UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-07080

 

Name of Fund: BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield Michigan Quality 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: 07/31/2012

 

Date of reporting period: 04/30/2012

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments April 30, 2012 (Unaudited)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan — 128.4%

 

 

 

 

 

 

 

Corporate — 6.3%

 

 

 

 

 

 

 

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

 

$

3,900

 

$

3,909,321

 

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

 

 

10,695

 

 

14,261,675

 

 

 

 

 

 

 

18,170,996

 

County/City/Special District/School District — 35.7%

 

 

 

 

 

 

 

Adrian City School District Michigan, GO
(AGM) (a):

 

 

 

 

 

 

 

5.00%, 5/01/14

 

 

2,000

 

 

2,183,880

 

5.00%, 5/01/14

 

 

1,600

 

 

1,747,104

 

Anchor Bay School District, GO,
Refunding (Q-SBLF):

 

 

 

 

 

 

 

4.13%, 5/01/25

 

 

3,000

 

 

3,198,630

 

4.25%, 5/01/26

 

 

1,800

 

 

1,921,698

 

4.38%, 5/01/27

 

 

960

 

 

1,024,925

 

4.00%, 5/01/28

 

 

1,240

 

 

1,272,091

 

4.38%, 5/01/28

 

 

600

 

 

633,120

 

4.00%, 5/01/29

 

 

620

 

 

630,800

 

4.50%, 5/01/29

 

 

900

 

 

952,578

 

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

 

 

2,800

 

 

2,919,448

 

Birmingham City School District
Michigan, GO, School Building & Site
(AGM), 5.00%, 11/01/33

 

 

1,000

 

 

1,033,220

 

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

 

 

 

 

 

 

 

5.00%, 4/01/25

 

 

1,840

 

 

2,008,250

 

5.00%, 4/01/26

 

 

2,000

 

 

2,168,100

 

5.00%, 4/01/27

 

 

500

 

 

539,895

 

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

 

 

500

 

 

529,510

 

Comstock Park Public Schools, GO,
School Building & Site, Series B
(Q-SBLF):

 

 

 

 

 

 

 

5.50%, 5/01/36

 

 

750

 

 

842,190

 

5.50%, 5/01/41

 

 

1,355

 

 

1,516,082

 

County of Genesee Michigan, GO
(NPFGC):

 

 

 

 

 

 

 

Refunding, Series A, 5.00%,
5/01/19

 

 

600

 

 

654,900

 

Water Supply System, 5.13%,
11/01/33

 

 

1,000

 

 

1,018,880

 

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

 

 

3,300

 

 

3,644,223

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series A, 5.38%, 5/01/13

 

$

1,300

 

$

1,366,508

 

Series B, 5.00%, 5/01/13

 

 

2,850

 

 

2,985,119

 

Eaton Rapids Public Schools Michigan,
GO, School Building & Site (AGM) (a):

 

 

 

 

 

 

 

5.25%, 5/01/14

 

 

1,325

 

 

1,439,149

 

5.25%, 5/01/14

 

 

1,675

 

 

1,819,301

 

Flint EDC, RB, Michigan Department of
Human Services Office Building
Project, 5.25%, 10/01/41

 

 

3,070

 

 

3,168,885

 

Fraser Public School District, GO, School
Building & Site (AGM), 5.00%,
5/01/25

 

 

2,000

 

 

2,186,500

 

Gibraltar School District Michigan, GO,
School Building & Site Improvement
(NPFGC) (a):

 

 

 

 

 

 

 

5.00%, 5/01/14

 

 

2,940

 

 

3,210,304

 

5.00%, 5/01/14

 

 

710

 

 

733,345

 

Goodrich Area School District, GO,
School Building & Site (Q-SBLF):

 

 

 

 

 

 

 

5.50%, 5/01/32

 

 

600

 

 

688,986

 

5.50%, 5/01/36

 

 

1,200

 

 

1,351,392

 

5.50%, 5/01/41

 

 

1,575

 

 

1,760,976

 

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

 

 

 

 

 

 

 

5.50%, 10/01/12

 

 

435

 

 

444,661

 

5.50%, 10/01/12

 

 

600

 

 

613,326

 

