, $74,376, $62,514 and $63,667, respectively.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2011

41




 

 


 

Financial Highlights

BlackRock MuniYield California Quality Fund, Inc. (MCA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2011
(Unaudited)

 

 

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

Year Ended
July 31,

 

 

Year Ended October 31,

 

 

 

 


 

 


 

 

 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

14.66

 

$

13.43

 

$

13.86

 

$

14.63

 

$

15.09

 

$

14.82

 

$

15.23

 

 

 






















Net investment income1

 

 

0.46

 

 

0.87

 

 

0.86

 

 

0.68

 

 

0.92

 

 

0.96

 

 

0.95

 

Net realized and unrealized gain (loss)

 

 

(1.58

)

 

1.15

 

 

(0.51

)

 

(0.75

)

 

(0.42

)

 

0.35

 

 

(0.33

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.01

)

 

(0.03

)

 

(0.12

)

 

(0.20

)

 

(0.28

)

 

(0.24

)

 

(0.13

)

 

 






















Net increase (decrease) from investment operations

 

 

(1.13

)

 

1.99

 

 

0.23

 

 

(0.27

)

 

0.22

 

 

1.07

 

 

0.49

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.43

)

 

(0.76

)

 

(0.66

)

 

(0.50

)

 

(0.68

)

 

(0.80

)

 

(0.88

)

 

 






















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.00)

2

 

(0.02

)

Net asset value, end of period

 

$

13.10

 

$

14.66

 

$

13.43

 

$

13.86

 

$

14.63

 

$

15.09

 

$

14.82

 

 

 






















Market price, end of period

 

$

12.34

 

$

14.02

 

$

12.08

 

$

12.33

 

$

13.16

 

$

14.64

 

$

14.16

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

(7.78

)%4

 

15.69

%

 

3.03

%

 

(1.54

)%4

 

1.76

%

 

7.57

%

 

3.55

%

 

 






















Based on market price

 

 

(9.16

)%4

 

23.00

%

 

4.17

%

 

(2.63

)%4

 

(5.65)

%

 

9.22

%

 

9.75

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

1.31

%6

 

1.11

%

 

1.40

%

 

1.38

%6

 

1.53

%

 

1.60

%

 

1.27

%

 

 






















Total expenses after fees waived and paid indirectly5

 

 

1.30

%6

 

1.10

%

 

1.38

%

 

1.36

%6

 

1.53

%

 

1.59

%

 

1.27

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,7

 

 

1.01

%6

 

0.95

%

 

1.02

%

 

1.04

%6

 

1.03

%

 

1.03

%

 

0.96

%

 

 






















Net investment income5

 

 

6.42

%6

 

6.10

%

 

6.60

%

 

6.15

%6

 

6.22

%

 

6.46

%

 

6.29

%

 

 






















Dividends to Preferred Shareholders

 

 

0.20

%6

 

0.20

%

 

0.91

%

 

1.78

%6

 

1.87

%

 

1.62

%

 

0.84

%

 

 






















Net investment income to Common Shareholders

 

 

6.22

%6

 

5.90

%

 

5.69

%

 

4.37

%6

 

4.35

%

 

4.84

%

 

5.45

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

450,028

 

$

503,869

 

$

461,505

 

$

476,235

 

$

502,855

 

$

518,667

 

$

509,066

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

166,525

 

$

166,525

 

$

166,525

 

$

192,300

 

$

275,000

 

$

275,000

 

$

275,000

 

 

 






















Portfolio turnover

 

 

10

%

 

30

%

 

25

%

 

25

%

 

25

%

 

27

%

 

39

%

 

 






















Asset coverage, end of period per $1,000

 

$

92,564

 

$

100,648

 

$

94,289

 

$

86,933

 

$

70,733

 

$

72,170

 

$

71,280

 

 

 























 

 

1

Based on average Common Shares outstanding.

 

 

2

Amount is less than $(0.01) per share.

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

4

Aggregate total investment return.

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

6

Annualized.

 

 

7

Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.


 

 

 

See Notes to Financial Statements.

 




42

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 


 

Financial Highlights

BlackRock MuniYield Quality Fund III, Inc. (MYI)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2011
(Unaudited)

 

Year Ended
July 31,

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 


 

 


 

 

 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

13.67

 

$

12.27

 

$

12.86

 

$

14.57

 

$

15.30

 

$

15.27

 

$

15.59

 

 

 






















Net investment income1

 

 

0.46

 

 

0.89

 

 

0.87

 

 

0.70

 

 

1.04

 

 

0.98

 

 

1.04

 

Net realized and unrealized gain (loss)

 

 

(1.53

)

 

1.31

 

 

(0.66

)

 

(1.69

)

 

(0.79

)

 

0.46

 

 

(0.22

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.02

)

 

(0.03

)

 

(0.12

)

 

(0.22

)

 

(0.31

)

 

(0.25

)

 

(0.16

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(0.04

)

 

(0.02

)

 

 






















Net increase (decrease) from investment operations

 

 

(1.09

)

 

2.17

 

 

0.09

 

 

(1.21

)

 

(0.06

)

 

1.15

 

 

0.64

 

 

 






















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.43

)

 

(0.77

)

 

(0.68

)

 

(0.50

)

 

(0.67

)

 

(0.78

)

 

(0.95

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(0.34

)

 

(0.01

)

 

 






















Total dividends and distributions to Common Shareholders

 

 

(0.43

)

 

(0.77

)

 

(0.68

)

 

(0.50

)

 

(0.67

)

 

(1.12

)

 

(0.96

)

 

 






















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.00

)2

 

 






















Net asset value, end of period

 

$

12.15

 

$

13.67

 

$

12.27

 

$

12.86

 

$

14.57

 

$

15.30

 

$

15.27

 

 

 






















Market price, end of period

 

$

12.17

 

$

14.17

 

$

12.12

 

$

12.22

 

$

13.04

 

$

14.36

 

$

14.70

 

 

 






















 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

(8.17

)%4

 

18.19

%

 

1.70

%

 

(8.22

)%4

 

(0.06

)%

 

8.09

%

 

4.54

%

 

 






















Based on market price

 

 

(11.26

)%4

 

24.03

%

 

5.72

%

 

(2.55

)%4

 

(4.70

)%

 

5.38

%

 

