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: Anne F. Ackerley, 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: 04/30/2011

 

Date of reporting period: 07/31/2010

 

Item 1 – Schedule of Investments

 

 

 

 

Schedule of Investments July 31, 2010 (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

 

$

2,355,090

 

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

 

 

7,125

 

 

7,349,580

 

 

 

 

 

 

 

 

 

 

 

 

 

9,704,670

 

Alaska — 1.0%

 

 

 

 

 

 

 

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

 

 

3,925

 

 

4,453,933

 

Arizona — 0.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

1,850

 

 

1,904,742

 

5.25%, 10/01/28

 

 

800

 

 

831,816

 

 

 

 

 

 

 

 

 

 

 

 

 

2,736,558

 

California — 18.5%

 

 

 

 

 

 

 

Alameda Corridor Transportation
Authority, Refunding RB, CAB,
Subordinate Lien, Series A (AMBAC),
5.52%, 10/01/25 (a)

 

 

4,150

 

 

3,382,872

 

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

 

 

2,200

 

 

329,098

 

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

 

 

 

 

 

 

 

5.18%, 8/01/37

 

 

3,250

 

 

569,368

 

4.87%, 8/01/38

 

 

7,405

 

 

1,210,940

 

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

 

 

775

 

 

810,704

 

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

 

 

2,400

 

 

2,422,536

 

Carlsbad Unified School District, GO,
Election of 2006, Series B, 6.09%,
5/01/34 (a)

 

 

5,000

 

 

3,069,050

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

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

 

$

1,200

 

$

1,225,908

 

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

 

 

5,100

 

 

5,181,294

 

Coast Community College District
California, GO, Refunding, CAB,
Election of 2002, Series C (AGM),
5.52%, 8/01/13 (a)

 

 

2,800

 

 

2,351,188

 

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

 

 

6,110

 

 

6,471,468

 

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

 

 

1,230

 

 

1,261,390

 

Golden State Tobacco Securitization
Corp. California, RB, Enhanced Asset-
Backed, Series B (Syncora), 5.50%,
6/01/13 (c)

 

 

7,500

 

 

8,496,150

 

Hartnell Community College District
California, GO, CAB, Election of 2002,
Series D, 7.44%, 8/01/34 (c)

 

 

4,125

 

 

2,125,530

 

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

 

 

3,210

 

 

3,068,888

 

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

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

4,000

 

 

4,149,120

 

5.00%, 10/01/36

 

 

2,275

 

 

2,338,564

 

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

 

 

2,000

 

 

2,021,540

 

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

 

 

 

 

 

 

 

5.00%, 2/01/30

 

 

3,500

 

 

3,698,660

 

5.00%, 2/01/31

 

 

1,200

 

 

1,262,496

 

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

 

 

2,405

 

 

2,405,120

 

 

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

CIFG

CDC IXIS Financial Guaranty

COP

Certificates of Participation

EDA

Economic Development Authority

ERB

Education Revenue Bonds

FGIC

Financial Guaranty Insurance Co.

GAN

Grant Anticipation Notes

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

NPFGC

National Public Finance Guarantee Corp.

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

S/F

Single - Family

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2010

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)

 

 

 

 

 

 

 

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

 

$

2,000

 

$

1,813,600

 

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

 

 

2,500

 

 

2,553,425

 

San Bernardino Community College
District California, GO, CAB, Election
of 2008, Series B, 6.52%,
8/01/34 (a)

 

 

10,000

 

 

6,068,500

 

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

 

 

3,000

 

 

3,101,010

 

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

 

 

2,825

 

 

2,926,022

 

San Mateo County Community College
District, GO, Election of 2001,
Series A (NPFGC), 5.00%, 9/01/26

 

 

2,725

 

 

2,837,869

 

State of California, GO:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

30

 

 

30,094

 

5.50%, 4/01/28

 

 

5

 

 

5,249

 

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

 

 

3,150

 

 

3,244,027

 

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

 

 

15,000

 

 

2,849,850

 

 

 

 

 

 

 

 

 

 

 

 

 

83,281,530

 

Colorado — 1.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

1,600

 

 

1,506,160

 

5.50%, 12/01/33

 

 

900

 

 

821,718

 

E-470 Public Highway Authority
Colorado, Refunding RB, CAB,
Series B (NPFGC), 5.52%,
9/01/29 (b)

 

 

9,000

 

 

2,530,260

 

 

 

 

 

 