Gull Lake Community School District,
GO, School Building & Site (AGM),
5.00%, 5/01/14 (a)

 

 

3,625

 

 

3,962,125

 

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

 

 

1,125

 

 

1,257,683

 

Harper Woods School District Michigan,
GO, Refunding, School Building & Site
(NPFGC), 5.00%, 5/01/34

 

 

430

 

 

440,195

 

Hudsonville Public Schools, GO, School
Building & Site (Q-SBLF), 5.25%,
5/01/41

 

 

4,100

 

 

4,507,048

 

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

 

 

 

 

 

 

 

5.00%, 5/01/24

 

 

1,000

 

 

1,096,020

 

5.00%, 5/01/25

 

 

1,525

 

 

1,671,431

 

5.00%, 5/01/26

 

 

1,600

 

 

1,753,632

 

5.00%, 5/01/35

 

 

3,000

 

 

3,099,540

 

Lansing Building Authority Michigan, GO,
Series A (NPFGC), 5.38%, 6/01/13 (a)

 

 

1,510

 

 

1,593,714

 

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

 

 

5,000

 

 

5,208,400

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

APRIL 30, 2012

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

$

1,000

 

$

1,061,860

 

Montrose Community Schools, GO
(NPFGC), 6.20%, 5/01/17

 

 

1,000

 

 

1,229,230

 

Orchard View Schools Michigan, GO,
School Building & Site (NPFGC),
5.00%, 11/01/13 (a)

 

 

5,320

 

 

5,694,900

 

Parchment School District, County of
Kalamazoo, State of Michigan, GO,
School Building and Site, 5.00%,
5/01/25

 

 

1,000

 

 

1,145,390

 

Pennfield School District Michigan, GO,
School Building & Site (NPFGC) (a):

 

 

 

 

 

 

 

5.00%, 5/01/14

 

 

605

 

 

659,988

 

5.00%, 5/01/15

 

 

765

 

 

834,531

 

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

 

 

1,425

 

 

1,557,525

 

Romulus Community Schools, GO,
Refunding (AGM, Q-SBLF):

 

 

 

 

 

 

 

4.13%, 5/01/25

 

 

1,150

 

 

1,224,946

 

4.25%, 5/01/26

 

 

1,200

 

 

1,276,620

 

4.25%, 5/01/27

 

 

1,200

 

 

1,263,300

 

4.50%, 5/01/29

 

 

1,025

 

 

1,085,690

 

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

 

 

2,000

 

 

2,185,140

 

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

 

 

2,500

 

 

2,647,200

 

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

 

 

1,250

 

 

1,365,575

 

Warren Consolidated Schools District,
GO, Unlimited Tax, 5.00%, 5/01/32

 

 

740

 

 

815,909

 

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

 

 

1,600

 

 

1,689,888

 

 

 

 

 

 

 

102,535,456

 

Education — 9.6%

 

 

 

 

 

 

 

Eastern Michigan University, Refunding
RB, General (AMBAC), 6.00%,
6/01/20

 

 

435

 

 

436,670

 

Grand Valley State University Michigan,
RB, General (NPFGC), 5.50%,
2/01/18

 

 

2,070

 

 

2,295,382

 

Lake Superior State University,
Refunding RB (AGM):

 

 

 

 

 

 

 

4.00%, 11/15/26

 

 

770

 

 

783,698

 

4.00%, 11/15/27

 

 

465

 

 

470,148

 

4.00%, 11/15/28

 

 

310

 

 

310,973

 

4.00%, 11/15/29

 

 

400

 

 

397,996

 

4.00%, 11/15/30

 

 

310

 

 

306,395

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

Education (concluded)

 

 

 

 

 

 

 

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

 

$

1,720

 

$

1,740,932

 

Michigan Higher Education Facilities
Authority, Refunding RB, Limited
Obligation, Creative Studies, 5.90%,
6/01/12 (a)

 

 

1,145

 

 

1,150,462

 

Michigan Higher Education Student
Loan Authority, RB, Student Loan:

 

 

 

 

 

 

 

Series XVII-I, 5.20%, 3/01/24

 

 

2,900

 

 

2,963,133

 

Series XVII-P (AMBAC), 4.88%,
3/01/30

 

 

2,300

 