7.69

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

1.13

%6

 

1.11

%

 

1.46

%

 

1.64

%6

 

1.71

%

 

1.67

%

 

1.60

%

 

 






















Total expenses after fees waived and paid indirectly5

 

 

1.13

%6

 

1.11

%

 

1.45

%

 

1.63

%6

 

1.71

%

 

1.67

%

 

1.60

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,7

 

 

0.96

%6

 

0.97

%

 

1.06

%

 

1.06

%6

 

1.03

%

 

1.02

%

 

1.01

%

 

 






















Net investment income5

 

 

6.80

%6

 

6.73

%

 

7.52

%

 

6.51

%6

 

6.94

%

 

6.52

%

 

6.62

%

 

 






















Dividends to Preferred Shareholders

 

 

0.26

%6

 

0.26

%

 

1.04

%

 

2.03

%6

 

2.06

%

 

1.67

%

 

1.05

%

 

 






















Net investment income to Common Shareholders

 

 

6.54

%6

 

6.47

%

 

6.48

%

 

4.48

%6

 

4.88

%

 

4.85

%

 

5.57

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

819,838

 

$

920,234

 

$

825,622

 

$

865,447

 

$

980,741

 

$

1,030,048

 

$

1,028,022

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

356,450

 

$

356,450

 

$

358,625

 

$

377,175

 

$

570,000

 

$

570,000

 

$

570,000

 

 

 






















Portfolio turnover

 

 

3

%

 

13

%

 

30

%

 

70

%

 

117

%

 

95

%

 

105

%

 

 






















Asset coverage, end of period per $1,000

 

$

5,193

8

$

3,581

8

$

3,302

8

$

3,295

8

$

2,721

8

$

2,807

8

$

2,804

 

 

 























 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

7

Interest expense and fees relate to TOB. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

 

 

 

 

8

Asset coverage per Preferred Share at $25,000 liquidation preference for the periods ended 2011, 2010, 2009, 2008, 2007 and 2006 were $82,513, $89,545, $82,559, $82,381, $68,039 and $70,198, respectively.


 

 

 

See Notes to Financial Statements.

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2011

43




 

 


 

 

Financial Highlights

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2011
(Unaudited)

 

Year Ended
July 31,

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 


 

 


 

 

 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

13.82

 

$

12.87

 

$

13.24

 

$

14.13

 

$

14.60

 

$

14.54

 

$

15.21

 

 

 






















Net investment income1

 

 

0.44

 

 

0.91

 

 

0.93

 

 

0.70

 

 

0.97

 

 

0.97

 

 

0.99

 

Net realized and unrealized gain (loss)

 

 

(1.21

)

 

0.90

 

 

(0.49

)

 

(0.88

)

 

(0.47

)

 

0.13

 

 

(0.58

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.04

)

 

(0.14

)

 

(0.21

)

 

(0.29

)

 

(0.26

)

 

(0.15

)

 

 






















Net increase (decrease) from investment operations

 

 

(0.79

)

 

1.77

 

 

0.30

 

 

(0.39

)

 

0.21

 

 

0.84

 

 

0.26

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.43

)

 

(0.82

)

 

(0.67

)

 

(0.50

)

 

(0.68

)

 

(0.78

)

 

(0.91

)

 

 






















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

0.00

2

 

(0.02

)

 

 






















Net asset value, end of period

 

$

12.60

 

$

13.82

 

$

12.87

 

$

13.24

 

$

14.13

 

$

14.60

 

$

14.54

 

 

 






















Market price, end of period

 

$

11.80

 

$

13.67

 

$

11.58

 

$

11.63

 

$

12.61

 

$

13.97

 

$

14.41

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

(5.74

)%4

 

14.62

%

 

3.81

%

 

(2.48

)%4

 

1.78

%

 

6.09

%

 

1.73

%

 

 






















Based on market price

 

 

(10.75

)%4

 

26.01

%

 

6.34

%

 

(4.01

)%4

 

(5.07

)%

 

2.42

%

 

5.47

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

1.08

%6

 

1.08

%

 

1.28

%

 

1.48

%6

 

1.69

%

 

1.65

%

 

1.47

%

 

 






















Total expenses after fees waived5

 

 

1.07

%6

 

1.07

%

 

1.26

%

 

1.45

%6

 

1.68

%

 

1.64

%

 

1.46

%

 

 






















Total expenses after fees waived and excluding interest expense and fees5,7

 

 

1.03

%6

 

1.03

%

 

1.12

%

 

1.14

%6

 

1.14

%

 

1.13

%

 

1.07

%

 

 






















Net investment income5

 

 

6.50

%6

 

6.74

%

 

7.43

%

 

6.61

%6

 

6.77

%

 

6.72

%

 

6.57

%

 

 






















Dividends to Preferred Shareholders

 

 

0.28

%6

 

0.28

%

 

1.15

%

 

1.98

%6

 

2.05

%

 

1.78

%

 

0.97

%

 

 






















Net investment income to Common Shareholders

 

 

6.22

%6

 

6.46

%

 

6.28

%

 

4.63

%6

 

4.72

%

 

4.94

%

 

5.60

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

152,041

 

$

166,773

 

$

155,360

 

$

159,759

 

$

170,559

 

$

176,216

 

$

175,264

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

87,350

 

$

87,350

 

$

87,350

 

$

87,350

 

$

99,000

 

$

99,000

 

$

99,000

 

 

 






















Portfolio turnover

 

 

9

%

 

18

%

 

9

%

 

20

%

 

10

%

 

14

%

 

19

%

 

 






















Asset coverage, per Preferred Share at $25,000 liquidation preference, end of period

 

$

68,517

 

$

72,733

 

$

69,467

 

$

70,730

 

$

68,076

 

$

69,507

 

$

69,269

 

 

 























 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Amount is less than $0.01 per share.

 

 

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

7

Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.


 

 

 

See Notes to Financial Statements.