 

 

 

 

 

 

 

4,858,138

 

Florida — 8.6%

 

 

 

 

 

 

 

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

 

 

2,700

 

 

2,770,119

 

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

 

 

4,050

 

 

4,073,368

 

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

 

 

3,300

 

 

3,785,166

 

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

 

 

4,000

 

 

4,115,440

 

County of Miami-Dade Florida,
Refunding RB, AMT, Miami
International Airport:

 

 

 

 

 

 

 

(AGC), 5.00%, 10/01/40

 

 

8,200

 

 

7,987,620

 

Series A (CIFG), 5.00%, 10/01/38

 

 

2,900

 

 

2,673,858

 

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

 

 

2,200

 

 

2,229,084

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

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

 

$

2,545

 

$

2,644,357

 

Orange County School Board, COP,
Series A (NPFGC), 5.00%, 8/01/31

 

 

5,000

 

 

5,041,250

 

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

 

 

375

 

 

390,315

 

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

 

 

2,700

 

 

2,864,349

 

 

 

 

 

 

 

 

 

 

 

 

 

38,574,926

 

Georgia — 0.9%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB
(AGM), 5.25%, 10/01/39

 

 

2,820

 

 

2,936,381

 

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

 

 

1,125

 

 

1,151,213

 

 

 

 

 

 

 

 

 

 

 

 

 

4,087,594

 

Illinois — 21.6%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,279,960

 

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

 

 

 

 

 

 

 

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

 

 

3,400

 

 

3,560,582

 

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

 

 

4,000

 

 

4,165,680

 

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

 

 

3,300

 

 

3,414,939

 

City of Chicago Illinois, GO, CAB, City
Colleges (NPFGC), 5.89%,
1/01/31 (b)

 

 

13,000

 

 

4,353,440

 

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

 

 

4,000

 

 

4,089,360

 

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

 

 

2,665

 

 

2,814,320

 

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

 

 

 

 

 

 

 

5.75%, 1/01/21

 

 

13,665

 

 

14,046,527

 

5.50%, 1/01/22

 

 

5,000

 

 

5,108,550

 

5.38%, 1/01/32

 

 

12,500

 

 

12,444,250

 

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

 

 

5,080

 

 

5,648,706

 

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

 

 

28,525

 

 

29,802,064

 

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

 

 

3,200

 

 

3,593,664

 

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

 

 

1,700

 

 

1,757,137

 

 

 

 

 

 

 

 

 

 

 

 

 

97,079,179

 

Indiana — 2.4%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB:

 

 

 

 

 

 

 

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

 

 

2,750

 

 

2,789,078

 

Series B, 5.75%, 1/01/34

 

 

550

 

 

586,790

 

 

 

 

2

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Indiana (concluded)

 

 

 

 

 

 

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB, Airport
Authority Project, Series B, AMT
(NPFGC):

 

 

 

 

 

 

 

5.25%, 1/01/28

 

$

2,370

 

$

2,396,591

 

5.25%, 1/01/30

 

 

5,055

 

 

5,085,532

 

 

 

 

 

 

 

 

 

 

 

 

 

10,857,991

 

Iowa — 1.8%

 

 

 

 

 

 

 

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

 

 

7,700

 

 

8,143,982

 

Louisiana — 0.7%

 

 

 

 

 

 

 

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

 

 

1,800

 

 

2,036,430

 

Louisiana State Transportation
Authority, RB, CAB, Senior Lien,
Louisiana 1 Project, Series B
(AMBAC), 5.31%, 12/01/27 (b)

 

 

1,335

 

 

538,646

 

Rapides Finance Authority Louisiana,
RB, Cleco Power LLC Project, AMT
(AMBAC), 4.70%, 11/01/36 (d)

 

 

800

 

 

704,520

 

 

 

 

 

 

 

 

 

 

 

 

 

3,279,596

 

Maryland — 0.3%

 

 

 

 

 

 

 

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

 

 

1,190

 

 

1,263,268

 

Massachusetts — 1.8%

 

 

 

 

 

 

 

Massachusetts HFA, RB, AMT (AGM):

 

 

 

 

 

 

 

Rental Mortgage, Series C, 5.60%,
1/01/45

 

 

4,000

 

 

4,033,760

 

S/F Housing, Series 128, 4.80%,
12/01/27 (d)

 

 

2,200

 

 

2,176,900

 

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

 

 

1,800

 

 

1,894,392

 

 