 

2,314,260

 

Series XVII-Q AMT (AMBAC), 5.00%,
3/01/31

 

 

3,000

 

 

3,046,500

 

Michigan State University, Refunding
RB, General:

 

 

 

 

 

 

 

5.00%, 10/01/34

 

 

1,650

 

 

1,805,496

 

General, Series C, 5.00%,
2/15/40

 

 

4,700

 

 

5,113,365

 

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

 

 

2,100

 

 

2,166,486

 

Western Michigan University, Refunding
RB, General, 5.25%, 11/15/40

 

 

2,100

 

 

2,315,250

 

 

 

 

 

 

 

27,617,146

 

Health — 26.4%

 

 

 

 

 

 

 

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

 

 

3,100

 

 

3,100,341

 

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

 

 

 

 

 

 

 

6.00%, 7/01/20

 

 

1,125

 

 

1,144,834

 

Series A, 5.38%, 7/01/20

 

 

615

 

 

615,443

 

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

 

 

4,750

 

 

5,134,418

 

Kent Hospital Finance Authority
Michigan, RB, Spectrum Health,
Series A, 5.00%, 11/15/29

 

 

4,500

 

 

4,970,430

 

Kent Hospital Finance Authority
Michigan, Refunding RB, Butterworth,
Series A (NPFGC), 7.25%, 1/15/13 (b)

 

 

330

 

 

339,237

 

Michigan State Hospital Finance
Authority, RB:

 

 

 

 

 

 

 

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

 

 

3,700

 

 

4,140,448

 

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

 

 

2,530

 

 

2,536,578

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

APRIL 30, 2012

2


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

Health (concluded)

 

 

 

 

 

 

 

Michigan State Hospital Finance
Authority, RB (concluded):

 

 

 

 

 

 

 

Hospital, Oakwood Obligation
Group, Series A, 5.75%,
4/01/13 (a)

 

$

5,000

 

$

5,079,850

 

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

 

 

1,000

 

 

1,058,160

 

MidMichigan Obligation Group,
Series A, 5.00%, 4/15/26

 

 

620

 

 

641,421

 

MidMichigan Obligation Group,
Series A, 5.00%, 4/15/36

 

 

3,550

 

 

3,620,077

 

Trinity Health Credit, 5.00%,
12/01/31

 

 

3,100

 

 

3,441,155

 

Trinity Health Credit, 5.00%,
12/01/35

 

 

3,100

 

 

3,352,402

 

Trinity Health Credit, Series C,
5.38%, 12/01/12 (a)

 

 

3,410

 

 

3,442,497

 

Michigan State Hospital Finance
Authority, Refunding RB:

 

 

 

 

 

 

 

4.00%, 12/01/32 (c)

 

 

6,200

 

 

6,148,230

 

Henry Ford Health System,
Series A, 5.25%, 11/15/46

 

 

2,500

 

 

2,585,325

 

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

 

 

2,050

 

 

2,070,090

 

Hospital, Oakwood Obligation
Group, Series A, 5.00%,
7/15/21

 

 

600

 

 

650,598

 

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

 

 

3,260

 

 

3,435,681

 

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

 

 

630

 

 

644,729

 

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

 

 

3,100

 

 

3,241,701

 

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

 

 

4,500

 

 

4,949,280

 

Oakwood Obligated Group,
5.00%, 11/01/32 (c)

 

 

4,000

 

 

4,255,520

 

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

 

 

930

 

 

1,074,513

 

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

 

 

1,000

 

 

1,181,510

 

Trinity Health Credit, Series C,
5.38%, 12/01/12 (a)

 

 

1,000

 

 

1,030,160

 

Trinity Health Credit, Series C,
5.38%, 12/01/12 (a)

 

 

345

 

 

355,405

 

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

 

 

1,000

 

 

1,271,680

 

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

 

 

475

 

 

481,151

 

 

 

 

 

 

 

75,992,864

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

Housing — 4.6%

 

 

 

 

 

 

 

Michigan State HDA, RB:

 

 

 

 

 

 

 

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

 

$

1,000

 

$

1,023,720

 

Series A, 4.75%, 12/01/25

 

 

4,400

 

 

4,726,568

 

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

 

 

