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., 40 East 52nd Street, New York, NY 10022.

 

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

 

Date of fiscal year end: 04/30/2010

 

Date of reporting period: 07/31/2009

 

Item 1 – Schedule of Investments

 


 

 

BlackRock MuniYield Quality Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)



 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama - 2.2%

 

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

 

$

3,000

 

$

1,680,780

 

 

 

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

 

 

7,125

 

 

7,189,553

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

8,870,333

 











Alaska - 1.0%

 

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

 

 

3,925

 

 

4,210,191

 











Arizona - 0.6%

 

Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/32

 

 

2,970

 

 

2,337,093

 











California - 18.7%

 

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

 

 

4,150

 

 

3,134,039

 

 

 

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

 

 

2,200

 

 

314,908

 

 

 

Cabrillo Community College District, California, GO, CAB, Election of 2004, Series B (MBIA), 5.19%, 8/01/37 (b)

 

 

3,250

 

 

509,860

 

 

 

Cabrillo Community College District, California, GO, CAB, Election of 2004, Series B (MBIA), 4.87%, 8/01/38 (b)

 

 

7,405

 

 

1,091,571

 

 

 

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

 

 

3,450

 

 

3,238,860

 

 

 

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

 

 

5,000

 

 

2,813,450

 

 

 

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

 

 

1,200

 

 

1,203,060

 

 

 

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

 

 

5,100

 

 

4,594,692

 

 

 

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

 

 

2,800

 

 

2,311,456

 

 

 

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

 

 

6,110

 

 

6,165,418

 

 

 

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

 

 

1,230

 

 

1,211,144

 

 

 

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

 

 

10,000

 

 

11,407,000

 

 

 

Los Angeles Municipal Improvement Corp., RB, Series B-1 (MBIA), 4.75%, 8/01/37

 

 

3,210

 

 

2,722,626

 











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.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

CAB

Capital Appreciation Bonds

CIFG

CDC IXIS Financial Guaranty

COP

Certificates of Participation

EDA

Economic Development Authority

FGIC

Financial Guaranty Insurance Co.

FSA

Financial Security Assurance Inc.

GAN

Grant Application Notes

GNMA

Government National Mortgage Association

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

MBIA

Municipal Bond Investors Assurance (National Public Finance Guaranty Corp.)

RB

Revenue Bonds

S/F

Single-Family

TAN

Tax Anticipation Notes

1



 

 

BlackRock MuniYield Quality Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)



 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









 

 

Metropolitan Water District of Southern California, RB, Authority, Series B-1 (MBIA), 5.00%, 10/01/29

 

$

4,000

 

$

4,079,560

 

 

 

Metropolitan Water District of Southern California, RB, Authority, Series B-1 (MBIA), 5.00%, 10/01/36

 

 

2,275

 

 

2,279,072

 

 

 

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

 

 

2,000

 

 

1,937,800

 

 

 

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

 

 

2,750

 

 

2,654,190

 

 

 

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

 

 

3,500

 

 

3,447,080

 

 

 

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

 

 

1,200

 

 

1,173,708

 

 

 

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

 

 

2,405

 

 

2,246,751

 

 

 

Poway Redevelopment Agency, California, TAN, Paguay Redevelopment Project (AMBAC), 5.13%, 6/15/33

 

 

2,000

 

 

1,605,020

 

 

 

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

 

 

2,500

 

 

2,461,650

 

 

 

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

 

 

10,000

 

 

5,402,500

 

 

 

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

 

 

2,825

 

 

2,775,252

 

 

 

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

 

 

2,725

 

 

2,759,008

 

 

 

State of California, GO, 5.13%, 6/01/27

 

 

30

 

 

29,876

 

 

 

State of California, GO, 5.50%, 4/01/28

 

 

5

 

 

5,057

 

 

 

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

 

 

3,150

 

 

3,101,711

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

76,676,319

 











Colorado - 1.0%

 

Colorado Health Facilities Authority, RB, Insured, Covenant Retirement Community, Series A (Radian), 5.50%, 12/01/27

 

 

1,600

 

 

1,333,872

 

 

 