44

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 

 



 

 

Financial Highlights

BlackRock MuniYield New York Quality Fund, Inc. (MYN)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2011
(Unaudited)

 

Year Ended
July 31,

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 


 

 



 

 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

13.89

 

$

12.65

 

$

13.16

 

$

13.94

 

$

14.40

 

$

14.26

 

$

14.81

 

 

 






















Net investment income1

 

 

0.45

 

 

0.90

 

 

0.87

 

 

0.66

 

 

0.84

 

 

0.92

 

 

0.94

 

Net realized and unrealized gain (loss)

 

 

(1.38

)

 

1.08

 

 

(0.61

)

 

(0.77

)

 

(0.38

)

 

0.23

 

 

(0.50

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.04

)

 

(0.13

)

 

(0.19

)

 

(0.27

)

 

(0.24

)

 

(0.13

)

 

 






















Net increase (decrease) from investment operations

 

 

(0.95

)

 

1.94

 

 

0.13

 

 

(0.30

)

 

0.19

 

 

0.91

 

 

0.31

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.43

)

 

(0.70

)

 

(0.64

)

 

(0.48

)

 

(0.65

)

 

(0.77

)

 

(0.84

)

 

 






















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.00

)2

 

(0.02

)

 

 






















Net asset value, end of period

 

$

12.51

 

$

13.89

 

$

12.65

 

$

13.16

 

$

13.94

 

$

14.40

 

$

14.26

 

 

 






















Market price, end of period

 

$

11.96

 

$

13.57

 

$

11.36

 

$

11.80

 

$

12.80

 

$

14.10

 

$

13.17

 

 

 






















 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

(6.99

)%4

 

16.15

%

 

2.29

%

 

(1.86

)%4

 

1.66

%

 

6.71

%

 

2.53

%

 

 






















Based on market price

 

 

(8.99

)%4

 

26.36

%

 

2.44

%

 

(4.16

)%4

 

(4.67

)%

 

13.13

%

 

6.24

%

 

 






















 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

1.10

%6

 

1.11

%

 

1.34

%

 

1.48

%6

 

1.64

%

 

1.56

%

 

1.31

%

 

 






















Total expenses after fees waived5

 

 

1.09

%6

 

1.10

%

 

1.32

%

 

1.46

%6

 

1.63

%

 

1.56

%

 

1.31

%

 

 






















Total expenses after fees waived and excluding interest expense and fees5,7

 

 

0.98

%6

 

1.00

%

 

1.06

%

 

1.04

%6

 

1.04

%

 

1.03

%

 

0.96

%

 

 






















Net investment income5

 

 

6.50

%6

 

6.69

%

 

7.11

%

 

6.36

%6

 

5.96

%

 

6.50

%

 

6.37

%

 

 






















Dividends to Preferred Shareholders

 

 

0.26

%6

 

0.27

%

 

1.09

%

 

1.82

%6

 

1.88

%

 

1.68

%

 

0.87

%

 

 






















Net investment income to Common Shareholders

 

 

6.24

%6

 

6.42

%

 

6.02

%

 

4.54

%6

 

4.08

%

 

4.82

%

 

5.50

%

 

 






















 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

493,514

 

$

547,812

 

$

499,093

 

$

518,912

 

$

549,910

 

$

567,954

 

$

562,474

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

247,700

 

$

247,700

 

$

247,700

 

$

259,475

 

$

304,000

 

$

304,000

 

$

304,000

 

 

 






















Portfolio turnover

 

 

8

%

 

7

%

 

22

%

 

17

%

 

25

%

 

43

%

 

35

%

 

 






















Asset coverage, per Preferred Share at $25,000 liquidation preference, end of period

 

$

74,813

 

$

80,293

 

$

75,376

 

$

75,011

 

$

70,242

 

$

71,725

 

$

71,259

 

 

 























 

 

1

Based on average Common Shares outstanding.

 

2

Amount is less than $(0.01) per share.

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends.

 

4

Aggregate total investment return.

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

6

Annualized.

 

7

Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2011

45




 


Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies:

BlackRock MuniHoldings Quality Fund II, Inc. (“MUE”), formerly BlackRock MuniHoldings Insured Fund II, Inc., BlackRock MuniYield California Quality Fund, Inc. (“MCA”), formerly BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield Quality Fund III, Inc. (“MYI”), formerly BlackRock MuniYield Insured Fund, Inc., BlackRock MuniYield Michigan Quality Fund II, Inc. (“MYM”), formerly BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Quality Fund, Inc. (“MYN”), formerly BlackRock MuniYield New York Insured Fund, Inc. (collectively the “Funds” or individually as a “Fund”), are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as non-diversified, closed-end management investment companies. The Funds are organized as Maryland corporations. The Funds’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Funds determine and make available for publication the net asset value of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Funds:

Valuation: The Funds fair value their financial instruments at market value using independent dealers or pricing services under policies approved by each Fund’s Board of Directors (the “Board”). Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value. Investments in open-end registered investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that each Fund might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Forward Commitments and When-Issued Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, the Funds are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown on the Schedules of Investments, if any.

Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds leverage their assets through the use of TOBs. A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Fund has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Fund include the right of a Fund (1) to cause the holders of a proportional share of the short-term floating rate certificates to tender their certificates at par, including during instances of a rise in short-term interest rates, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to a Fund. The TOB may also be terminated without the consent of a Fund upon the occurrence of certain events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond or the inability to remarket the short-term floating rate certificates to third party investors. During the six months ended January 31, 2011, no TOBs that the Funds participated in were terminated without the consent of the Funds.

 

 

 




46

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 


Notes to Financial Statements (continued)

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to a Fund, which typically invests the cash in additional municipal bonds. Each Fund’s transfer of the municipal bonds to a TOB is accounted for as a secured borrowing, therefore the municipal bonds deposited into a TOB are presented in the Funds’ Schedules of Investments and the proceeds from the issuance of the short-term floating rate certificates are shown as trust certificates in the Statements of Assets and Liabilities.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Funds on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are shown as interest expense and fees in the Statements of Operations. The short-term floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At January 31, 2011, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for trust certificates and the range of interest rates on the liability for trust certificates were as follows:

 

 

 

 

 

 

 

 

 

 

 









 

 

Underlying
Municipal
Bonds
Transferred to
TOBs

 

Liability
for Trust
Certificates

 

Range of
Interest Rates

 









MUE

 

$

114,714,316

 

$

62,382,934

 

 

0.29% – 0.44

%

MCA

 

$

339,580,206

 

$

183,202,421

 

 

0.29% – 0.44

%

MYI

 

$

358,305,999

 