130

 

 

130,068

 

Williams Pavilion, AMT (Ginnie
Mae), 4.75%, 4/20/37

 

 

3,775

 

 

3,826,642

 

Michigan State HDA, Refunding RB,
Series A, 6.05%, 10/01/41

 

 

3,260

 

 

3,506,651

 

 

 

 

 

 

 

13,213,649

 

State — 16.2%

 

 

 

 

 

 

 

Michigan Municipal Bond Authority,
Refunding RB, Local Government,
Charter County Wayne, Series B
(AGC), 5.38%, 11/01/24

 

 

125

 

 

144,359

 

Michigan State Building Authority,
Refunding RB:

 

 

 

 

 

 

 

Facilities Program, Series H (AGM),
5.00%, 10/15/26

 

 

4,500

 

 

5,027,895

 

Series I, 5.50%, 10/15/45

 

 

1,250

 

 

1,402,712

 

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

 

 

600

 

 

682,392

 

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

 

 

3,500

 

 

3,639,510

 

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

 

 

 

 

 

 

 

6.25%, 10/15/38

 

 

3,900

 

 

4,491,981

 

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

 

 

4,000

 

 

4,621,400

 

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

 

 

2,000

 

 

2,293,820

 

Michigan State Finance Authority, RB,
Series F:

 

 

 

 

 

 

 

5.00%, 4/01/31

 

 

1,000

 

 

1,048,970

 

5.25%, 10/01/41

 

 

6,085

 

 

6,379,636

 

Michigan Strategic Fund, RB, Cadillac
Place Office Building Project, 5.25%,
10/15/31

 

 

1,500

 

 

1,653,885

 

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

 

 

5,250

 

 

5,763,817

 

State of Michigan Trunk Line Revenue,
RB:

 

 

 

 

 

 

 

5.00%, 11/15/29

 

 

1,000

 

 

1,147,870

 

5.00%, 11/15/33

 

 

1,850

 

 

2,095,902

 

5.00%, 11/15/36

 

 

3,500

 

 

3,946,915

 

State of Michigan, COP (AMBAC), 5.56%,
6/01/22 (b)(d)

 

 

3,000

 

 

2,340,390

 

 

 

 

 

 

 

46,681,454

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

APRIL 30, 2012

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

Transportation — 11.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 12/01/25

 

$

7,525

 

$

7,844,512

 

5.25%, 12/01/26

 

 

6,300

 

 

6,535,494

 

5.00%, 12/01/34

 

 

4,435

 

 

4,450,700

 

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

 

 

 

 

 

 

 

5.75%, 12/01/25

 

 

4,000

 

 

4,356,480

 

5.75%, 12/01/26

 

 

1,000

 

 

1,079,560

 

5.38%, 12/01/32

 

 

8,700

 

 

9,089,064

 

 

 

 

 

 

 

33,355,810

 

Utilities — 18.0%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,586,920

 

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

 

 

1,550

 

 

1,634,599

 

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

 

 

6,000

 

 

6,029,340

 

Series B (NPFGC), 5.25%,
7/01/13 (a)

 

 

11,790

 

 

12,467,925

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

(NPFGC), 6.25%, 7/01/12 (b)

 

 

280

 

 

282,554

 

Second Lien, Series C (AGM),
5.00%, 7/01/29

 

 

10,570

 

 

10,784,360

 

City of Port Huron Michigan, RB, Water
Supply:

 

 

 

 

 

 

 

5.25%, 10/01/31

 

 

310

 

 

333,098

 

5.63%, 10/01/40

 

 

1,000

 

 

1,080,770

 

Lansing Board of Water & Light Utilities,
RB, Series A:

 

 

 

 

 

 

 

5.00%, 7/01/27

 

 

1,970

 

 

2,248,105

 

5.00%, 7/01/31

 

 

4,230

 

 

4,744,960

 

5.00%, 7/01/37

 

 

2,065

 

 

2,294,091

 

Lansing Board of Water & Light Utilities
System, RB, Series A, 5.50%,
7/01/41

 

 

3,000

 

 

3,467,010

 

Michigan Municipal Bond Authority, RB:

 

 

 

 

 

 

 

Clean Water Revolving-Pooled,
5.00%, 10/01/27

 

