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 811-06660

 

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

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield 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: 04/30/2012

 

Date of reporting period: 07/31/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments July 31, 2011 (Unaudited)

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

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 2.2%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series
A, 4.75%, 1/01/25

 

$

3,000

 

$

2,507,400

 

University of Alabama, RB, Series A
(NPFGC), 5.00%, 7/01/34

 

 

7,125

 

7,217,411

 

 

 

 

 

 

 

9,724,811

 

Alaska — 1.3%

 

 

 

 

 

 

 

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

 

 

600

 

 

609,114

 

Borough of Matanuska-Susitna Alaska,
RB, Goose Creek Correctional Center
(AGC), 6.00%, 9/01/32

 

 

4,425

 

 

4,892,767

 

 

 

 

 

 

 

5,501,881

 

Arizona — 1.3%

 

 

 

 

 

 

 

Salt River Project Agricultural
Improvement & Power District, RB,
Series A, 5.00%, 1/01/38

 

 

2,750

 

 

2,812,012

 

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

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

1,850

 

 

1,912,549

 

5.25%, 10/01/28

 

 

800

 

 

837,256

 

 

 

 

 

 

 

5,561,817

 

California — 19.1%

 

 

 

 

 

 

 

Alameda Corridor Transportation
Authority, Refunding RB, CAB,
Subordinate Lien, Series A (AMBAC),
5.45%, 10/01/25 (a)

 

 

4,150

 

 

3,394,700

 

Cabrillo Community College District, GO,
CAB, Election of 2004, Series B
(NPFGC) (b):

 

 

 

 

 

 

 

5.18%, 8/01/37

 

 

3,250

 

 

549,347

 

4.87%, 8/01/38

 

 

7,405

 

 

1,166,806

 

California Health Facilities Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

775

 

 

783,796

 

Sutter Health, Series B,
5.88%, 8/15/31

 

 

1,500

 

 

1,602,390

 

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

 

 

2,130

 

 

2,088,763

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

Carlsbad Unified School District, GO,
Election of 2006, Series B,
6.00%, 5/01/34 (a)

 

$

5,000

 

$

3,139,350

 

Chino Valley Unified School District, GO,
Election of 2002, Series C (NPFGC),
5.25%, 8/01/30

 

 

1,200

 

 

1,236,636

 

City of San Jose California, RB, Series A
1, AMT, 5.75%, 3/01/34

 

 

1,150

 

 

1,139,880

 

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

 

 

5,100

 

 

4,923,132

 

Coast Community College District
California, GO, Refunding, CAB,
Election of 2002, Series C (AGM),
5.00%, 8/01/13 (a)

 

 

2,800

 

 

2,457,392

 

El Monte Union High School District
California, GO, Election of 2002,
Series C (AGM), 5.25%, 6/01/28

 

 

6,110

 

 

6,409,084

 

Fresno Unified School District California,
GO, Election of 2001, Series E (AGM),
5.00%, 8/01/30

 

 

1,230

 

 

1,238,647

 

Grossmont-Cuyamaca Community
College District California, GO,
Refunding, CAB, Election of 2002,
Series C (AGC), 5.80%, 8/01/30 (b)

 

 

10,030

 

 

3,057,144

 

Hartnell Community College District
California, GO, CAB, Election of 2002,
Series D, 7.00%, 8/01/34 (a)

 

 

4,125

 

 

2,133,285

 

Los Angeles Community College District
California, GO:

 

 

 

 

 

 

 

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

 

 

770

 

 

788,434

 

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

 

 

2,500

 

 

2,628,125

 

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

 

 

3,210

 

 

2,764,099

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC):

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

4,000

 

 

4,083,880

 

5.00%, 10/01/36

 

 

2,275

 

 

2,293,928

 

 

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:

 

 

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.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

ERB

Education Revenue Bonds

GAN

Grant Anticipation Notes

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

LOC

Line of Credit

NPFGC

National Public Finance Guarantee Corp.