 

 

 

 

 

 

 

 

 

 

 

8,105,052

 

Michigan — 8.5%

 

 

 

 

 

 

 

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

 

 

3,150

 

 

3,104,861

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

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

 

 

8,300

 

 

8,870,376

 

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

 

 

6,000

 

 

6,002,820

 

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

 

 

1,000

 

 

985,870

 

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

 

 

2,140

 

 

2,165,166

 

Michigan Strategic Fund, RB, Detroit
Edison Co. Project, Series C, AMT
(Syncora), 5.45%, 12/15/32

 

 

5,800

 

 

5,575,018

 

Michigan Strategic Fund, Refunding RB,
AMT (Syncora):

 

 

 

 

 

 

 

Detroit Edison Co., Pollution,
Series C, 5.65%, 9/01/29

 

 

1,935

 

 

1,937,922

 

Detroit Edison Co. Project, Series A,
5.50%, 6/01/30

 

 

1,700

 

 

1,657,806

 

 

 

 

 

 

 

 

 

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

 

$

4,191,221

 

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

 

 

3,350

 

 

3,585,773

 

 

 

 

 

 

 

 

 

 

 

 

 

38,076,833

 

Minnesota — 0.7%

 

 

 

 

 

 

 

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

 

 

2,700

 

 

3,036,231

 

Nevada — 8.7%

 

 

 

 

 

 

 

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

 

 

4,100

 

 

3,835,673

 

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

 

 

1,150

 

 

1,273,487

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Southwest Gas Corp. Project,
Series A, AMT (FGIC), 4.75%,
9/01/36

 

 

45

 

 

37,499

 

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

 

 

12,000

 

 

10,860,120

 

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

 

 

2,000

 

 

2,013,340

 

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

 

 

19,100

 

 

19,126,167

 

Las Vegas Valley Water District, GO,
Refunding, Series A (NPFGC), 5.00%,
6/01/24

 

 

2,050

 

 

2,153,935

 

 

 

 

 

 

 

 

 

 

 

 

 

39,300,221

 

New Jersey — 7.2%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax (Radian), 5.75%,
6/15/29

 

 

710

 

 

710,675

 

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

 

 

1,285

 

 

1,252,849

 

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

 

 

20,065

 

 

20,376,208

 

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

 

 

7,500

 

 

7,826,400

 

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

 

 

2,000

 

 

2,367,140

 

 

 

 

 

 

 

 

 

 

 

 

 

32,533,272

 

New York — 1.1%

 

 

 

 

 

 

 

City of New York New York, GO, Series
B (NPFGC), 5.88%, 8/01/10 (c)

 

 

5,000

 

 

5,050,800

 

Ohio – 0.3%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,413,020

 

Pennsylvania — 1.1%

 

 

 

 

 

 

 

Pennsylvania HFA, Refunding RB, AMT:

 

 

 

 

 

 

 

S/F, Series 73A, 5.45%, 10/01/32

 

 

2,120

 

 

2,130,791

 

Series 99A, 5.25%, 10/01/32

 

 

2,000

 

 

2,027,180

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2010

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Pennsylvania (concluded)

 

 

 

 

 

 

 

Pennsylvania Turnpike Commission,
RB, CAB, Sub-Series E, 6.48%,
12/01/38 (a)

 

$

1,100

 

$

792,627

 

 

 

 

 

 

 

 

 

 

 

 

 

4,950,598

 

Puerto Rico — 2.4%

 

 

 

 

 

 

 

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

 

 

4,700

 

 

5,188,988

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.74%,
8/01/41 (b)

 

 

28,000

 

 

4,213,720

 

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

 

 

1,050

 

 

1,133,569

 

 

 

 

 

 

 

 

 

 

 

 

 

10,536,277

 

Texas — 14.5%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,243,450

 

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

 

 

2,850

 

 

3,280,207

 

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

 

 

 

 

 

 

 

5.88%, 11/01/17

 

 

1,835

 

 

1,920,364

 

5.88%, 11/01/18

 

 

2,145

 

 

2,247,531

 

5.88%, 11/01/19

 

 

2,385

 

 

2,465,661

 

Gregg County Health Facilities
Development Corp. Texas, RB, Good
Shepherd Medical Center Project
(Radian) (c):

 

 

 

 

 

 

 

6.38%, 10/01/10

 

 

2,600

 

 

2,652,286

 

6.88%, 10/01/10

 

 

3,000

 