 

1,240

 

 

1,442,616

 

State Clean Water, 5.00%,
10/01/27

 

 

1,250

 

 

1,436,387

 

 

 

 

 

 

 

51,832,735

 

Total Municipal Bonds in Michigan

 

 

 

 

 

369,400,110

 

 

 

 

 

 

 

 

 

Guam — 1.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,484,518

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

Guam (concluded)

 

 

 

 

 

 

 

State — 0.9%

 

 

 

 

 

 

 

Government of Guam Business
Privilege, RB, Series A, 5.13%,
1/01/42

 

$

2,300

 

$

2,496,075

 

Utilities — 0.1%

 

 

 

 

 

 

 

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

 

 

265

 

 

285,938

 

Total Municipal Bonds in Guam

 

 

 

 

 

4,266,531

 

 

 

 

 

 

 

 

 

Puerto Rico — 8.0%

 

 

 

 

 

 

 

State — 5.0%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,215,500

 

Puerto Rico Sales Tax Financing Corp., RB:

 

 

 

 

 

 

 

First Sub-Series A, 5.50%,
8/01/42

 

 

500

 

 

539,510

 

First Sub-Series C (AGM), 5.13%,
8/01/42

 

 

5,100

 

 

5,418,495

 

Series A-1, 5.25%, 8/01/43

 

 

1,070

 

 

1,143,477

 

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

 

 

 

 

 

 

 

5.18%, 8/01/43

 

 

12,500

 

 

2,132,750

 

5.00%, 8/01/46

 

 

20,000

 

 

2,797,400

 

 

 

 

 

 

 

14,247,132

 

Transportation — 1.1%

 

 

 

 

 

 

 

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

 

 

2,750

 

 

3,185,600

 

Utilities — 1.9%

 

 

 

 

 

 

 

Puerto Rico Electric Power Authority, RB,
5.50%, 7/01/38

 

 

1,400

 

 

1,439,648

 

Puerto Rico Electric Power Authority,
Refunding RB, 5.00%, 7/01/42 (c)

 

 

4,100

 

 

4,093,358

 

 

 

 

 

 

 

5,533,006

 

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

22,965,738

 

 

 

 

 

 

 

 

 

Total Municipal Bonds – 137.9%

 

 

 

 

 

396,632,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond
(TOB) Trusts (e)

 

 

 

 

 

 

 

Michigan — 19.6%

 

 

 

 

 

 

 

County/City/Special District/School District — 8.4%

 

 

 

 

 

 

 

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

 

 

11,387

 

 

11,926,714

 

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

 

 

6,470

 

 

7,112,341

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

APRIL 30, 2012

4


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond
(TOB) Trusts (e)

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

$

4,650

 

$

4,990,845

 

 

 

 

 

 

 

24,029,900

 

Education — 7.3%

 

 

 

 

 

 

 

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

 

 

7,500

 

 

8,080,200

 

Wayne State University, Refunding RB:

 

 

 

 

 

 

 

5.00%, 11/15/35

 

 

5,997

 

 

6,413,840

 

General (AGM), 5.00%, 11/15/35

 

 

6,210

 

 

6,641,657

 

 

 

 

 

 

 

21,135,697

 

Health — 1.3%

 

 

 

 

 

 

 

Michigan Finance Authority, RB,
Refunding Trinity Health, 5.00%,
12/01/39

 

 

3,350

 

 

3,603,394

 

Housing — 2.6%

 

 

 

 

 

 

 

Michigan State HDA, RB, Series A,
6.00%, 10/01/45

 

 

6,990

 

 

7,470,807

 

Total Municipal Bonds in Michigan

 

 

 

 

 

56,239,798

 

 

 

 

 

 

 

 

 

Puerto Rico — 0.4%

 

 

 

 

 

 

 

State — 0.4%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, Series C, 5.25%,
8/01/40

 

 

1,060

 

 

1,159,852

 

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

1,159,852

 

 

Total Municipal Bonds Transferred to Tender Option
Bond (TOB) Trusts – 20.0%

 

 

 

 

 

57,399,650

 

Total Long-Term Investments
(Cost – $425,783,880) – 157.9%

 

 

 

 

 