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

S/F

Single-Family

SAN

State Aid Notes

Syncora

Syncora Guarantee

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2011

1


 

 

 

 

Schedule of Investments (continued)

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

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Mount Diablo Unified School District
California, GO, Election of 2002
(NPFGC), 5.00%, 7/01/27

 

$

1,750

 

$

1,754,375

 

Orange County Sanitation District, COP,
Series B (AGM):

 

 

 

 

 

 

 

5.00%, 2/01/30

 

 

3,500

 

 

3,634,610

 

5.00%, 2/01/31

 

 

1,200

 

 

1,240,788

 

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

 

 

2,405

 

 

2,405,481

 

Poway Redevelopment Agency
California, Tax Allocation Bonds,
Refunding, Paguay Redevelopment
Project (AMBAC), 5.13%, 6/15/33

 

 

2,000

 

 

1,697,660

 

Sacramento Unified School District
California, GO, Election of 2002
(NPFGC), 5.00%, 7/01/30

 

 

2,500

 

 

2,539,000

 

San Bernardino Community College
District California, GO, CAB, Election of
2008, Series B, 6.38%, 8/01/34 (a)

 

 

10,000

 

 

6,261,200

 

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

 

 

3,000

 

 

3,030,600

 

San Diego Unified School District
California, GO, CAB, Election of 2008,
Series C, 6.85%, 7/01/38 (b)

 

 

2,200

 

 

395,164

 

San Joaquin County Transportation
Authority, RB, Limited Tax, Measure K,
Series A, 6.00%, 3/01/36

 

 

900

 

 

985,797

 

San Jose Unified School District Santa
Clara County California, GO, Election
of 2002, Series B (NPFGC),
5.00%, 8/01/29

 

 

2,825

 

 

2,892,885

 

San Marcos Unified School District, GO,
Election of 2010, Series A:

 

 

 

 

 

 

 

5.00%, 8/01/34

 

 

900

 

 

905,634

 

5.00%, 8/01/38

 

 

760

 

 

755,539

 

State of California, GO:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

30

 

 

30,017

 

5.50%, 4/01/28

 

 

5

 

 

5,132

 

Turlock Irrigation District,
Refunding RB, 5.50%, 1/01/41 (c)

 

 

1,100

 

 

1,133,374

 

Ventura County Community College
District, GO, Election of 2002, Series
B (NPFGC), 5.00%, 8/01/30

 

 

3,150

 

 

3,239,680

 

Yosemite Community College District,
GO, CAB, Election of 2004, Series D,
6.55%, 8/01/36 (b)

 

 

15,000

 

 

2,797,350

 

 

 

 

 

 

 

83,583,104

 

Colorado — 1.6%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Covenant Retirement Communities,
Series A, (Radian):

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

1,600

 

 

1,507,744

 

5.50%, 12/01/33

 

 

900

 

 

816,219

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Colorado (concluded)

 

 

 

 

 

 

 

E-470 Public Highway Authority
Colorado, Refunding RB, CAB, Series
B (NPFGC), 5.59%, 9/01/29 (b)

 

$

9,000

 

$

2,516,760

 

Regional Transportation District, COP,
Series A, 5.38%, 6/01/31

 

 

1,885

 

 

1,960,815

 

 

 

 

 

 

 

6,801,538

 

Florida — 9.4%

 

 

 

 

 

 

 

County of Duval Florida, COP, Master
Lease Program (AGM), 5.00%,
7/01/33

 

 

4,050

 

 

4,064,256

 

County of Miami-Dade Florida, GO,
Building Better Communities Program,
Series B, 6.38%, 7/01/28

 

 

3,300

 

 

3,681,414

 

County of Miami-Dade Florida, RB,
Water and Sewer System (AGM),
5.00%, 10/01/39

 

 

4,000

 

 

4,043,720

 

