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 811-21178

 

Name of Fund: BlackRock Municipal Income Quality Trust (BYM)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock Municipal Income Quality Trust, 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: 08/31/2011

 

Date of reporting period: 11/30/2010

 

Item 1 – Schedule of Investments

 

 

 

 

Schedule of Investments November 30, 2010 (Unaudited)

BlackRock Municipal Income Quality Trust (BYM)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 1.1%

 

 

 

 

 

 

 

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

 

$

1,495

 

$

1,606,736

 

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

 

 

2,800

 

 

2,295,888

 

 

 

 

 

 

 

 

 

 

 

 

3,902,624

 

Arizona — 0.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

1,500

 

 

1,511,625

 

5.25%, 10/01/28

 

 

650

 

 

661,915

 

 

 

 

 

 

 

 

 

 

 

 

2,173,540

 

California — 29.3%

 

 

 

 

 

 

 

Arcadia Unified School District
California, GO, CAB, Election of 2006,
Series A (AGM), 4.96%, 8/01/39 (a)

 

 

2,000

 

 

289,220

 

California Health Facilities Financing
Authority, Refunding RB, St. Joseph
Health System, Series A, 5.75%,
7/01/39

 

 

625

 

 

643,731

 

California Infrastructure & Economic
Development Bank, RB, Bay Area Toll
Bridges, First Lien, Series A (AMBAC),
5.00%, 1/01/28 (b)

 

 

10,100

 

 

11,475,923

 

Coast Community College District
California, GO, Refunding, CAB,
Election of 2002, Series C (AGM):

 

 

 

 

 

 

 

5.58%, 8/01/13 (c)

 

 

7,450

 

 

6,158,244

 

5.40%, 8/01/36 (a)

 

 

4,200

 

 

791,196

 

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

 

 

1,100

 

 

1,113,453

 

Golden State Tobacco Securitization
Corp. California, RB,
Series 2003-A-1 (b):

 

 

 

 

 

 

 

6.63%, 6/01/13

 

 

6,500

 

 

7,390,045

 

6.75%, 6/01/13

 

 

14,500

 

 

16,530,145

 

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

 

 

4,000

 

 

3,639,760

 

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

 

 

17,500

 

 

17,785,425

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Monterey Peninsula Community College
District, GO, CAB, Series C (AGM) (a):

 

 

 

 

 

 

 

5.15%, 8/01/31

 

$

13,575

 

$

3,549,727

 

5.16%, 8/01/32

 

 

14,150

 

 

3,418,498

 

Orange County Sanitation District, COP,
Series B (AGM), 5.00%, 2/01/31

 

 

2,500

 

 

2,569,250

 

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

 

 

2,700

 

 

2,720,763

 

San Francisco City & County Public
Utilities Commission, Refunding RB,
Series A (AGM), 5.00%, 11/01/31

 

 

15,000

 

 

15,081,000

 

San Joaquin Hills Transportation
Corridor Agency California, Refunding
RB, CAB, Series A (NPFGC), 5.50%,
1/15/31 (a)

 

 

53,000

 

 

10,415,560

 

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

 

 

2,350

 

 

2,399,844

 

 

 

 

 

 

 

 

 

 

 

 

105,971,784

 

Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

960

 

 

961,766

 

District of Columbia — 2.6%

 

 

 

 

 

 

 

District of Columbia Tobacco Settlement
Financing Corp., Refunding RB, Asset-
Backed, 6.75%, 5/15/40

 

 

9,500

 

 

9,518,240

 

Florida — 13.0%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,018,580

 

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

 

 

3,000

 

 

3,017,040

 

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

 

 

950

 

 

977,578

 

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

 

 

2,800

 

 

2,747,836

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.25%,
10/01/38 (a)

 

 

25,520

 

 

3,872,405

 

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

 

 

2,300

 

 

2,395,013

 

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

 

 

10,100

 

 

10,153,934

 

 

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.