Colorado Health Facilities Authority, RB, Insured, Covenant Retirement Community, Series A (Radian), 5.50%, 12/01/33

 

 

900

 

 

705,735

 

 

 

E-470 Public Highway Authority, Colorado, RB, CAB, Series B (MBIA), 5.51%, 9/01/29 (b)

 

 

9,000

 

 

2,016,000

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

4,055,607

 











District of Columbia - 0.1%

 

District of Columbia, RB, Catholic University (AMBAC), 5.63%, 10/01/29

 

 

570

 

 

576,213

 











Florida - 5.9%

 

City of Miami Florida, RB, Miami Revenues (MBIA), 5.00%, 1/01/37

 

 

1,100

 

 

999,449

 

 

 

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

 

 

3,100

 

 

2,990,880

 

 

 

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

 

 

3,300

 

 

3,631,782

 

 

 

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

 

 

8,200

 

 

6,815,676

 

 

 

County of Miami-Dade Florida, RB, Miami International Airport, Series A (CIFG), AMT, 5.00%, 10/01/38

 

 

2,900

 

 

2,346,941

 

2



 

 

BlackRock MuniYield Quality Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)



 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









 

 

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

 

$

2,200

 

$

2,175,338

 

 

 

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

 

 

2,545

 

 

2,550,344

 

 

 

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

 

 

2,700

 

 

2,814,156

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

24,324,566

 











Georgia - 1.5%

 

City of Atlanta Georgia, RB, Series A (MBIA), 5.00%, 11/01/33

 

 

1,200

 

 

1,064,352

 

 

 

City of Atlanta Georgia, RB, Series A (MBIA), 5.00%, 11/01/39

 

 

2,525

 

 

2,166,526

 

 

 

City of Augusta Georgia, RB (FSA), 5.25%, 10/01/39

 

 

2,820

 

 

2,850,259

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

6,081,137

 











Hawaii - 0.5%

 

State of Hawaii, GO, Series CX (FSA), 5.50%, 2/01/21

 

 

2,000

 

 

2,131,060

 











Illinois - 21.7%

 

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

 

 

2,000

 

 

2,190,620

 

 

 

City of Chicago Illinois, RB, General, Airport 3rd Lien, Series B-2, AMT (Syncora), 6.00%, 1/01/29

 

 

3,300

 

 

3,318,810

 

 

 

City of Chicago Illinois, RB, General, Airport 3rd Lien, Series B-2 (FSA), AMT, 5.75%, 1/01/23

 

 

3,400

 

 

3,439,372

 

 

 

City of Chicago Illinois, RB, General, Airport 3rd Lien, Series B-2 (FSA), AMT, 5.75%, 1/01/24

 

 

4,000

 

 

4,040,080

 

 

 

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

 

 

4,000

 

 

3,910,800

 

 

 

City of Chicago Illinois, Refunding RB, General Airport Third Lien, Series A (MBIA), AMT, 5.75%, 1/01/21

 

 

13,665

 

 

13,688,640

 

 

 

City of Chicago Illinois, Refunding RB, General Airport Third Lien, Series A (MBIA), AMT, 5.50%, 1/01/22

 

 

5,000

 

 

4,907,250

 

 

 

City of Chicago Illinois, Refunding RB, General Airport Third Lien, Series A (MBIA), AMT, 5.38%, 1/01/32

 

 

12,500

 

 

11,079,875

 

 

 

City of Chicago Illinois, Refunding RB, General, Series Airport, 3rd Lien, Series A-2 (FSA), AMT, 5.75%, 1/01/21

 

 

2,665

 

 

2,705,268

 

 

 

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

 

 

5,080

 

 

5,804,408

 

 

 

Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.52%, 6/15/30 (a)

 

 

28,525

 

 

26,721,364

 

 

 

Metropolitan Pier & Exposition Authority, Illinois, RB, McCormick Place Expansion Project (MBIA), 5.50%, 12/15/24

 

 

7,000

 

 

7,135,380

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

88,941,867

 











Indiana - 2.4%

 

Indiana Municipal Power Agency, Indiana, RB, Indiana Municipal Power Agency Series B, 5.75%, 1/01/34

 

 

550

 

 

556,479

 

 

 