County of Miami-Dade Florida,
Refunding RB, Miami International
Airport, AMT (ACG), 5.00%, 10/01/40

 

 

8,200

 

 

7,387,790

 

Florida Ports Financing Commission,
Refunding RB, State Transportation
Trust Fund, Series B, AMT:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

1,395

 

 

1,404,012

 

5.38%, 10/01/29

 

 

1,900

 

 

1,927,360

 

Florida State Department of
Environmental Protection, RB, Series
B (NPFGC), 5.00%, 7/01/27

 

 

2,545

 

 

2,638,249

 

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

 

 

1,250

 

 

1,324,337

 

Hillsborough County Aviation Authority,
RB, Series A, AMT (AGC), 5.38%,
10/01/33

 

 

2,700

 

 

2,714,931

 

Orange County School Board, COP,
Series A:

 

 

 

 

 

 

 

(AGC), 5.50%, 8/01/34

 

 

3,550

 

 

3,668,286

 

(NPFGC), 5.00%, 8/01/31

 

 

5,000

 

 

5,013,150

 

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

 

 

375

 

 

378,919

 

South Florida Water Management
District, COP (AGC), 5.00%, 10/01/22

 

 

2,700

 

 

2,849,418

 

 

 

 

 

 

 

41,095,842

 

Georgia — 0.3%

 

 

 

 

 

 

 

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

 

 

1,125

 

 

1,137,173

 

Illinois — 21.3%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,081,100

 

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

 

 

750

 

 

767,317

 

 

 

 

 

 

2

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2011

 


 

 

 

 

Schedule of Investments (continued)

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

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

(AGM), 5.75%, 1/01/23

 

$

3,400

 

$

3,505,026

 

(AGM), 5.75%, 1/01/24

 

 

4,000

 

 

4,121,720

 

(Syncora), 6.00%, 1/01/29

 

 

3,300

 

 

3,368,970

 

City of Chicago Illinois, GO, CAB, City
Colleges (NPFGC), 5.90%,
1/01/31 (b)

 

 

13,000

 

 

3,817,190

 

City of Chicago Illinois, RB, Series A:

 

 

 

 

 

 

 

(AGC), 5.00%, 1/01/38

 

 

4,000

 

 

3,994,000

 

General, Third Lien,
5.75%, 1/01/39

 

 

5,500

 

 

5,739,470

 

City of Chicago Illinois, Refunding ARB,
General, Third Lien, Series A-2, AMT
(AGM), 5.75%, 1/01/21

 

 

2,665

 

 

2,775,944

 

City of Chicago Illinois, Refunding RB,
General Airport, Third Lien, Series A,
AMT (NPFGC):

 

 

 

 

 

 

 

5.75%, 1/01/21

 

 

5,500

 

 

5,575,845

 

5.38%, 1/01/32

 

 

10,000

 

 

9,751,500

 

County of Cook Illinois, GO, Capital
Improvement, Series C (AMBAC),
5.50%, 11/15/12 (d)

 

 

5,080

 

 

5,419,598

 

Illinois Finance Authority, RB, Carle
Foundation, Series A,
5.75%, 8/15/34

 

 

850

 

 

837,173

 

Illinois Sports Facilities Authority, RB,
State Tax Supported (AMBAC), 5.50%,
6/15/30

 

 

28,525

 

 

28,985,964

 

Metropolitan Pier & Exposition Authority,
RB, CAB, McCormick Place Expansion
Project, Series A (NPFGC), 4.46%,
6/15/30 (b)

 

 

15,000

 

 

5,088,000

 

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

 

 

 

 

 

 

 

5.83%, 6/15/27

 

 

1,750

 

 

726,968

 

6.25%, 6/15/44

 

 

4,625

 

 

579,189

 

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

 

 

900

 

 

926,865

 

Regional Transportation Authority, RB,
Series B (NPFGC), 5.75%, 6/01/33

 

 

3,200

 

 