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

ERB

Education Revenue Bonds

GO

General Obligation Bonds

IDA

Industrial Development Authority

ISD

Independent School District

NPFGC

National Public Finance Guarantee Corp.

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

SBPA

Stand-by Bond Purchase Agreement

VRDN

Variable Rate Demand Notes

 

 

 

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2010

1


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Quality Trust (BYM)

 

(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

 

$

1,300

 

$

1,251,874

 

Florida Housing Finance Corp., RB,
Homeowner Mortgage, Series 3
(Ginnie Mae), 5.45%, 7/01/33

 

 

4,210

 

 

4,315,376

 

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

 

 

7,500

 

 

7,723,875

 

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

 

 

2,385

 

 

2,454,237

 

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

 

 

5,590

 

 

5,828,190

 

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

 

 

300

 

 

307,056

 

 

 

 

 

 

 

 

 

 

 

 

47,062,994

 

Georgia — 0.2%

 

 

 

 

 

 

 

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

 

 

900

 

 

905,454

 

Hawaii — 1.4%

 

 

 

 

 

 

 

State of Hawaii, Refunding RB, Series A,
5.25%, 7/01/35

 

 

5,000

 

 

5,021,900

 

Illinois — 5.1%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,696,825

 

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

 

 

600

 

 

602,304

 

City of Chicago Illinois, RB, Series A
(AGC), 5.00%, 1/01/38

 

 

7,310

 

 

7,213,581

 

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

 

 

1,475

 

 

1,517,613

 

Illinois Municipal Electric Agency, RB,
Series A (NPFGC), 5.25%, 2/01/27

 

 

4,800

 

 

4,957,824

 

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

 

 

1,400

 

 

1,416,296

 

 

 

 

 

 

 

 

 

 

 

 

18,404,443

 

Indiana — 1.3%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB:

 

 

 

 

 

 

 

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

 

 

2,050

 

 

2,035,137

 

Series B, 5.75%, 1/01/34

 

 

450

 

 

471,839

 

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

 

 

2,000

 

 

2,118,940

 

 

 

 

 

 

 

 

 

 

 

 

4,625,916

 

Iowa — 1.4%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,272,200

 

Kentucky — 0.4%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,587,660

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Louisiana — 2.1%

 

 

 

 

 

 

 

State of Louisiana, RB, Series A (AGM),
5.00%, 5/01/31

 

$

7,500

 

$

7,729,200

 

Michigan — 2.8%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Senior Lien, Series A (NPFGC),
5.00%, 7/01/30

 

 

1,000

 

 

962,490

 

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

 

 

2,480

 

 

2,393,324

 

System, Second Lien, Series A
(BHAC), 5.50%, 7/01/36

 

 

2,900

 

 

2,959,276

 

System, Second Lien, Series B
(NPFGC), 5.00%, 7/01/36

 

 

100

 

 

92,527

 

City of Detroit Michigan, Refunding RB,
Second Lien, Series E (BHAC), 5.75%,
7/01/31

 

 

3,000

 

 

3,152,040

 

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

 

 

465

 

 

460,476

 

 

 

 

 

 

 

 

 

 

 

 

10,020,133

 

Nevada — 5.1%

 

 

 

 

 

 

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

4,100

 

 

4,081,755

 

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

 

 

2,500

 

 

2,525,200

 

System, Subordinate Lien, Series C
(AGM), 5.00%, 7/01/26

 

 

1,650

 

 

1,671,763

 

Truckee Meadows Water Authority, RB,
Series A (AGM), 5.00%, 7/01/11 (b)

 

 

10,000

 

 

10,276,200

 

 

 

 

 

 

 

 

 

 

 

 

18,554,918

 

New York — 1.8%

 

 

 

 

 

 

 

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

 

 

1,300

 

 

1,432,119

 

Port Authority of New York & New Jersey,
Refunding RB, Consolidated, 140th
Series, 5.00%, 12/01/34

 

 

5,000

 

 

5,110,750

 

 

 

 

 

 

 

 

 

 

 

 