Indiana Municipal Power Agency, Indiana, RB, Series A (MBIA), 5.00%, 1/01/37

 

 

2,750

 

 

2,627,488

 

 

 

Indianapolis Local Public Improvement Bond Bank, RB, Airport Authority Project, Series B (MBIA), AMT, 5.25%, 1/01/28

 

 

2,370

 

 

2,203,294

 

 

 

Indianapolis Local Public Improvement Bond Bank, RB, Airport Authority Project, Series B (MBIA), AMT, 5.25%, 1/01/30

 

 

5,055

 

 

4,617,389

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

10,004,650

 











3



 

 

BlackRock MuniYield Quality Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)



 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









Iowa - 1.2%

 

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

 

$

4,825

 

$

4,801,261

 











Louisiana - 1.7%

 

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Capital Projects & Equipment Acquisition, Series A (AMBAC), 6.30%, 7/01/30

 

 

1,450

 

 

1,401,251

 

 

 

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

 

 

1,800

 

 

1,978,020

 

 

 

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

 

 

4,675

 

 

1,647,657

 

 

 

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

 

 

800

 

 

578,136

 

 

 

State of Louisiana, RB, Series A (FSA), 4.75%, 5/01/39

 

 

1,500

 

 

1,457,985

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

7,063,049

 











Maryland - 0.4%

 

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

 

 

1,725

 

 

1,765,037

 











Massachusetts - 2.5%

 

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

 

 

4,000

 

 

3,897,640

 

 

 

Massachusetts Housing Finance Agency, Massachusetts, RB, S/F Housing, Series 128 (FSA), AMT, 4.80%, 12/01/27

 

 

2,200

 

 

2,049,850

 

 

 

Massachusetts Port Authority, RB, Delta Air Lines Inc. Project, Series A (AMBAC), AMT, 5.50%, 1/01/19

 

 

3,825

 

 

2,682,434

 

 

 

Massachusetts State Water Resource Authority, General Refunding RB, Series A, 5.00%, 8/01/34

 

 

1,800

 

 

1,810,620

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

10,440,544

 











Michigan - 7.6%

 

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

 

 

8,300

 

 

8,574,149

 

 

 

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

 

 

4,650

 

 

3,950,547

 

 

 

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

 

 

2,140

 

 

2,032,615

 

 

 

Michigan Strategic Fund, Refunding RB, Detroit Edison Co. Project, Series A (Syncora), AMT, 5.50%, 6/01/30

 

 

1,700

 

 

1,479,357

 

 

 

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

 

 

5,800

 

 

4,925,186

 

 

 

Michigan Strategic Fund, Refunding RB, Detroit Edison Poll, Series C, AMT (Syncora), 5.65%, 9/01/29

 

 

3,300

 

 

2,943,633

 

 

 

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

 

 

3,510

 

 

3,959,526

 

 

 

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

 

 

3,350

 

 

3,396,230

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

31,261,243

 











Minnesota - 1.0%

 

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

 

 

3,665

 

 

3,992,394

 

 

 

Dakota County Community Development Agency, RB, Mortgage, Backed Securities Program, Series B (GNMA), AMT, 5.15%, 12/01/38

 

 

169

 

 

169,715

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

4,162,109

 











4



 

 

BlackRock MuniYield Quality Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)



 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









Nebraska - 0.6%

 

County of Washington Nebraska, RB, Cargill Inc. Project, AMT, 5.90%, 11/01/27

 

$

2,300

 

$

2,298,482

 











Nevada - 8.7%

 

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

 

 

4,100

 

 

3,226,126

 

 

 

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

 

 

1,150

 

 

1,212,767

 

 

 

County of Clark Nevada, RB, Southwest Gas Corp. Project, Series A (FGIC), AMT, 4.75%, 9/01/36

 

 

45

 

 

33,079

 

 

 

County of Clark Nevada, RB, Southwest Gas Corp. Project, Series D (MBIA), AMT, 5.25%, 3/01/38

 

 

12,000

 

 

9,505,200

 

 

 

County of Clark Nevada, RB, Subordinate Lien, Series A-2 (MBIA), 5.00%, 7/01/30

 

 

2,000

 