3,489,600

 

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

 

 

1,700

 

 

1,725,075

 

 

 

 

 

 

 

93,276,514

 

Indiana — 3.4%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB:

 

 

 

 

 

 

 

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

 

 

2,750

 

 

2,751,182

 

Series B, 5.75%, 1/01/34

 

 

550

 

 

561,286

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB:

 

 

 

 

 

 

 

Airport Authority Project, Series B,
AMT (NPFGC), 5.25%, 1/01/30

 

 

5,055

 

 

5,013,549

 

Waterworks Project, Series A,
5.75%, 1/01/38

 

 

1,300

 

 

1,368,835

 

Waterworks Project, Series A (AGC),
5.25%, 1/01/29

 

 

2,350

 

 

2,487,428

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Indiana (concluded)

 

 

 

 

 

 

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB
(concluded):

 

 

 

 

 

 

 

Waterworks Project, Series A (AGC),
5.50%, 1/01/38

 

$

2,450

 

$

2,562,161

 

 

 

 

 

 

 

14,744,441

 

Iowa — 1.8%

 

 

 

 

 

 

 

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

 

 

7,700

 

 

7,963,802

 

Louisiana — 0.5%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority,
Refunding RB, Christus Health, Series
B (AGC), 6.50%, 7/01/30

 

 

1,800

 

 

1,997,388

 

Massachusetts — 2.3%

 

 

 

 

 

 

 

Massachusetts HFA, RB, Rental
Mortgage, Series C, AMT (AGM),
5.60%, 1/01/45

 

 

4,000

 

 

4,005,840

 

Massachusetts HFA, Refunding RB,
Series C, AMT:

 

 

 

 

 

 

 

5.00%, 12/01/30

 

 

3,000

 

 

2,891,730

 

5.35%, 12/01/42

 

 

1,525

 

 

1,484,221

 

Massachusetts Water Resources
Authority, Refunding RB, General,
Series A (NPFGC), 5.00%, 8/01/34

 

 

1,800

 

 

1,857,402

 

 

 

 

 

 

 

10,239,193

 

Michigan — 10.6%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, System,
Second Lien, Series B (NPFGC),
5.00%, 7/01/36

 

 

3,150

 

 

2,897,559

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

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

 

 

8,300

 

 

8,724,462

 

Series D (NPFGC), 5.00%, 7/01/28

 

 

6,000

 

 

5,754,960

 

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

 

 

1,000

 

 

946,460

 

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

 

 

575

 

 

577,766

 

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

 

 

2,500

 

 

2,648,900

 

Michigan Higher Education Student
Loan Authority, Refunding RB, Student
Loan, Series XVII-G, AMT (AMBAC),
5.20%, 9/01/20

 

 

2,140

 

 

2,152,262

 

Michigan State Building Authority,
Refunding RB:

 

 

 

 

 

 

 

Series I-A, 5.38%, 10/15/36

 

 

1,200

 

 

1,208,808

 

Series I-A, 5.38%, 10/15/41

 

 

1,000

 

 

1,007,340

 

Series II-A (AGM), 5.25%, 10/15/36

 

 

4,270

 

 

4,306,594

 

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

 

 

1,455

 

 

1,460,951

 

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

 

 

 

 

 

 

 

Series A, 5.50%, 6/01/30

 

 

1,700

 

 

1,672,460

 

Series C, 5.45%, 12/15/32

 

 

5,800

 

 

5,593,926

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2011

3


 

 

 

 

Schedule of Investments (continued)

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

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

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

 

$

3,510

 

$

4,052,260

 

State of Michigan, RB, GAN (AGM),
5.25%, 9/15/26

 

 

3,350

 

 

3,553,010

 

 

 

 

 

 

 

46,557,718

 

Minnesota — 0.7%

 

 

 

 

 

 

 

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

 

 

2,700

 

 

2,941,326

 

Nevada — 7.1%

 

 