6,542,869

 

North Carolina — 0.7%

 

 

 

 

 

 

 

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

 

 

2,875

 

 

2,555,703

 

Ohio — 0.3%

 

 

 

 

 

 

 

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

 

 

1,125

 

 

1,115,404

 

Pennsylvania — 1.4%

 

 

 

 

 

 

 

City of Philadelphia Pennsylvania, RB,
Series A (AGM), 5.00%, 6/15/40

 

 

5,000

 

 

4,984,550

 

Puerto Rico — 1.6%

 

 

 

 

 

 

 

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

 

 

5,300

 

 

5,741,225

 

 

 

 

2

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Quality Trust (BYM)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Rhode Island — 0.8%

 

 

 

 

 

 

 

Rhode Island Health & Educational
Building Corp., Refunding RB, Public
Schools Financing Program, Series E
(AGC), 6.00%, 5/15/29

 

$

2,625

 

$

2,853,217

 

South Carolina — 4.3%

 

 

 

 

 

 

 

South Carolina State Ports Authority, RB,
5.25%, 7/01/40 (d)

 

 

5,000

 

 

5,018,450

 

South Carolina Transportation
Infrastructure Bank, RB, Junior Lien,
Series B (AMBAC), 5.13%,
10/01/11 (b)

 

 

10,000

 

 

10,400,800

 

 

 

 

 

 

 

 

 

 

 

 

15,419,250

 

Tennessee — 5.0%

 

 

 

 

 

 

 

Knox County Health Educational &
Housing Facilities Board Tennessee,
Refunding RB, CAB, Series A
(AGM) (a):

 

 

 

 

 

 

 

5.84%, 1/01/22

 

 

7,500

 

 

4,092,225

 

5.88%, 1/01/23

 

 

9,260

 

 

4,736,860

 

5.90%, 1/01/24

 

 

8,500

 

 

4,085,355

 

5.91%, 1/01/25

 

 

6,850

 

 

3,094,556

 

5.93%, 1/01/26

 

 

5,000

 

 

2,115,650

 

 

 

 

 

 

 

 

 

 

 

 

18,124,646

 

Texas — 27.7%

 

 

 

 

 

 

 

City of Houston Texas, RB, Senior Lien,
Series A, 5.50%, 7/01/34

 

 

4,165

 

 

4,367,252

 

City of San Antonio Texas, Refunding RB
(NPFGC):

 

 

 

 

 

 

 

5.13%, 5/15/29

 

 

9,250

 

 

9,615,190

 

5.13%, 5/15/34

 

 

10,000

 

 

10,297,300

 

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

 

 

2,500

 

 

2,555,775

 

Coppell ISD Texas, GO, Refunding, CAB
(PSF-GTD), 5.64%, 8/15/30 (a)

 

 

10,030

 

 

4,100,866

 

County of Harris Texas, GO (NPFGC) (a):

 

 

 

 

 

 

 

5.56%, 8/15/25

 

 

7,485

 

 

4,138,307

 

5.60%, 8/15/28

 

 

10,915

 

 

5,058,884

 

County of Harris Texas, Refunding RB,
Senior Lien, Toll Road (AGM), 5.00%,
8/15/30

 

 

5,510

 

 

5,670,341

 

Harris County-Houston Sports Authority,
Refunding RB (NPFGC) (a):

 

 

 

 

 

 

 

CAB, Junior Lien, Series H, 5.93%,
11/15/38

 

 

5,785

 

 

657,697

 

CAB, Junior Lien, Series H, 5.94%,
11/15/39

 

 

6,160

 

 

647,909

 

Third Lien, Series A-3, 5.97%,
11/15/38

 

 

26,890

 

 

2,976,185

 

Third Lien, Series A-3, 5.98%,
11/15/39

 

 

27,675

 

 

2,846,927

 

Lewisville ISD Texas, GO, Refunding,
CAB, School Building (NPFGC), 4.67%,
8/15/24 (a)

 

 

3,815

 

 