$

195,573,344

 

 

0.27% – 0.44

%

MYM

 

$

16,511,712

 

$

9,030,000

 

 

0.27% – 0.46

%

MYN

 

$

145,324,592

 

$

78,614,804

 

 

0.29% – 0.39

%












For the six months ended ended January 31, 2011, the Funds’ average trust certificates outstanding and the daily weighted average interest rates, including fees, were as follows:

 

 

 

 

 

 

 

 









 

 

Average
Trust Certificates
Outstanding

 

Daily Weighted
Average
Interest Rate

 







MUE

 

$

62,443,918

 

 

0.76

%

MCA

 

$

182,279,416

 

 

0.80

%

MYI

 

$

195,648,740

 

 

0.75

%

MYM

 

$

9,030,000

 

 

0.70

%

MYN

 

$

78,614,804

 

 

0.77

%









Should short-term interest rates rise, the Funds’ investments in TOBs may adversely affect the Funds’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market values of municipal bonds deposited into the TOB may adversely affect the Funds’ net asset values per share.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Funds either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts), the Funds will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on their books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend date. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 7.

Income Taxes: It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

Each Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ US federal tax returns remains open for each of the four periods ended July 31, 2010, 2009, 2008 and October 31, 2007 (September 30, 2007 for MUE). The statutes of limitations on the Funds’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Fund’s Board, non-interested Directors (“Independent Directors”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain other BlackRock Closed-End Funds selected by the Independent Directors. This has approximately the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.

 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2011

47




 


 

Notes to Financial Statements (continued)

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund. Each Fund may, however, elect to invest in common shares of certain other BlackRock Closed-End Funds selected by the Independent Directors in order to match its deferred compensation obligations. Investments to cover each Fund’s deferred compensation liability, if any, are included in other assets in the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. The Funds have an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which if applicable are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and to economically hedge, or protect, their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange.

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

Financial Futures Contracts: The Funds purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are agreements between the Funds and the counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on settlement date. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Funds as unrealized gains or losses. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures transactions involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

 

 

 

 

 

 

 

 

 

 

 



The Effect of Derivative Instruments in the Statement of Operations
Six Months Ended January 31, 2011

 



 

 

Net Realized Loss From

 

 

 



 

 

MCA

 

MYI

 

MYN

 









Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

$

(117,641

)

$

(521,071

)

$

(213,576

)













 

 

 

 

 

 

 

 

 

 

 





 

 

Net Change in Unrealized
Appreciation/Depreciation on

 

 

 



 

 

MCA

 

MYI

 

MYN

 









Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

$

89,999

 

$

399,313

 

$

141,179

 












For the six months ended January 31, 2011, the average quarterly bal-ances of outstanding derivative financial instruments were as follows:

 

 

 

 

 

 

 

 

 

 

 









 

 

MCA

 

MYI

 

MYN

 









Financial futures contracts:

 

 

 

 

 

 

 

 

 

 

Average number of contracts sold

 

 

21

 

 

93

 

 

55

 

Average notional value of contracts sold

 

$

2,613,804

 

$

11,513,184

 

$

6,845,677

 












3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate of the Funds for 1940 Act purposes, but BAC and Barclays are not.

Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee at the following annual rates of each Fund’s average daily net assets as follows:

 

 

 

 

 






MUE

 

 

0.55

%

MCA

 

 

0.50

%

MYI

 

 

0.50

%

MYM

 

 

0.50

%

MYN

 

 

0.50

%






Average daily net assets are the average daily value of each Fund’s total assets minus the sum of its accrued liabilities.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds, however

 

 

 




48

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 


 

Notes to Financial Statements (continued)

the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid through each Fund’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by advisor in the Statements of Operations. For the six months ended ended January 31, 2011, the amounts waived were as follows:

 

 

 

 

 






MUE

 

$

7,257

 

MCA

 

$

17,503

 

MYI

 

$

3,297

 

MYM

 

$

8,695

 

MYN

 

$

15,881

 






The Manager, for MUE, voluntarily agreed to waive its investment advisory fee on the proceeds of the Preferred Shares and TOBs that exceed 35% of net assets applicable to Common Shareholders. This amount is included in fees waived by advisor in the Statements of Operations. For the six months ended January 31, 2011 the waiver was $88,088.

The Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Fund to the Manager.

For the period August 1, 2010 through December 31, 2010, the Funds reimbursed the Manager for certain accounting services, which are included in accounting services in the Statements of Operations. The reimbursements were as follows:

 

 

 

 

 






MUE

 

$

1,901

 

MCA

 

$

3,167

 

MYI

 

$

12,542

 

MYM

 

$

1,052

 

MYN

 

$

3,545

 






Effective January 1, 2011, the Funds no longer reimburse the Manager for accounting services.

Certain officers and/or directors of the Funds are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager for compensation paid to the Funds’ Chief Compliance Officer.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the six months ended ended January 31, 2011, were as follows:

 

 

 

 

 

 

 

 







 

 

Purchases

 

Sales

 







MUE

 

$

50,995,790

 

$

32,418,495

 

MCA

 

$

128,961,924

 

$

83,124,194

 

MYI

 

$

46,914,736

 

$

45,340,245

 

MYM

 

$

22,650,567

 

$

26,415,904

 

MYN

 

$

73,299,523

 

$

69,705,630

 









5. Capital Loss Carryforwards:

As of July 31, 2010, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













Expires July 31,

 

MUE

 

MCA

 

MYI

 

MYM

 

MYN

 













2011

 

 

 

$

4,417,434

 

 

 

 

 

 

 

2012

 

$

306,103

 

 

2,675,948

 

 

 

$

1,288,851

 

$

16,583,200

 

2014

 

 

 

 

 

$

1,489,118

 

 

 

 

3,107,506

 

2015

 

 

 

 

1,362,395

 

 

5,979,955

 

 

 

 

 

2016

 

 

 

 

 

 

25,066,903

 

 

823,067

 

 

2,330,288

 

2017

 

 

8,936,425

 

 

2,753,866

 

 

21,251,301

 

 

253,932

 

 

2,295,738

 

2018

 

 

6,013,130

 

 

5,944,218

 

 

26,460,028

 

 

 

 

3,370,191

 

 

 
















Total

 

$

15,255,658

 

$

17,153,861

 

$

80,247,305

 

$

2,365,850

 

$

27,686,923

 

 

 
















Under the recently enacted Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Funds after July 31, 2011 will not be subject to expiration. In addition, these losses must be utilized prior to the losses incurred in pre-enactment taxable years.