 

 

 

 

 

City of Carson City Nevada, RB, Carson-
Tahoe Hospital Project, Series A
(Radian), 5.50%, 9/01/33

 

 

4,100

 

 

3,743,218

 

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

 

 

1,150

 

 

1,248,360

 

County of Clark Nevada, RB (NPFGC):

 

 

 

 

 

 

 

Southwest Gas Corp. Project,
Series D, AMT,
5.25%, 3/01/38

 

 

8,800

 

 

8,194,736

 

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

 

 

2,000

 

 

2,009,620

 

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

 

 

 

16,350

 

 

16,007,140

 

 

 

 

 

 

 

31,203,074

 

New Jersey — 7.4%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax (Radian),
5.50%, 6/15/31

 

 

1,285

 

 

1,209,468

 

Motor Vehicle Surcharge, Series A
(NPFGC), 5.25%, 7/01/31

 

 

17,365

 

 

17,788,879

 

School Facilities Construction,
Series O, 5.13%, 3/01/30

 

 

7,500

 

 

7,601,325

 

New Jersey Higher Education Student
Assistance Authority, RB, Series 1:

 

 

 

 

 

 

 

5.50%, 12/01/25

 

 

800

 

 

822,168

 

5.75%, 12/01/27

 

 

375

 

 

386,764

 

5.75%, 12/01/28

 

 

400

 

 

409,672

 

5.88%, 12/01/33

 

 

1,980

 

 

2,005,067

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System,
Series A (NPFGC), 5.75%, 6/15/25

 

 

2,000

 

 

2,269,160

 

 

 

 

 

 

 

32,492,503

 

New York — 0.5%

 

 

 

 

 

 

 

New York State Dormitory Authority,
ERB, Series B, 5.75%, 3/15/36

 

 

2,000

 

 

2,201,800

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

North Carolina — 0.4%

 

 

 

 

 

 

 

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

 

$

2,300

 

$

1,955,161

 

Ohio — 0.5%

 

 

 

 

 

 

 

County of Lucas Ohio, Refunding RB,
Promedica Healthcare, Series A,
6.50%, 11/15/37

 

 

725

 

 

806,055

 

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

 

 

1,400

 

 

1,375,430

 

 

 

 

 

 

 

2,181,485

 

Pennsylvania — 2.1%

 

 

 

 

 

 

 

Pennsylvania HFA, Refunding RB,
Series 99A, AMT, 5.25%, 10/01/32

 

 

2,000

 

 

2,007,020

 

Pennsylvania Turnpike Commission, RB,
Subordinate, Special Motor License
Fund:

 

 

 

 

 

 

 

6.00%, 12/01/36

 

 

775

 

 

863,412

 

5.50%, 12/01/41

 

 

6,000

 

 

6,345,120

 

 

 

 

 

 

 

9,215,552

 

Puerto Rico — 2.3%

 

 

 

 

 

 

 

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

 

 

4,700

 

 

5,041,972

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.72%,
8/01/41 (b)

 

 

28,000

 

 

3,995,880

 

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

 

 

1,050

 

 

1,102,090

 

 

 

 

 

 

 

10,139,942

 

South Carolina — 0.7%

 

 

 

 

 

 

 

South Carolina Jobs-EDA, Refunding RB,
Palmetto Health, Series A (AGM),
6.50%, 8/01/39

 

 

320

 

 

333,370

 

South Carolina Transportation
Infrastructure Bank, RB, Series A,
5.25%, 10/01/40

 

 

2,500

 

 

2,548,050

 

 

 

 

 

 

 

2,881,420

 

Texas — 11.9%

 

 

 

 

 

 

 

Bell County Health Facility Development
Corp. Texas, RB, Lutheran General
Health Care System, 6.50%,
7/01/19 (e)

 

 

1,000

 

 

1,246,620

 

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

 

 

2,850

 

 

3,171,765

 