 

1,927,060

 

 

 

County of Clark Nevada, RB, Subordinate Lien, Series A-2 (MBIA), 5.00%, 7/01/36

 

 

19,100

 

 

17,565,124

 

 

 

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

 

 

2,050

 

 

2,075,707

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

35,545,063

 











New Hampshire - 1.1%

 

New Hampshire Business Finance Authority, New Hampshire, Refunding RB, Public Service Co., Series D (MBIA), AMT, 6.00%, 5/01/21

 

 

4,600

 

 

4,573,090

 











New Jersey - 7.7%

 

New Jersey EDA, RB, Cigarette Tax (Radian), 5.75%, 6/15/29

 

 

710

 

 

590,649

 

 

 

New Jersey EDA, RB, Cigarette Tax (Radian), 5.50%, 6/15/31

 

 

1,285

 

 

1,024,620

 

 

 

New Jersey EDA, RB, Motor Vehicle Surcharge Revenue, Series A (MBIA), 5.25%, 7/01/31

 

 

20,065

 

 

19,857,929

 

 

 

New Jersey EDA, RB, School Facilities Construction, Series O, 5.13%, 3/01/28

 

 

2,660

 

 

2,710,912

 

 

 

New Jersey EDA, RB, School Facilities Construction, Series O, 5.13%, 3/01/30

 

 

7,500

 

 

7,592,175

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

31,776,285

 











New York - 3.9%

 

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

 

 

10,000

 

 

10,641,600

 

 

 

Tobacco Settlement Financing Corp., New York, RB, Asset Backed, Series A-4 (AMBAC), 5.25%, 6/01/22

 

 

3,570

 

 

3,657,893

 

 

 

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

 

 

1,500

 

 

1,544,325

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

15,843,818

 











Pennsylvania - 1.0%

 

Pennsylvania HFA, RB, S/F, Series 73A, AMT, 5.45%, 10/01/32

 

 

2,120

 

 

2,086,949

 

 

 

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

 

 

2,000

 

 

1,917,120

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

4,004,069

 











Puerto Rico - 1.7%

 

Puerto Rico Electric Power Authority, Refunding RB, Series VV (MBIA), 5.25%, 7/01/30

 

 

2,400

 

 

2,302,824

 

 

 

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

 

 

4,700

 

 

4,874,041

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

7,176,865

 











South Carolina - 1.6%

 

Berkeley County School District, RB, Securing Assets For Education, 5.13%, 12/01/30

 

 

3,750

 

 

3,732,862

 

5



 

 

BlackRock MuniYield Quality Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)



 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









 

 

County of Kershaw South Carolina, RB, Kershaw County School District Project (CIFG), 5.00%, 12/01/29

 

$

3,000

 

$

2,954,640

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

6,687,502

 











Tennessee - 0.9%

 

Tennessee Energy Acquisition Corp., Tennessee, RB, Series A, 5.25%, 9/01/26

 

 

4,035

 

 

3,587,599

 











Texas - 15.0%

 

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

 

 

1,000

 

 

1,246,200

 

 

 

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

 

 

2,850

 

 

3,130,981

 

 

 

Dallas-Fort Worth International Airport Facilities Improvement Corp., RB, Refunding & Improvement, Series A (MBIA), AMT, 5.88%, 11/01/17

 

 

1,835

 

 

1,900,032

 

 

 

Dallas-Fort Worth International Airport Facilities Improvement Corp., RB, Refunding & Improvement, Series A (MBIA), AMT, 5.88%, 11/01/18

 

 

2,145

 

 

2,209,736

 

 

 

Dallas-Fort Worth International Airport Facilities Improvement Corp., RB, Refunding & Improvement, Series A (MBIA), AMT, 5.88%, 11/01/19

 

 

2,385

 

 

2,450,373

 

 

 

Gregg County Health Facilities Development Corp., Texas, RB, Good Shepherd Medical Center Project (Radian), 6.38%, 10/01/10 (c)

 

 

2,600

 

 

2,776,904

 

 

 

Gregg County Health Facilities Development Corp., Texas, RB, Good Shepherd Medical Center Project (Radian), 6.88%, 10/01/10 (c)