454,032,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 

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

 

 

9,426,044

 

$

9,426,044

 

Total Short-Term Securities
(Cost – $9,426,044) – 3.3%

 

 

 

 

 

9,426,044

 

Total Investments (Cost - $435,209,924*) – 161.2%

 

 

 

 

 

463,458,073

 

Liabilities in Excess of Other Assets – (1.0)%

 

 

 

 

 

(2,754,053

)

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (9.9)%

 

 

 

 

 

(28,596,975

)

VRDP Shares, at Liquidation Value – (50.3)%

 

 

 

 

 

(144,600,000

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

287,507,045

 

 

 

*

As of April 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

 

 

 

 

Tax cost

 

$

406,813,333

 

Gross unrealized appreciation

 

$

29,391,394

 

Gross unrealized depreciation

 

 

(1,325,539

)

Net unrealized appreciation

 

$

28,065,855

 

 

 

(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)

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


 

 

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 

Bank of America Merrill Lynch

 

$

6,148,230

 

$

50,840

 

 

Morgan Stanley & Co., Inc.

 

$

4,093,358

 

$

44,034

 

 

RBC Capital Markets

 

$

4,255,520

 

$

27,880

 

 

 

(d)

Represents a zero-coupon bond. Rate shown reflects the current yield 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.

 

 

(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, 2011

 

Net
Activity

 

Shares
Held at
April 30, 2012

 

Income

 

 

BIF Michigan
Municipal
Money Fund

 

 

6,928,754

 

 

2,497,290

 

 

9,426,044

 

 

—

 

 

 

(g)

Represents the current yield as of report date.

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

APRIL 30, 2012

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

 

•

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. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.


 

Portfolio Abbreviations

 

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


 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

COP

Certificates of Participation

EDC

Economic Development Corp.

GAB

Grant Anticipation Bonds

Ginnie Mae

Government National Mortgage Association

GO

General Obligation Bonds

HDA

Housing Development Authority

NPFGC

National Public Finance Guarantee Corp.

Q-SBLF

Qualified School Bond Loan Fund

RB

Revenue Bonds

 

 

•

Financial futures contracts sold as of April 30, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

170

 

10-Year US Treasury Note

 

Chicago Board of Trade

 

June 2012

 

$

22,487,813

 

$

(270,636

)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

 

 

 

•

Level 1 — unadjusted 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 and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the inputs used as of April 30, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term
Investments1

 

 

—

 

$

454,032,029

 

 

—

 

$

454,032,029

 

Short-Term
Securities

 

$

9,426,044

 

 

—

 

 

—

 

 

9,426,044

 

Total

 

$

9,426,044

 

$

454,032,029

 

 

—

 

$

463,458,073

 

 

 

1

See above Schedule of Investments for values in each sector.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

Derivative Financial
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

(270,636

)

 

—

 

 

—

 

$

(270,636

)

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

 

 

Certain of the Fund’s assets and liabilities are held at carrying amount which approximates fair value. Such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash pledged
as collateral
for financial
futures
contracts

 

$

225,000

 

 

—

 

 

—

 

$

225,000

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank Overdraft

 

 

(12,050

)

 

—

 

 

—

 

 

(12,050

)

TOB trust
certificates

 

 

—

 

$

(28,578,885

)

 

—

 

 

(28,578,885

)

VRDP Shares

 

 

—

 

 

(144,600,000

)

 

—

 

 

(144,600,000

)

Total

 

$

212,950

 

$

(173,178,885

)

 

—

 

$

(172,965,935

)

There were no transfers between levels during the period ended April 30, 2012.

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

APRIL 30, 2012

6

Item 2 –

Controls and Procedures

 

 

2(a) –

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

2(b) –

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

BlackRock MuniYield Michigan Quality Fund, Inc.

 

 

 

 By: /s/ John M. Perlowski

 

 

 

John M. Perlowski

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniYield Michigan Quality Fund, Inc.

 

 

 

Date: June 22, 2012

 

 

 

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 Michigan Quality Fund, Inc.

 

 

 

Date: June 22, 2012

 

 

 

 By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

 

BlackRock MuniYield Michigan Quality Fund, Inc.

 

 

 

 

Date: June 22, 2012