Comal ISD, GO, School Building
(PSF-GTD), 5.00%, 2/01/36

 

 

2,500

 

 

2,561,725

 

 

 

 

 

 

4

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2011

 


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Dallas-Fort Worth International Airport
Facilities Improvement Corp., Refunding
RB, Joint Series A, AMT (NPFGC):

 

 

 

 

 

 

 

5.88%, 11/01/17

 

$

1,835

 

$

1,854,818

 

5.88%, 11/01/18

 

 

2,145

 

 

2,168,166

 

5.88%, 11/01/19

 

 

2,385

 

 

2,402,434

 

Lewisville ISD Texas, GO, Refunding, CAB,
School Building (NPFGC), 4.06%,
8/15/24 (b)

 

 

4,150

 

 

2,302,378

 

Lone Star College System, GO, 5.00%,
8/15/33

 

 

4,800

 

 

5,076,960

 

Mansfield ISD Texas, GO, School
Building (PSF-GTD), 5.00%, 2/15/33

 

 

2,300

 

 

2,397,060

 

North Texas Tollway Authority,
Refunding RB, First Tier:

 

 

 

 

 

 

 

Series A, 6.00%, 1/01/28

 

 

3,380

 

 

3,643,708

 

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

 

 

12,300

 

 

12,391,143

 

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

 

 

 

 

 

 

 

5.75%, 8/15/38

 

 

7,200

 

 

7,215,624

 

5.00%, 8/15/42

 

 

6,045

 

 

5,530,329

 

 

 

 

 

 

 

51,962,730

 

Utah — 3.9%

 

 

 

 

 

 

 

City of Salt Lake City Utah, Refunding
RB, IHC Hospitals Inc. (NPFGC),
6.30%, 2/15/15 (e)

 

 

15,000

 

 

16,900,950

 

Vermont — 0.0%

 

 

 

 

 

 

 

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

 

 

75

 

 

76,474

 

Virginia — 0.5%

 

 

 

 

 

 

 

Virginia HDA, RB, Sub-Series H-1
(NPFGC), 5.35%, 7/01/31

 

 

2,125

 

 

2,125,786

 

Washington — 1.0%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit
Authority, RB, Series A, 5.00%,
11/01/36

 

 

2,000

 

 

2,048,380

 

Washington Health Care Facilities
Authority, RB, Providence Health &
Services, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

1,525

 

 

1,504,473

 

5.25%, 10/01/39

 

 

850

 

 

859,376

 

 

 

 

 

 

 

4,412,229

 

Wisconsin — 0.9%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,850

 

 

1,867,372

 

Froedtert & Community
Health, 5.25%, 4/01/39

 

 

2,000

 

 

2,007,360

 

 

 

 

 

 

 

3,874,732

 

Total Municipal Bonds – 115.0%

 

 

 

 

 

502,750,386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

California — 8.5%

 

 

 

 

 

 

 

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

 

$

1,244

 

$

1,247,351

 

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

 

 

7,000

 

 

7,150,360

 

Los Angeles Community College District
California, GO, Series A:

 

 

 

 

 

 

 

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

 

 

6,120

 

 

6,266,513

 

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

 

 

2,639

 

 

2,939,934

 

Orange County Sanitation District, COP
(NPFGC), 5.00%, 2/01/33

 

 

2,749

 

 

2,772,814

 

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

 

 

509

 

 

535,652

 

San Diego County Water Authority, COP,
Refunding:

 

 

 

 

 

 

 

Series 2002-A (NPFGC),
5.00%, 5/01/32

 

 

9,003

 

 

9,070,105

 

Series 2008-A (AGM),
5.00%, 5/01/33

 

 

5,170

 

 

5,279,501

 

Tamalpais Union High School District
California, GO, Election of 2001
(AGM), 5.00%, 8/01/28

 

 

1,950

 

 

2,010,119

 

 

 

 

 

 

 

37,272,349

 

Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

1,220

 

 

1,258,313

 

District of Columbia — 0.3%

 

 

 

 

 

 

 

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

 

 

1,320

 

 

1,472,024

 

Florida — 11.7%

 

 

 

 

 

 

 

City of Tallahassee Florida, RB (NPFGC):

 

 

 

 

 

 

 

5.00%, 10/01/32

 

 

2,700

 

 

2,742,795

 

5.00%, 10/01/37

 

 

6,000

 

 

6,050,280

 

County of Miami-Dade Florida, RB,
Water & Sewer System (AGM), 5.00%,
10/01/39

 

 

8,728

 

 

8,823,516

 

County of Seminole Florida, Refunding
RB, Series B (NPFGC), 5.25%,
10/01/31

 

 

6,300

 

 

6,688,584

 

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

 

 

2,399

 

 

2,464,500

 

Highlands County Health Facilities
Authority, RB, Adventist, Series C,
5.25%, 11/15/36

 

 

5,990

 

 

5,989,521

 

Jacksonville Electric Authority Florida,
RB, Sub-Series A, 5.63%, 10/01/32

 

 

4,310

 

 

4,591,615

 

Miami-Dade County School Board, COP,
Refunding, Series B (AGC), 5.25%,
5/01/27

 

 

11,350

 

 

11,724,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2011

5


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

Orange County School Board, COP,
Series A (NPFGC), 5.00%, 8/01/30

 

$

2,000

 

$

2,009,660

 

 

 

 

 

 

 

51,085,361

 

Georgia — 3.5%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,152,600

 

City of Atlanta Georgia, RB, General,
Subordinate Lien, Series C (AGM),
5.00%, 1/01/33

 

 

10,000

 

 

10,042,700

 

 

 

 

 

 

 

15,195,300

 

Hawaii — 1.4%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

6,095,880

 

Illinois — 3.9%

 

 

 

 

 

 

 

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

 

 

14,429

 

 

14,794,830

 

Illinois State Toll Highway Authority, RB,
Series B, 5.50%, 1/01/33

 

 

2,000

 

 

2,065,013

 

 

 

 

 

 

 

16,859,843

 

Massachusetts — 3.9%

 

 

 

 

 

 

 

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

 

 

16,500

 

 

17,147,202

 

Nevada — 1.8%

 

 

 

 

 

 

 

City of Las Vegas Nevada, GO, Limited
Tax, Performing Arts Center, 6.00%,
4/01/39

 

 

5,007

 

 

5,395,249

 

Clark County Water Reclamation District,
GO, Series B, 5.75%, 7/01/34

 

 

2,429

 

 

2,661,794

 

 

 

 

 

 

 

8,057,043

 

New York — 4.5%

 

 

 

 

 

 

 

Erie County Industrial Development
Agency, RB, City School District of
Buffalo Project, Series A (AGM),
5.75%, 5/01/28

 

 

2,007

 

 

2,182,300

 

New York City Municipal Water Finance
Authority, RB, Fiscal 2009, Series A,
5.75%, 6/15/40

 

 

3,509

 

 

3,857,380

 

New York State Dormitory Authority,
ERB, Series B, 5.75%, 3/15/36

 

 

1,545

 

 

1,700,890

 

New York State Thruway Authority, RB,
Series G (AGM), 5.00%, 1/01/32

 

 

10,000

 

 

10,242,600

 

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

 

 

1,500

 

 

1,580,640

 

 

 

 

 

 

 

19,563,810

 

 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

$

2,369

 

$

2,322,081

 

Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

780

 

 

813,228

 

South Carolina — 1.1%

 

 

 

 

 

 

 

South Carolina State Public Service
Authority, RB, Santee Cooper,
Series A, 5.50%, 1/01/38

 

 

4,695

 

 

5,000,504

 

Texas — 3.1%

 

 

 

 

 

 

 