 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2011

49




 


Notes to Financial Statements (continued)

6. Concentration, Market and Credit Risk:

MCA, MYM and MYN invest a substantial amount of their assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states.

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Funds’ Statements of Assets and Liabilities, less any collateral held by the Funds.

As of January 31, 2011, MUE invested a significant portion of its assets in the County/City/Special District/School District, Transportation and Utilities sectors. MCA invested a significant portion of its assets in securities in the County/City/Special District/School District and Utilities sectors. MYI and MYN invested a significant portion of their assets in the Transportation and County/City/Special District/School District sectors. MYM invested a significant portion of its assets in the County/City/Special District/ School District sector. Changes in economic conditions affecting the County/City/Special District/School District, Transportation and Utilities sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

7. Capital Share Transactions:

Each Fund is authorized to issue 200 million shares, including Preferred Shares, par value $0.10 for MUE, MCA, MYI and MYM and par value $0.05 for MYM and MYN, all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10. Each Fund’s Board is authorized, however, to reclassify any unissued shares of Common Shares without approval of Common Shareholders.

Common Shares

For the six months ended January 31, 2011 and the year ended July 31, 2010, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

 

 

 

 

 

 

 









 

 

Six Months
Ended
January 31, 2011

 

Year Ended
July 31, 2010

 







MUE

 

 

35,579

 

 

26,556

 

MYI

 

 

147,014

 

 

37,906

 

MYN

 

 

7,531

 

 

 









Shares issued and outstanding remained constant for MCA and MYM for the six months ended January 31, 2011 and the year ended July 31, 2010.

Preferred Shares

The Preferred Shares are redeemable at the option of each Fund, in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Fund, as set forth in each Fund’s Articles of Supplementary (the “Governing Instrument”) are not satisfied.

From time to time in the future, each Fund may effect repurchases of its Preferred Shares at prices below their liquidation preference as agreed upon by the Fund and seller. Each Fund also may redeem its Preferred Shares from time to time as provided in the applicable Governing Instrument. Each Fund intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

 

 

 




50

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 


Notes to Financial Statements (continued)

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors for each Fund. In addition, the 1940 Act requires that along with approval by shareholders 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 Shares, (b) change a Fund’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

The Funds had the following series of Preferred Shares outstanding, effective yields and reset frequency as of January 31, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Series

 

Preferred
Shares

 

Effective
Yield

 

Reset
Frequency
Days

 















MUE

 

A

 

 

1,345

1

 

0.44

%

 

7

 

 

 

 

B

 

 

1,345

1

 

0.44

%

 

7

 

 

 

 

C

 

 

2,550

1

 

0.44

%

 

7

 

 















MCA

 

A

 

 

1,090

1

 

0.37

%

 

28

 

 

 

 

B

 

 

1,090

1

 

0.44

%

 

7

 

 

 

 

C

 

 

969

1

 

0.44

%

 

7

 

 

 

 

D

 

 

1,211

1

 

0.41

%

 

28

 

 

 

 

E

 

 

1,211

1

 

0.44

%

 

7

 

 

 

 

F

 

 

1,090

2

 

1.50

%

 

7

 

 















MYI

 

A

 

 

1,376

1

 

0.38

%

 

28

 

 

 

 

B

 

 

1,376

1

 

0.37

%

 

28

 

 

 

 

C

 

 

1,376

1

 

0.41

%

 

28

 

 

 

 

D

 

 

1,376

1

 

0.44

%

 

28

 

 

 

 

E

 

 

2,502

1

 

0.44

%

 

7

 

 

 

 

F

 

 

1,501

1

 

0.37

%

 

28

 

 

 

 

G

 

 

1,501

1

 

0.41

%

 

7

 

 

 

 

H

 

 

1,625

2

 

1.50

%

 

7

 

 

 

 

I

 

 

1,625

2

 

1.50

%

 

7

 

 















MYM

 

A

 

 

1,941

1

 

0.41

%

 

7

 

 

 

 

B

 

 

1,200

1

 

0.44

%

 

7

 

 

 

 

C

 

 

353

2

 

1.50

%

 

7

 

 















MYN

 

A

 

 

1,385

1

 

0.50

%

 

28

 

 

 

 

B

 

 

1,385

1

 

0.41

%

 

7

 

 

 

 

C

 

 

2,282

1

 

0.44

%

 

7

 

 

 

 

D

 

 

1,597

1

 

0.44

%

 

7

 

 

 

 

E

 

 

1,793

1

 

0.44

%

 

28

 

 

 

 

F

 

 

1,466

2

 

1.50

%

 

7

 

 
















 

 

1

The maximum applicable rate on this series of Preferred Shares is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

 

 

2

The maximum applicable rate on this series of Preferred Shares is the higher of 110% plus or times (i) the Telerate/BAA LIBOR or (ii) 90% of Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

Dividends on seven-day and 28-day Preferred Shares are cumulative at a rate which is reset every seven or 28 days, respectively, based on the results of an auction. If the Preferred Shares fail to clear the auction on an

auction date, each Fund is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on all series of Preferred Shares is footnoted as applicable on the above chart. The low, high and average dividend rates on the Preferred Shares for each Fund for the six months ended ended January 31, 2011 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Series

 

Low

 

High

 

Average

 















MUE

 

A

 

 

0.37

%

 

0.50

%

 

0.42

%

 

 

 

B

 

 

0.37

%

 

0.50

%

 

0.42

%

 

 

 

C

 

 

0.37

%

 

0.50

%

 

0.42

%

 















MCA

 

A

 

 

0.37

%

 

0.46

%

 

0.43

%

 

 

 

B

 

 

0.37

%

 

0.50

%

 

0.42

%

 

 

 

C

 

 

0.37

%

 

0.50

%

 

0.42

%

 

 

 

D

 

 

0.37

%

 

0.50

%

 

0.43

%

 

 

 

E

 

 

0.37

%

 

0.50

%

 

0.42

%

 

 

 

F

 

 

1.43

%

 

1.56

%

 