 

3,062,850

 

Harris County-Houston Sports Authority,
Refunding RB, Senior Lien, Series G
(NPFGC), 5.75%, 11/15/20

 

 

3,900

 

 

3,968,952

 

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

 

 

6,150

 

 

3,138,776

 

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

 

 

4,800

 

 

5,100,096

 

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

 

 

2,300

 

 

2,431,192

 

North Texas Tollway Authority,
Refunding RB, First Tier:

 

 

 

 

 

 

 

CAB, System (AGC), 5.73%,
1/01/31 (b)

 

 

10,000

 

 

3,256,900

 

Series A, 6.00%, 1/01/28

 

 

3,380

 

 

3,694,779

 

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

 

 

12,300

 

 

12,803,562

 

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

 

 

 

 

 

 

 

5.75%, 8/15/38

 

 

7,200

 

 

7,321,536

 

5.00%, 8/15/42

 

 

7,000

 

 

6,708,940

 

 

 

 

 

 

 

 

 

 

 

 

 

65,297,082

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Utah — 3.9%

 

 

 

 

 

 

 

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

 

$

15,000

 

$

17,343,600

 

Vermont — 0.4%

 

 

 

 

 

 

 

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

 

 

1,800

 

 

1,843,632

 

Virginia — 0.6%

 

 

 

 

 

 

 

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

 

 

2,715

 

 

2,737,154

 

Washington — 1.7%

 

 

 

 

 

 

 

City of Tacoma Washington, RB
(NPFGC), 5.00%, 12/01/32

 

 

5,100

 

 

5,178,234

 

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

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

1,525

 

 

1,537,703

 

5.25%, 10/01/39

 

 

850

 

 

873,290

 

 

 

 

 

 

 

 

 

 

 

 

 

7,589,227

 

Wisconsin — 0.7%

 

 

 

 

 

 

 

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

 

 

1,850

 

 

1,881,654

 

Wisconsin Housing & EDA, Refunding
RB, Series C, AMT, 4.88%, 3/01/36

 

 

1,480

 

 

1,440,898

 

 

 

 

 

 

 

 

 

 

 

 

 

3,322,552

 

Total Municipal Bonds – 113.3%

 

 

 

 

 

509,456,916

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (f)

 

 

 

 

 

 

 

California — 10.8%

 

 

 

 

 

 

 

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

 

 

1,244

 

 

1,250,364

 

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

 

 

7,000

 

 

7,107,660

 

Golden State Tobacco Securitization
Corp., RB, Enhanced Asset-Backed,
Series B (CIFG), 5.63%, 6/01/13 (c)

 

 

10,000

 

 

11,363,200

 

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

 

 

 

 

 

 

 

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

 

 

6,120

 

 

6,268,838

 

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

 

 

2,639

 

 

2,977,224

 

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

 

 

2,749

 

 

2,805,374

 

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

 

 

509

 

 

542,003

 

San Diego County Water Authority,
COP, Refunding:

 

 

 

 

 

 

 

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

 

 

5,170

 

 

5,368,114

 

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

 

 

9,003

 

 

9,109,976

 

 

 

 

4

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (f)

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

1,950

 

$

2,023,418

 

 

 

 

 

 

 

 

 

 

 

 

 

48,816,171

 

Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

1,220

 

 

1,301,062

 

District of Columbia — 0.3%

 

 

 

 

 

 

 

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

 

 

1,320

 

 

1,494,913

 

Florida — 9.6%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

6,115,440

 

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

 

 

8,728

 

 

8,980,001

 

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

 

 

6,300

 

 

7,022,988

 

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

 

 

2,399

 

 

2,501,436

 

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

 

 

4,310

 

 

4,670,661

 

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

 

 

11,350

 

 

11,808,540

 

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

 

 

2,000

 

 

2,024,800

 

 

 

 

 

 

 

 

 

 

 

 

 

43,123,866

 

Georgia — 3.4%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,218,050

 

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

 

 

10,000

 

 

10,113,000

 

 

 

 

 

 

 

 

 

 

 

 

 

15,331,050

 

Hawaii — 1.4%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

6,149,820

 

Illinois — 3.9%

 

 

 

 

 

 

 

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

 

 

14,429

 

 

15,381,986

 

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

 

 

2,000

 

 

2,183,833

 

 

 

 

 

 

 

 

 

 

 

 

 

17,565,819

 

Massachusetts — 3.9%

 

 

 

 