Clear Creek ISD Texas, GO, Refunding,
School Building (PSF-GTD),
5.00%, 2/15/33

 

 

5,900

 

 

6,273,470

 

Cypress-Fairbanks ISD, GO, Refunding,
Schoolhouse (PSF-GTD),
5.00%, 2/15/32

 

 

4,750

 

 

4,976,338

 

North East ISD Texas, GO, School
Building, Series A (PSF-GTD),
5.00%, 8/01/37

 

 

2,000

 

 

2,062,720

 

 

 

 

 

 

 

13,312,528

 

Virginia — 0.1%

 

 

 

 

 

 

 

Fairfax County IDA Virginia, Refunding
RB, Health Care, Inova Health System,
Series A, 5.50%, 5/15/35

 

 

450

 

 

466,668

 

Washington — 0.6%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit
Authority, RB, Series A (AGM),
5.00%, 11/01/32

 

 

2,504

 

 

2,592,672

 

Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts –
45.4%

 

 

 

 

 

198,514,806

 

Total Long-Term Investments
(Cost – $697,130,594) – 160.4%

 

 

 

 

 

701,265,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.01% (h)(i)

 

 

8,074,835

 

 

8,074,835

 

Total Short-Term Securities
(Cost – $8,074,835) – 1.8%

 

 

 

 

 

8,074,835

 

Total Investments
(Cost – $705,205,429*) – 162.2%

 

 

 

 

 

709,340,027

 

Other Assets Less Liabilities – 1.3%

 

 

 

 

 

5,526,044

 

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

 

 

 

 

 

(100,881,062

)

AMPS, at Redemption Value – (40.4)%

 

 

 

 

 

(176,640,468

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

437,344,541

 

 

 

 

 


6


BLACKROCK MUNIYIELD QUALITY FUND, INC.


JULY 31, 2011

 


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)


 

 

*

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


 

 

 

 

 

Aggregate Cost

 

$

705,214,863

 

Gross unrealized appreciation

 

$

15,828,922

 

Gross unrealized depreciation

 

 

(1,168,489

)

Net unrealized appreciation

 

$

14,660,433

 

 

 

(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)

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

 

Barclays Capital INC

 

$

1,133,374

 

$

2,992

 

 

 

(d)

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.

 

 

(e)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(f)

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

 

 

(g)

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.

 

 

(h)

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
April 30,
2011

 

Net
Activity

 

Shares
Held at
July 31,
2011

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

4,098,484

 

 

3,976,351

 

 

8,074,835

 

$

970

 

 

 

(i)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of July 31, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

235

 

10-Year
U.S.
Treasury
Note

 

Chicago
Board
of Trade

 

September
2011

 

$

28,794,710

 

$

(741,853

)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized in three broad levels for financial reporting purposes 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 and derivative financial instruments)

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 does not necessarily correspond to the Fund’s perceived risk of 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 annual report.

The following tables summarize the inputs used as of July 31, 2011 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

 

 

—

 

 

701,265,192

 

 

—

 

$

701,265,192

 

Short-Term Investments

 

$

8,074,835

 

 

—

 

 

—

 

 

8,074,835

 

Total

 

$

8,074,835

 

$

701,265,192

 

 

—

 

$

709,340,027

 

 

 

1

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(741,853

)

 

—

 

 

—

 

$

(741,853

)

 

 

2

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


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2011

7

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 Quality Fund, Inc.

 

 

 

 By: /s/ John M. Perlowski

 

 

 

John M. Perlowski 

 

 

Chief Executive Officer (principal executive officer) of 

 

 

BlackRock MuniYield Quality Fund, Inc. 

 

 

 

Date: September 26, 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 Quality Fund, Inc. 

 

 

 

Date: September 26, 2011 

 

 

 

 By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews 

 

 

Chief Financial Officer (principal financial officer) of 

 

 

BlackRock MuniYield Quality Fund, Inc. 

 

 

 

 

Date: September 26, 2011