 

 

3,000

 

 

3,221,220

 

 

 

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

 

 

3,900

 

 

3,867,084

 

 

 

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

 

 

6,150

 

 

2,764,548

 

 

 

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

 

 

4,800

 

 

4,793,232

 

 

 

Mansfield ISD, Texas, GO, School Building, 5.00%, 2/15/33

 

 

2,300

 

 

2,334,569

 

 

 

North Harris County Regional Water Authority, RB, Senior Lien (MBIA), 5.13%, 12/15/35

 

 

3,060

 

 

3,001,248

 

 

 

North Texas Tollway Authority, Refunding RB, System, 1st (MBIA), 5.75%, 1/01/40

 

 

12,300

 

 

12,246,741

 

 

 

North Texas Tollway Authority, Refunding RB, System, First Tier, Series A, 6.00%, 1/01/25

 

 

450

 

 

473,639

 

 

 

Texas State Turnpike Authority, RB, First Tier, Series A (AMBAC), 5.75%, 8/15/38

 

 

7,200

 

 

6,953,688

 

 

 

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

 

 

10,000

 

 

8,318,100

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

61,688,295

 











Utah - 4.3%

 

City of Salt Lake City Utah, RB, IHC Hospitals Inc. (MBIA), 6.30%, 2/15/15 (d)

 

 

15,000

 

 

17,500,950

 











Vermont - 0.5%

 

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

 

 

1,975

 

 

1,921,636

 











6



 

 

BlackRock MuniYield Quality Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)



 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









Washington - 2.0%

 

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

 

$

5,100

 

$

5,107,395

 

 

 

County of King Washington, GO, Sewer (MBIA), 5.00%, 1/01/35

 

 

100

 

 

100,278

 

 

 

Port of Tacoma Washington, RB, Series A (AMBAC), 5.25%, 12/01/14 (c)

 

 

2,400

 

 

2,806,296

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

8,013,969

 











 

 

Total Municipal Bonds - 119.0%

 

 

 

 

 

488,319,902

 











 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 











California - 8.9%

 

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

 

 

1,244

 

 

1,229,473

 

 

 

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

 

 

14,160

 

 

16,217,731

 

 

 

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

 

 

2,639

 

 

2,839,628

 

 

 

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

 

 

509

 

 

516,834

 

 

 

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

 

 

5,170

 

 

5,064,015

 

 

 

San Diego County Water Authority, COP, Series A (MBIA), 5.00%, 5/01/32

 

 

9,003

 

 

8,834,576

 

 

 

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

 

 

1,950

 

 

1,895,478

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

36,597,736

 











District of Columbia - 0.3%

 

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

 

 

1,320

 

 

1,419,000

 











Florida - 6.0%

 

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

 

 

6,300

 

 

6,440,994

 

 

 

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

 

 

2,399

 

 

2,391,612

 

 

 

JEA, RB, Sub-Series A, 5.63%, 10/01/32

 

 

4,310

 

 

4,418,009

 

 

 

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

 

 

11,350

 

 

11,471,558

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

24,722,173

 











Georgia - 3.7%

 

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

 

 

10,000

 

 

9,917,800

 

 

 

City of Augusta, Georgia, RB (FSA), 5.25%, 10/01/34

 

 

5,000

 

 

5,069,550

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

14,987,350

 











Illinois - 5.0%

 

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

 

 

14,428

 

 

14,617,484

 

 

 

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

 

 

2,000

 

 

2,091,333

 

 

 

Metropolitan Pier & Exposition Authority, Illinois, Refunding RB, McCormick Place Expansion, Series B (MBIA), 5.75%, 6/15/23

 

 

3,499

 

 

3,689,221

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

20,398,038

 











Massachusetts - 4.1%

 

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

 

 

16,500

 

 

16,748,232

 











7



 

 

BlackRock MuniYield Quality Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)



 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)

 

Par
(000)

 

Value

 









Nevada - 1.9%

 

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

 

$

5,007

 

$

5,243,246

 

 

 

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

 

 

2,429

 

 

2,564,327

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

7,807,573

 











New Hampshire - 2.5%

 

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

 

 

10,000

 

 