 

 

 

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

 

 

16,500

 

 

17,307,417

 

Nevada — 1.8%

 

 

 

 

 

 

 

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

 

 

5,007

 

 

5,525,960

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (f)

 

Par
(000)

 

Value

 

Nevada (concluded)

 

 

 

 

 

 

 

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

 

$

2,429

 

$

2,710,686

 

 

 

 

 

 

 

 

 

 

 

 

 

8,236,646

 

New Hampshire — 2.3%

 

 

 

 

 

 

 

New Hampshire Health & Education
Facilities Authority, RB, Dartmouth-
Hitchcock Obligation (AGM), 5.50%,
8/01/27

 

 

10,000

 

 

10,432,300

 

New York — 5.4%

 

 

 

 

 

 

 

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

 

 

2,007

 

 

2,203,727

 

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

 

 

3,509

 

 

3,973,561

 

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

 

 

1,545

 

 

1,758,627

 

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

 

 

14,200

 

 

14,706,088

 

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

 

 

1,500

 

 

1,620,120

 

 

 

 

 

 

 

 

 

 

 

 

 

24,262,123

 

North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

 

2,379

 

 

2,391,260

 

Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

780

 

 

832,439

 

South Carolina — 1.1%

 

 

 

 

 

 

 

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

 

 

4,695

 

 

5,134,358

 

Texas — 2.6%

 

 

 

 

 

 

 

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

 

 

5,900

 

 

6,404,804

 

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

 

 

4,750

 

 

5,037,803

 

 

 

 

 

 

 

 

 

 

 

 

 

11,442,607

 

Virginia — 0.1%

 

 

 

 

 

 

 

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

 

 

450

 

 

478,998

 

Washington — 0.6%

 

 

 

 

 

 

 

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

 

 

2,504

 

 

2,652,616

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 48.2%

 

 

 

 

 

216,953,465

 

Total Long-Term Investments
(Cost – $708,279,354) – 161.5%

 

 

 

 

 

726,410,381

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2010

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 

FFI Institutional Tax-Exempt Fund,
0.21% (g)(h)

 

 

1,676,203

 

$

1,676,203

 

Total Short-Term Securities
(Cost – $1,676,203) – 0.4%

 

 

 

 

 

1,676,203

 

Total Investments
(Cost – $709,955,557*) – 161.9%

 

 

 

 

 

728,086,584

 

Other Assets Less Liabilities – 1.3%

 

 

 

 

 

6,089,975

 

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

 

 

 

 

 

(107,710,119

)

Preferred Shares, at Redemption Value – (39.3)%

 

 

 

 

 

(176,654,596

)

 

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

449,811,844

 

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

602,719,973

 

 

 

 

Gross unrealized appreciation

 

$

25,832,164

 

Gross unrealized depreciation

 

 

(8,060,334

)

 

 

 

Net unrealized appreciation

 

$

17,771,830

 

 

 

 

 

 

(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)

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.

 

 

(d)

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

 

 

(e)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(f)

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

 

 

(g)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
April 30, 2010

 

Net
Activity

 

Shares Held
at July 31,
2010

 

Income

 

FFI Institutional Tax-Exempt Fund

 

 

8,066,496

 

 

(6,390,293

)

 

1,676,203

 

$

3,348

 

 

 

(h)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of July 31, 2010 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Expiration
Date

 

Notional
Value

 

Unrealized
Depreciation

 

90

 

10-Year U.S.
Treasury Bond

 

September
2010

 

$

10,948,865

 

$

(194,260

)

 

 

 

•

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

 

 

 

 

•

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

 

 

 

 

•

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

 

 

 

 

•

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of July 31, 2010 in determining the fair valuation of the Fund’s investments and derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

—

 

$

726,410,381

 

 

—

 

$

726,410,381

 

Short-Term Securities

 

$

1,676,203

 

 

—

 

 

—

 

 

1,676,203

 

Total

 

$

1,676,203

 

$

726,410,381

 

 

—

 

$

728,086,584

 

 

 

1

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Financial Instruments2

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(194,260

)

 

—

 

 

—

 

$

(194,260

)

 

 

2

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

 

 

 

6

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JULY 31, 2010

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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock MuniYield Quality Fund, Inc.
   
  Date: September 27, 2010
   
  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 MuniYield Quality Fund, Inc.
   
  Date: September 27, 2010
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield Quality Fund, Inc.
     
  Date: September 27, 2010