1.49

%

 















MYI

 

A

 

 

0.38

%

 

0.46

%

 

0.42

%

 

 

 

B

 

 

0.37

%

 

0.46

%

 

0.43

%

 

 

 

C

 

 

0.38

%

 

0.50

%

 

0.42

%

 

 

 

D

 

 

0.38

%

 

0.50

%

 

0.41

%

 

 

 

E

 

 

0.37

%

 

0.50

%

 

0.42

%

 

 

 

F

 

 

0.35

%

 

0.47

%

 

0.43

%

 

 

 

G

 

 

0.37

%

 

0.50

%

 

0.42

%

 

 

 

H

 

 

1.43

%

 

1.56

%

 

1.48

%

 

 

 

I

 

 

1.43

%

 

1.56

%

 

1.48

%

 















MYM

 

A

 

 

0.37

%

 

0.50

%

 

0.43

%

 

 

 

B

 

 

0.37

%

 

0.50

%

 

0.43

%

 

 

 

C

 

 

1.43

%

 

1.56

%

 

1.49

%

 















MYN

 

A

 

 

0.38

%

 

0.50

%

 

0.42

%

 

 

 

B

 

 

0.37

%

 

0.50

%

 

0.42

%

 

 

 

C

 

 

0.37

%

 

0.50

%

 

0.42

%

 

 

 

D

 

 

0.37

%

 

0.50

%

 

0.42

%

 

 

 

E

 

 

0.38

%

 

0.50

%

 

0.41

%

 

 

 

F

 

 

1.43

%

 

1.56

%

 

1.48

%

 















Since February 13, 2008, the Preferred Shares of the Funds failed to clear any of their auctions. As a result, the Preferred Shares dividend rates were reset to the maximum applicable rate, which ranged from 0.35% to 1.56% for the six months ended ended January 31, 2011. A failed auction is not an event of default for the Funds but it has a negative impact on the liquidity of Preferred Shares. A failed auction occurs when there are more sellers of a Fund’s auction rate Preferred Shares than buyers. A successful auction for the Funds’ Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, Preferred Shareholders may not have the ability to sell the Preferred Shares at their liquidation preference.

The Funds may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%.

The Funds pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions and 0.15% on the

 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2011

51




 


 

Notes to Financial Statements (concluded)

aggregate principal amount of all shares that fail to clear their auctions. Certain broker dealers have individually agreed to reduce commissions for failed auctions.

Preferred Shares issued and outstanding remained constant for the six months ended ended January 31, 2011 for MUE, MCA, MYI, MYM, and MYN.

Preferred Shares issued and outstanding remained constant for the year ended July 31, 2010 for MUE, MCA, MYM and MYN. Preferred Shares issued and outstanding decreased by 87 shares for MYI for the year ended July 31, 2010.

During the period, MYI, MYM and MYN entered into a Fee Agreement (the “Agreement”) with a financial institution in relation to the potential refinancing of Preferred Shares. Pursuant to the terms of the Agreement, effective February 1, 2011 MYI, MYM and MYN will pay a liquidity fee, through the earlier of the date of the potential refinancing or July 1, 2011, at an annual rate of 0.50% of the potential refinancing amounts.

8. Restatement Information:

During the year ended September 30, 2006 for MUE and October 31, 2006 for MYI, the Funds determined that the criteria for sale accounting in ASC 860 (formerly FAS 140) had not been met for certain transfers of municipal bonds related to investments in TOB Residuals, and that these transfers should have been accounted for as secured borrowings rather than as sales. As a result, certain financial highlights for the period ended September 30, 2005 with respect to MUE, and for the period ended October 31, 2005 with respect to MYI, have been restated to give effect to recording the transfers of the municipal bonds as secured borrowings, including recording interest on the bonds as interest income and interest on the secured borrowings as interest expense.

 

 

 

 

 

 

 

 









Financial Highlights for MUE
For the Year Ended September 30, 2005

 

 

 





 

 

 

2005

 

 

 



 

 

Previously
Reported

 

Restated

 







Total expenses, net of waiver1

 

 

1.15

%

 

1.32

%

Total expenses1

 

 

1.21

%

 

1.38

%

Portfolio turnover

 

 

58.19

%

 

46

%









 

 

 

 

 

 

 

 





Financial Highlights for MYI
For the Year Ended October 31, 2005 and 2004

 

 

 





 

 

 

2005

 

 

 


 

 

 

Previously
Reported

 

Restated

 







Total expenses, net of waiver1

 

 

1.01

%

 

1.60

%

Total expenses1

 

 

1.01

%

 

1.60

%

Portfolio turnover

 

 

123.85

%

 

105

%










 

 

1

Do not reflect the effect of dividends to Preferred Shareholders.

9. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

The Funds paid a net investment income dividend in the following amounts per share on March 1, 2011 to Common Shareholders of record on February 15, 2011:

 

 

 

 

 





 

 

Common
Dividend Per Share

 





MUE

 

$

0.0735

 

MCA

 

$

0.0735

 

MYI

 

$

0.0720

 

MYM

 

$

0.0715

 

MYN

 

$

0.0710

 






The dividends declared on Preferred Shares for the period February 1, 2011 to February 28, 2011 were as follows:

 

 

 

 

 

 

 








 

 

Series

 

Dividends
Declared

 







 

MUE

 

A

 

$

10,631

 

 

 

B

 

$

10,658

 

 

 

C

 

$

20,309

 








MCA

 

A

 

$

8,156

 

 

 

B

 

$

8,707

 

 

 

C

 

$

7,717

 

 

 

D

 

$

9,680

 

 

 

E

 

$

9,572

 

 

 

F

 

$

30,851

 








MYI

 

A

 

$

10,426

 

 

 

B

 

$

10,465

 

 

 

C

 

$

11,013

 

 

 

D

 

$

11,522

 

 

 

E

 

$

19,825

 

 

 

F

 

$

11,185

 

 

 

G

 

$

12,056

 

 

 

H

 

$

45,963

 

 

 

I

 

$

46,103

 








MYM

 

A

 

$

15,590

 

 

 

B

 

$

9,557

 

 

 

C

 

$

9,991

 








MYN

 

A

 

$

11,745

 

 

 

B

 

$

11,124

 

 

 

C

 

$

18,230

 