2,034,540

 

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

 

 

2,980

 

 

3,077,655

 

North Texas Tollway Authority,
Refunding RB:

 

 

 

 

 

 

 

First Tier, Series A, 6.00%, 1/01/28

 

 

625

 

 

658,056

 

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

 

 

23,050

 

 

22,887,497

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Texas State Turnpike Authority, RB, First
Tier, Series A (AMBAC), 5.00%,
8/15/42

 

$

20,000

 

$

18,590,400

 

 

 

 

 

 

 

 

 

 

 

 

100,180,781

 

Washington — 5.1%

 

 

 

 

 

 

 

Chelan County Public Utility District
No. 1, RB, Chelan Hydro System,
Series C (AMBAC), 5.13%, 7/01/33

 

 

3,655

 

 

3,675,541

 

County of King Washington, Refunding
RB (AGM), 5.00%, 1/01/36

 

 

2,200

 

 

2,231,438

 

Port of Seattle Washington, RB, Series A
(NPFGC), 5.00%, 4/01/31

 

 

4,500

 

 

4,502,970

 

Washington Health Care Facilities
Authority, RB:

 

 

 

 

 

 

 

MultiCare Health Care, Series C
(AGC), 5.50%, 8/15/43

 

 

6,400

 

 

6,503,872

 

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

 

 

1,000

 

 

993,880

 

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

 

 

675

 

 

682,898

 

 

 

 

 

 

 

 

 

 

 

 

18,590,599

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB, Ascension
Health Senior Credit Group, 5.00%,
11/15/33

 

 

1,500

 

 

1,507,605

 

Total Municipal Bonds – 115.8%

 

 

 

 

 

419,328,621

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)

 

 

 

 

 

 

 

Arizona — 0.4%

 

 

 

 

 

 

 

Phoenix Civic Improvement Corp., RB,
Junior Lien, Series A, 5.00%, 7/01/34

 

 

1,300

 

 

1,350,518

 

California — 10.8%

 

 

 

 

 

 

 

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

 

 

3,379

 

 

3,407,532

 

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

 

 

8,000

 

 

8,078,400

 

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

 

 

7,500

 

 

7,539,750

 

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

 

 

5,000

 

 

5,033,450

 

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

 

 

449

 

 

468,984

 

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

 

 

4,870

 

 

4,948,261

 

University of California, RB, Series C
(NPFGC), 4.75%, 5/15/37

 

 

10,000

 

 

9,635,100

 

 

 

 

 

 

 

 

 

 

 

 

39,111,477

 

 

 

 

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2010

3


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Quality Trust (BYM)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)

 

Par
(000)

 

 

Value

 

District of Columbia — 0.3%

 

 

 

 

 

 

 

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

 

$

1,080

 

$

1,184,350

 

Florida — 3.9%

 

 

 

 

 

 

 

City of Tallahassee Florida, RB (NPFGC),
5.00%, 10/01/37

 

 

5,000

 

 

5,002,550

 

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

 

 

2,999

 

 

3,045,525

 

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

 

 

6,000

 

 

6,040,800

 

 

 

 

 

 

 

 

 

 

 

 

14,088,875

 

Hawaii — 2.8%

 

 

 

 

 

 

 

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

 

 

10,000

 

 

10,097,500

 

Illinois — 8.0%

 

 

 

 

 

 

 

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

 

 

4,499

 

 

4,722,149

 

Metropolitan Pier & Exposition Authority,
RB, McCormick Place Expansion
Project, Series A (NPFGC), 5.00%,
12/15/28

 

 

24,010

 

 

24,134,372

 

 

 

 

 

 

 

 

 

 

 

 

28,856,521

 

Massachusetts — 3.7%

 

 

 

 

 

 

 

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

 

 

12,987

 

 

13,381,627

 

Nevada — 1.9%

 

 

 

 

 

 

 

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

 

 

4,197

 

 

4,519,099

 

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

 

 

2,024

 

 

2,192,323

 

 

 

 

 