10,154,400

 











New Jersey - 2.3%

 

New Jersey EDA, RB, Cigarette Tax (AGC), 5.50%, 6/15/24

 

 

7,150

 

 

7,168,304

 

 

 

New Jersey EDA, RB, Cigarette Tax (AGC), 5.50%, 6/15/31

 

 

2,400

 

 

2,399,832

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

9,568,136

 











New York - 4.3%

 

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

 

 

2,007

 

 

2,096,633

 

 

 

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

 

 

3,509

 

 

3,759,311

 

 

 

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

 

 

1,545

 

 

1,660,659

 

 

 

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

 

 

10,000

 

 

9,946,200

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

17,462,803

 











South Carolina - 1.2%

 

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

 

 

4,695

 

 

4,937,825

 











Texas - 2.6%

 

Clear Creek ISD, Texas, GO, Refunding, School Building, 5.00%, 2/15/33

 

 

5,900

 

 

6,033,016

 

 

 

Cypress-Fairbanks ISD, GO, Refunding, Schoolhouse, 5.00%, 2/15/32

 

 

4,750

 

 

4,839,490

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

10,872,506

 











Virginia - 0.9%

 

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

 

 

450

 

 

457,479

 

 

 

Virginia HDA, RB, Series H, Sub-Series H1 (MBIA), 5.35%, 7/01/31

 

 

3,195

 

 

3,214,458

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

3,671,937

 











Washington - 0.6%

 

Central Puget Sound Regional Transportation Authority, Washington, RB, Series A (FSA), 5.00%, 11/01/32

 

 

2,504

 

 

2,521,129

 











 

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts - 44.3%

 

 

 

 

 

181,868,838

 











 

 

Total Long-Term Investments
(Cost - $687,973,848) - 163.3%

 

 

 

 

 

670,188,740

 










 

 

Short-Term Securities

 

Shares

 

 

 

 










 

 

FFI Institutional Tax-Exempt Fund, 0.42% (f)(g)

 

 

9,600,000

 

 

9,600,000

 











 

 

Total Short-Term Securities
(Cost - $9,600,000) - 2.4%

 

 

 

 

 

9,600,000

 











8


 

 

BlackRock MuniYield Quality Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)




 

 

 

 

 

 

 

 

 

Value

 


 

Total Investments (Cost - $697,573,848*) - 165.7%

 

$

679,788,740

 

 

Other Assets Less Liabilities - 1.3%

 

 

5,242,310

 

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable - (23.2)%

 

 

(94,987,633

)

 

Preferred Shares, at Redemption Value - (43.8)%

 

 

(179,738,461

)

 

 

 




 

Net Assets Applicable to Common Shares - 100.0%

 

$

410,304,956

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

602,929,468

 

 

 




Gross unrealized appreciation

 

$

14,541,371

 

Gross unrealized depreciation

 

 

(32,549,443

)

 

 




Net unrealized depreciation

 

$

(18,008,072

)

 

 





 

 

(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 effective 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)

Security is collateralized by Municipal or US Treasury Obligations.

 

 

(e)

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.

 

 

(f)

Represents the current yield as of report date.

 

 

(g)

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


 

 

 

 

 

 

 

 









Affiliate

 

Net Activity

 

Income

 







FFI Institutional Tax-Exempt Fund

 

 

(1,309,154

)

$

14,069

 










 

 

 

 

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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

 

 

 

 

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

 

 

 

The inputs or methodology 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.

9



 

BlackRock MuniYield Quality Fund, Inc.

 

Schedule of Investments July 31, 2009 (Unaudited)



 

 

 

The following table summarizes the inputs used as of July 31, 2009 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 







Valuation

 

 

Investments in

 

Inputs

 

 

Securities

 






 

 

Assets

 

 

 



Level 1 - Short-Term Securities

 

$

9,600,000

 

Level 2 - Long-Term Investments1

 

 

670,188,740

 

Level 3

 

 

 






Total

 

$

679,788,740

 

 

 





 

 

 

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

10


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 13(a)-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 22, 2009
   
  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 22, 2009
   
 

By:

/s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield Quality Fund, Inc.
   
  Date: September 22, 2009