 

 

D

 

$

12,719

 

 

 

E

 

$

15,014

 

 

 

F

 

$

41,466

 









 

 

 




52

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 


 

Officers and Directors

 

Richard E. Cavanagh, Chairman of the Board and Director

Karen P. Robards, Vice Chair of the Board,

Chair of the Audit Committee and Director

Richard S. Davis, Director

Frank J. Fabozzi, Director and Member of the Audit Committee

Kathleen F. Feldstein, Director

James T. Flynn, Director and Member of the Audit Committee

Henry Gabbay, Director

Jerrold B. Harris, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director and Member of the Audit Committee

Anne Ackerley, Fund President and Chief Executive Officer

Brendan Kyne, Vice President

Brian Schmidt, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Brian Kindelan, Chief Compliance Officer of the Funds

Ira Shapiro, Secretary


 

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

 

Sub-Advisor

BlackRock Investment Management, LLC

Plainsboro, NJ 08536

 

Custodians

State Street Bank and Trust Company1

Boston, MA 02101

 

The Bank of New York Mellon2

New York, NY 10286

 

Transfer Agents

Common Shares

Computershare Trust Company, N.A.1

Providence, RI 02940

 

BNY Mellon Shareowner Services2

Jersey City, NJ 07310

 

Auction Agent

Preferred Shares

BNY Mellon Shareowner Services

Jersey City, NJ 07310

 

 

Accounting Agent

State Street Bank and Trust Company

Princeton, NJ 08540

 

 

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Princeton, NJ 08540

 

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom LLP

New York, NY 10036

 

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809


 

 

1

For MUE, MCA and MYI.

 

 

2

For MYM and MYN.


 


Effective February 11, 2011, John M. Perlowski became President and Chief Executive Officer of the Funds.

 

Effective November 10, 2010, Ira Shapiro became Secretary of the Funds.



 

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2011

53




 


 

Additional Information

 


Proxy Results


The Annual Meeting of Shareholders was held on September 2, 2010 for shareholders of record on July 6, 2010, to elect director nominees for each Fund. Due to a lack of quorum of Preferred Shares, action on the proposal regarding the preferred shares nominees’ election for MUE, MYM and MYN was subsequently adjourned to October 5, 2010. There were no broker non-votes with regard to any of the Funds.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Richard E. Cavanagh

 

Richard S. Davis

 

Frank J. Fabozzi

 

 

 


 


 


 

 

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 





















MUE

 

 

17,876,661

 

 

631,091

 

0

 

 

17,872,752

 

 

635,000

 

0

 

 

1,462

 

 

9

 

 

710

 

MCA

 

 

27,268,079

 

 

1,821,271

 

0

 

 

27,268,079

 

 

1,821,271

 

0

 

 

3,974

 

 

101

 

 

0

 

MYI

 

 

59,381,855

 

 

2,672,685

 

0

 

 

59,247,026

 

 

2,807,514

 

0

 

 

4,306

 

 

786

 

 

0

 

MYM

 

 

10,800,657

 

 

253,086

 

0

 

 

10,806,691

 

 

247,052

 

0

 

 

961

 

 

15

 

 

288

 

MYN

 

 

32,073,635

 

 

2,297,091

 

0

 

 

32,074,007

 

 

2,296,719

 

0

 

 

2,532

 

 

301

 

 

509

 






























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kathleen F. Feldstein

 

James T. Flynn

 

Henry Gabbay

 

 

 


 


 


 

 

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 





















MUE

 

 

17,844,101

 

 

663,651

 

0

 

 

17,861,412

 

 

646,340

 

0

 

 

17,867,995

 

 

639,757

 

0

 

MCA

 

 

27,045,998

 

 

2,043,352

 

0

 

 

27,265,643

 

 

1,823,707

 

0

 

 

27,349,165

 

 

1,740,185

 

0

 

MYI

 

 

59,103,351

 

 

2,951,189

 

0

 

 

59,204,556

 

 

2,849,984

 

0

 

 

59,374,064

 

 

2,680,476

 

0

 

MYM

 

 

10,736,572

 

 

317,171

 

0

 

 

10,724,167

 

 

329,576

 

0

 

 

10,747,864

 

 

305,879

 

0

 

MYN

 

 

31,714,380

 

 

2,656,346

 

0

 

 

32,002,653

 

 

2,368,073

 

0

 

 

32,105,635

 

 

2,265,091

 

0

 






























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jerrold B. Harris

 

R. Glenn Hubbard

 

W. Carl Kester

 

 

 


 


 


 

 

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 





















MUE

 

 

17,863,852

 

 

643,900

 

0

 

 

17,855,484

 

 

652,268

 

0

 

 

1,462

 

 

9

 

 

710

 

MCA

 

 

27,280,584

 

 

1,808,766

 

0

 

 

27,342,659

 

 

1,746,691

 

0

 

 

3,974

 

 

101

 

 

0

 

MYI

 

 

59,207,436

 

 

2,847,104

 

0

 

 

59,150,617

 

 

2,903,923

 

0

 

 

4,306

 

 

786

 

 

0

 

MYM

 

 

10,737,301

 

 

316,442

 

0

 

 

10,798,370

 

 

255,373

 

0

 

 

961

 

 

15

 

 

288

 

MYN

 

 

31,776,792

 

 

2,593,934

 

0

 

 

31,707,681

 

 

2,663,045

 

0

 

 

2,532

 

 

301

 

 

509

 






























 

 

 

 

 

 

 

 

 

 

 

 

 

Karen P. Robards

 

 

 

 



 

 

 

Votes For

 

Votes
Withheld

 

Abstain

 

 









 

MUE

 

 

17,855,861

 

 

651,891

 

0

 

 

MCA

 

 

27,199,531

 

 

1,889,819

 

0

 

 

MYI

 

 

59,088,296

 

 

2,966,244

 

0

 

 

MYM

 

 

10,806,656

 

 

247,087

 

0

 

 

MYN

 

 

32,093,758

 

 

2,276,968

 

0

 

 












 


 

 

 




54

SEMI-ANNUAL REPORT

JANUARY 31, 2011




 


 

Additional Information (continued)

 


Dividend Policy


The Funds’ dividend policy is to distribute all or a portion of their net investment income to their shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Funds may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

 

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2011

55




 


 

Additional Information (continued)

 


General Information


On June 10, 2010, the Manager announced that MUE, MCA, and MYI received demand letters from a law firm on behalf of MUE’s, MCA’s, and MYI’s common shareholders. The demand letter alleges that the Manager and MUE’s, MCA’s, and MYI’s officers and Board of Directors (the “Board”) breached their fiduciary duties by redeeming at par certain of MUE’s, MCA’s, and MYI’s Preferred Shares, and demanded that the Board take action to remedy those alleged breaches. In response to the demand letter, the Board established a Demand Review Committee (the “Committee”) of the Independent Directors to investigate the claims made in the demand letter with the assistance of independent counsel. Based upon its investigation, the Committee recommended that the Board reject the demand specified in the demand letter. After reviewing the findings of the Committee, the Board unanimously adopted the Committee’s recommendation and unanimously voted to reject the demand.