 

 

 

 

 

 

 

6,711,422

 

New York — 4.6%

 

 

 

 

 

 

 

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

 

 

4,494

 

 

4,946,901

 

Metropolitan Transportation Authority,
RB, Series A (NPFGC), 5.00%,
11/15/31

 

 

7,002

 

 

7,208,733

 

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

 

 

4,500

 

 

4,680,810

 

 

 

 

 

 

 

 

 

 

 

 

16,836,444

 

Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

620

 

 

648,353

 

South Carolina — 0.2%

 

 

 

 

 

 

 

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

 

 

600

 

 

641,946

 

Texas — 2.7%

 

 

 

 

 

 

 

Northside ISD Texas, GO, School
Building (PSF-GTD), 5.13%, 6/15/29

 

 

9,500

 

 

9,876,500

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)

 

Par
(000)

 

Value

 

Utah — 1.4%

 

 

 

 

 

 

 

Utah Transit Authority, RB, Series A
(AGM), 5.00%, 6/15/36

 

$

5,000

 

$

5,135,750

 

Virginia — 0.1%

 

 

 

 

 

 

 

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

 

 

400

 

 

420,688

 

Washington — 1.0%

 

 

 

 

 

 

 

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

 

 

3,494

 

 

3,601,278

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 42.0%

 

 

 

 

 

151,943,249

 

Total Long-Term Investments
(Cost – $575,215,611) – 157.8%

 

 

 

 

 

571,271,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 

New York — 0.4%

 

 

 

 

 

 

 

City of New York New York, GO,
VRDN, Sub-Series A-6 (AGM
Insurance, Dexia Credit Local
SBPA), 0.31%, 11/1/26 (f)

 

 

1,700

 

 

1,700,000

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

Money Market Fund — 2.9%

 

 

 

 

 

 

 

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

 

 

10,444,907

 

 

10,444,907

 

Total Short-Term Securities
(Cost – $12,144,907) – 3.3%

 

 

 

 

 

12,144,907

 

Total Investments
(Cost – $587,360,518*) – 161.1%

 

 

 

 

 

583,416,777

 

Liabilities in Excess of Other Assets – (0.9)%

 

 

 

 

 

(3,098,726

)

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (22.3)%

 

 

 

 

 

(80,986,977

)

Preferred Shares, at Redemption Value – (37.9)%

 

 

 

 

 

(137,254,432

)

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

362,076,642

 

 

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of November 30, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

 

Aggregate cost

 

$

506,162,963

 

 

 

 

 

Gross unrealized appreciation

 

$

17,658,073

 

 

Gross unrealized depreciation

 

 

(21,318,771

)

 

 

 

 

Net unrealized depreciation

 

$

(3,660,698

)

 

 

 

 

 

(a)

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

 

 

(b)

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.

 

 

(c)

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.

 

 

 

4

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2010


 

 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Income Quality Trust (BYM)

 

 

(d)

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

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

Morgan Stanley & Co.

 

$

961,766

 

$

16,425

 

Goldman Sachs

 

$

5,018,450

 

$

235,400

 

 

 

(e)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.

(f)

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

(g)

Investments in companies considered to be an affiliate of the Trust 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
August 31,
2010

 

Net
Activity

 

Shares
Held at
November 30,
2010

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

9,416,737

 

 

1,028,170

 

 

10,444,907

 

$

3,099

 

 

 

 

(h)

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 Trust’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 Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of November 30, 2010 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

571,271,870

 

 

—

 

$

571,271,870

 

Short-Term
Securities

 

$

10,444,907

 

 

1,700,000

 

 

—

 

 

12,144,907

 

Total

 

$

10,444,907

 

$

572,971,870

 

$

—

 

$

583,416,777

 

 

 

 

 

1

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

 

 

 

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2010

5

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 Municipal Income Quality Trust
   
  By: /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Quality Trust
   
  Date: January 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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Quality Trust
   
  Date: January 26, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Quality Trust
     
  Date: January 26, 2011