On August 11, 2010, the Manager announced that a shareholder derivative complaint was filed on August 3, 2010 in the Supreme Court of the State of New York, New York County with respect to MCA and MYI, which had previously received a demand letter from a law firm on behalf of each fund’s common shareholders. The complaint was filed against the Manager, BlackRock, Inc., MCA, MYI and certain of the directors, officers and portfolio managers (collectively, the “BlackRock Parties”) in connection with the redemption of auction-market preferred shares, auction rate preferred securities, auction preferred shares and auction rate securities (collectively, “AMPS”). The complaint alleges, among other things, that the BlackRock Parties breached their fiduciary duties to the common shareholders of MCA and MYI (the “Shareholders”) by redeeming AMPS at their liquidation preference and alleges that such redemptions caused losses to the Shareholders. The plaintiffs are seeking monetary damages for the alleged losses suffered and to enjoin MCA and MYI from future redemptions of AMPS at their liquidation preference. The BlackRock Parties believe that the claims asserted in the complaint are without merit and intend to vigorously defend themselves in the litigation.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 441-7762.

Availability of Quarterly Portfolio Schedule of Investments

Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Fund’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Funds.

 

 

 


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Additional Information (continued)

 


Board Approvals


On September 1, 2010, the Board of each Fund approved changes to certain investment policies of the Funds.

Historically, under normal market conditions, each Fund has been required to invest at least 80% of its assets in municipal bonds either (i) insured under an insurance policy purchased by the Fund or (ii) insured under an insurance policy obtained by the issuer of the municipal bond or any other party. In September 2008, the Funds adopted an amended investment policy of purchasing only municipal bonds insured by insurance providers with claims-paying abilities rated investment grade at the time of investment (the “Insurance Investment Policy”).

Following the onset of the credit and liquidity crises, the claims-paying ability rating of most of the municipal bond insurance providers was lowered by the rating agencies. These downgrades called into question the long-term viability of the municipal bond insurance market, which had the potential to severely limit the ability of the Manager to manage the Funds under the Insurance Investment Policy.

As a result, on September 1, 2010, the Manager recommended, and the Boards approved, the removal of the Insurance Investment Policy. As a result of this investment policy change, the Funds are not required to dispose of assets currently held within the Funds. The Funds will maintain, and have no current intention to amend, their investment policy of, under normal market conditions, generally investing in municipal obligations rated investment grade at the time of investment.

As each Fund increases the amount of its assets that are invested in municipal obligations that are not insured, the Fund’s shareholders will be exposed to the risk of the failure of such securities’ issuers to pay interest and repay principal and will not have the benefit of protection provided under municipal bond insurance policies. As a result, shareholders will be more dependent on the analytical ability of the Manager to evaluate the credit quality of issuers of municipal obligations in which the Fund invests. The Boards believe that the amended investment policy is in the best interests of each Fund and its shareholders because it believes that the potential benefits from increased flexibility outweigh the potential increase in risk from the lack of insurance policies provided by weakened insurance providers. Of course, the new investment policy cannot assure that each Fund will achieve its investment objective.

As disclosed in each Fund’s prospectus, each Fund is required to provide shareholders 60 days notice of a change to the Insurance Investment Policy. Accordingly, a notice describing the changes discussed above was mailed to shareholders of record as of September 1, 2010. The new investment policy took effect on November 9, 2010. The Manager has been gradually repositioning each Fund’s portfolios over time, and during such period, each Fund may continue to hold a substantial portion of its assets in insured municipal bonds. At this time, the repositioning of each Fund’s portfolio is still taking place, and the Funds will continue to be subject to risks associated with investing a substantial portion of their assets in insured municipal bonds until the repositioning is complete. No action is required by shareholders of the Funds in connection with this change.

In connection with this change in non-fundamental policy, each of the Funds underwent a name change to reflect its new portfolio characteristics. Each Fund continues to trade on the New York Stock Exchange under its current ticker symbol.

The approved changes did not alter any Fund’s investment objective.

 

 

 


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57




 


 

Additional Information (concluded)

 


BlackRock Privacy Principles


BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

 

 

 


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This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares and the risk that fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

(GOPAPERLESS)

 

 

#MHMYINS5-1/11

(BLACKROCK)


Item 2 –

Code of Ethics – Not Applicable to this semi-annual report

 

 

Item 3 –

Audit Committee Financial Expert – Not Applicable to this semi-annual report

 

 

Item 4 –

Principal Accountant Fees and Services – Not Applicable to this semi-annual report

 

 

Item 5 –

Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

 

 

Item 6 –

Investments

 

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

 

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report

 

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies –

 

(a) Not Applicable to this semi-annual report

 

(b) As of the date of this filing, there have been no changes to any of the portfolio managers identified in the most recent annual report on Form N-CSR

 

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

 

 

Item 10 –

Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

 

 

Item 11 –

Controls and Procedures

 

 

 

(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.

 

 

 

(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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 12 –

Exhibits attached hereto

 

 

 

(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

 

 

 

(a)(2) – Certifications – Attached hereto

 

 

 

(a)(3) – Not Applicable

 

 

 

(b) – 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 MuniYield New York Quality Fund, Inc.

   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield New York Quality Fund, Inc.
   
  Date: April 4, 2011
   
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield New York Quality Fund, Inc.
   
  Date: April 4, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield New York Quality Fund, Inc.
     
  Date: April 4, 2011